MNE innovation in the pursuit of SDGs in emerging markets

Abstract

PurposeThe purpose of this study is to examine how different innovation efforts can support multinational enterprises’ (MNEs’) pursuits of sustainable development goals (SDGs) in emerging markets and under what circumstances they are applied.Design/methodology/approachThe article comprises in-depth case studies on two high-profile Swedish MNEs: a telecom firm and a fast-fashion firm, with data collected both at the headquarter-level and local-market level.FindingsThe study shows that MNEs pursue a selection of prioritized SDGs in emerging markets. To overcome challenges related to attaining these goals, we find that MNEs engage in innovation efforts at different levels of commitment. In some instances, they engage in operational innovation aimed at relieving symptoms of sustainability misconduct and ensuring compliance. In other instances, they engage in systemic innovation efforts, which involve the actual market structures underlying sustainability problems.Originality/valueMNEs are increasingly incorporating the United Nations SDGs into their innovation strategies. The study contributes to international business research on MNEs’ roles in realizing the SDGs by conceptualizing and discussing two pertinent approaches to innovation.