Foreign direct investment strategies and corporate social performance in emerging multinational enterprises: driving sustainability amidst supply chain restructuring

Purpose – This study suggests that suppliers utilize supply chain restructuring opportunities to improve sustainability. Specifically, the study aims to investigate the links between a firm’s foreign direct investments (FDIs) and its corporate social performance (CSP), drawing on perspectives from linkage–leverage–learning and organizational resilience within emerging market multinational enterprises (EMNEs). The findings aim to help companies identify or become more sustainable suppliers in their global supply chains, thereby promoting sustainability. Design/methodology/approach – The factors contributing to CSP were explored using official data from Taiwan, an emerging supplier-oriented economy. Data from 423 companies were analyzed with multiple regression analysis. Findings – The results reveal that supply chain linkage, R&D linkage, internationalization breadth and resilient internationalization (regarding market proximity and environmental adaptability) positively affect CSP. Conversely, internationalization depth negatively affects CSP. Originality/value – This paper extends the literature on CSR in internationalization by investigating under-addressed categories, such as subsidiary-headquarter relations, transfer of knowledge and FDI, within the intricacies of industrial relationships. This study also empirically identifies factors contributing to CSP using official data from Taiwan, an emerging economy, revealing an iterative organizational learning effect between CSP and internationalization.