Superior ESG performance and corporate R&D internationalization: evidence from China
Abstract
Amid intensifying global technological competition and shorter innovation cycles, R&D internationalization is critical for firms to optimize global innovation resource allocation. Meanwhile, growing demands for environmental governance and social inclusion have made sustainable business models an international consensus. Given China’s ESG context, establishing a credible ESG competitive advantage is pivotal to enhancing corporate R&D internationalization. Using a sample of Chinese A share listed firms over 2009–2023, this study defines and measures superior ESG performance from a life cycle peer perspective, then examines its effect, mechanisms and contextual heterogeneity on corporate R&D internationalization. First, superior ESG performance promotes the depth and breadth of corporate R&D internationalization. Second, it acts through four channels: increasing common ownership, facilitating digital transformation, alleviating investment-financing maturity mismatches and attracting analyst attention. Third, ESG disclosure, industry-finance cooperation and artificial intelligence policies strengthen the promotional effect of superior ESG performance on corporate R&D internationalization, reflecting positive policy synergy. This study extends research on R&D internationalization determinants and fills the gap regarding the mechanisms of firm-level superior ESG performance. It also identifies the positive role of external institutional supply in emerging markets, offering practical implications for improving ESG systems and promoting R&D internationalization in developing economies similar to China.