Research Seminar
[Brown Bag] The Path Less Traveled: Rethinking Firm Environmental Practices Beyond External Pressures by Prof. Narae LEE, KAIST School of Business and Technology Management
| Abstract: | Abstract: The study of firm pollution has been a focal point of research across disciplines. While management literature has predominantly emphasized the role of external pressures from stakeholders—such as NGOs, activists, and communities—in shaping environmental practices, fewer studies have explored the operational drivers of firm pollution. This paper challenges the dominance of the external pressures framework by advancing an operational perspective that views pollution as a by-product of inefficient manufacturing processes. Using fine-grained facility pollution data from the U.S. Environmental Protection Agency, we find that pollution decreases when a facility is acquired by a foreign firm. However, this reduction is not driven by heightened external scrutiny associated with the Liability of Foreignness (LOF). Instead, it stems from operational challenges during the integration process, which lead to temporary production declines. This relationship between foreign ownership and pollution reduction is more pronounced when the acquiring firm originates from a more administratively distant country, further underscoring the operational nature of the effect. Our findings broaden the understanding of firm environmental performance by offering an alternative perspective that complements stakeholder-centric theories while addressing gaps in the literature on the operational implications of the LOF. |
| Date: | Dec 4 (Wed), 2024 3:30 pm - 5:05 pm |
| Time: | 3:30PM - 5:05PM |
| Venue: | 6-208, Level 6, Lau Ming Wai Academic Building (LAU) |
| Details: | Speaker bio: Narae holds the position of Assistant Professor at the School of Business and Technology Management at the Korea Advanced Institute of Science and Technology. She is also affiliated with the Graduate School of Green Growth and Sustainability. Narae’s primary research interests lie in the realm of non-market strategy, with a specific focus on examining how both internal and external factors influence firm’s social performance. Prior to her academic journey, Narae gained valuable experience across diverse sectors, spanning both the private and public domains. This included leading energy efficiency initiatives for small and medium-sized enterprises at the Inter-American Development Bank in Washington DC. Narae holds a Bachelor’s degree in Business from Seoul National University (SNU) in Korea, a Master’s degree with a concentration in international trade law from Institut de hautes études internationales et du développement in Switzerland, a Master of Science degree in climate and energy policy from Johns Hopkins University in the United States, and a doctoral degree in management from the Carlson School of Management at the University of Minnesota. |
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