Belt and Road Initiative Investments and ESG Performance of Chinese Multinationals: A Dynamic Capabilities Perspective

Abstract

Drawing on dynamic capabilities theory, this study examines how Chinese multinational enterprises' (MNEs) investments in Belt and Road Initiative (BRI) countries influence their ESG performance in the home country. Using a panel of 1,460 publicly listed Chinese MNEs from 2018-2022, this paper finds that BRI investment breadth and depth positively affect ESG performance. R&D intensity strengthens this relationship, while environmental dynamism weakens it. The findings advance understanding of how internationalization fosters sustainability in dynamic global contexts, with implications for MNE strategy in Asia-Pacific emerging markets.