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Actions speak, signals guide: ESG performance and firms' overseas R&D

Xi Zhong et al.

International Marketing Review2026https://doi.org/10.1108/imr-02-2025-0050article
AJG 3ABDC A
Weight
0.50

Abstract

Purpose Integrating signaling theory and legitimacy theory, this study aims to explore how and under what conditions environmental, social and governance (ESG) performance influences firms’ overseas research and development (R&D). This critical research question has received limited attention in the literature to date. Design/methodology/approach We constructed a large dataset based on Chinese listed companies from 2007–2023 to test our theoretical views. Findings First, ESG performance positively affects firms’ overseas R&D, especially overseas R&D breadth. Second, an ESG performance surplus has a positive effect on moderating the relationship between ESG performance and firms’ overseas R&D. Third, the signaling effect of ESG performance on firms' overseas R&D is weakened when firms experienced environmental violations in the previous period. Fourth, state-owned enterprises (SOEs) have a negative effect on moderating the relationship between ESG performance and firms’ overseas R&D. Originality/value First, by positioning ESG performance as a prerequisite for firms' overseas R&D, this study introduces a novel factor into the overseas R&D literature, highlighting the strategic role of ESG performance in cross-border innovation activities. Second, it expands the ESG literature by exploring whether ESG performance functions as a “global language,” influencing corporate decisions regarding the global allocation of innovation resources. This represents a significant step forward, as it reveals the impact of ESG performance on firms' overseas R&D. Finally, by examining the moderating role of the organizational signaling environment, this study provides a more nuanced understanding of the boundary conditions under which ESG performance influences overseas R&D. In doing so, it also broadens the scope of signaling theory, enhancing its explanatory and predictive power, particularly in the realm of overseas R&D.

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https://doi.org/https://doi.org/10.1108/imr-02-2025-0050

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@article{xi2026,
  title        = {{Actions speak, signals guide: ESG performance and firms' overseas R&D}},
  author       = {Xi Zhong et al.},
  journal      = {International Marketing Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/imr-02-2025-0050},
}

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Actions speak, signals guide: ESG performance and firms' overseas R&D

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.