Sustainability performance of multinational companies in Malaysia

Abstract

This study investigated the influence of market environment, cultural distance, government policy, and absorptive capacity on international intra-firm technology transfer and organizational sustainability performance among subsidiaries of foreign-based multinational corporations (MNCs) in Malaysia. Quantitative data was collected from randomly selected 252 MNC-Subsidiaries in Malaysia. Data analysis revealed that market environment, determined by market dynamism and competitors' intensity; cultural distance determined by national and organizational cultural distance; along with absorptive capacity, captured by the constructs of ability and motivation have a significant positive effect on intra-firm technology transfer. The study also revealed a significant positive influence of intra-firm technology transfer on organizational sustainability performance across the sample. Furthermore, the results showed a significant indirect effect of market environment, cultural distance, and absorptive capacity on sustainability performance through (mediation) intra-firm technology transfer. The results of this study could serve as a specific reference for policymakers of rapidly emerging economies in order to strengthen policies for a more dynamic, competitive, market and support their citizens to acquire relevant education, skills, and cultural awareness that would enhance technological inflows leading towards improved organizational sustainability.