Choice and control of international joint venture partners to improve corporate environmental performance

International joint ventures facilitate foreign direct investment in emerging economy markets. Research on their performance has typically focused on return-on-investment and profitability but non-financial measures such as environmental performance have gained importance, given the increasing recognition of sustainable development principles in society. This study is based on a survey of international joint ventures operating in the oil, gas and chemical sectors of the small emerging economy of Trinidad and Tobago. Of particular interest is how pre-formation partner selection and post-formation internal organizational control influence the international joint venture's overall corporate environmental responsibility. Findings suggest that liability of foreignness, degree of equity control by partners and control over leadership appointments are all statistically significant influences on corporate environmental responsibility. This study shows that choice of business partner is important, but how control is shared between partners also influences decision-making processes that ultimately impact environmental performance. (C) 2014 Elsevier Ltd. All rights reserved.