Gulf University for Science and Technology, Kuwait
Previous research on organizational agility and environmental sustainability has primarily focused on multinational enterprises (MNEs) from developed countries (DC MNEs), with a limited understanding of environmental sustainability practices across different types of subsidiaries, i.e., emerging country MNEs (EC MNEs) and indigenous firms. This study investigates the critical role of operational agility in fostering environmental sustainability through collaboration with supply chain partners, specifically examining subsidiaries of DC MNEs, EC MNEs, and stand-alone indigenous firms within a single-country setting to control for host-country environmental factors. Drawing on data from 249 DC MNE subsidiaries, 101 EC MNE subsidiaries, and 351 indigenous firms operating in Turkey, our findings underscore the positive impact of operational agility on environmental collaboration across all firm types. However, the extent of this impact is influenced by the moderating effects of informal organizational structure and environmental turbulence. Specifically, both DC MNEs and EC MNE subsidiaries benefit significantly from informal organizational structure in engaging suppliers, whereas indigenous firms remain largely unaffected. Additionally, environmental turbulence enhances the relationship between DC MNE subsidiaries' agility and their supplier collaborations on environmental initiatives. This research deepens the understanding of how operational agility interacts with different organizational contexts to influence environmental sustainability. While firms are the primary actors at the forefront of addressing environmental sustainability in supply chains, we highlight the role of government that enables proactive collaborations between diverse stakeholders is critical. Our study offers strategic insights for firms in emerging markets and provides policy recommendations to enhance environmental sustainability across supply chains.
