Sustainability effects of locally embedded Swiss-MNE’s in developing countries

Constantine Bartel and Isabelle Schluep Campo

Abstract

This introductory paper explains the origins of the embeddedness concept and defines what it means in the context of the operations of multinational enterprises (MNEs) in developing countries. It shows how embeddedness can be perceived as a precondition for the creation of positive sustainability effects.

The paper outlines an overarching approach to assess corporate responsibility and sustainability of MNEs by measuring benefits to communities, the environment and the economy in their region of operation. It shows how a social network of embedded ties creates value through mechanisms such as trust, or knowledge transfer.

Different dimensions of embeddedness such as social, economic, technological, temporal, relational, structural, or environmental embeddedness are considered based on literature. Within these dimensions, a set of indicators are proposed and motivated to capture the extent and quality of local embeddedness and the potential positive sustainability effects of locally embedded Swiss based MNEs.

Keywords: multinational enterprises, embeddedness dimensions, positive sustainability effects, region, social network

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