¹University of Amsterdam Business School, The Netherlands

Correspondence: Ans Kolk, University of Amsterdam Business School, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands. Tel: +31 20 525 4289; Fax: +31 20 525 5281; E-mail: akolk@uva.nl

Received 7 July 2006; Revised 4 May 2007; Accepted 5 September 2007; Published online 28 August 2008.

Abstract

This paper explores whether and how an important environmental issue such as climate change can not only give multinational enterprises the opportunity to develop "green" firm-specific advantages (FSAs), but also help reconfigure key FSAs that are viewed as the main sources of firms' profitability, growth, and survival. We examine the nature and geography of such FSA development, and develop two organizing frameworks, which are subsequently applied to climate change, using information from Global 500 firms. Implications and future directions for international business research are indicated.