The Effects of International Orientation on the Dimensions of the Environmental Performance of Agri-Food Companies: A Chilean Perspective

Like other Latin American economies, Chile has significantly increased its presence in international agriculture markets. Agricultural commodities are primarily developed within specialized exporters or multinational enterprises and exported to several different countries. In Chile, the fruit sector accounts for almost half of total exports. Internationally oriented companies explore business opportunities in foreign markets and invest adequate resources in international operations. In addition, more internationally oriented companies could be more inclined to invest in green practices due to external pressures and, consequently, achieve higher environmental performance. In this context, environmental performance is related to the extent to which available natural resources are protected during the production, delivery, and consumption of agricultural products. To the best of our knowledge, there is scattered evidence of the relationship between international orientation and the environmental performance of agri-food companies, especially in Latin America. Grounded on the natural resources-based view theory, this study assessed the effects of environmental collaboration on five dimensions of environmental performance (greenhouse gas emissions, energy efficiency, food loss and waste, food quality and safety, and water footprint management) in agri-food companies with a survey with Chilean firms. Data were analyzed using the partial least square-structural equation modeling. We found that international orientation positively influences all five dimensions of environmental performance. Our study identified that the dimension most impacted by international orientation is water footprint management, and the least impacted is food quality and safety. With the aid of multi-group analysis, we concluded that there are no significant differences in these relationships between micro/small and medium/large companies. A significant difference was observed in food loss and waste between fruit and nonfruit producers. We expect the outcomes of this study will support exporting-related decisions and public policies in Latin America.