What drives eco- innovation process at the subsidiary level of MNCs? Command-based, market-based, or mixed-approach policy instrument?

The aim of this paper is to extend our understanding about multinational companies’ (MNCs) eco- innovation practices and the process of eco- innovation in overseas subsidiaries. We conduct a critical review of studies drawing on literature from environmental economics, evolutionary economics, environmental innovation, and management research. We analyse environmental policy research due to its most relevance to environmental management practices by corporations. Subsequently, we present the findings of the review that provide directions for future empirical research. The review thus offers a platform for exploration of new research questions and a broader agenda for future research highlighting theoretical, methodological and managerial implications.