Sustainability Alignment in Cross-Border Collaborations: Dynamics, Challenges and Limits

Today, achieving sustainability alignment between firms across developed and underdeveloped economies is essential for fostering fair and resilient partnerships amidst growing global economic and industrial interconnectedness. Collaboration between business realities of varying economic statuses is vital across sectors to tackle urgent sustainability issues, and failure to align sustainability goals risks neglecting local needs, leading to social unrest. This ongoing research explores the complexities of achieving sustainability alignment in cross-border collaborations, focusing on supply chains and mergers and acquisitions (M&A). Specifically, it examines how sustainability accounting influences alignment between large enterprises in developed economies and counterparts in underdeveloped regions, using a mixed-methods approach: quantitative analysis of financial and sustainability data is complemented by qualitative insights from interviews and surveys with stakeholders, aiming to capture diverse perspectives. The findings will contribute to theoretical understanding and managerial practice by highlighting the importance of integrating sustainability into supply chain strategies and M&A decision-making to promote sustainable alignment and well-being for individuals and society. However, limitations exist, primarily in generalizing findings beyond the studied regions and acknowledging inherent biases and data limitations in the research approach.