Competitive Intensity, Business Strategies, and ESG Reporting: Evidence from ASEAN-6 Economies
Year: 2026
Type: article
Abstract: Purpose: This study investigates the effect of competitive intensity and business strategies on ESG reporting in ASEAN-6 listed firms. It aims to provide empirical evidence on how market dynamics and strategic orientation shape sustainability disclosure in emerging markets. Design/methodology/approach: The analysis is based on 3,288 firm-year observations from 757 firms across six ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) during the period 2017-2024. ESG reporting is measured using Refinitiv's ESG combined score. Competitive intensity is proxied by the Herfindahl-Hirschman Index, while business strategies are classified into prospector, defender, and analyzer based on six indicators. The study applies a common effect (pooled OLS) regression model, selected after model specification testing, to examine the determinants of ESG reporting. Findings: The results show that ESG reporting remains uneven across ASEAN-6, with Thailand and Indonesia achieving higher scores, while Malaysia and Vietnam lag behind. Competitive intensity demonstrates mixed results: in highly competitive industries, ESG disclosure is used as a differentiation strategy, whereas in concentrated markets, competition pressure limits disclosure. Business strategies significantly influence ESG reporting, with prospector firms disclosing more comprehensively, defender firms less, and analyzer firms maintaining a balance. Firm size and profitability also exhibit positive effects, while country variations underscore the role of institutional differences. Research limitations/implications: The study relies on secondary data and quantitative proxies, which may not fully capture qualitative dimensions of strategic orientation. Future studies could combine panel data with interviews or expand the scope to other emerging markets. Originality/value: This study is among the first to examine how competitive intensity and business strategies jointly affect ESG disclosure in ASEAN-6 firms using a regional dataset. It contributes to institutional and stakeholder theory by demonstrating that both industry dynamics and managerial choices shape sustainability reporting in emerging economies.
Source: GLOBAL BUSINESS & FINANCE REVIEW
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $500
OpenAlex ID: W7204055302