Taking social responsibilities overseas? The learning paths and performance consequences of Chinese multinationals

Corporate social responsibility (CSR) has been seen as an effective strategy that emerging market multinational enterprises increasingly adopt in order to cope with the liability of origin, yet much less attention has been paid to the micro-foundations of such a strategy. It remains less explored as to how CSR is leveraged by individuals—that is, expatriates. Addressing this research gap, a total of 150 valid survey responses from 38 Chinese multinationals were tested using the structural equation modeling technique. The results show that expatriates’ cross-cultural competence and engagement in CSR facilitate the learning efficiency of subsidiaries. The findings also suggest that expatriates’ effort positively mediates the relationship between CSR and performance outcomes (at both individual level and organizational level). Embracing the micro-foundations perspective in CSR research, this study offers both theoretical and practical implications for future international management research.

[1]  David L. Deephouse,et al.  Individuals’ Perceptions of the Legitimacy of Emerging Market Multinationals: Ethical Foundations and Construct Validation , 2020, Journal of Business Ethics.

[2]  Ying Zhu,et al.  Internationalization and destination selection of emerging market SMEs: Issues and challenges in a conceptual framework , 2020 .

[3]  M. T. Fleury,et al.  Overcoming the liability of outsidership for emerging market MNEs: A capability-building perspective , 2019, Journal of International Business Studies.

[4]  Catherine T. Shea,et al.  Microfoundations of Corporate Social Responsibility and Irresponsibility , 2019, Academy of Management Journal.

[5]  Andrea Fosfuri,et al.  Orchestrating corporate social responsibility in the multinational enterprise , 2019, Strategic Management Journal.

[6]  Jennifer E. Jennings,et al.  Going home and helping out? Returnees as propagators of CSR in an emerging economy , 2019, Journal of International Business Studies.

[7]  T. Kostova,et al.  Walking the walk or talking the talk? Corporate social responsibility decoupling in emerging market multinationals , 2018, Journal of International Business Studies.

[8]  C. Zhu,et al.  Expatriate management in emerging market multinational enterprises (EMNEs): reflection and future research agenda , 2018 .

[9]  Giacomo Marzi,et al.  Expatriates managers’ cultural intelligence as promoter of knowledge transfer in multinational companies , 2018, Journal of Business Research.

[10]  Luiz Ricardo Kabbach-Castro,et al.  Mapping the Business Systems of 61 Major Economies: A Taxonomy and Implications for Varieties of Capitalism and Business Systems Research , 2015 .

[11]  Sebastian Hafenbrädl,et al.  Ideology and the Micro-foundations of CSR: Why Executives Believe in the Business Case for CSR and how this Affects their CSR Engagements , 2017 .

[12]  E. Giuliani,et al.  Overcoming the liability of origin by doing no-harm: Emerging country firms’ social irresponsibility as they go global , 2017 .

[13]  T. Kostova,et al.  Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises , 2017, Journal of International Business Studies.

[14]  X. Luo,et al.  Whose Call to Answer: Institutional Complexity and Firms’ CSR Reporting , 2017 .

[15]  John R. Busenbark,et al.  Sample Selection Bias and Heckman Models in Strategic Management Research , 2016 .

[16]  Abdullahi Hassan Gorondutse,et al.  The moderating effect of organisational culture on the commitment to corporate social responsibility (CSR) and the performance of SMEs in Nigeria , 2016 .

[17]  Lars E. Isaksson,et al.  Market Orientation and CSR: Performance Implications , 2016 .

[18]  G. Stahl,et al.  Drivers of Global CSR Integration and Local CSR Responsiveness: Evidence from Chinese MNEs , 2016, Business Ethics Quarterly.

[19]  B. Husted,et al.  Effects of local legitimacy on certification decisions to global and national CSR standards by multinational subsidiaries and domestic firms , 2016 .

[20]  Lin Cui,et al.  Localized learning by emerging multinational enterprises in developed host countries: A fuzzy-set analysis of Chinese foreign direct investment in Australia , 2016 .

[21]  Ruey-Jer “Bryan” Jean,et al.  Foreign knowledge acquisition through inter-firm collaboration and recruitment: Implications for domestic growth of emerging market firms , 2016 .

[22]  N. Berg,et al.  Expatriate performance in terrorism-endangered countries: The role of family and organizational support , 2015 .

[23]  Mona V. Makhija,et al.  Firms’ corporate social responsibility behavior: An integration of institutional and profit maximization approaches , 2014 .

[24]  Yadong Luo,et al.  Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals , 2014 .

[25]  Louise Naughton Walking the walk. , 2013, Community practitioner : the journal of the Community Practitioners' & Health Visitors' Association.

[26]  N. Torugsa,et al.  Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance , 2013 .

[27]  T. Devinney Is Microfoundational Thinking Critical to Management Thought and Practice , 2013 .

[28]  J. Barney,et al.  What Are Microfoundations? , 2013 .

[29]  C. E. Hull,et al.  How Corporate Social Responsibility Engagement Strategy Moderates the CSR–Financial Performance Relationship , 2012 .

[30]  Paula Caligiuri,et al.  Dynamic cross-cultural competencies and global leadership effectiveness , 2012 .

[31]  Mike W. Peng,et al.  Expatriate Knowledge Transfer, Subsidiary Absorptive Capacity, and Subsidiary Performance , 2012 .

[32]  Yuli Zhang,et al.  Institutional Dynamics and Corporate Social Responsibility (CSR) in an Emerging Country Context: Evidence from China , 2012 .

[33]  Ravi Ramamurti,et al.  What is really different about emerging market multinationals , 2012 .

[34]  G. Bruton,et al.  Capabilities as a mediator linking resources and the international performance of entrepreneurial firms in an emerging economy , 2010 .

[35]  J. Johanson,et al.  The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership , 2009 .

[36]  Chris Brewster,et al.  Career capital during international work experiences: contrasting self-initiated expatriate experiences and assigned expatriation , 2008 .

[37]  J. Moon,et al.  'Implicit' and 'Explicit' CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility , 2008 .

[38]  Ram Mudambi,et al.  Conventional and Reverse Knowledge Flows in Multinational Corporations† , 2008 .

[39]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[40]  S. Nadkarni,et al.  Prior conditions and early international commitment: the mediating role of domestic mindset , 2007 .

[41]  T. Lenartowicz,et al.  Cross-cultural competence in international business: toward a definition and a model , 2006 .

[42]  D. Hambrick,et al.  FACTIONAL GROUPS: A NEW VANTAGE ON DEMOGRAPHIC FAULTLINES, CONFLICT, AND DISINTEGRATION IN WORK TEAMS , 2005 .

[43]  A. Sobczak,et al.  Beyond CSR: organisational learning for global responsibility , 2004 .

[44]  Yoshitaka Yamazaki,et al.  An Experiential Approach to Cross-Cultural Learning: A Review and Integration of Competencies for Successful Expatriate Adaptation , 2004 .

[45]  Shige Makino,et al.  Does country matter , 2004 .

[46]  H. Jenkins A Critique of Conventional CSR Theory: An SME Perspective , 2004 .

[47]  Kamel Mellahi,et al.  Does age matter? An empirical examination of the effect of age on managerial values and practices in India , 2004 .

[48]  David P Mackinnon,et al.  Confidence Limits for the Indirect Effect: Distribution of the Product and Resampling Methods , 2004, Multivariate behavioral research.

[49]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[50]  F. Schmidt,et al.  Corporate Social and Financial Performance: A Meta-Analysis , 2003 .

[51]  Günter K. Stahl,et al.  Toward the boundaryless career: a closer look at the expatriate career concept and the perceived implications of an international assignment , 2002 .

[52]  Maria L. Kraimer,et al.  SOURCES OF SUPPORT AND EXPATRIATE PERFORMANCE: THE MEDIATING ROLE OF EXPATRIATE ADJUSTMENT , 2001 .

[53]  Chris Brewster,et al.  Making their own way: international experience through self-initiated foreign assignments , 2000 .

[54]  Paul A. David,et al.  The explicit economics of knowledge codification and tacitness , 2000 .

[55]  John Hulland,et al.  Use of partial least squares (PLS) in strategic management research: a review of four recent studies , 1999 .

[56]  Perry Sadorsky,et al.  The Relationship Between Environmental Commitment and Managerial Perceptions of Stakeholder Importance , 1999 .

[57]  M. Arthur,et al.  Expatriate assignment versus overseas experience: Contrasting models of international human resource development , 1997 .

[58]  R. Grant Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[59]  B. Kogut,et al.  Knowledge of the firm and the evolutionary theory of the multinational corporation , 1993 .

[60]  Hal B. Gregersen,et al.  Antecedents to Commitment to A Parent Company and A Foreign Operation , 1992 .

[61]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[62]  J. Johanson,et al.  The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments , 1977 .

[63]  Jie Shen,et al.  Mapping the Relationship Among Political Ideology, CSR Mindset, and CSR Strategy: A Contingency Perspective Applied to Chinese Managers , 2018 .

[64]  Paul W. Beamish,et al.  MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives , 2014 .

[65]  Cherrie Jiuhua Zhu,et al.  High-Performance Work Systems, Corporate Social Performance and Employee Outcomes: Exploring the Missing Links , 2014 .

[66]  Y. Yamazaki Expatriate Adaptation , 2010 .

[67]  Maxine Dalton,et al.  Managerial Effectiveness in a Global Context. , 2002 .

[68]  Bent Petersen,et al.  Knowledge Transfer Performance of Multinational Companies , 2001 .