Corporate Social Responsibility in Challenging and Non-Enabling Institutional Contexts: Do Institutional Voids Matter?

Amaeshi, Kenneth; Adegbite, Emmanuel; Rajwani, Tazeeb

doi:10.2139/ssrn.3512774

Cited by 67 publications

(146 citation statements)

References 55 publications

(71 reference statements)

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“…ECSR in that year is considered as their impression management strategy to improve their legitimacy. ECSR of firms is regarded as an important signal of their legitimacy (Amaeshi, Adegbite, & Rajwani, ; Claasen & Roloff, ; Wei et al, ), representing “non‐substitutable green‐related capabilities” (Wei et al, , p. 210). The last important explanatory variable in the context of this research is DLSF, which is measured by calculating the number of firms that are being monitored in the stigmatized category in each province every year.…”

Section: Methodsmentioning

confidence: 99%

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Jia

Wei

2019

Bus Strat Env

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We draw upon the stigma literature and strategic stakeholder management model to develop a framework capable of explaining the link between environmental corporate social responsibility (ECSR) engagement and financial performance of stigmatized firms, taking stakeholder-oriented governance and density of local stigmatized firms into consideration. Using a uniquely compiled dataset of Chinese firms specifically monitored by the Ministry of Environmental Protection of China, we conducted propensity score matching analysis to estimate the impact of stigma on corporate financial performance and corporate environmental responsibility. The result shows that the financial performance of stigmatized firms is negatively affected by the stigma label, spurring them to engage in more ECSR than their peers to improve their legitimacy. Though ECSR engagement of stigmatized firms is found to be negatively associated with their financial performance in current study. Our results also confirm that (a) the financial performance of stigmatized firms is positively affected by two proxies for corporate stakeholder-oriented governance (i.e., institutional ownership and corporate transparency) and negatively affected by the density of local stigmatized firms;(b) corporate stakeholder-oriented governance compensates for the negative effect of ECSR engagement; (c) high intensity of local stigmatized firms provides focal firms with an opportunity to improve their financial performance through ECSR engagement; and (d) the positive effects of corporate stakeholder-oriented governance are diminished by the density of local stigmatized firms. KEYWORDS density of local stigmatized firms, environmental CSR engagement, financial performance, propensity score matching, stakeholder-oriented governance, strategic stakeholder management

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Section: Methodsmentioning

confidence: 99%

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Jia

Wei

2019

Bus Strat Env

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“…Scholars have employed variety of theoretical underpinnings including, the institutional, legitimacy, and RBV perspectives in exploring CSR initiatives and activities (Flammer, ; Walker et al, ). The institutional perspective suggest that CSR initiatives, activities, and impact are collectively a function of the bundle of both formal and informal institutional arrangements (Amaeshi, Adegbite, & Rajwani, ; Walker et al, ). The inadequacy or otherwise of the interlocking formal and informal institutions constrain firms or provide them with opportunities to pursue certain strategic choices (Walker et al, ).…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate social responsibility and competitive advantage: A developing country perspective

Nyuur

Ofori

Amponsah

2019

Thunderbird Intl Bus Rev

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Corporate social responsibility (CSR) has attracted wider research interests over recent decades. While some studies have examined the impact of CSR activities on firm competitive advantage (CA), the findings so far remain contradictory. Moreover, the role of export orientation, firm strategy, and structure on the association between CSR and CA has not been explicitly examined. Thus, the purpose of this study is to examine the moderating role of export orientation, firm strategy, structure, and firm size on the association between CSR and CA. Using a sample of 179 responses from management staff in organizations across five sectors in a developing country context of Ghana, the study found positive effects of CSR on CA. The study contributes to the resource-based view (RBV) scholarship by confirming the important complementary effect of export orientation and organizational structure as important resources and capabilities on the CSR-competitiveness relationship. However, no evidence of a moderating effect of firm strategy, or firm size on the CSR-CA relationship was found. These findings are instructive, impactful, and enrich the existing literature on CSR and strategy. Implications for theory and practice are also discussed. K E Y W O R D Scompetitive advantage (CA), competitive strategy, corporate social responsibility (CSR), export orientation, firm structure, Ghana tion of firms' internationalization activities in recent decades (Boso,

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“…Similarly, it is suggested that the nature of the NBS in the country in which it operates can determine whether a firm displays the explicit or implicit form of CSR (see also Hyatt & Berente, ; Jamali & Neville, ). Other studies, however, raise some doubts about the relevance of the NBS framework in its current form in contexts other than developed and western countries (Amaeshi, Adegbite, & Rajwani, ; Amaeshi, Adegbite, Ogbechie, et al, ; Forcadell & Aracil, ; Hofman et al, ; Jamali & Karam, ; Jamali & Neville, ; Muthuri & Gilbert, ; Wood & Frynas, ).…”

Section: Theoretical Perspectivesmentioning

confidence: 99%

“…First, managers who are implementing or planning to implement a sustainability agenda in the Malawian hospitality industry (or in other developing countries) should consider the influence of local institutional factors such as societal norms and expectations. This consideration may be vital in enhancing the success of their agendas and may also help them avoid a misallocation of resources (Amaeshi, Adegbite, & Rajwani, ). However, responding to local expectations does not necessarily mean abandoning the sustainability practices that may not be demanded by host societies.…”

Section: Implications For Managerial Practice and Public Policymentioning

confidence: 99%

Greening the hospitality industry in the developing world: Analysis of the drivers and barriers

Mzembe

Melissen

Novakovic

2018

Business Ethics: A Eur Rev

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The implementation of sustainability agendas in the tourism and hospitality industry in developing countries has received little scholarly attention. Working to fill this gap, this paper provides a holistic analysis of the drivers of, and barriers to, sustainability initiatives in the Malawian hospitality industry. Drawing insights from the resource-based view and institutional theory, it highlights that tensions between global and local norms and values are as important as tensions between internal organizational factors and the isomorphic forces within the organizational fields for implementing sustainability agendas. The paper further reveals the mediating role played by firm size and ownership. It, thus, makes a contribution to the understanding of the role of business in society by focusing on the complex dynamics associated with the adoption of sustainability agendas in an under-researched context, and demonstrating how tensions between internal organizational factors and local societal expectations within the host countries can shape the nature and focus of the sustainability agenda itself.

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Corporate Social Responsibility in Challenging and Non-Enabling Institutional Contexts: Do Institutional Voids Matter?

Cited by 67 publications

References 55 publications

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy

Corporate social responsibility and competitive advantage: A developing country perspective

Greening the hospitality industry in the developing world: Analysis of the drivers and barriers

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