Does the concept of “creating shared value” make sense for multinational firms?

Abstract

Purpose The paper aims to explore how Porter and Kramer’s “Creating shared value” (CSV) framework supports the multinational corporation’s business model to turn social problems into business opportunities in two contextually different international markets. Design/methodology/approach Conceptually, the paper uses the CSV framework to argue that evaluation of business models in different societal contexts (geographically, culturally and economically) might be able to shed more light on the firm-societal needs. Empirically, the paper conducts a comparative content analysis of the business models of an international brand of a three-wheeler vehicle – Piaggio Ape – in Italy and India since its launch right after World War II. The content for qualitative analysis was identified using the Nexis Uni database. Findings Findings reveal that CSV outlines the strategy for firms to integrate societal concerns uniquely into their business models, rather than solving them in isolation. However, the business model performances resulting from these firm–society linkages may vary in an emerging market and a developed market. Regulatory fit is yet another factor that decides how well CSV could be applied. Research limitations/implications Given CSV’s contradictory perception in corporate governance literature, the study empirically establishes its theoretical value in explaining the actions and success of strategic decisions that large multinational firms take. The interactions between the underlying attributes of four CSV strategies, the regulatory fit and business model success are articulated in the form of propositions and an integrated CSV framework. Given the paper’s two-case comparative analysis, the generalizability of the identified attributes of the four CSV strategies is limited and therefore calls for future research using larger samples of firms practicing shared value perspectives. Practical implications Corporate and international business managers can use the study findings and the proposed framework to comprehend scenarios beyond business systems and to apply CSV as a tool to address market needs in concurrence with addressing environmental and societal concerns. Originality/value The paper is one of the initial attempts to evaluate and extend the “CSV” perspective in the international business context and, thus, promises a broad future research scope.

Simple doable goals: a roadmap for multinationals to help achieve the UN’s sustainable development goals

“…It is supported by a set of integrative theories that focus on the integration of social demand with that of the business and ethical theories that focus on doing the right thing for a better society (Dmytriyev et al , 2021; Garriga and Melé, 2004). The authors extend the perspectives of Nandi et al (2022) and Porter and Kramer (2019) that call for integrating societal concerns into the business model by bringing in the competitive strategy dimensions in the discussion of business sustainability. In doing so, the authors also find support for choosing an integrative approach over an instrumental approach articulated by Pless et al (2021).…”

“…The authors extend the perspectives of Nandi et al (2022) and Porter and Kramer (2019) that call for integrating societal concerns into the business model by bringing in the competitive strategy dimensions in the discussion of business sustainability. In doing so, the authors also find support for choosing an integrative approach over an instrumental approach articulated by Pless et al (2021).…”

“…Drawing on sustainability strategy typology and business responsibility framework (Gauthier, 2017; Sinkovics et al , 2021), this work fits into the discourse of firm–society linkages and the significance of integrative leadership traits over instrumental leadership traits (Pless et al , 2021; Nandi et al , 2022). The paper also elaborates on how the prescriptive framework relates to integrative theories, one of the theoretical archetypes of corporate social responsibility (CSR) (Garriga and Melé, 2004).…”

Metaverse meets digital entrepreneurship: a practitioner-based qualitative synthesis

“…This database is widely used to conduct literature reviews and extract practical sources such as business opportunities, web articles, blogs, news releases, and case studies (Biancone et al, 2022;Boudlaie et al, 2022;Calandra et al, 2023). Considering the research question, the filter "Business Opportunities" seems adequate for looking forward to new entrepreneurial opportunities using the metaverse (Nandi et al, 2022;Weiss and Nemeczek, 2021).…”

Why Not Use the Sea? A Shared Value Approach to Sustainable Value Creation When Using Carbon Dioxide as a Valuable Resource in Manufacturing

“…Menghwar and Daood (2021) demonstrate that the scholarly use of CSV is gradually increasing, highlighting a meaningful, incremental development. CSV moves away from the reputation-based approach (Beschorner and Hajduk, 2017) and shifts the debate of the impact of business on society from a language of responsibility into that of value (Visser and Kymal, 2015), thus stimulating conceptual perspectives and discussions from scholars who study it in different contexts (Awale and Rowlinson, 2014;Kim, 2018;Islam and Hossain, 2019;Nandi et al, 2022). Indeed, before Hartman and Werhane (2013) criticize CSV, Hartman et al (2011) empirically applied the approach and concluded that true underlying value is created when the resources of all stakeholders are brought together and a sustained synergy occurs.…”