2020
DOI: 10.1177/0007650319898490
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Socially Responsible Firms Outsource Less

Abstract: Implementing corporate social responsibility (CSR) in supply chains is not a trivial task. In fact, many firms in recent years have publicly proclaimed that in order to keep their CSR commitments, they had to reduce reliance on external suppliers by vertically integrating their operations. Our aim in this article is to examine whether there is truly a relationship between a firm’s CSR performance and its level of vertical integration. Drawing on a multi-industry sample of 2,715 firm-year observations, and afte… Show more

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Cited by 42 publications
(30 citation statements)
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References 143 publications
(149 reference statements)
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“…This means, more specifically, innovating to the extent of achieving full vertical integration and expanding operations downstream to include direct sales to final consumers. Although attaining such upgrade is likely to require a major effort both in terms of economic investment and knowledge acquisition, Murcia et al (2020) informed that companies that vertically integrate do not only show more resilience, but are also able to invest more on CSR practices and ultimately increase their workers' benefits their workers. If the price dilemma in developing countries' supply chains continues to persist—including the tensions and subsequent negative emotions experienced by supplier senior managers—vertical integration might become an increasingly appealing option.…”
Section: Discussionmentioning
confidence: 99%
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“…This means, more specifically, innovating to the extent of achieving full vertical integration and expanding operations downstream to include direct sales to final consumers. Although attaining such upgrade is likely to require a major effort both in terms of economic investment and knowledge acquisition, Murcia et al (2020) informed that companies that vertically integrate do not only show more resilience, but are also able to invest more on CSR practices and ultimately increase their workers' benefits their workers. If the price dilemma in developing countries' supply chains continues to persist—including the tensions and subsequent negative emotions experienced by supplier senior managers—vertical integration might become an increasingly appealing option.…”
Section: Discussionmentioning
confidence: 99%
“…Given the importance of collaboration (Lozano & Barreiro-Gen, 2021;Murcia et al, 2020), a second cooperative model, dubbed the "cooperation paradigm" and rooted in the relational view (Dyer & Singh, 1998;Lee et al, 2019;Lund-Thomsen & Lindgreen, 2014) processes, and supplier capabilities (Huq et al, 2016;Klassen & Vereecke, 2012;Lund-Thomsen & Lindgreen, 2014). Nevertheless, GVC scholars have cautioned that the cooperative model is unlikely to lead to sustained improvements in labor conditions because of the permanently asymmetric power relationship between suppliers and buyers (Anner, 2018) and the challenge buyers face "[in engaging] in close cooperation," given the high number of suppliers (Lund-Thomsen & Lindgreen, 2014, p. 17).…”
Section: Theoretical Backgroundmentioning
confidence: 99%
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“…Vertical integration was measured using the value-addedto-sales ratio (VA/S). VA/S has been a common employed measure in the literature (Chen 2017;Murcia et al 2020). The ratio aims to reflect that, as firms increase the proportion of value-added (i.e., sales minus purchases) generated in-house, they increase their relative reliance on internal employees vis-à-vis external contractors.…”
Section: Vertical Integrationmentioning
confidence: 99%
“…This requires assessing whether, when, and how consumer support and willingness to change consumption patterns can aid in stopping deforestation. In addition, corporate strategy changes such as vertical integration of supplychains could be a possible venue for companies to make their supplychains free of deforestation (Murcia, Panwar, & Tarzijan, 2020). This theme will analyze topics such as the following:…”
Section: Theme Ii: Corporate Initiatives To Reduce Deforestationmentioning
confidence: 99%