The diffusion of corporate social responsibility through social network ties: From the perspective of strategic imitation

Abstract

Drawing on institutional and organizational learning theories, this study empirically investigates the imitation of corporate social responsibility (CSR) between firms tied by board interlocks, an important type of corporate social network tie. We propose a positive relationship between the CSR engagement of a focal firm and that of its tied-to partners and examine how this relationship is moderated by the characteristics of both the focal and tied-to firms. Using a sample of Chinese-listed companies, empirical evidence is provided to show that a firm's engagement in symbolic CSR is in a positive relationship with that of its tied-to partners; this relationship becomes stronger for smaller firms and those facing high uncertainty. Furthermore, when firms are linked to smaller firms, this relationship becomes more prominent. Our findings contribute to the CSR and social network literature, as well as the research on strategic imitation. Finally, implications for business management and government policy are discussed.

A Literature Review of Inter-Organizational Sustainability Learning

“…The authors highlight that this is because the knowledge that is needed for substantive CSR engagement is sticky. However, the study highlights that such substantive engagement may be facilitated by the selected governance structure, culture, or capability development [167].…”

“…Environmental conditions are often explained using theories such as stakeholder theory [138,166] or institutional theory [133,164,167]. These scholars focus on 'institutional pressures' or 'stakeholder pressures' that create a form of legitimacy crisis on firms, which then motivate them to enter collaborative relationships and engage in inter-organizational learning.…”

“…Most scholars refer to Suchman's [168] seminal definition of legitimacy which is "a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions" [137,156,169]. Drawing on the seminal work of DiMaggio and Powell [170], the review articles discuss three types of isomorphic pressures that lead firms to engage in inter-organizational learning [148,155,167,171,172]: coercive, mimetic and normative.…”

“…Mimetic pressures are to do with the competitive environment of the firms. For instance, one study finds that firms' engagement in CSR is difficult to imitate by other firms even when there exist conditions for mimetic pressures [167]. The authors highlight that this is because the knowledge that is needed for substantive CSR engagement is sticky.…”

Boards that Make a Difference in Firm’s Acquisitions: The Role of Interlocks and Former Politicians in Spain

“…Board ties to other firms provide a unique opportunity for directors to exchange information, to observe the business practices of their peers, create new business opportunities, and to obtain general business information [1,8,9]. Thus, research has shown that corporate practices that are shared among firms via board interlocks tend to have an impact on the dissemination of innovation [10][11][12][13], diversification strategies [4], the adoption of golden parachutes and social corporate responsibility practices [14], stock options and poison pills [15,16], as well as the creation of joint ventures [17] and the adoption of multidivisional organization forms [18].…”