The grass is always greener: The impact of home and host country CSR reputation signaling on cross-country investments

Dau, Luis Alfonso; Moore, Elizabeth M.; Newburry, William

doi:10.1057/s42214-020-00049-7

Cited by 12 publications

(11 citation statements)

References 165 publications

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“…Yet, several traditions in multinational NMS, such as MNE–host-government relations, draw directly from the international relations and global political economy traditions. Building on Dau, Moore, and Newburry ( 2020 ), we suggest that future research can draw on international relations scholarship to explore; for example, using diffuse reciprocity (the expectation that there will not be an equivalence of obligations or concessions in any one exchange, but, rather, a balance over an ongoing series of exchanges with a group of partners) to examine the role of SCSR between home and host institutions.…”

Section: Discussion Future Research and Conclusionmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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Multinational enterprises are deeply engaged in nonmarket strategy (NMS), including both corporate political activity (CPA) and strategic corporate social responsibility (SCSR). In this review, we document the multinational NMS research according to contributions’ theme, method, context, theory, and level of analysis. We then develop an institutional multiplicity framework to organize our analysis of this large and fragmented body of literature. In so doing, we identify the most impactful contributions within three major themes – multinational CPA, multinational SCSR, and the integration of CPA and SCSR – and their respective subthemes, and call attention to limitations in the extant research. We also highlight promising avenues for future research, including expanding the scope of NMS to incorporate microfoundations research, integrating macrolevel scholarship on global institutions, placing greater attention on the interaction between CPA and SCSR, and incorporating multi-actor global issues and movements. Our review underscores the growing importance and missed opportunities of NMS research in the international business field.

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Section: Discussion Future Research and Conclusionmentioning

confidence: 99%

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

et al. 2021

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“…Although global integration and ownership structures can have a critical impacts on a firm’s adoption of CSR standards, we maintain that the quality of a country’s formal regulatory institutional environment also matters (Dau, Moore, & Kostova, 2020a , b ; Dau, Moore, & Newburry, 2020a , b ; North, 1990 ). Regulatory quality refers to the strength of the formal institutional environment of a country (Busenitz, Gómez, & Spencer, 2000 ; Laffont & Tirole, 1990 ).…”

Section: Global Integration and The Adoption Of Csr Standards: A Polimentioning

confidence: 91%

“…This measures also accounts for firms’ expulsion and subsequent rejoining. Prior work has outlined the measure as a representation of self-reporting of CSR standards at the firm-level (Abrahms, Dau, & Moore, 2019 ; Dau, Moore, & Newburry, 2020a , b ).…”

Section: Methodsmentioning

confidence: 99%

“…Higher levels of regulatory quality reduce corruption and provide stable business environments (Dau, 2013 ), facilitating and promoting private sector development and business growth. Countries that have stronger and clearer regulatory frameworks have more capacity to monitor and influence firm behavior (Dau, Moore, & Kostova, 2020a , b ).…”

Section: Global Integration and The Adoption Of Csr Standards: A Polimentioning

confidence: 99%

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Does global integration stimulate corporate citizenship? The effect of international trade agreements and regulatory quality on state and private firm adoption of CSR standards

et al. 2021

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We examine the effects of global trade integration on firm-level adoption of CSR standards as measured by the United Nations’ Global Compact Initiative. Building on policy transfer and economic institutionalism, we propose that country-level participation in trade agreements, and higher levels of regulatory quality, encourages firm-level adoption of CSR standards. We also suggest that participation in these trade agreements stimulates greater adoption of CSR standards from state-owned firms than privately owned firms because those agreements increase the accountability of state firms to supranational institutions, whereas private firms are already accountable to their respective state and domestic institutions. Moreover, we argue that the positive effect of trade agreements on the adoption of CSR standards is higher in countries with higher levels of regulatory quality. These insights are important for research on how economic integration affects firm-level strategies, especially those related to CSR, and for policymakers facing choices as to whether to enter into trade agreements and what types of agreements to enter. Analyses from 152,267 firm-year observations from 11,992 firms in 133 countries spanning 2000–2014 provide robust support for the arguments.

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“…Stakeholders’ positive attributions to DC-MNEs trigger favorable judgments about these firms’ ability and commitment to caring for stakeholders’ interests (Dau et al , 2020; Stevens and Newenham-Kahindi, 2017). Such attributions help DC-MNEs gain support from their stakeholders, as they predict positive benefits from supporting these firms (pragmatic legitimacy).…”

Section: Theoretical Foundations and Hypotheses Developmentmentioning

confidence: 99%

MNEs’ corporate governance disclosure: a strategic response to corrupt environments

Juliao‐Rossi

Losada-Otálora

Católico-Segura

2022

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Purpose This study aims to examine how corruption influences the voluntary disclosure of corporate governance (CG)-related information by developed country multinationals (DC-MNEs) and emerging market multinationals (EM-MNEs) investing in six Latin American countries. Design/methodology/approach The study uses information from 300 MNEs included in the 2018 ranking of the 500 Largest Latin American companies (America Economía, 2018). Each MNE’s final annual report for the financial year ending 2018 was examined and coded to obtain the corporate governance disclosure index. Fractional probit regression was applied to test the hypotheses of the research. Findings DC-MNEs disclose more CG-related information in corrupt environments than EM-MNEs. This differentiated behavior occurs because DC-MNEs face higher legitimacy pressures in corrupt environments than EM-MNEs and because EM-MNEs are more experienced than DC-MNEs in dealing with such corrupt environments. Practical implications While both EM-MNEs and DC-MNEs need to continue investing in corrupt countries to grow, they need to disclose CG-related information as a strategic tool to manage the legitimacy issues triggered by corruption in the markets they operate. Originality/value Despite corruption being pervasive in emerging markets, its implications for firms’ strategic behaviors are still under-researched. This paper extends the scope of corporate governance and international business fields by studying how MNEs respond to relevant dimensions of the macro environment. This research shows that voluntary disclosure of CG-related information is a strategic response of the MNEs to gain legitimacy in corrupt environments.

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The grass is always greener: The impact of home and host country CSR reputation signaling on cross-country investments

Cited by 12 publications

References 165 publications

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

Navigating cross-border institutional complexity: A review and assessment of multinational nonmarket strategy research

Does global integration stimulate corporate citizenship? The effect of international trade agreements and regulatory quality on state and private firm adoption of CSR standards

MNEs’ corporate governance disclosure: a strategic response to corrupt environments

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