A Perspective of Institutional Void on the effect of Geographical Diversification on CSR

Ying Zhang, Ji Li, Song Chang, Jun Huang

    Research output: Chapter in book/report/conference proceedingConference proceedingpeer-review

    Abstract

    Studying the relationship between global geographical diversification and firm performance in terms of corporate social responsibility, we posit that, because of the difference in institutional void, it makes a difference in this relationship whether an international firm is mainly diversified into developed countries (developed markets) or into emerging markets. Moreover, MNEs resource slacks may moderate the relationship differently. Testing empirically the effect of the diversification on two independent constructs, i.e., corporate social performance (CSP) and socially-irresponsible performance (CSiR), we obtain some interesting findings. (A) The diversification has a positive relationship with the CSP only in developed markets, and it has a negative relationship with CSP in emerging markets. (B) The diversification has a negative relationship with the CSiR only in developed markets, and it has no significant relationship in emerging markets. Finally, (C) MNEs slack resources moderate only the relationship between the diversification and CSP. Moreover, their moderating effects are all negative. However, MNEs slack resources do not moderate the relationship between the diversification and CSiR. We conclude with a discussion of the implications of the findings.
    Original languageEnglish
    Title of host publicationAcademy of Management Proceedings 2017
    EditorsSonia Taneja
    PublisherAcademy of Management
    DOIs
    Publication statusPublished - 1 Aug 2017
    Event77th Annual Meeting of the Academy of Management, AOM 2017: At The Interface - Atlanta, United States
    Duration: 4 Aug 20179 Aug 2017
    https://aom.org/events/annual-meeting/past-annual-meetings/2017-at-the-interface (Conference website)
    https://journals.aom.org/toc/amproc/2017/1 (Conference proceedings)

    Publication series

    NameAcademy of Management Proceedings
    Number1
    Volume2017
    ISSN (Print)0065-0668
    ISSN (Electronic)2151-6561

    Conference

    Conference77th Annual Meeting of the Academy of Management, AOM 2017
    Country/TerritoryUnited States
    CityAtlanta
    Period4/08/179/08/17
    Internet address

    Cite this