Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt an
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Home-country institutions and corporate social responsibility of emerging economy multinational enterprises: The belt and road initiative as an example Na Yang 1 & Jue Wang 1 & Xiaming Liu 1,2 & Lingyun Huang 3 Accepted: 29 September 2020/ # Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract This paper examines the impact of home country institutions on corporate social responsibility (CSR) of multinational enterprises from emerging markets (EM-MNEs). Taking the Belt and Road Initiative (BRI) as an example and using a sample with 2052 firm-year observations from China over the period 2008–2018, we find that the BRI exerts a positive and significant effect on overall CSR of Chinese MNEs involved in the BRI and the positive effect is stronger for Chinese state-owned MNEs. In addition, only two dimensions of CSR (Employee Relations and Products) are improved significantly under the pressure of BRI. Finally, we examine the interactive effect of homeand host- country institutions on Chinese MNEs’ CSR and find the positive impact of the BRI on MNEs’ CSR performance is stronger in host countries with a higher level of CSR related institutional pressure. These results provide practical suggestions for the Chinese government and MNEs to further improve CSR under the BRI, and enrich our understanding of the interactive effect between home- and host-country institutions on enhancing Chinese MNEs’ reputation and promoting regional cooperation with countries along the BRI. Keywords Home-country institutions . Corporate social responsibility (CSR) . The belt
and road initiative (BRI) . Host-country institutions . Institutional theory
* Xiaming Liu [email protected] Na Yang [email protected] Jue Wang [email protected] Lingyun Huang [email protected] Extended author information available on the last page of the article
N. Yang et al.
Over the past few decades, the research of corporate social responsibility (CSR) of multinational enterprises (MNEs) has become an increasingly central topic in international business (Campbell, Eden, & Miller, 2012; Kolk, 2016). MNEs operate simultaneously in multiple institutional environments (Kostova & Roth, 2002; Meyer, Mudambi, & Narula, 2011) and it is a big challenge for MNEs to coordinate their CSR practices globally to get legitimacy in host countries (Rathert, 2016; Wijen, 2014). Therefore, the CSR literature is usually grounded in examining the effect of hostcountry institutions on MNEs’ CSR (e.g. Asmussen & Fosfuri, 2019; Marano & Kostova, 2016; Rathert, 2016; Wang & Li, 2019). However, the existing literature falls short of capturing home-country institutional forces (Buchanan & Marques, 2018) and the full range of institutional arrangements MNEs encounter (Rathert, 2016). The rise of multinational enterprises from emerging economies that are typically characterized by inefficient markets, active government involvement, extensive business networking and high uncertainty (Xu & Meyer, 2013), has increased the importance of understandin
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