Location

University of Washington Tacoma

Event Website

http://www.tacoma.uw.edu/node/37078

Start Date

10-7-2015 9:00 AM

End Date

10-7-2015 10:30 AM

Description

Does country selection affect the corporate social performance (CSP) of multinational enterprises (MNEs)? In this study we suggest that greater institutional diversity within an MNE’s operating environment may adversely affect its ability to maintain higher levels of CSP. Using institutional distance and organizational learning as our theoretical lenses, we investigate the impact of institutional differences on CSP. We conceptualize the MNE as a unique portfolio of locations and use the MNE’s entire operating footprint to explore the effects of average portfolio formal and informal institutional distances on CSP. We hypothesize and find that firms with greater average informal institutional distance within their portfolios have lower overall levels of CSP. Findings also confirm the moderating influence of formal institutional distance; greater formal institutional distance within the MNE portfolio reduces the CSP benefits of international scope.

Comments

Co-authors not attending conference:

Lance Eliot Brouthers
Department of Management and Entrepreneurship
Coles College of Business
Kennesaw State University
1000 Chastain Rd NW
Kennesaw, GA 30144


Victor B. Marshall
Department of Management and Entrepreneurship
Coles College of Business
Kennesaw State University
1000 Chastain Rd NW
Kennesaw, GA 30144

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Jul 10th, 9:00 AM Jul 10th, 10:30 AM

The Impact of Formal and Informal Institutional Distances on MNE Corporate Social Performance

University of Washington Tacoma

Does country selection affect the corporate social performance (CSP) of multinational enterprises (MNEs)? In this study we suggest that greater institutional diversity within an MNE’s operating environment may adversely affect its ability to maintain higher levels of CSP. Using institutional distance and organizational learning as our theoretical lenses, we investigate the impact of institutional differences on CSP. We conceptualize the MNE as a unique portfolio of locations and use the MNE’s entire operating footprint to explore the effects of average portfolio formal and informal institutional distances on CSP. We hypothesize and find that firms with greater average informal institutional distance within their portfolios have lower overall levels of CSP. Findings also confirm the moderating influence of formal institutional distance; greater formal institutional distance within the MNE portfolio reduces the CSP benefits of international scope.

http://digitalcommons.tacoma.uw.edu/clsr_academic/2015/pres/13