Overcoming the liability of origin by doing no harm. Emerging country firms’ social irresponsibility as they go global

Published on Jun 1, 2017in Journal of World Business 3.99
· DOI :10.1016/j.jwb.2016.09.001
Davide Fiaschi8
Estimated H-index: 8
(University of Pisa),
Elisa Giuliani18
Estimated H-index: 18
(University of Pisa),
Federica Nieri1
Estimated H-index: 1
(University of Pisa)
Abstract
Abstract As emerging (and developing) country firms internationalize, they often need to build legitimacy to overcome home-country liabilities. We argue that international legitimacy is at risk if these firms do harm in the conduct of their business, and we investigate the extent to which host countries’ speech and press freedoms influence corporate social irresponsibility (CSIR) for a sample of Multilatinas, observed during the period 2003–2012. We do find evidence of lower CSIR among Multilatinas which have adopted explicit CSR policies and have higher levels of investment in countries characterized by strong speech and press freedoms.
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References96
Published on Jun 10, 2014
Michael Reid3
Estimated H-index: 3
Experts believe that Brazil, the world's fifth largest country and its seventh largest economy, will be one of the most important global powers by the year 2030. Yet far more attention has been paid to the other rising behemoths Russia, India, and China. Often ignored and underappreciated, Brazil, according to renowned, award-winning journalist Michael Reid, has finally begun to live up to its potential, but faces important challenges before it becomes a nation of substantial global significance...
13 Citations
Published on Jan 1, 2014
Alvaro Cuervo-Cazurra31
Estimated H-index: 31
,
Ravi Ramamurti17
Estimated H-index: 17
Foreword 1. Introduction Alvaro Cuervo-Cazurra and Ravi Ramamurti Part I. EMNCs in Historical Perspective: What Is New?: 2. Theoretical debates on multinationals from emerging economies Yair Aharoni 3. What does history add to EMNC research? Andrew Godley Part II. Unique Capabilities of EMNCs: Do They Exist?: 4. Modern international business theory and emerging market multinational companies Alan M. Rugman and Quyen T. K. Nguyen 5. The limits of 'new' multinational enterprises: institutions, sys...
51 Citations Source Cite
Published on Aug 1, 2017in Journal of Business Ethics 2.92
Yingjun Lu3
Estimated H-index: 3
(Shanghai University of International Business and Economics),
Indra Abeysekera19
Estimated H-index: 19
(Central Queensland University)
This study investigates the social and environmental disclosure practices of socially responsible Chinese listed firms as displayed in their annual reports and corporate social responsibility (CSR) reports from the perspective of stakeholders. A stakeholder-driven, three-dimensional social and environmental disclosure index that integrates the quantity and two aspects of the quality of disclosure perceived by stakeholders is constructed to assess the social and environmental disclosures in firm ...
5 Citations Source Cite
Published on Nov 1, 2014in Journal of Public Affairs
Luiz Alberto dos Santos1
Estimated H-index: 1
(Executive Office of the President of the United States),
Paulo Mauricio Teixeira da Costa1
Estimated H-index: 1
For most of its history, Latin America has lived under authoritarian and elite rule where public decisions were often crafted in the shadows by cabinets and parliaments to the benefit of a small minority. Recently, the development of participatory political systems has brought some transparency to the policy-making process. Such scrutiny reveals evidence of the capture of aspects of policy-making by private interests that use obscure strategies to achieve their political goals. As a consequence,...
4 Citations Source Cite
Published on Jan 1, 2009
Ravi Ramamurti17
Estimated H-index: 17
,
Jitendra Vir Singh21
Estimated H-index: 21
List of figures List of tables Abbreviations List of contributors Acknowledgements Part I. Introduction: 1. Why study emerging market MNEs? Ravi Ramamurti 2. Third world multinationals: a look back Louis T. Wells, Jr 3. Theoretical aspects of MNEs from emerging markets Alan Rugman 4. Does firm ownership matter? POEs vs. FOEs in the developing world Alice H. Amsden Part II. Country Studies: 5. Chinese multinationals: emerging through new global gateways Peter Williamson and Ming Zeng 6. Indian mu...
292 Citations Source Cite
Published on Jul 1, 1997in Harvard Business Review 4.37
Tarun Khanna40
Estimated H-index: 40
,
Krishna G. Palepu33
Estimated H-index: 33
1,421 Citations
Published on Jan 1, 1996
Charles J. Fombrun35
Estimated H-index: 35
Introduction: why reputations matter. Part 1 The hidden value of a good reputation: going for the gold what's in a name? enlightened self-interest reputational capital the Midas touch shaping consistent images of pageants and horse races managing reputation. Part 2 The ups and downs of reputation: fashion's ins and outs the MBA academies under siege so you want a new identity pitching arm and hammer the deal-makers doing good, the Morgan way song of Solomon. Conclusion: the burden of celebrity.
2,003 Citations
Published on Jan 1, 2016in Journal of Management Studies 5.33
Valentina Marano6
Estimated H-index: 6
(Northeastern University),
Tatiana Kostova23
Estimated H-index: 23
(University of South Carolina)
Multinational enterprises (MNEs) operate in complex transnational organizational fields with multiple, diverse, and possibly conflicting institutional forces. This paper examines how such complex environments affect a firm's adoption of Corporate Social Responsibility (CSR) practices. To capture the effect of transnational fields, we consider the institutional influences of all country environments to which the firm is linked through its portfolio of operations and propose that these effects wil...
67 Citations Source Cite
Published on Jan 1, 2015in Journal of Management Studies 5.33
Dawn L. Keig4
Estimated H-index: 4
(Whitworth University),
Lance Eliot Brouthers28
Estimated H-index: 28
(Kennesaw State University),
Victor B. Marshall2
Estimated H-index: 2
(Kennesaw State University)
Using an institutional theory framework we theorize, hypothesize, and empirically show that higher levels of formal and informal corruption environments found in a firm's operating portfolio are related to higher levels of corporate social irresponsibility (CSiR). Failing to consider corruption's informal dimension leads to potentially false perceptions about a multinational enterprise's (MNE) operating environment, particularly when the formal dimension is low but the informal corruption dimens...
32 Citations Source Cite
Published on Oct 30, 2008in Cepal Review 0.19
Javier Santiso11
Estimated H-index: 11
(Ramon Llull University)
The corporate world has changed remarkably in the past 10 years. New multinationals are appearing in countries with emerging markets such as Brazil, India, China, South Africa and Mexico, which are not only top recipients of foreign capital, but have fast become major investors themselves. An important part of the remarkable story of emerging multinationals has been the eruption of world-class Latin multinationals (or multilatinas) from Mexico and Brazil, in particular, following the path taken ...
40 Citations Source Cite
Cited By20
Published on Oct 1, 2017in Journal of World Business 3.99
Louise Jayne Obara1
Estimated H-index: 1
(De Montfort University),
Kenneth John Peattie25
Estimated H-index: 25
(De Montfort University)
Human rights (HR) and corporate social responsibility (CSR) are both fields of knowledge and research that have been shaped by, and examine, the role of multi-national enterprises in society. Whilst scholars have highlighted the overlapping nature of CSR and HR, our understanding of this relationship within business practice remains vague and under-researched. To explore the interface between CSR and HR, this paper presents empirical data from a qualitative study involving 22 international busin...
2 Citations Source Cite
Published on Mar 1, 2018in Journal of Business Research 2.51
Mariana Bassi Suter2
Estimated H-index: 2
(University of York),
Felipe Mendes Borini3
Estimated H-index: 3
(University of São Paulo)
+ 2 AuthorsEdison Fernandes Polo3
Estimated H-index: 3
(University of São Paulo)
The study discusses the country-of-origin-image (COI) as a country-specific-advantage (CSA) for internationalised firms. We developed and validated a scale to measure the importance of the incorporation of the COI as a resource in a firm's international strategy, the COI-CSA. Several psychometric procedures were adopted. We analysed data gathered from two case studies, validation procedures with experts and researchers, and three data sets from executives working in internationalised firms. The ...
2 Citations Source Cite
Published on Apr 1, 2018in The Extractive Industries and Society
L.L. Benites-Lazaro1
Estimated H-index: 1
(University of São Paulo),
P.A. Gremaud1
Estimated H-index: 1
(University of São Paulo),
L.A. Benites1
Estimated H-index: 1
Abstract From a business perspective, climate change mitigation offers certain opportunities that drive the market for new business, and presents an opportunity to engage in Corporate Social Responsibility (CSR). In this study, we examine the motivation for companies in Latin America to implement Clean Development Mechanism (CDM) projects, whether CDM encourages the adoption of CSR practices, and the benefits companies gain from adopting such practices. The data are taken from a survey of projec...
2 Citations Source Cite
Published on Mar 1, 2019in Journal of International Business Studies 6.20
Pete Tashman7
Estimated H-index: 7
(University of Massachusetts Lowell),
Valentina Marano6
Estimated H-index: 6
(Northeastern University),
Tatiana Kostova23
Estimated H-index: 23
(University of South Carolina)
Research shows that emerging market multinational enterprises (EM-MNEs) increasingly use corporate social responsibility (CSR) reporting as a global legitimation strategy. Less is known about when their CSR reporting is decoupled from their CSR performance. Drawing on neo-institutional theory, we argue that EM-MNEs’ CSR decoupling is shaped by their dual embeddedness in their home countries and the global institutional environment. We then examine how EM-MNEs’ home country institutional voids an...
2 Citations Source Cite
Published on Nov 1, 2018in Research Policy 4.66
Elisa Giuliani18
Estimated H-index: 18
(University of Pisa)
Abstract Despite progress in science and technology and the economic prosperity achieved by numerous countries over the past century, contemporary global capitalism has left us with severe grand challenges for the future including rising inequality, global warming, modern slavery, child labor and several other human rights struggles. How can we fix them? For many years, scholars and policy makers alike have believed that economic growth (fueled by innovation) would fix institutional failures and...
1 Citations Source Cite
Published on Mar 1, 2019in Journal of International Management 2.30
Rupanwita Dash (Indian Institute of Management Lucknow), Kumar Rakesh Ranjan5
Estimated H-index: 5
(University of Queensland)
Abstract We use effectuation theory to understand the internationalization of emerging market multinational enterprises (EMNEs), specifically answering the questions of: (a) how managerial decision logic differs across EMNEs that face disadvantages vs. those that do not, and (b) what managerial decision logic helps EMNEs to mitigate disadvantages. We employ a case research approach to analyze decision events across eight firms that internationalized from India between 1990 and 2015. We find that...
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Published on Sep 1, 2018in Journal of World Business 3.99
Alfredo Valentino1
Estimated H-index: 1
(Libera Università Internazionale degli Studi Sociali Guido Carli),
Jan Schmitt1
Estimated H-index: 1
(Vienna University of Economics and Business)
+ 1 AuthorsPhillip Christopher Nell11
Estimated H-index: 11
(Vienna University of Economics and Business)
Abstract We investigate the effect of changing national institutions on relocations of intermediary HQs. Using a dataset of 154 cross-border relocations between the period from 2000 to 2015, we draw on the intermediary HQ’s middle position within the MNC and investigate how a decrease in institutional quality in the HQ’s host country and a change in institutional distance between different MNC units affect the relocation decision. Our findings advance the emergent literature on HQ relocations as...
2 Citations Source Cite
Published on Sep 26, 2018in The Multinational Business Review
Ana Colovic6
Estimated H-index: 6
(NEOMA Business School),
Octavio R. Escobar2
Estimated H-index: 2
(Paris School of Business)
+ 1 AuthorsPierre-Xavier Meschi11
Estimated H-index: 11
(Aix-Marseille University)
Purpose This paper aims to investigate whether multinational enterprises (MNEs) are more or less likely than local firms to violate their employees’ human rights in emerging economies, whether regional institutional pressures influence the likelihood of violating employee human rights and whether the density of MNEs in a region affects the likelihood of employees’ human rights violation by local firms. Design/methodology/approach Building on neo-institutional theory, this paper hypothesizes that...
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Published on Sep 1, 2018in Journal of Economic Geography 3.45
Vito Amendolagine4
Estimated H-index: 4
(University of Pavia),
Elisa Giuliani18
Estimated H-index: 18
(University of Pisa)
+ 1 AuthorsRoberta Rabellotti22
Estimated H-index: 22
(University of Pavia)
Do emerging-market multinational enterprises (EMNEs) innovate after they have acquired advanced countries’ innovative firms and have invested in regions with high innovative capacity? Do EMNEs’ absorptive capacity and status positively moderate the relationship between their post-deal innovative output and the innovative capacity of the target firm and/or region? We explore these questions by analyzing the universe of cross-border acquisitions accomplished by Chinese and Indian medium to high-te...
1 Citations Source Cite
Published on Oct 25, 2018in Journal of Business Ethics 2.92
Nimruji Jammulamadaka3
Estimated H-index: 3
(Indian Institute of Management Calcutta)
The paper goes beyond critique to read institutional approaches, specifically institutional logics of CSR in India and their management by Indian firms, from a post-colonial location, to explore decolonising possibilities. Drawing on post-colonial approach of catachrestic reading, it reads institutional logics of CSR literature to argue against a linear hierarchical travel of western CSR logic into India, which is then adapted/adopted/translated or decoupled, along with the secondary status this...
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