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Stakeholder influence, institutional duality, and CSR involvement of MNC subsidiaries

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  • Kim, Changsu
  • Kim, Jungkeun
  • Marshall, Roger
  • Afzali, Hajir

Abstract

This paper uses stakeholder influence and institutional duality arguments to investigate the influence of stakeholders on foreign subsidiaries' corporate social responsibility (CSR) practice. Voluntarily, or under pressure from various stakeholders in the host country, the foreign subsidiaries engage in CSR activities to maintain and enhance their legitimacy in the country. The authors identify two types of stakeholders, primary and secondary, and two types of CSR practice, symbolic and practical, and predict that primary stakeholder influence affects symbolic CSR, whereas secondary stakeholders' influence affects practical CSR. The authors also predict that the impact of stakeholders is greater when the subsidiary enjoys greater autonomy, but weaker when the host country is plagued with institutional voids. Analysis to address the research hypotheses is conducted upon a dataset collected from a sample of Korean subsidiaries, the majority of which operate in China and Vietnam. The analysis generally supports the hypotheses.

Suggested Citation

  • Kim, Changsu & Kim, Jungkeun & Marshall, Roger & Afzali, Hajir, 2018. "Stakeholder influence, institutional duality, and CSR involvement of MNC subsidiaries," Journal of Business Research, Elsevier, vol. 91(C), pages 40-47.
    • Handle: RePEc:eee:jbrese:v:91:y:2018:i:c:p:40-47
    DOI: 10.1016/j.jbusres.2018.05.044
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    19. Khojastehpour, Morteza & Shams, S.M. Riad, 2020. "Addressing the complexity of stakeholder management in international ecological setting: A CSR approach," Journal of Business Research, Elsevier, vol. 119(C), pages 302-309.
    20. Akiebe Humphrey Ahworegba & Christophe Estay & Myropi Garri, 2020. "Institutional duality incidence on subsidiaries: configuration, differentiation and avoidance strategies," Post-Print hal-03632783, HAL.
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    23. Panicker, Vidya Sukumara & Georgiadou, Elena & Hodgkinson, Ian R., 2024. "Generous to a fault: Differential impact of CSR investments on financial gains in Indian market multinationals," Journal of International Management, Elsevier, vol. 30(3).

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