IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v65y2025i3d10.1007_s11575-025-00576-6.html
   My bibliography  Save this article

Comparing the Effects of Internationalization on CSR in Service and Non-Service MNEs

Author

Listed:
  • Stephen Chen

    (Newcastle University Business School)

  • Jintao Zhang

    (Central Queensland University)

  • Hao Tan

    (Nottingham University Business School China, University of Nottingham Ningbo China)

Abstract

We examine the question, “What is the effect of internationalization on the CSR performance of firms in service sectors compared to non-service sectors?”. Drawing on a stakeholder and institutional theory-based perspective, we hypothesize: (1) in non-service firms, their social performance increases steadily with increasing internationalization, while the relationship between internationalization and their environmental performance follows an S-shape pattern; (2) in service firms, internationalization has little effect on both social and environmental performance at low to medium levels of internationalization but strong positive effects at high levels of internationalization. We tested our hypotheses with panel data on 4,693 publicly listed MNEs in 41 economies from 2002 to 2021. The results supported our hypotheses.

Suggested Citation

  • Stephen Chen & Jintao Zhang & Hao Tan, 2025. "Comparing the Effects of Internationalization on CSR in Service and Non-Service MNEs," Management International Review, Springer, vol. 65(3), pages 459-485, June.
    • Handle: RePEc:spr:manint:v:65:y:2025:i:3:d:10.1007_s11575-025-00576-6
    DOI: 10.1007/s11575-025-00576-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-025-00576-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11575-025-00576-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mark F Peterson & Jean-Luc Arregle & Xavier Martin, 2012. "Multilevel models in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(5), pages 451-457, June.
    2. Jongmoo Jay Choi & Hoje Jo & Jimi Kim & Moo Sung Kim, 2018. "Business Groups and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 153(4), pages 931-954, December.
    3. Cristina Gianfelici & Andrea Casadei & Federica Cembali, 2018. "The Relevance of Nationality and Industry for Stakeholder Salience: An Investigation Through Integrated Reports," Journal of Business Ethics, Springer, vol. 150(2), pages 541-558, June.
    4. Sanjay Sharma & Irene Henriques, 2005. "Stakeholder influences on sustainability practices in the Canadian forest products industry," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 159-180, February.
    5. repec:clg:wpaper:2008-02 is not listed on IDEAS
    6. Battisti, Enrico & Nirino, Niccolò & Leonidou, Erasmia & Thrassou, Alkis, 2022. "Corporate venture capital and CSR performance: An extended resource based view’s perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 1058-1066.
    7. Frances E. Bowen, 2000. "Environmental visibility: a trigger of green organizational response?," Business Strategy and the Environment, Wiley Blackwell, vol. 9(2), pages 92-107, March.
    8. Carri Reisdorf Tolmie & Kevin Lehnert & Hongxin Zhao, 2020. "Formal and informal institutional pressures on corporate social responsibility: A cross‐country analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 786-802, March.
    9. Tao Bai & Stephen Chen & Xiao He, 2019. "How Home-Country Political Connections Influence the Internationalization of Service Firms," Management International Review, Springer, vol. 59(4), pages 541-560, August.
    10. Taylor, Murray & Jack, R. & Madsen, T. & Alam, M.A., 2021. "The nature of service characteristics and their impact on internationalization: A multiple case study of born global firms," Journal of Business Research, Elsevier, vol. 132(C), pages 517-529.
    11. Zhe Li & Ping Wang, 2023. "Cross‐border mergers and acquisitions and corporate social responsibility: Evidence from Chinese listed firms," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(1-2), pages 335-376, January.
    12. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    13. Arik Levinson & M. Scott Taylor, 2008. "Unmasking The Pollution Haven Effect," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 223-254, February.
    14. Cyril Bouquet & Yuval Deutsch, 2008. "The Impact of Corporate Social Performance on a Firm’s Multinationality," Journal of Business Ethics, Springer, vol. 80(4), pages 755-769, July.
    15. Liou, Ru-Shiun & Lamb, Nai H. & Lee, Kevin, 2021. "Cultural imprints: Emerging market multinationals’ post-acquisition corporate social performance," Journal of Business Research, Elsevier, vol. 126(C), pages 187-196.
    16. Keith D. Brouthers & Lance Eliot Brouthers, 2003. "Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust," Journal of Management Studies, Wiley Blackwell, vol. 40(5), pages 1179-1204, July.
    17. Amer, Estefania, 2023. "Internationalization, institutional pressures in foreign markets, and environmental sustainability," Journal of International Management, Elsevier, vol. 29(1).
    18. Shui, Xiaolong & Zhang, Minhao & Smart, Palie & Ye, Fei, 2022. "Sustainable corporate governance for environmental innovation: A configurational analysis on board capital, CEO power and ownership structure," Journal of Business Research, Elsevier, vol. 149(C), pages 786-794.
    19. Anthony Goerzen & Shige Makino, 2007. "Multinational corporation internationalization in the service sector: a study of Japanese trading companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1149-1169, December.
    20. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    21. Alan M. Rugman & Alain Verbeke, 2012. "A new perspective on the regional and global strategies of multinational services firms," Chapters, in: Handbook of Research on International Strategic Management, chapter 13, pages 257-270, Edward Elgar Publishing.
    22. Hu, Huijing & Tu, Zekai & Chen, Aoyun & Huang, Juanjuan, 2023. "Enterprises’ globalization and ESG performance," Finance Research Letters, Elsevier, vol. 58(PD).
    23. Ioannis Ioannou & George Serafeim, 2012. "What drives corporate social performance? The role of nation-level institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(9), pages 834-864, December.
    24. Symeou, Pavlos C. & Zyglidopoulos, Stelios & Williamson, Peter, 2018. "Internationalization as a driver of the corporate social performance of extractive industry firms," Journal of World Business, Elsevier, vol. 53(1), pages 27-38.
    25. Lindner, Thomas & Puck, Jonas & Doh, Jonathan, 2021. "Hierarchical modelling in international business research: Patterns, problems, and practical guidelines," Journal of World Business, Elsevier, vol. 56(4).
    26. Park, Byung Il & Ghauri, Pervez N., 2015. "Determinants influencing CSR practices in small and medium sized MNE subsidiaries: A stakeholder perspective," Journal of World Business, Elsevier, vol. 50(1), pages 192-204.
    27. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    28. Andrew Bell & Malcolm Fairbrother & Kelvyn Jones, 2019. "Fixed and random effects models: making an informed choice," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 1051-1074, March.
    29. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    30. José Pla-Barber & Pervez N. Ghauri, 2012. "Internationalization of service industry firms: understanding distinctive characteristics," The Service Industries Journal, Taylor & Francis Journals, vol. 32(7), pages 1007-1010, May.
    31. Sara Bice, 2017. "Corporate Social Responsibility as Institution: A Social Mechanisms Framework," Journal of Business Ethics, Springer, vol. 143(1), pages 17-34, June.
    32. Riku Laanti & Fred McDougall & Georges Baume, 2009. "How well do Traditional Theories Explain the Internationalisation of Service MNEs from Small and Open Economies? – Case: National Telecommunication Companies," Management International Review, Springer, vol. 49(1), pages 121-144, February.
    33. Rammal, Hussain G. & Rose, Elizabeth L. & Ghauri, Pervez N. & Ørberg Jensen, Peter D. & Kipping, Matthias & Petersen, Bent & Scerri, Moira, 2022. "Economic nationalism and internationalization of services: Review and research agenda," Journal of World Business, Elsevier, vol. 57(3).
    34. Najah Attig & Narjess Boubakri & Sadok El Ghoul & Omrane Guedhami, 2016. "Firm Internationalization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 134(2), pages 171-197, March.
    35. Lu, Hao & Oh, Won-Yong & Kleffner, Anne & Chang, Young Kyun, 2021. "How do investors value corporate social responsibility? Market valuation and the firm specific contexts," Journal of Business Research, Elsevier, vol. 125(C), pages 14-25.
    36. Zhang, Guiling & Wang, Linjiang & Guo, Fei & Yang, Guochao, 2021. "Does corporate internationalization affect corporate social responsibility? Evidence from China," Emerging Markets Review, Elsevier, vol. 46(C).
    37. Dagenais, Marcel G, 1969. "A Threshold Regression Model," Econometrica, Econometric Society, vol. 37(2), pages 193-203, April.
    38. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.
    39. J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 41-57, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Enrico Battisti & Hussain G. Rammal & Hemant Merchant & Pervez Ghauri & Niccolò Nirino, 2025. "Corporate Social Responsibility Challenges of International Service Firms: An Introduction and Research Agenda," Management International Review, Springer, vol. 65(3), pages 399-414, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tao Bai & Stephen Chen & Xiao He, 2019. "How Home-Country Political Connections Influence the Internationalization of Service Firms," Management International Review, Springer, vol. 59(4), pages 541-560, August.
    2. Yaxin Xie & Ruochen Zeng, 2025. "Exploring the Relationship Between Firm Internationalization and Corporate Social Responsibility: A Literature Review and Bibliometric Analysis," Sustainability, MDPI, vol. 17(4), pages 1-21, February.
    3. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.
    4. Popli, Manish & Raithatha, Mehul & Ahsan, Faisal Mohammad, 2021. "Signaling behavioral intent through better governance: A study of emerging market multinational enterprises," Journal of Business Research, Elsevier, vol. 135(C), pages 697-710.
    5. Jiang, Guoliang Frank & Jung, Jae C. & Makino, Shige, 2020. "Parent Firm Corporate Social Responsibility and Overseas Subsidiary Performance: A Signaling Perspective," Journal of World Business, Elsevier, vol. 55(6).
    6. Ziyi Wei & Quyen T. K. Nguyen, 2020. "Chinese Service Multinationals: The Degree of Internationalization and Performance," Management International Review, Springer, vol. 60(6), pages 869-908, December.
    7. Gleich, Wolfgang & Schmeisser, Bjoern & Zschoche, Miriam, 2017. "The influence of competition on international sourcing strategies in the service sector," International Business Review, Elsevier, vol. 26(2), pages 279-287.
    8. Charl de Villiers & Jing Jia & Zhongtian Li, 2022. "Corporate social responsibility: A review of empirical research using Thomson Reuters Asset4 data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4523-4568, December.
    9. Geert Braam & Erik Poutsma & Roel Schouteten & Beatrice van der Heijden, 2024. "Employee financial participation and corporate social and environmental performance: Evidence from European panel data," British Journal of Industrial Relations, London School of Economics, vol. 62(2), pages 381-409, June.
    10. Khan, Majid & Lockhart, James & Bathurst, Ralph, 2021. "The institutional analysis of CSR: Learnings from an emerging country," Emerging Markets Review, Elsevier, vol. 46(C).
    11. Enrico Battisti & Hussain G. Rammal & Hemant Merchant & Pervez Ghauri & Niccolò Nirino, 2025. "Corporate Social Responsibility Challenges of International Service Firms: An Introduction and Research Agenda," Management International Review, Springer, vol. 65(3), pages 399-414, June.
    12. Helena Turunen & Niina Nummela, 2017. "Internationalisation at home: The internationalisation of location-bound service SMEs," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 36-54, March.
    13. Liu, Mei & Marshall, Andrew & McColgan, Patrick, 2021. "Foreign direct investments: The role of corporate social responsibility," Journal of Multinational Financial Management, Elsevier, vol. 59(C).
    14. Ryan W. Tang & Lili Mi & Xi Wen Carys Chan & Hongmin Yan & S. Tamer Cavusgil, 2025. "Corporate Social Responsibility and Technological Advancement of International Service Enterprises: Links and Gaps in the Literature," Management International Review, Springer, vol. 65(3), pages 415-458, June.
    15. Spyros Arvanitis & Heinz Hollenstein & Tobias Stucki, 2013. "Determinants of Internationalisation - Do they Differ among Sectors and Business Functions?," KOF Working papers 13-348, KOF Swiss Economic Institute, ETH Zurich.
    16. Anthi Avloniti & Christiana Anaxagorou & Ioanna Stylianou & Duc Khuong Nguyen & Kamila Janovská, 2025. "Global Footprint, Local Imprint: How Institutions and Distance Influence the Corporate Social Performance of Foreign Subsidiaries Across Service Industries," Management International Review, Springer, vol. 65(3), pages 539-589, June.
    17. O'Higgins, Ciara & Andreeva, Tatiana & Goya, Nekane Aramburu, 2022. "The hows and whys of foreign operation mode combinations: The role of knowledge processes," Journal of World Business, Elsevier, vol. 57(2).
    18. Aray, Yulia & Dikova, Desislava & Garanina, Tatiana & Veselova, Anna, 2021. "The hunt for international legitimacy: Examining the relationship between internationalization, state ownership, location and CSR reporting of Russian firms," International Business Review, Elsevier, vol. 30(5).
    19. Debmalya Mukherjee & Satish Kumar & Naveen Donthu & Nitesh Pandey, 2021. "Research Published in Management International Review from 2006 to 2020: A Bibliometric Analysis and Future Directions," Management International Review, Springer, vol. 61(5), pages 599-642, October.
    20. Zhang, John Fan & So, Jacky Yuk-chow, 2024. "The effect of corruption exposure on the ESG performance of multinational firms11We greatly appreciate the valuable feedback from the editor Hui Guo. John Fan Zhang is an assistant professor and Jacky," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:manint:v:65:y:2025:i:3:d:10.1007_s11575-025-00576-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.