The moderating effects of power distance on corporate social responsibility and multinational enterprises performance

Minh-Hieu Le (), Wen-Min Lu () and Qian Long Kweh ()
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Minh-Hieu Le: Ton Duc Thang University
Wen-Min Lu: Chinese Culture University
Qian Long Kweh: Canadian University Dubai, City Walk

Review of Managerial Science, 2023, vol. 17, issue 7, No 11, 2503-2533

Abstract: Abstract This study examines (1) how corporate social responsibility (CSR) or the three pillars of sustainable investing, viz., the environmental (E), social (S), and governance (G) pillars, individually affect innovation performance (IP) and business performance (BP) and (2) how power distance (PD) moderates the impact of the ESG pillars on IP and BP. Our findings of studying 116 multinational enterprises (MNEs) in the technology industry from 2013 to 2018 suggest that not all indicators significantly affect the performance of the MNEs. That is, the G pillar has a positive influence on IP, whereas the E and S pillars are negatively related to BP. Moreover, we find that PD significantly moderates the relationship between two pillars of ESG (E and S) and BP. Specifically, the E and S pillars are negatively related to BP when PD is low, but the relationship is significantly and statistically positive when PD is high. The results can provide technology MNE managers with references for their CSR implementation strategy choices.

Keywords: Corporate social responsibility; Innovation performance; Business performance; Network DEA; Multinational enterprises; Power distance; F23; L25; M14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11846-022-00591-z

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