The Effects of Top Management Team National Diversity and Institutional Uncertainty on Subsidiary CSR Focus

Sven Dahms (), Suthikorn Kingkaew () and Eddy Ng ()
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Sven Dahms: The Open University of Hong Kong
Suthikorn Kingkaew: Thammasat University
Eddy Ng: Bucknell University

Journal of Business Ethics, 2022, vol. 177, issue 3, No 12, 699-715

Abstract: Abstract This research investigates how top management team national diversity (TMTND) and corporate social responsibility (CSR) institutional uncertainty affect strategic CSR focus in foreign-owned subsidiaries. The paper develops a theoretical framework based on institutional theory and upper echelon perspectives to test a sample of MNE subsidiaries. Survey data were collected from subsidiaries in Thailand and Taiwan. Non-symmetric analysis suggests that while TMTND plays an important role in establishing a CSR focus, it is not conducive in itself to high-performance outcomes. Performance is measured by market share, sales growth, and profitability for each subsidiary. The results also show that there are notable differences between the subsidiaries located in Thailand and Taiwan as to what extent CSR strategic focus and top management team national diversity are relevant for high-performance outcomes. The study demonstrates that the links between CSR, TMTND, and subsidiary performance are much more complex than previously assumed.

Keywords: Corporate social responsibility; Top management team national diversity; Institutional theory; Upper echelon theory; Foreign-owned subsidiaries (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10551-020-04721-z

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