The effect of entry mode and geographic diversification on corporate social responsibility

Yung-Hwal Park, Seung H. Kim and Kevin Lehnert

International Journal of Business Environment, 2015, vol. 7, issue 4, 327-346

Abstract: This study examines the effect of MNEs' choice of entry mode in foreign markets and geographic diversification on CSR, based upon the moderating effect of slack resources. Results suggest that firms with more wholly-owned subsidiaries compared to their total number of subsidiaries are generally more socially responsible than other firms. Geographic diversification was positively related to CSR. Slack resources significantly moderated the effect of geographic diversification on CSR when they were low, but the moderating effect was not significant when slack resources were moderate or high. The relationship between CSR and financial performance was found to be significant and positive when innovation and advertising were taken into account.

Keywords: corporate social responsibility; CSR; entry mode; geographic diversification; slack resources; cultural distance; MNEs; multinational enterprises; multinationals; foreign markets; market entry; wholly-owned subsidiaries; financial performance; innovation; advertising. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=73179 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbenv:v:7:y:2015:i:4:p:327-346

Access Statistics for this article

More articles in International Journal of Business Environment from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().