The impact of corporate social performance on a firm's multinationality

Journal of Business Ethics 80 (4):755 - 769 (2008)
Using panel data of 4,244 company years, we examine whether and how corporate social performance (CSP) affects a firm’s capacity to achieve profitable sales in foreign markets. Based on our extension of instrumental stakeholder theory into the international arena, we hypothesized a U-shaped relationship between CSP and multinationality. Results supported our contention that multinational enterprises (MNEs) need to be substantially committed to social performance objectives if they are to recoup the cost of their CSP investments, and improve their capacity to compete in foreign markets. MNEs engaged in intermediate levels of CSP achieve lower levels of multinationality than firms operating at either anchor of the social performance continuum. In addition, this study demonstrates that CSP moderates a well-established relationship in international business literature – the relationship between R&D investment and a firm’s multinationality. Implications for research and practice are discussed.
Keywords corporate social performance  international business  multinationality
Categories (categorize this paper)
DOI 10.1007/s10551-007-9467-4
 Save to my reading list
Follow the author(s)
Edit this record
My bibliography
Export citation
Find it on Scholar
Mark as duplicate
Request removal from index
Revision history
Download options
Our Archive

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 30,798
Through your library
References found in this work BETA
Business codes of multinational firms: What do they say?Muel Kaptein - 2004 - Journal of Business Ethics 50 (1):13-31.

View all 11 references / Add more references

Citations of this work BETA

Add more citations

Similar books and articles
Added to PP index

Total downloads
37 ( #144,384 of 2,199,754 )

Recent downloads (6 months)
1 ( #300,206 of 2,199,754 )

How can I increase my downloads?

Monthly downloads
My notes
Sign in to use this feature