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Global and local corporate social responsibility: a study of foreign entry mode choice in Spanish quoted firms

Francisco José Mas-Ruiz (Department of Marketing, University of Alicante, Alicante, Spain)
Carla Rodriguez-Sanchez (Department of Marketing, University of Alicante, Alicante, Spain)
Franco Manuel Sancho-Esper (Department of Marketing, University of Alicante, Alicante, Spain)
Esther de Quevedo-Puente (Faculty of Economic and Business Sciences, University of Burgos, Burgos, Spain)

Academia Revista Latinoamericana de Administración

ISSN: 1012-8255

Article publication date: 23 November 2021

Issue publication date: 14 February 2022

297

Abstract

Purpose

This study examines the relationships between the foreign entry mode (FEM) used by a company, its global corporate social responsibility (CSR) and the host country's local CSR environment in Spanish quoted firms. Additionally, it seeks to explore the moderating role of the host country's CSR in the relationship between firm's global CSR and FEM.

Design/methodology/approach

To test the proposed hypotheses, binary logistic regression is used with a sample of 418 foreign direct investment (FDI) operations between 2002 and 2008. This period is chosen with the aim of knowing what happened after the boom in Spanish investments abroad in the 1990s and the uncertainty of the early 2000s.

Findings

The results reveal firm patterns of behaviour regarding the FEM of companies and the two types of CSR according to the proposed hypotheses. Furthermore, it is found that the host country's local CSR may not only have a direct influence on the FEM decision but may also moderate the relationship between the firm's global CSR and firm's entry mode in a host country.

Originality/value

This is one of the first studies to propose as explanatory variables of FEM two types of CSR (firm's global CSR and host country's local CSR). This has been possible by the creation of an ad-hoc database with data from different information sources of FDI (Instituto Español de Comercio Exterior) and CSR [Eikon™ and AccountAbility National Corporate Responsibility Index (NCRI)].

Propósito

Se examina las relaciones entre el modo de entrada en el exterior (MEE) de una empresa, su responsabilidad social corporativa (RSC) global y el entorno de RSC local del país de destino en empresas cotizadas en España. Además, analiza el papel moderador de la RSC del país de destino en la relación entre la RSC global de la empresa y el MEE.

Diseño/metodología/enfoque

Se utiliza la regresión logística binaria con una muestra de 418 operaciones de inversión directa exterior (IED) entre 2002–2008. Este período se elige para conocer qué sucedió durante el auge de las inversiones españolas en el exterior a principios de 2000.

Hallazgos

Los resultados revelan patrones de comportamiento en relación al MEE de las empresas y los dos tipos de RSC según las hipótesis propuestas. Además, se encuentra que la RSC local del país de destino puede también moderar la relación entre la RSC global de la empresa y el MEE.

Originalidad/valor

Este es uno de los primeros estudios en proponer como variables explicativas del MEE, dos tipos de RSC (RSC global de la empresa y RSC local del país de destino), gracias a la creación de una base de datos ad-hoc con datos de diferentes fuentes de información de IED (ICEX) y RSC (Eikon ™ y AccountAbility NCRI).

Keywords

Acknowledgements

Management Area: Corporate Social Responsibility

Funding: This research was funded by a grant (GRE19-03) from the University of Alicante.

Citation

Mas-Ruiz, F.J., Rodriguez-Sanchez, C., Sancho-Esper, F.M. and de Quevedo-Puente, E. (2022), "Global and local corporate social responsibility: a study of foreign entry mode choice in Spanish quoted firms", Academia Revista Latinoamericana de Administración, Vol. 35 No. 1, pp. 59-79. https://doi.org/10.1108/ARLA-03-2021-0067

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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