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The influence of institutional factors on MNC’s triple bottom-line reporting: A focus on African emerging markets (AEMs)

Boris Urban ( University of Witwatersrand , Johannesburg, South Africa )
Rutendo Hwindingwi ( University of Witwatersrand , Johannesburg, South Africa )

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 19 September 2016

790

Abstract

Purpose

Recognising the rapid institutional changes multinational corporations (MNCs) face in emerging markets, the purpose of this paper is to investigate the influence of various institutional factors on their triple bottom-line (TBL) reporting. The study builds on existing research where it has been noted that international business theory needs to adapt to the changes in the global economy, particularly the need to recognise the influence of several contingent variables in African emerging markets (AEMs).

Design/methodology/approach

The study design was cross-sectional where a survey was administered to MNCs operating in four leading countries situated in key economic regions in Africa. Following validity and reliability testing, hypotheses were tested using regression analysis.

Findings

Findings show that an independent judiciary system and an adequate national security system were found to have a positive and significant influence on the MNC’s TBL reporting. These institutional factors highlight the perceived importance of “law and order” for MNCs in AEMs.

Research limitations/implications

Policy implications relate to the need for specific and targeted interventions aimed at improving institutional factors in AEMs.

Originality/value

Instead of focusing on the internationalisation of AEM firms, the study took a different approach by focusing instead on countries previously under researched and how MNCs are affected by the institutional regimes in these AEMs.

Keywords

Citation

Urban, B. and Hwindingwi, R. (2016), "The influence of institutional factors on MNC’s triple bottom-line reporting: A focus on African emerging markets (AEMs)", International Journal of Emerging Markets, Vol. 11 No. 4, pp. 497-513. https://doi.org/10.1108/IJoEM-08-2015-0164

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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