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Sustainable resource management and community corporate social performance: strategic implications of corruption control in MNEs

Leyla Orudzheva (Department of Management and Marketing, Texas A&M University Central Texas, Killeen, Texas, USA)
Manjula S. Salimath (Department of Management, University of North Texas, Denton, Texas, USA)
Robert Pavur (Department of Information Technology and Decision Sciences, University of North Texas, Denton, Texas, USA)

Society and Business Review

ISSN: 1746-5680

Article publication date: 5 September 2024

Issue publication date: 1 October 2024

12

Abstract

Purpose

The consequences of corporate corruption control (CCC) have either been investigated outside the firm (e.g. foreign direct investment inflows) or inside the firm (e.g. profitability). Yet prior research addresses these implications separately, treating them as distinct phenomena, ignoring questions at their intersection. However, corruption control can be leveraged to benefit both organizations (internally) and environments (externally). In line with open systems theory, this study aims to explore a ripple effect of corruption control not only inside organizations (efficiency through adoption of sustainable resource management practices) but also outside [community-centered corporate social performance (CSP)].

Design/methodology/approach

Using a longitudinal sample of multinational enterprises from Forbes list of “The World’s Largest Public Companies,” the authors use a cross-lagged panel design to provide clarity regarding causal effects.

Findings

Results confirm causal directionality and support the positive effect of corruption control on resource management and community CSP, contributing toward understanding implications at the organization–environment interface.

Originality/value

The authors examine both internal and external implications of CCC. The use of a cross-lagged design that is relatively novel to the management field allows to check for casual effects between CSP elements that were previously assumed to have reciprocal casual effects.

Keywords

Acknowledgements

We are grateful for the comments provided by Dr Rachida Aissaoui, Dr Cory Searcy and anonymous reviewers and participants of the Strategic Management Society Annual Conference for their feedback on earlier versions of the paper.

Citation

Orudzheva, L., Salimath, M.S. and Pavur, R. (2024), "Sustainable resource management and community corporate social performance: strategic implications of corruption control in MNEs", Society and Business Review, Vol. 19 No. 4, pp. 577-602. https://doi.org/10.1108/SBR-08-2023-0263

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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