The effect of entry mode and geographic diversification on corporate social responsibility
by Yung-Hwal Park; Seung H. Kim; Kevin Lehnert
International Journal of Business Environment (IJBE), Vol. 7, No. 4, 2015

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.

Online publication date: Thu, 26-Nov-2015

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