Loughborough University
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Generous to a fault: differential impact of CSR investments on financial gains in Indian market multinationals

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To date, the extant Corporate Social Responsibility (CSR) literature has overlooked the performance consequences of different forms of CSR investments made by Emerging Market Multinational Corporations (EMNCs). Addressing this knowledge gap, and drawing on legitimacy theory, we examine the impact of external CSR investments (e.g., social and community philanthropic support activities) and internal CSR investments (e.g., working conditions, employee rights and equal employment opportunities) on financial performance of EMNCs, while also accounting for the moderating effects of internationalization location choices. We test our hypotheses on a panel consisting of 1513 unique Indian EMNCs, in the 2014–2019 time-period. On applying various estimation techniques, the findings reveal that both external and internal CSR investments are positively associated with financial performance of EMNCs, while the destination location of foreign investments and home-host geographic and institutional distance moderate these relationships. This study offers new empirical evidence on the financial implications of different types of CSR investments available to EMNCs and advances legitimacy theory by expanding its dimensional and contextual scope.

History

School

  • Loughborough Business School

Published in

Journal of International Management

Publisher

Elsevier

Version

  • P (Proof)

Rights holder

© The Author(s)

Publisher statement

This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

Acceptance date

2024-03-13

Publication date

2024-03-19

Copyright date

2024

ISSN

1075-4253

eISSN

1873-0620

Language

  • en

Depositor

Dr Vidya Sukumara Panicker. Deposit date: 14 March 2024

Article number

101142