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The effect of entry mode and geographic diversification on corporate social responsibility

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  • Yung-Hwal Park
  • Seung H. Kim
  • Kevin Lehnert

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.

Suggested Citation

  • Yung-Hwal Park & Seung H. Kim & Kevin Lehnert, 2015. "The effect of entry mode and geographic diversification on corporate social responsibility," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 7(4), pages 327-346.
    • Handle: RePEc:ids:ijbenv:v:7:y:2015:i:4:p:327-346
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    Cited by:

    1. Park, Sungbeen & Song, Sujin & Lee, Seoki, 2017. "Corporate social responsibility and systematic risk of restaurant firms: The moderating role of geographical diversification," Tourism Management, Elsevier, vol. 59(C), pages 610-620.

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