IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03134106.html
   My bibliography  Save this paper

Does a company’s origin matter in moral judgment?

Author

Listed:
  • Hind Dib-Slamani

    (University of International Business and Economics [Beijing, China], MDI Algiers Business School)

  • Gilles Grolleau

    (CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC), CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

  • Naoufel Mzoughi

    (ECODEVELOPPEMENT - Ecodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We blend the institutional and social identity theories to explain why foreign companies may endure a differentiated treatment compared to domestic ones. We extend the "liability of foreignness" (LOF) reasoning to the moral domain. Using a survey experiment in Algeria and France, we examine whether observers judge similarly or differently the same ethical and unethical practices by manipulating the doers' origin. Each treatment corresponds to a specific combination of company behavior (ethical vs. unethical) and company origin (no origin mentioned vs. domestic origin vs. foreign origin). We found that company origin matters for the ethical and some unethical scenarios. However, the foreignness consequences in the moral domain are not always consistent with a simplistic application of LOF-based arguments, leading us to consider a more complex picture than initially expected. In the Algerian sample, we found that foreign companies can even benefit from an advantage compared to domestic ones.

Suggested Citation

  • Hind Dib-Slamani & Gilles Grolleau & Naoufel Mzoughi, 2023. "Does a company’s origin matter in moral judgment?," Post-Print hal-03134106, HAL.
    • Handle: RePEc:hal:journl:hal-03134106
    DOI: 10.1177/2340944420981597
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03134106v1
    as

    Download full text from publisher

    File URL: https://hal.inrae.fr/hal-03134106v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2340944420981597?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John A. List & Azeem M. Shaikh & Yang Xu, 2019. "Multiple hypothesis testing in experimental economics," Experimental Economics, Springer;Economic Science Association, vol. 22(4), pages 773-793, December.
    2. Mullinix, Kevin J. & Leeper, Thomas J. & Druckman, James N. & Freese, Jeremy, 2015. "The Generalizability of Survey Experiments," Journal of Experimental Political Science, Cambridge University Press, vol. 2(2), pages 109-138, January.
    3. Donal Crilly & Na Ni & Yuwei Jiang, 2016. "Do-no-harm versus do-good social responsibility: Attributional thinking and the liability of foreignness," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1316-1329, July.
    4. Gilles Grolleau & Naoufel Mzoughi, 2005. "Overcomplying for profit," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(4), pages 267-269, December.
    5. Ahmed, Ali M., 2007. "Group identity, social distance and intergroup bias," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 324-337, June.
    6. Katherine Farrow & Gilles Grolleau & Naoufel Mzoughi, 2018. "What in the Word! The Scope for the Effect of Word Choice on Economic Behavior," Kyklos, Wiley Blackwell, vol. 71(4), pages 557-580, November.
    7. Ahluwalia, Rohini, 2002. "How Prevalent Is the Negativity Effect in Consumer Environments?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(2), pages 270-279, September.
    8. Elango, B., 2009. "Minimizing effects of 'liability of foreignness': Response strategies of foreign firms in the United States," Journal of World Business, Elsevier, vol. 44(1), pages 51-62, January.
    9. Haslam, Paul Alexander & Ary Tanimoune, Nasser & Razeq, Zarlasht M., 2019. "Is “being foreign” a liability for mining companies? Locational liabilities and social conflict in Latin America," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    10. Srilata Zaheer & Elaine Mosakowski, 1997. "The Dynamics Of The Liability Of Foreignness: A Global Study Of Survival In Financial Services," Strategic Management Journal, Wiley Blackwell, vol. 18(6), pages 439-463, June.
    11. Jesse R. Catlin & Michael Gerhard Luchs & Marcus Phipps, 2017. "Consumer Perceptions of the Social Vs. Environmental Dimensions of Sustainability," Journal of Consumer Policy, Springer, vol. 40(3), pages 245-277, September.
    12. Jenny G. Olson & Brent McFerran & Andrea C. Morales & Darren W. Dahl, 2016. "Wealth and Welfare: Divergent Moral Reactions to Ethical Consumer Choices," Journal of Consumer Research, Oxford University Press, vol. 42(6), pages 879-896.
    13. Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, vol. 18(4), pages 322-334.
    14. Joseph Henrich & Steve J. Heine & Ara Norenzayan, 2010. "The Weirdest People in the World?," RatSWD Working Papers 139, German Data Forum (RatSWD).
    15. Markus Taussig, 2017. "Foreignness as both a global asset and a local liability: How host country idiosyncrasies and business activities matter," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(4), pages 498-522, May.
    16. Sonia Lequin & Gilles Grolleau & Naoufel Mzoughi, 2019. "Harnessing the power of identity to encourage farmers to protect the environment," Post-Print hal-01999647, HAL.
    17. Jesper Edman, 2016. "Reconciling the advantages and liabilities of foreignness: Towards an identity-based framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(6), pages 674-694, August.
    18. Weber, James, 1992. "Scenarios in Business Ethics Research: Review, Critical Assessment, and Recommendations," Business Ethics Quarterly, Cambridge University Press, vol. 2(2), pages 137-160, April.
    19. Luo, Yadong & Shenkar, Oded & Nyaw, Mee-Kau, 2002. "Mitigating liabilities of foreignness: Defensive versus offensive approaches," Journal of International Management, Elsevier, vol. 8(3), pages 283-300.
    20. Rafael Barreiros Porto & Talyta da Silva Soyer, 2018. "Is naming brands in English worth doing? Effects of foreignness and country of origin on brand equity," Brazilian Business Review, Fucape Business School, vol. 15(6), pages 606-623, November.
    21. Zheng, Qinqin & Luo, Yadong & Maksimov, Vladislav, 2015. "Achieving legitimacy through corporate social responsibility: The case of emerging economy firms," Journal of World Business, Elsevier, vol. 50(3), pages 389-403.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jane W. Lu & Hao Ma & Xuanli Xie, 2022. "Foreignness research in international business: Major streams and future directions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 449-480, April.
    2. Tiina Ritvala & Nina Granqvist & Rebecca Piekkari, 2021. "A processual view of organizational stigmatization in foreign market entry: The failure of Guggenheim Helsinki," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(2), pages 282-305, March.
    3. Dib-Slamani, Hind & Grolleau, Gilles & Mzoughi, Naoufel, 2022. "Robbing a robber is not robbing," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 1-7.
    4. Tiina Ritvala & Nina Granqvist & Rebecca Piekkari, 0. "A processual view of organizational stigmatization in foreign market entry: The failure of Guggenheim Helsinki," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.
    5. Bernadine J. Dykes & Charles E. Stevens & Nandini Lahiri, 2020. "Foreignness in public–private partnerships: The case of project finance investments," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 183-197, June.
    6. Maruyama, Masayoshi & Wu, Lihui, 2015. "Overcoming the Liability of Foreignness in International Retailing: A Consumer Perspective," Journal of International Management, Elsevier, vol. 21(3), pages 200-210.
    7. Aloysius Newenham-Kahindi & Charles E Stevens, 2018. "An institutional logics approach to liability of foreignness: The case of mining MNEs in Sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(7), pages 881-901, September.
    8. Joardar, Arpita & Wu, Sibin, 2017. "Liabilities and benefits: Examining the two sides of the foreignness coin from entrepreneurial perspective," International Business Review, Elsevier, vol. 26(6), pages 1157-1167.
    9. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    10. Li Xian Liu & Fuming Jiang & Milind Sathye & Hongbo Liu, 2021. "Are Foreign Banks Disadvantaged Vis-À-Vis Domestic Banks in China?," JRFM, MDPI, vol. 14(9), pages 1-36, August.
    11. Demirbag, Mehmet & McGuinness, Martina & Akin, Ahmet & Bayyurt, Nizamettin & Basti, Eyup, 2016. "The professional service firm (PSF) in a globalised economy: A study of the efficiency of securities firms in an emerging market," International Business Review, Elsevier, vol. 25(5), pages 1089-1102.
    12. Paul Caussat, 2021. "Competitive Advantages in a Hostile, Regulated Environment: Four Multinational Banks in India," Management International Review, Springer, vol. 61(6), pages 831-879, December.
    13. Farrow, Katherine & Grolleau, Gilles & Mzoughi, Naoufel, 2021. "‘Let's call a spade a spade, not a gardening tool’: How euphemisms shape moral judgement in corporate social responsibility domains," Journal of Business Research, Elsevier, vol. 131(C), pages 254-267.
    14. Li, Shenxue & Easterby-Smith, Mark & Lyles, Marjorie A. & Clark, Timothy, 2016. "Tapping the power of local knowledge: A local-global interactive perspective," Journal of World Business, Elsevier, vol. 51(4), pages 641-653.
    15. Adomako, Samuel & Abdelgawad, Sondos G. & Ahsan, Mujtaba & Amankwah-Amoah, Joseph & Azaaviele Liedong, Tahiru, 2023. "Nonmarket strategy in emerging markets: The link between SMEs’ corporate political activity, corporate social responsibility, and firm competitiveness," Journal of Business Research, Elsevier, vol. 160(C).
    16. Yong Yang & Pedro S. Martins & Nigel Driffield, 2013. "Multinational Performance and the Geography of FDI," Management International Review, Springer, vol. 53(6), pages 763-794, December.
    17. Robert-Nicoud, Frédéric & Olarreaga, Marcelo & Carrère, Céline & Fugazza, Marco, 2016. "On the heterogeneous effect of trade on unemployment," CEPR Discussion Papers 11540, C.E.P.R. Discussion Papers.
    18. Grolleau, Gilles & Mungan, Murat C. & Mzoughi, Naoufel, 2022. "Seemingly irrelevant information? The impact of legal team size on third party perceptions," International Review of Law and Economics, Elsevier, vol. 71(C).
    19. Sophie Clot & Gilles Grolleau & Lisette Ibanez, 2020. "Projection bias in environmental attitudes and behavioral intentions," CEE-M Working Papers hal-02874044, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    20. Hutzschenreuter, Thomas & Harhoff, Philippa-Luisa, 2021. "The accelerating effect of institutional environment unfamiliarity on subsidiary portfolio expansion in a new host country," International Business Review, Elsevier, vol. 30(3).

    More about this item

    Keywords

    CSR; liability of foreignness (LOF); business ethics; moral judgment; experimental survey;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03134106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.