CSR as a capability-building response to exogenous shocks by Lebanese MNEs

Abstract

Exogenous shocks have become more frequent in recent years. Responses to one major crisis have often been discussed though there has been little research on now firms can handle multiple shocks, sometimes back-to-back ones. Using Lebanon as a strategic research site, we explore how MNEs’ CSR practice helps them to adapt to multiple exogenous shocks over a period of time. First, employing a process model, this paper shows the generative capacity in MNEs’ ‘people, process and structures’ in developing the capabilities to respond to multiple shocks. Second, a phenomenon of imprinting and imbrication is highlighted as firms leverage new and existing capabilities to address a current crisis and to prepare for subsequent ones. Third, we introduce a new capability, termed here as “exigent capacity,” which enables firms to drive humanitarian aid in crises. Exigent capacity culminates from the preceding capabilities developed, specifically, creative reflexivity and multidexterity.