Entering global markets, R&D update and its role on home donation: a global value chain perspective

Abstract

ABSTRACT Whether internationalisation promotes or inhibits corporate social responsibility (CSR) such as home donation is a critical question that remains controversial. Drawing on the strategic view of CSR and global value chain (GVC) perspective, we argue that the outward internationalisation of emerging market firms (EMFs) may impede their home donation, partly because as they internationalise, they are mainly embedded in the low-end positions of the GVC, which negatively affect the motivation and capability of their donation to the home market. Such a relationship is even stronger for EMFs with a lower level of R&D intensity, possibly indicating these firms may be more deeply embedded in the low-end position of the GVC. We tested our theory using data collected from public-listed firms in China, and our results can thus help us understand why some EMFs tend to not make home donations from the consideration of GVC embeddedness. Contributions towards GVC embedment and stakeholder considerations are discussed.