The influence of institutional factors on MNC’s triple bottom-line reporting

Abstract

PurposeRecognising the rapid institutional changes multinational corporations (MNCs) face in emerging markets, the purpose of this paper is to investigate the influence of various institutional factors on their triple bottom-line (TBL) reporting. The study builds on existing research where it has been noted that international business theory needs to adapt to the changes in the global economy, particularly the need to recognise the influence of several contingent variables in African emerging markets (AEMs).Design/methodology/approachThe study design was cross-sectional where a survey was administered to MNCs operating in four leading countries situated in key economic regions in Africa. Following validity and reliability testing, hypotheses were tested using regression analysis.FindingsFindings show that an independent judiciary system and an adequate national security system were found to have a positive and significant influence on the MNC’s TBL reporting. These institutional factors highlight the perceived importance of “law and order” for MNCs in AEMs.Research limitations/implicationsPolicy implications relate to the need for specific and targeted interventions aimed at improving institutional factors in AEMs.Originality/valueInstead of focusing on the internationalisation of AEM firms, the study took a different approach by focusing instead on countries previously under researched and how MNCs are affected by the institutional regimes in these AEMs.