Abstract

Emerging market multinational enterprises (EM-MNEs) face the challenge of liability of foreignness and legitimacy in their internationalisation. This article examines how EM-MNEs manipulate their corporate social responsibility (CSR) practices as a response to institutional complexity when undertaking cross-border acquisitions. Drawing on institutional theory and strategic view of CSR, we propose a dynamic relationship between different stages of acquisition development and CSR performance. Such a relationship is contingent on different ownership and institutional conditions. Using data collected from different sources on Chinese firms listed on Shanghai or Shenzhen Stock Exchange from 2008 to 2017, we test our hypotheses and made several important theoretical contributions and managerial implications.

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