Mor e than wor ds? Mapping the Cor por ate Soc ial Re - PowerPoint PPT Presentation

Mor e than wor ds? Mapping the Cor por ate Soc ial Re sponsibility (CSR) - Str ate gy link Ma ria J. Murc ia - UAS Spring Ca mpus, Ma rc h 2017 1

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Motiva tion  At the e nd o f the d a y, is the so pub lic ize d c o rpo ra te e ng a g e me nt a me a ning ful stra te g y to a dva nc e g lo b a l susta ina b ility?  Are susta ina b ility c o nc e rns spurring fundame ntal c hange s in the wa y g lo b a l c o rpo ra tio ns c o nduc t the ir b usine ss?  Ho w do e s susta ina b ility o rie nta tio n - o fte n c a rrie d thro ug h c or por ate e sponsibility (CSR) initia tive s- “tra nsla te into ” c o re b usine ss soc ial r stra te g ie s? 3

At the the ory le ve l I n whic h ma rke ts & a c tivitie s sho uld a C o rpo ra te S o c ia l R e spo nsib ility (CSR) firm b e invo lve d?  E me rg ing a s a n inc re a sing ly pre va le nt  E nc o mpa sse s firm’ s e xiste nc e (Co a se , phe no me no n (Wa ng e t a l. 2016). a nd 1937), dive r sific ation (Rume lt, 1974)  Obse r ve r tic al inte gr ation (Willia mso n, 1975). vable a c tio ns ta king into a c c o unt e c o no mic , so c ia l, a nd e nviro nme nta l  [ Nume ro us ] T he o rie s, ye t, in e sse nc e , pe rfo rma nc e (Ag uinis, 2011; Wo o d, 1991). c ontinge nc y the o rie s.  [ Nume ro us ] ra tio na le s, ye t shifting so c ie ta l  F irms re spo nd to wide -ra ng ing c o mple xity pe rc e ptio ns o n the ‘ na ture o f the firm’ b y a lig ning struc ture s a nd a c tivitie s to b e (Pa nwa r e t a l., 2010) a nd inc re a sing (ta sk) e ffe c tive (Do na ldso n,2001; Mille r, 1996; e nviro nme nta l c o mple xity (Sc hne ide r e t a l., Ze ng e r e t a l. 2011). 2016) . 4 Doe s CSR have a be ar ing upon the boundar y of the fir m?

A missing link be twe e n CSR & Corpora te Stra te g y  Mo st c o mmo n o pe ra tio na lisa tio n within stra te g ic ma na g e me nt ha s re duc e d the e nviro nme nt to its ma te ria l o r e c o no mic do ma in (K im & L im, 1988; Olive r, 1991; Sudd a b y e t a l., 2010) , de void of so c ia l, symb o lic , c ultura l, o r, mo re b ro a dly, institutional e le me nts .  ‘ Stra te g ic CSR’ re se a rc h (e .g ., Mc Willia ms e t a l., 2006; Mc Willia ms & Sie g e l, 2000) studie d CSR a s a diffe re ntia tio n a nd c o mpe titive ne ss to o l (Pa nwa r e t a l., 2016) (i.e ., a strate g y’ s outc ome ) ye t une xplo re d within c o rpo ra te c o mpe titive stra te g y disc ussio n a nd a s a n ante c e de nt o f firm’ s sc o pe . 5

Re se a rc h Obje c tive T o e xa mine the b o unda ry o f the firm in lig ht o f CSR, spe c ific a lly its implic a tio ns fo r the firm’ s tic al (i.e ., ve rtic a l inte g ra tio n) and ve r izontal (i.e ., pro duc t inno va tio n) sc ope . hor 6

# 1: CSR- Ve rtic a l Inte g ra tion (VI) L ink  VI = myria d o f firms’ c ho ic e s o n ho w to inte rfa c e with inte rna l a nd e xte rna l supplie rs a nd b uye rs a t e a c h sta g e o f the va lue -a dding pro c e ss (Ja c o b id e s & Billing e r, 2006) .  E c onomic a dva nta g e s o f g lo b a l o utso urc ing ha ve b e e n de e me d to b e sig nific a nt, ma king the se pra c tic e s wide spre a d (Alc a c e r & Oxle y, 2014; Ba ld win & Cla rk, 2003).  Custo me r a nd sha re ho lde r c o nc e rn o n e nviro nme nta l a nd so c ia l pe rfo rma nc e e xe rts pre ssure o n firms to re ma in a c c o unta b le o ve r e le me nts a lo ng the va lue a dding pro c e ss (Pa rmig ia ni e t a l., 2011).  As fir ms may want to take gr e ate r c ontr ol ove r value - c hain e le me nts CSR might:  (i) pre dic t the le ve l of VI in wa ys tha t a re not ye t e xa mine d,  (ii) nua nc e forme rly pre dic te d re la tionships 7

# 1: Conc e ptua l Mode l VISIBILITY H1 H2 CSR a s Main e ffe c t CSR • Alte r CSR ASSET VI CSR a s Mode r ator • SPECIFICITY H3 Nuanc e CSR a s a Me diate d • H4 e ffe c t CSR ABSORPTIVE CAPACITY ----> = Moderation Effects 8

#2: CSR - Produc t Innova tion L ink  Pro duc t I nno va tio n is a adapt to c ha ng ing ta sk pr imar y me c hanism thr ough whic h fir ms e nviro nme nts (K a tila & Ahuja , 2002; Na d ka rni & Che n, 2014).  So me insig ht o n CSR b e ing a sso c ia te d with o rg a niza tio na l c a pa b ilitie s c o nduc ive to inno va tio n: • Absor ptive c apac ity (e .g ., De lma s e t a l., 2011; Mc Willia ms e t a l., 2006; Sha rma & Vre d e nb urg , 1998).  I nno va tio n is no t g ua ra nte e d : e xisting firm re so urc e s a nd c a pa b ilitie s ma y hinde r ne w firm’ s inve stme nt dire c tio n (De lma s e t a l., 2007; Die ric kx & Co o l, 1989; T a ng e t a l., 2012).  As pr e ssur e for CSR pr e se nts an oppor tunity for the intr oduc tion of ne w pr oduc ts, the n CSR might:  (i) pre dic t produc t innova tion in wa ys tha t a re not ye t e xa mine d,  (ii) nua nc e forme rly pre dic te d re la tionships 9

# 2: Conc e ptua l Mode l CSR *Industry Affiliation INDUSTRY H2 STRUCTURE CSR a s a • Industry Growth Mode r ator FIRM CHARACTERISTICS Size, age, past financial performance, slack resources, CSR a s Main Alte r • ex-ante diversification PRODUCT e ffe c t INNOVATION INSTITUTIONAL INFLUENCES H1 CSR (t-1) -Supply of Science CSR a s a • -Appropriability Regime Nuanc e Me diate d e ffe c t H3 CSR ABSORPTIVE CAPACITY ----> = Moderation Effects 10

Me thodolog ic a l a pproa c h  Va ria nc e the o ry • Wha t e xpla ins the va ria nc e in a n e ntity’ s b e ha vio r? • Va ria b le s with diffe re nt a ttrib ute s a ffe c t o the r va ria b le s  Qua ntita tive se c o nda ry da ta  Allo ws fo r c ro ss-industry sc o pe 11

Me thodolog y & Me thods RQ Obje c tive Me thodology Me thods 1 Ve rtic a l I nte g ra tio n - Qua ntita tive Pa ne l Da ta , Struc tura l E q ua tio n CSR link Mo de ling (SE M) 2 Pro duc t I nno va tio n - Qua ntita tive Pa ne l da ta spe c ific a tio n fo r CSR link Co unt Da ta (e .g .: Po isso n/ Ne g a tive Bino mia l), SE M 12

Disc ussion: Ma pping the CSR- Stra te g y L ink  T he re se e ms to b e g ro wing c o nc e rn a mo ng the b usine ss c o mmunity to e ng a g e in the pro te c tio n o f c o mmunitie s fro m dispro po rtio na te so c ia l ills a nd e nviro nme nta l ha za rds • Do e s this imply sub sta ntia l c ha ng e s o n wa ys o f o rg a nizing b usine sse s a nd this wa y ma ke mo re me a ning ful pro g re ss to wa rds g lo b a l o b je c tive s o f so c ia l a nd e nviro nme nta l justic e ?  Ob se rve o the rwise ? c o mpa nie s mig ht b e tra ppe d into c yc le s o f inc re me nta l c ha ng e whe n tra nsfo rma tive mo de ls a re ur ge ntly ne e de d! T ha nk yo u! 13