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

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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 soc ial r e sponsibility (CSR) initia tive s- “tra nsla te into ” c o re

b usine ss stra te g ie s?

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At the the ory le ve l

I n whic h ma rke ts & a c tivitie s sho uld a firm b e invo lve d?

 E

nc o mpa sse s firm’ s

e xiste nc e (Co a se , 1937), dive r sific ation (Rume lt, 1974)

a nd

ve r tic al inte gr ation (Willia mso n, 1975).

 [Nume ro us]

T he o rie s, ye t, in e sse nc e ,

c ontinge nc y the o rie s.

 F

irms re spo nd to wide -ra ng ing c o mple xity b y a lig ning struc ture s a nd a c tivitie s to b e e ffe c tive

(Do na ldso n,2001; Mille r, 1996; Ze ng e r e t a l. 2011).

C o rpo ra te So c ia lRe spo nsib ility (CSR)

 E

me rg ing a s a n inc re a sing ly pre va le nt phe no me no n (Wa ng e t a l. 2016).

 Obse r

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 pe rfo rma nc e (Ag uinis, 2011; Wo o d, 1991).

 [Nume ro us] ra tio na le s, ye t shifting so c ie ta l

pe rc e ptio ns o n the ‘ na ture o f the firm’

(Pa nwa r e t a l., 2010) a nd inc re a sing (ta sk)

e nviro nme nta l c o mple xity (Sc hne ide r e t a l.,

2016).

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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

c o mpe titive strate g y’ s outc ome ) ye t une xplo re d within c o rpo ra te 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 .

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T

• 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

ve r tic al (i.e ., ve rtic a l inte g ra tio n) and hor izontal (i.e ., pro duc t inno va tio n) sc ope.

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Re se a rc h Obje c tive

# 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

• 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

• l 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

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# 1: Conc e ptua l Mode l

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VI

CSR

H1 H2

VISIBILITY ASSET SPECIFICITY CSR

H3

• ---> = Moderation Effects

CSR ABSORPTIVE CAPACITY

Alte r Nuanc e

• CSR a s Main e ffe c t
• CSR a s Mode r

ator

• CSR a s a Me diate d

e ffe c t

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#2: CSR - Produc t Innova tion L ink

 Pro duc t I

nno va tio n is a

pr imar y me c hanism thr

• ugh

whic h fir ms adapt to

c ha ng ing ta sk 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

• duc tion of ne w pr
• duc 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

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# 2: Conc e ptua l Mode l

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PRODUCT INNOVATION

FIRM CHARACTERISTICS

Size, age, past financial performance, slack resources, ex-ante diversification

H1

INSTITUTIONAL INFLUENCES CSR (t-1)

• Supply of Science
• Appropriability Regime
• ---> = Moderation Effects

CSR ABSORPTIVE CAPACITY

Alte r Nuanc e

• CSR a s a

Mode r ator

• CSR a s Main

e ffe c t

• CSR a s a

Me diate d

e ffe c t

H3

INDUSTRY STRUCTURE

Industry Growth H2

CSR*Industry Affiliation

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

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Me thodolog y & Me thods

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RQ Obje c tive Me thodology Me thods

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Ve rtic a l I nte g ra tio n - CSR link Qua ntita tive Pa ne l Da ta , Struc tura l E q ua tio n Mo de ling (SE M)

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Pro duc t I nno va tio n - CSR link Qua ntita tive Pa ne l da ta spe c ific a tio n fo r Co unt Da ta (e .g .: Po isso n/ Ne g a tive Bino mia l), SE M

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!

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T ha nk yo u!