What is it about?
International expansion and corporate social performance (CSP) have both been argued to affect firm performance. But how do they work in concert? This paper offers a perspective in which the costs of CSP are incurred early on while the payoff comes later. This means firms can get more out of their CSP efforts if they continue to expand internationally.
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Why is it important?
The financial crisis that began in 2008 had serious consequences for both CSP and internationalization. Society’s demands for greater responsibility grew louder while at the same time it became painfully clear that international success should not be taken for granted. In a way, the crisis intensified scrutiny of both domains, and led to increased recognition that we need to attend to both the costs as well as the (highly uncertain) benefits associated with both. This paper links the two domains by showing how the costs and benefits of both are mutually contingent and unevenly distributed.
Perspectives
I hope it will function as a bridge between the two bodies of scholarship, and spur more rigorous dialogue with the aim of linking the two more systematically. Because in this day and age, I do not know how the performance effects of social performance and internationalization could be conceptualized in isolation. I also incorporated a few robust analytical techniques that I hope will inspire others.
Alan Muller
Rijksuniversiteit Groningen
Read the Original
This page is a summary of: When Does Corporate Social Performance Pay for International Firms?, Business & Society, December 2018, SAGE Publications,
DOI: 10.1177/0007650318816957.
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