Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101231
Yadong Luo
This study critiques the pervasive yet vaguely defined concept and policy of “de-risking” adopted by many nation-states and its implications for international business. The de-risking policy is a key driver of friend-shoring, re-shoring, and near-shoring. By examining the underlying properties of de-risking and its multiplex impacts, we advocate for a more thoughtful, precise, and nuanced understanding of the concept. A common consequence, perhaps to some extent unintended, of de-risking policies is the increase in the complexities and costs associated with internationalizing and internalizing for multinationals. We further explore how companies navigate the intricate interplays of emerging risks and de-risk regulations. Finally, we highlight how international businesses can manage geopolitical and geo-economic risks shaped by de-risking policies and fractured globalization more broadly, emphasizing corporate efforts such as a risk mindset, managerial foresight, and corporate orchestration to mitigate and manage new international business risks.
{"title":"A microscope on de-risking","authors":"Yadong Luo","doi":"10.1016/j.intman.2025.101231","DOIUrl":"10.1016/j.intman.2025.101231","url":null,"abstract":"<div><div>This study critiques the pervasive yet vaguely defined concept and policy of “de-risking” adopted by many nation-states and its implications for international business. The de-risking policy is a key driver of friend-shoring, re-shoring, and near-shoring. By examining the underlying properties of de-risking and its multiplex impacts, we advocate for a more thoughtful, precise, and nuanced understanding of the concept. A common consequence, perhaps to some extent unintended, of de-risking policies is the increase in the complexities and costs associated with internationalizing and internalizing for multinationals. We further explore how companies navigate the intricate interplays of emerging risks and de-risk regulations. Finally, we highlight how international businesses can manage geopolitical and geo-economic risks shaped by de-risking policies and fractured globalization more broadly, emphasizing corporate efforts such as a risk mindset, managerial foresight, and corporate orchestration to mitigate and manage new international business risks.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101231"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101234
Claudio De Mattos , Laura Salciuviene , Stuart Sanderson
In the context of international alliance formation and stability, conflicts are traditionally represented as impediments, to be avoided or at least minimised. Motivated by earlier research and Positive Organisational Scholarship, we problematise the literature on conflicts and challenge such assumptions, coming up with a new research question: ‘How might conflicts be managed to build trust between international partners and ultimately support international strategic alliance formation and stability?’ We create a typology linking constructive conflict management procedures and trust. A better understanding of calculative trust, cognitive trust, and the progression from calculative to cognitive trust can facilitate the achievement of this goal. Well-managed conflicts can enhance trust-building between partners (prospective or current), supporting over time alliance formation and stability. Conflict can be changed from accustomed negative perceptions to a force for good, following a problematisation approach. In our typology, we explore the link of each procedure with calculative trust, cognitive trust, and the transition between calculative and cognitive trust. We create three meta-categories for these nine procedures and select examples from the literature that are connected to four established theoretical frameworks in the international strategic alliances area, i.e. transaction cost, institutional perspective, resource-based view, and organisational learning.
{"title":"Can conflict be a desirable step in trust-building within international strategic alliances? A systematic literature review and typology","authors":"Claudio De Mattos , Laura Salciuviene , Stuart Sanderson","doi":"10.1016/j.intman.2025.101234","DOIUrl":"10.1016/j.intman.2025.101234","url":null,"abstract":"<div><div>In the context of international alliance formation and stability, conflicts are traditionally represented as impediments, to be avoided or at least minimised. Motivated by earlier research and Positive Organisational Scholarship, we problematise the literature on conflicts and challenge such assumptions, coming up with a new research question<em>: ‘How might conflicts be managed to build trust between international partners and ultimately support international strategic alliance formation and stability?’</em> We create a typology linking constructive conflict management procedures and trust. A better understanding of calculative trust, cognitive trust, and the progression from calculative to cognitive trust can facilitate the achievement of this goal. Well-managed conflicts can enhance trust-building between partners (prospective or current), supporting over time alliance formation and stability. Conflict can be changed from accustomed negative perceptions to a force for good, following a problematisation approach. In our typology, we explore the link of each procedure with calculative trust, cognitive trust, and the transition between calculative and cognitive trust. We create three meta-categories for these nine procedures and select examples from the literature that are connected to four established theoretical frameworks in the international strategic alliances area, i.e. transaction cost, institutional perspective, resource-based view, and organisational learning.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101234"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101232
Omid Aliasghar , C. Annique Un , Kazuhiro Asakawa , Jarrod Haar , Sihong Wu
Outbound open innovation, the external commercialization of the firm's knowledge, is important for creating and sustaining its competitive advantage. Surprisingly, limited studies have explained how and why a firm can enhance its likelihood of engagement in outbound open innovation activities by collaborating with universities, especially foreign ones. Building on the knowledge-based view (KBV), first, we differentiate the effects of collaborating with foreign versus domestic universities, since these create scientific knowledge that varies in novelty and ease of transfer. Second, based on these two knowledge dimensions, we argue that foreign university collaboration is more likely to have a higher positive association with outbound open innovation than domestic university collaboration, because the former has higher knowledge novelty than the latter. Third, however, when firms also collaborate with domestic value chain partners, collaborating with domestic universities is likely to have a higher positive association. We tested these arguments on 541 firms in New Zealand and found that collaborating with foreign universities has a positive association, especially when the universities are located in developed economies. Collaborating with domestic universities has a positive association when firms also collaborate with their domestic value chain partners.
{"title":"Foreign and domestic university collaboration for outbound open innovation","authors":"Omid Aliasghar , C. Annique Un , Kazuhiro Asakawa , Jarrod Haar , Sihong Wu","doi":"10.1016/j.intman.2025.101232","DOIUrl":"10.1016/j.intman.2025.101232","url":null,"abstract":"<div><div>Outbound open innovation, the external commercialization of the firm's knowledge, is important for creating and sustaining its competitive advantage. Surprisingly, limited studies have explained how and why a firm can enhance its likelihood of engagement in outbound open innovation activities by collaborating with universities, especially foreign ones. Building on the knowledge-based view (KBV), first, we differentiate the effects of collaborating with foreign versus domestic universities, since these create scientific knowledge that varies in novelty and ease of transfer. Second, based on these two knowledge dimensions, we argue that foreign university collaboration is more likely to have a higher positive association with outbound open innovation than domestic university collaboration, because the former has higher knowledge novelty than the latter. Third, however, when firms also collaborate with domestic value chain partners, collaborating with domestic universities is likely to have a higher positive association. We tested these arguments on 541 firms in New Zealand and found that collaborating with foreign universities has a positive association, especially when the universities are located in developed economies. Collaborating with domestic universities has a positive association when firms also collaborate with their domestic value chain partners.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101232"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2024.101221
Mike Szymanski , Carlo Brighi
This study investigates the role of accent-based status differences on communication within global virtual teams. Through a quasi-experimental study including 117 individuals and 357 voicemails and written messages, we examine recipients' perceptions of the sender's intentions. We show how accent status – distinguished between native and non-native – match in verbal communication plays a role in how listeners interpret feedback. Applying social identity theory and suggesting an extension to media synchronicity theory, our study advances language-sensitive international management research by demonstrating that accent – in addition to language proficiency – constitutes another aspect of language that plays a role in interaction among linguistically diverse global virtual team members. We discuss implications for practice and future research.
{"title":"“Do you understand me correctly?” The role of accents in communication in global virtual teams","authors":"Mike Szymanski , Carlo Brighi","doi":"10.1016/j.intman.2024.101221","DOIUrl":"10.1016/j.intman.2024.101221","url":null,"abstract":"<div><div>This study investigates the role of accent-based status differences on communication within global virtual teams. Through a quasi-experimental study including 117 individuals and 357 voicemails and written messages, we examine recipients' perceptions of the sender's intentions. We show how accent status – distinguished between native and non-native – match in verbal communication plays a role in how listeners interpret feedback. Applying social identity theory and suggesting an extension to media synchronicity theory, our study advances language-sensitive international management research by demonstrating that accent – in addition to language proficiency – constitutes another aspect of language that plays a role in interaction among linguistically diverse global virtual team members. We discuss implications for practice and future research.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101221"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548048","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2024.101222
Michael Asiedu Gyensare , Priyanka Jain , Eric Adom Asante , Samuel Adomako , Kwame Simpe Ofori , Yocabel Hayford
Past research has noted that assigned expatriates (AEs) face challenges that often lead to premature termination when dispatched by the parent organisation to live and work abroad. However, recent statistics show that most AEs have no knowledge on how to overcome these cultural challenges prior to sending them abroad. Guided by the socially embedded model of thriving at work, we explain how cultural intelligence leads to local embeddedness and the latter's effect on AEs thriving at work. Further, the relationship between local embeddedness and AEs' thriving at work differs across varying levels of relational attachment. Our unique three-month time-lagged data from 234 AEs in eight multinational corporations (MNCs) with subsidiaries in Ghana offered support to our hypotheses. Cultural intelligence promotes local embeddedness, which, in turn, stimulates AEs thriving at work. Additionally, higher levels of relational attachment prompt AEs to leverage their local embeddedness to learn novel things that make them feel alive, energized, and awake at work. Implications for theory and practice, limitations and future research directions are discussed.
{"title":"Fostering assigned expatriates' thriving at work through cultural intelligence and local embeddedness: The role of relational attachment","authors":"Michael Asiedu Gyensare , Priyanka Jain , Eric Adom Asante , Samuel Adomako , Kwame Simpe Ofori , Yocabel Hayford","doi":"10.1016/j.intman.2024.101222","DOIUrl":"10.1016/j.intman.2024.101222","url":null,"abstract":"<div><div>Past research has noted that assigned expatriates (AEs) face challenges that often lead to premature termination when dispatched by the parent organisation to live and work abroad. However, recent statistics show that most AEs have no knowledge on how to overcome these cultural challenges prior to sending them abroad. Guided by the socially embedded model of thriving at work, we explain how cultural intelligence leads to local embeddedness and the latter's effect on AEs thriving at work. Further, the relationship between local embeddedness and AEs' thriving at work differs across varying levels of relational attachment. Our unique three-month time-lagged data from 234 AEs in eight multinational corporations (MNCs) with subsidiaries in Ghana offered support to our hypotheses. Cultural intelligence promotes local embeddedness, which, in turn, stimulates AEs thriving at work. Additionally, higher levels of relational attachment prompt AEs to leverage their local embeddedness to learn novel things that make them feel alive, energized, and awake at work. Implications for theory and practice, limitations and future research directions are discussed.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101222"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101235
Jinju Xie , Vesa Peltokorpi
This study adopts an abductive approach, drawing on the language attitude perspective and interviews with 168 skilled migrants (SMs) to examine how and why culture-related language differences influence the workplace integration of SMs in Japan-based multinational corporations (MNCs). Our analysis shows that three culture-related language differences — (1) honorifics, (2) indirect expressions, and (3) empathic expressions — lead local employees to categorize SMs as outgroup members and to negatively evaluate their professional and managerial abilities. Despite having high general language proficiency, SMs continue to occupy disadvantaged positions in local MNCs, primarily due to local employees' negative assessments of actual or perceived differences in culture-related linguistic skills.
{"title":"It is not only what you say, but how you say it: A language attitude perspective of skilled migrants' culture-related linguistic skills and workplace integration in multinational corporations","authors":"Jinju Xie , Vesa Peltokorpi","doi":"10.1016/j.intman.2025.101235","DOIUrl":"10.1016/j.intman.2025.101235","url":null,"abstract":"<div><div>This study adopts an abductive approach, drawing on the language attitude perspective and interviews with 168 skilled migrants (SMs) to examine how and why culture-related language differences influence the workplace integration of SMs in Japan-based multinational corporations (MNCs). Our analysis shows that three culture-related language differences — (1) honorifics, (2) indirect expressions, and (3) empathic expressions — lead local employees to categorize SMs as outgroup members and to negatively evaluate their professional and managerial abilities. Despite having high general language proficiency, SMs continue to occupy disadvantaged positions in local MNCs, primarily due to local employees' negative assessments of actual or perceived differences in culture-related linguistic skills.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101235"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548044","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101236
Ha Nguyen, Roger Strange
Divestment of foreign subsidiaries by multinational enterprises (MNEs) is a common, yet under-researched phenomenon. The main contribution of this paper is to examine the effects of the global dynamic managerial capabilities (GDMCs) embedded in the top management teams (TMTs) of the MNEs on the likelihood that they will divest their foreign subsidiaries. Following Tasheva and Nielsen (2022), we consider three GDMCs, viz.: international human capital; international social capital, and international managerial cognition. Our empirical analysis confirms that all three GDMCs have significant negative impacts on the likelihood of divestment of foreign subsidiaries (or, equivalently, significant positive impacts on the likelihood of retention of foreign subsidiaries). We also explore the impacts of subsidiary age on the likelihood of retention, and find that longstanding subsidiaries are more likely to be retained than newly-established subsidiaries, and that age enhances the impacts of the three GDMCs.
{"title":"Do global dynamic managerial capabilities affect MNEs' divestments of their overseas subsidiaries?","authors":"Ha Nguyen, Roger Strange","doi":"10.1016/j.intman.2025.101236","DOIUrl":"10.1016/j.intman.2025.101236","url":null,"abstract":"<div><div>Divestment of foreign subsidiaries by multinational enterprises (MNEs) is a common, yet under-researched phenomenon. The main contribution of this paper is to examine the effects of the global dynamic managerial capabilities (GDMCs) embedded in the top management teams (TMTs) of the MNEs on the likelihood that they will divest their foreign subsidiaries. Following Tasheva and Nielsen (2022), we consider three GDMCs, viz.: international human capital; international social capital, and international managerial cognition. Our empirical analysis confirms that all three GDMCs have significant negative impacts on the likelihood of divestment of foreign subsidiaries (or, equivalently, significant positive impacts on the likelihood of retention of foreign subsidiaries). We also explore the impacts of subsidiary age on the likelihood of retention, and find that longstanding subsidiaries are more likely to be retained than newly-established subsidiaries, and that age enhances the impacts of the three GDMCs.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101236"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548045","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.intman.2025.101233
Deepak Sardana , Narain Gupta , Huda Khan
This study seeks to progress the relatively thin body of scholarly research on the exclusive characteristics of strategic international alliances forged globally, particularly by new technology ventures. Due to the liability of smallness and newness, these new ventures need to strategically adopt exclusivity in licensing to secure partners across the globe to help them overcome the lack of resources and market access capability. Adopting resource dependence theory, the present study suggests that market size is a key consideration for the determinants of exclusive licensing for new technology ventures. The study investigates if the home demand of a country will influence the propensity to form exclusive international partnerships for new technology ventures. Based on the dataset of 545 international partnerships across the globe, findings of the study provide strong support to the idea that new ventures based in developed countries with limited market size (i.e., small-developed countries) are disproportionately more inclined to offer exclusive partnerships. Significant and positive moderation to the above findings were found due to the effect of sub-sectors, but not due to the size of the partner firms in the international market. The post-hoc analysis considering international and domestic alliances combined sample indicated consistent findings. The findings have theoretical, practical, and policy related implications for international strategic partnerships.
{"title":"Between rock and a hard place: The impact of home country demand on exclusive international strategic alliances forged by new technology ventures","authors":"Deepak Sardana , Narain Gupta , Huda Khan","doi":"10.1016/j.intman.2025.101233","DOIUrl":"10.1016/j.intman.2025.101233","url":null,"abstract":"<div><div>This study seeks to progress the relatively thin body of scholarly research on the exclusive characteristics of strategic international alliances forged globally, particularly by new technology ventures. Due to the liability of smallness and newness, these new ventures need to strategically adopt exclusivity in licensing to secure partners across the globe to help them overcome the lack of resources and market access capability. Adopting resource dependence theory, the present study suggests that market size is a key consideration for the determinants of exclusive licensing for new technology ventures. The study investigates if the home demand of a country will influence the propensity to form exclusive international partnerships for new technology ventures. Based on the dataset of 545 international partnerships across the globe, findings of the study provide strong support to the idea that new ventures based in developed countries with limited market size (i.e., small-developed countries) are disproportionately more inclined to offer exclusive partnerships. Significant and positive moderation to the above findings were found due to the effect of sub-sectors, but not due to the size of the partner firms in the international market. The post-hoc analysis considering international and domestic alliances combined sample indicated consistent findings. The findings have theoretical, practical, and policy related implications for international strategic partnerships.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 2","pages":"Article 101233"},"PeriodicalIF":5.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-02-01DOI: 10.1016/j.intman.2024.101220
Hamza Aib
{"title":"Corrigendum to “Stability of international joint ventures: When experience and age overshadow host country risk” [J. Int. Manag. 30 (2024)/101205]","authors":"Hamza Aib","doi":"10.1016/j.intman.2024.101220","DOIUrl":"10.1016/j.intman.2024.101220","url":null,"abstract":"","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 1","pages":"Article 101220"},"PeriodicalIF":5.9,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143223566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recent research has shown that corporate social responsibility (CSR) is no longer purely voluntary; it is increasingly subject to government mandates or institutional pressures requiring firms to spend a prescribed amount on CSR. This raises an important question for subsidiaries of multinational enterprises (MNEs) operating within a host country: should they spend more than these prescribed amounts (i.e., overspend) on CSR? Drawing from institutional theory and legitimacy perspectives, we argue that subsidiaries of foreign MNEs are less likely to overspend on CSR when compared to local firms. Additionally, we contend that among foreign subsidiaries, the institutional distance—both in absolute and directional terms—between the MNE's home country and the host country impacts CSR overspending. We examine these effects using a panel dataset of 3732 firms (12,093 firm-year observations) over the period 2015–2021 in India, where CSR spending has been made mandatory for large and medium enterprises. Our findings contribute to the literature on MNEs' CSR activities in host countries.
{"title":"When do firms overspend on CSR? The impacts of foreignness and institutional distance","authors":"Vikrant Shirodkar , Rishika Nayyar , Paresha Sinha","doi":"10.1016/j.intman.2024.101216","DOIUrl":"10.1016/j.intman.2024.101216","url":null,"abstract":"<div><div>Recent research has shown that corporate social responsibility (CSR) is no longer purely voluntary; it is increasingly subject to government mandates or institutional pressures requiring firms to spend a prescribed amount on CSR. This raises an important question for subsidiaries of multinational enterprises (MNEs) operating within a host country: should they spend more than these prescribed amounts (i.e., overspend) on CSR? Drawing from institutional theory and legitimacy perspectives, we argue that subsidiaries of foreign MNEs are less likely to overspend on CSR when compared to local firms. Additionally, we contend that among foreign subsidiaries, the institutional distance—both in absolute and directional terms—between the MNE's home country and the host country impacts CSR overspending. We examine these effects using a panel dataset of 3732 firms (12,093 firm-year observations) over the period 2015–2021 in India, where CSR spending has been made mandatory for large and medium enterprises. Our findings contribute to the literature on MNEs' CSR activities in host countries.</div></div>","PeriodicalId":47937,"journal":{"name":"Journal of International Management","volume":"31 1","pages":"Article 101216"},"PeriodicalIF":5.9,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143223546","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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