Corporate Social Responsibility within Multinational Enterprise Subsidiaries: Evidence from an Emerging Economy

The International Business (IB) and International Marketing (IM) literatures have emphasized the need for research into the antecedents, contingencies, and outcomes of Corporate Social Responsibility (CSR) and Corporate Citizenship (CC) behavior of foreign multinational subsidiaries, particularly in emerging economies (EEs). While some important steps have been taken into mapping the domain of CSR in these settings, numerous unanswered questions dominate this largely underdeveloped field. Current research is almost exclusively governed by studies attempting to confirm the link between CSR and financial performance in domestic settings; or trying to identify the external drivers for CSR in EEs. So far, very little is known about: a) the role of subsidiary-HQ relational mechanisms in shaping the subsidiary CC direction; b) the overall performance outcomes of CC; and c) the possible contingencies that might play a role in strengthening these relationships. Building on insights from the resource-based view and social capital theory, this thesis develops and tests a model of CC relational drivers; contingencies; and broader performance outcomes. Using a sample of 216 foreign MNE subsidiaries located in China, the study provides important insights regarding the role of subsidiary-HQ social capital in enhancing and strengthening the CC practices of Chinese subsidiaries. The findings highlight that CC behaviors have a positive effect on the overall performance of the subsidiary. At the same time, they reveal that independently, two forms of slack resources enhance the effect of subsidiary CC on performance. The thesis, sat at the intersection of IB and IM, offers important contributions to both fields regarding the broader context of EEs CC and paves the way for promising future research. The results extend the understanding of the complexities surrounding CC practices at the subsidiary-level and offer important implications to practitioners. More broadly, the study brings a new perspective to CC phenomena in EEs.