Global and local CSR strategies in foreign-owned subsidiaries: The role of networks and competencies

Abstract

The purpose of this research is to investigate the role of networks and competency dimensions in determining the corporate social responsibility (CSR) strategy of foreign-owned subsidiaries. Survey data has been collected from subsidiary managing directors and analysed using structured equation modelling and fuzzy set qualitative comparative analysis techniques. We show that networks and competencies can have competing as well as complementary effects on the global and local CSR strategies. For instance, inter-organisational network strength and competencies in high primary value chain activities seem to drive global as well as local CSR activities. However, the case is more complex for intra-organisational network relationships and subsidiaries with competencies in supporting value chain activities. The originality of this paper lies in the detailed investigation of how network relationships and competencies affect global and local CSR strategy development. We also provide novelty in applying a combination of symmetric (SEM-PLS) and non-symmetric (fsQCA) analytical techniques.