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How do organizations react to changes of institutions when they undergo fundamental transition that happen to those emerging economies? By applying Peng’s two-phase model of institutional transitions to the field of Corporate Social Responsibility (CSR), this paper seeks answers to the question above. With a framework of institution theory, we focused on CSR strategies that can be selected by different forms of business organizations (incumbent, start-ups, and foreign firms) in the longitudinal process. We argued that in the early phase of institutional transition, CSR relevant institutions are still in vacuum leaving social responsibilities to the firms’ discretion. However as the market moves to more rule-based, CSR institutional pressures are also strengthened in regulative, normative and cognitive ways. Then, we draw our propositions on CSR strategic choices for incumbent, start-ups and foreign firms, respectively. By doing so, this study expanded understanding of strategic perspectives of CSR literature in academic for policy makers of emerging countries as well as practitioners of the different forms of business organizations.
MINJU CHUNG, NABEEL SAFDAR. (2014) Firms’ Strategic CSR Choices during the Institutional Transition in Emerging Economies, International Review of Management and Business Research, Volume 3, Issue 3.
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