Title Page
Contents
Abstract 7
1. INTRODUCTION 9
1.1. Research Background 9
1.2. Research Objective and Question 14
1.3. Scope of the Research 15
1.4. Organization of the Research 16
2. Theoretical Background and Literature Review 18
2.1. CSR Literature 18
2.2. Global CSR vs. Local CSR 22
2.3. Internal and External CSR 27
2.4. Resource-Based View 30
2.5. Stakeholder Theory 33
2.6. Corporate Reputation 35
2.7. Selected CSR Studies 37
2.7.1. Conceptualization of Social Performance (Wood, 1991) 37
2.7.2. Pyramid of Global Social Responsibility (Carroll, 2004) 38
2.7.3. MNC Subsidiaries' CSR in Developing Markets (Luo, 2006) 40
2.8. MNC Subsidiaries' CSR Activities 42
2.8.1. Philanthropic Contribution 42
2.8.2. Ethical Codes 43
2.8.3. Organizational Credibility 45
2.8.4. Resource accommodation 45
3. THEORY DEVELOPMENT AND HYPOTHESES 47
3.1. Research Model 47
3.2. Theory Development 49
3.2.1. Internal CSR and its Consequences 50
3.2.2. External CSR and its Consequences 53
3.2.3. Moderating Effect of Localization Level 58
4. RESEARCH METHODOLOGY 61
4.1. Variables and Measurement 61
4.2. Operationalization of the Variables 61
4.2.1. Internal CSR 62
4.2.2. External CSR 62
4.2.3. Social Impact 63
4.2.4. Firm Performance 63
4.2.5. Localization Level 64
4.2.6. Control Variables 64
4.3. Sampling and Data Collection 65
4.3.1. Common Method Bias Test 69
5. Data Analysis and Results 71
5.1. Measurement Model 71
5.2. Structural Model and Hypotheses Testing 76
6. CONCLUSION AND DISCUSSION 79
6.1. Research Findings 80
6.2. Research Implications 86
6.3. Practical Implications 88
6.4. Limitations 89
REFERENCES 91
Appendix : Questionnaire items 115
Table 2.1. Selected papers on CSR 20
Table 2.2. Selected studies on resource-based view 32
Table 2.3. Selected studies on stakeholder theory 35
Table 3.1. Summary of the hypotheses 60
Table 4.1. Sample size guideline in PLS-SEM for a statistical power of 80% 67
Table 4.2. Characteristics of the sample by country 68
Table 4.3. Sample characteristics 68
Table 4.4. The result of Harman's single factor test 70
Table 5.1. Guideline for choosing the measurement model 72
Table 5.2. Summary of the items eliminated through reliability and validity... 73
Table 5.3. Item loadings, CR, and AVE variable values 75
Table 5.4. Descriptive statistics and correlations 76
Table 5.5. Results of hypothesis testing 78
Table 6.1. Summary of hypothesis and results 80
Figure 2.1. Pyramid of Global Social Responsibility 40
Figure 3.1. Research model 49
Figure 5.1. Structural Model Test Results 77
Figure 5.2. Interaction plot with localization level as moderator 79