Investigating organizational factors of social response activities and their effect on corporate social performance in MNE’s subsidiaries operating in Tunisia

Abstract

Purpose This study aims to develop a conceptual model to examine the impact of four organizational factors (expatriate managers, stakeholder engagement, corporate social mission and demand management) on the social response activities and their subsequent effect on corporate social performance among subsidiaries of multinational enterprises (MNEs) in Tunisia, characterized as a small African economy. Design/methodology/approach This study uses data collected from 115 subsidiaries established in an African country – Tunisia. It also applies a partial least square regression to test the hypotheses proposed in a comprehensive framework. Findings This study reveals that each of these factors, with the exception of expatriate managers, is found to positively influence the adoption of social response activities by MNE’s subsidiaries. In addition, involvement in such activities is also important in enhancing social performance concerning employees and customers. Originality/value Despite years of encouragement from scholars and theorists, studies across Africa have generally shown no interest in corporate social response as a strategic process that safeguards the well-being of host society. This paper proposes a comprehensive model for identifying the antecedents and one consequence of corporate social response activities of MNE’s subsidiaries. Stakeholder theory is used as a theoretical lens to develop a corporate social response framework.

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