Local embeddedness, and corporate social performance: The mediating role of social innovation orientation

Abstract

Despite the growing research on corporate social performance (CSP), research is lacking regarding the impact of local embeddedness. This article investigates the impact of local embeddedness on CSP through the mediating mechanism of social innovation orientation. In addition, we examined the moderating role of competitive corporate social responsibility (CSR) implementation pressure. Results from 254 firms based in Ghana show that local embeddedness positively relates to social innovation orientation and this relationship is moderated by competitive CSR implementation pressure. Moreover, we found that the impact of local embeddedness on CSP is mediated by social innovation orientation. These findings extend the CSR literature by exploring the mechanism through which local embeddedness influences CSP.

Stakeholder management, CSR commitment, corporate social performance: The moderating role of uncertainty in CSR regulation

“…First, we extend the CSR literature (e.g., Adomako & Tran, 2021; Devie et al, 2018; Tran & Adomako, 2021) by exploring the role of stakeholder integration in a firm's CSR commitment. Previous studies demonstrated that stakeholders play an important role in firms CSR activities (Dong et al, 2014; Fatima & Elbanna, 2022; Lee, 2011).…”

“…Third, our study extends the CSR literature by highlighting the mediating mechanism of the relationship between stakeholder integration and CSP. The existing CSP literature shows that several factors account for CSP (Adomako & Tran, 2021; Anser et al, 2020; Tran & Adomako, 2021). However, the mediating role of CSR commitment has not been examined explicitly.…”

“…For example, civil society organizations continue to put pressure on companies to provide transparent report about their social and environmental consequences resulting from the firm's activities (Brulhart et al, 2019; Freeman et al, 2010). This suggests that firms should take a proactive stance to adopt an ethical position when responding to social and environment responsibility (Adomako & Tran, 2021). Thus, corporate social responsibility (CSR) has become an important metric for firms to demonstrate their effort in reducing their impact on the environment and contribute to sustainable development (Boso et al, 2017; Brown et al, 2006).…”

Doing well and being responsible: The impact of corporate social responsibility legitimacy on responsible entrepreneurship

“…Local embeddedness refers to the ability of firms to “create competitive advantage based on a deep understanding of and integration with the local environment” (London & Hart, 2004, p. 364). Given the importance for new ventures to assimilate to the local networks and create a new source of knowledge, firms are embedded into the local networks to focus on individual relationships to create business opportunities (Adomako & Tran, 2022a, 2022b; Ernst et al, 2015). For example, knowledge from community leaders, customers, and suppliers, competitors can serve as a source of knowledge.…”

CSR variability, managerial risk aversion, and hostile takeover threats

“…For example, Brulhart et al (2019) and Freeman et al (2010) suggest that corporations are under scrutiny to improve transparency in reporting their activities affecting the society and the environment. Garriga and Melé (2004), Surroca et al (2013) and Adomako and Tran (2021) also document that businesses are encouraged to have better social ethical norms and adopt environmental supportive policies. As such, for firms to sustainably develop, they must seriously consider CSR performance by reducing the adverse effects on the environment (Boso et al, 2017; Brown et al, 2006) and proactively engaging with stakeholders such as employees, shareholders, suppliers, customers, and the public to improve the society and the environment (Zheng et al, 2015).…”