Looking for a service opening: Building reputation by leveraging international activities and host country context

Borda, Armando; Newburry, William; Teegen, Hildy; Montero, Antonio; Sánchez, Juan José Nájera; Forcadell, Francisco Javier; Lama, Natali; Quispe, Zulma

doi:10.1016/j.jwb.2016.08.006

Cited by 34 publications

(21 citation statements)

References 84 publications

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“…In fact, the bank is the company most focused on specifically tailoring its CSR to the needs of the destination country. Thus, the reputational benefit of engaging in CSR is contingent on institutional factors (Borda et al, ), more specifically, to addressing the host country's INs. Moreover, we suggest that institutional entrepreneurship accompanied by subsidiary entrepreneurship strategies amplifies the reputational stakeholder perception.…”

Section: Discussionmentioning

confidence: 99%

“…Merco follows a multistakeholder perspective by interviewing a large sample of different stakeholder groups such as executives, consumers, financial analysts, NGOs, unions, economic journalists, and professors that evaluate firms' reputation in their respective field of expertise. Merco has been shown to be a good measure for corporate reputation (Borda et al, ), and its results are audited by KPMG to ensure reliability.…”

Section: Methodsmentioning

confidence: 99%

“…In addition, this strategy has an economic sense for the firm because it generates a positive reputation by signalling MNCs' social actions to various stakeholders (Doh et al, ; El Ghoul et al, ). In environments where IVs prevail, market participants increasingly rely on company signals and more specifically in the Latin American context (Borda et al, ). Furthermore, CSRIN actions create greater value for the firm in environments of weak institutions because stakeholders appreciate the value that the company generates by filling INs.…”

Section: Csr Oriented To Institutional Necessitiesmentioning

confidence: 99%

See 2 more Smart Citations

Can multinational companies foster institutional change and sustainable development in emerging countries? A case study

Forcadell

Aracil

2019

Bus Strat Dev

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Emerging countries present institutional necessities that hinder their sustainable development. In the face of this challenge, companies, and in particular multinational companies (MNCs), can foster sustainable development through their corporate social responsibility (CSR) initiatives. This study focuses on the role of institutional change in transforming CSR into sustainable development in emerging countries. To this end, we propose a view of CSR focused on its institutional determinants and outcomes from a social and developmental perspective. By using quantitative and qualitative data, we analyse the case of three MNCs from different industries based in Europe and operating in Mexico. The case study shows how firms can stimulate institutional change in developing economies and contribute to their sustainable development as measured by the sustainable development goals. Various mechanisms about how this process is made are devised: institutional entrepreneurship, multistakeholder initiatives, interconnection of different institutional dimensions, and subsidiary entrepreneurship. The case study highlights the interaction among MNCs, developing countries, and institutions and how firms' sustainable actions scale up to the macro level.

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Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Csr Oriented To Institutional Necessitiesmentioning

confidence: 99%

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Can multinational companies foster institutional change and sustainable development in emerging countries? A case study

Forcadell

Aracil

2019

Bus Strat Dev

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“…By contrast, Brazil leads the CSR initiatives on the continent (Scharf & Samper, ). Because the government has failed to improve social issues (Sá de Abreu et al, ), firms are expected to provide social services, which strongly affect their reputation (Borda et al, ; Sá de Abreu & Barlow, ). Specifically, the banking sector in Brazil promotes the adoption of sustainable practices by the private sector (Sá de Abreu et al, ; Scharf & Samper, ).…”

Section: Csr Determinants and Outcomes At Mnbs’ Latin American Branchesmentioning

confidence: 99%

Sustainable banking in Latin American developing countries: Leading to (mutual) prosperity

Forcadell

Aracil

2017

Business Ethics: A Eur Rev

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This article examines multinational banks' (MNBs) approaches to corporate social responsibility (CSR) in developing countries' subsidiaries, particularly in Latin America. Building on in-depth case studies of two MNBs that are based in Europe and market leaders in Latin America, we analyze their CSR motivations and outcomes in host countries. We examine institutional environments by applying the national business system framework, and we suggest missing categories in its financial and educational dimensions. We theorize how institutional necessity determines MNBs' CSR in developing countries. Finally, we examine the CSR outcomes in Latin America, where banks' responsible conduct has led to major improvements in educational levels and financial inclusion.These improvements alleviate poverty and enhance both country's social wellbeing and MNBs' legitimacy, leading to mutual prosperity.

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“…While we used country reputation scores based on the aggregate ratings of all respondents across the largest eight economies for the original variable, investors may be subject to a ‘home bias’ and more strongly agglomerated in the acquirer’s country (Coval and Moskowitz, 1999). If investors mainly came from the acquirer’s home country, then country reputation scores that are based on the perceptions of the acquirer country’s respondents should play a more important role than those based on global perceptions (Borda et al, 2017). To account for the geographic concentration of investors, we calculated country reputation scores based on the acquirer country respondents’ ratings of the target country and of their own country.…”

Section: Resultsmentioning

confidence: 99%

How Country Reputation Differentials Influence Market Reaction to International Acquisitions

Shenkar

Newburry

et al. 2021

J Management Studies

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This study investigates the influence of country reputation differentials on market reaction to international acquisitions. Building on social identity theory, we argue that market reactions are more positive when the reputation of the acquirer’s country is better than that of the target’s, since a country’s reputation imprints on its firms due to social categorization. Thus, firms from countries with better reputations are perceived as having superior skills/capabilities and the reputation difference suggests that the acquirer is able to identify/exploit undervalued targets and leverage synergies. The influence of country reputation should be weaker when additional information on the merging firms is present, through news media reporting and analyst coverage of the merging firms as well as the acquirer’s prior acquisition track record, since market investors will rely less on country reputation. We find support for our hypotheses for a sample of 4,792 international acquisitions across 48 countries from 2009 to 2017.

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Looking for a service opening: Building reputation by leveraging international activities and host country context

Cited by 34 publications

References 84 publications

Can multinational companies foster institutional change and sustainable development in emerging countries? A case study

Can multinational companies foster institutional change and sustainable development in emerging countries? A case study

Sustainable banking in Latin American developing countries: Leading to (mutual) prosperity

How Country Reputation Differentials Influence Market Reaction to International Acquisitions

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