Extrinsic and Intrinsic Drivers of Corporate Social Performance: Evidence from Foreign and Domestic Firms in Mexico

38 Pages Posted: 4 Apr 2009 Last revised: 16 Nov 2009

See all articles by Alan Muller

Alan Muller

University of Amsterdam Business School; University of Washington - Michael G. Foster School of Business

Ans Kolk

University of Amsterdam Business School

Multiple version iconThere are 2 versions of this paper

Date Written: February 28, 2009

Abstract

The literature on corporate social performance (CSP) is largely split between approaches that consider CSP to be extrinsically driven and those that consider it to be intrinsically driven. While some studies in the management literature have paid attention to drivers of both types, the relationship between the two remains largely unstudied, particularly in the international setting. Meanwhile, the international business (IB) literature has addressed the international dimension of CSP more directly, but has focused largely on extrinsic pressures. This paper aims to link the management and IB literatures by addressing intrinsic drivers, specifically management commitment to ethics, in conjunction with extrinsic (trade-related) drivers for both foreign- and domestically-owned firms in a single-market setting. Using survey data from 121 foreign and local auto parts suppliers in Mexico, we find that management commitment to ethics is a dominant driver of CSP among both foreign and domestic firms. More importantly, management commitment to ethics interacts positively with trade-related pressures to raise CSP levels. Contrary to extant research, we find that foreign ownership is not related to higher CSP nor does it moderate the role of trade pressures or management commitment to ethics. Implications for research and practice are discussed.

Keywords: CSP, emerging markets, extrinsic drivers, intrinsic drivers, Mexico, multinationals

JEL Classification: D21, F23, H7, J28, L1, L2, M1, M14, M50

Suggested Citation

Muller, Alan R. and Kolk, Ans, Extrinsic and Intrinsic Drivers of Corporate Social Performance: Evidence from Foreign and Domestic Firms in Mexico (February 28, 2009). Journal of Management Studies, Vol. 47, No. 1, pp. 1-26, 2010. Available at SSRN: https://ssrn.com/abstract=1350783

Alan R. Muller (Contact Author)

University of Amsterdam Business School ( email )

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Amsterdam, 1018TV
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HOME PAGE: http://www1.fee.uva.nl/pp/amuller

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

Ans Kolk

University of Amsterdam Business School ( email )

Plantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands
+31 20 525 4289 (Phone)
+31 20 525 5281 (Fax)

HOME PAGE: http://www.anskolk.eu

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