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The Impact of FDI Inflow on Domestic Firms’ Uptake of CSR Activities: The Moderating Effects of Host Institutions
Author(s) -
Nyuur Richard B.,
Ofori Daniel F.,
Debrah Yaw A.
Publication year - 2015
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21744
Subject(s) - foreign direct investment , business , corporate social responsibility , inflow , host (biology) , sample (material) , multilevel model , industrial organization , economics , public relations , ecology , political science , biology , chemistry , physics , chromatography , machine learning , mechanics , computer science , macroeconomics
This study examines whether foreign direct investment ( FDI ) inflow helps or hinders local firms’ uptake of corporate social responsibility ( CSR ) activities in a developing host country. The study further examines the interaction effect of host institutions on the relationship between FDI inflow and local firms’ uptake of CSR activities. Results of hierarchical regression analysis of data from a sample of 227 local firms in Ghana, reveal that local firms’ uptake of CSR improves significantly with an increasing inflow of FDI through knowledge transfer. Host institutions are also found to influence the transfer of CSR activities from foreign firms to local firms. However, when the quality of institutions is very high, the impact of FDI on local firms’ CSR activities diminishes. Research and practical implications of these findings are discussed. © 2015 Wiley Periodicals, Inc.