Distance makes the (committed) heart grow colder: MNEs’ responses to the state logic in African variants of CSR
- Authors: Reddy, Colin David , Hamann, Ralph
- Date: 2018
- Subjects: Global-local corporate social responsibility , Multinational enterprises , Regulatory distance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/259316 , uj:27281 , Citation: Reddy, C.D. & Hamann, R. 2018. Distance makes the (committed) heart grow colder: MNEs’ responses to the state logic in African variants of CSR.
- Description: Abstract: The question of how multinational enterprises (MNEs) respond to local CSR expectations remains salient, also in the context of many African governments’ attempts to define and regulate business responsibilities. What determines whether MNEs respond to such local, state-driven expectations as congruent with their global commitment to CSR? Adopting an institutional logics perspective, we argue that a higher global CSR commitment will lead to higher local responsiveness when regulatory distance is low, but it will lead to lower local responsiveness when regulatory distance is high. We find support for our hypothesis using data on 93 MNEs’ responses to the South African state’s Broad-Based Black Economic Empowerment policy. We thus contribute to the global-local CSR literature and show how MNEs’ local CSR responsiveness will not only be shaped by the local context, but also their home country and firm-internal environments.
- Full Text:
Foreign direct investment plans of multinational enterprises currently operating in South Africa
- Authors: Makka, A. M. , Mageto, J. N.
- Date: 2019
- Subjects: Foreign direct investment , Multinational enterprises , Exploratory factor analysis
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/404736 , uj:33956 , Citation: Makka, A.M. & Mageto, J.N. 2019. Foreign direct investment plans of multinational enterprises currently operating in South Africa/
- Description: Abstract: The objective of this study was to examine factors in the South African business environment that influence the foreign direct investment decision-making plans of multinational enterprises in the country. Although studies on foreign direct investment do exist, they have focused primarily on the determinants of foreign direct investment. Relatively little is known about the dynamics of foreign direct investment plans of multinationals already operating in the country. An internet survey was conducted with 76 senior executives from South African multinational enterprises. The findings demonstrate that macroeconomic, political, government policy, labour issues, bureaucracy, red tape, corruption and crime all influence the investment plans of these enterprises. However, despite this evidence, the multinationals do not intend to close down some or all operations in the country within the short term (next 1-3 years). This study expands the body of knowledge on foreign direct investment and multinational enterprises, shedding light on their operations and investment plans in African countries. This research will be useful for policymakers in South Africa as to decision-making by multinationals on foreign direct investment in the country. The study is also a starting point for future research on the dynamics behind foreign direct investment decision-making.
- Full Text: