Internationalization and Corporate Social Performance: An Institutional Approach

Building on the institutional theory, the study posits that according to the level of institutional diversity and institutional convergence, corporate social performance can be categorized into two dimensions: social and regulatory dimension. As firms internationalize, institutions that relate to the social dimension of CSP diversify across nation. While in its regulatory dimension, institutions tend to converge with internationalization. Results from the analyses confirm that internationalization has a negative effect on the social dimension of CSP, but a positive effect on the environment and governance dimensions of CSP. Additionally, country-level institutions and country-level CSR are moderators of the internationalization - CSP relationship.