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Board international experience and corporate social responsibility in emerging economies: Evidence from Malaysia, Pakistan, and Philippines

Conference Paper


Abstract


  • Drawing on resource dependence (RDT) and agency theory (AT) we examine the influence of board of director foreign experience on corporate social responsibility (CSR) in Asian emerging economy firms. We argue from an RDT perspective that firm CSR practices in an emerging economy could be influenced by the level of exposure the firm has to international practices by virtue of the foreign experiences of its directors –especially experience in developed countries. Complementing these insights from an AT perspective, we suggest that the presence of board independence plays a moderating role, allowing for directors with these experiences the firm governance infrastructure to challenge the status quo. We develop hypotheses along two core mechanisms (i.e., experience accumulation within international environments and reverse transfer of knowledge from developed economies) and test them on a unique sample of 300 firms based in three Asian emerging economies (Malaysia, Pakistan, and Philippines) from 2010-2014. Our findings show that the foreign members sitting to the board of emerging economies firms has a significant influence on CSR adoption. However, we find no such link between CSR adoption and board international experience and mixed results for the moderating role of board outsiders. We discuss implications for research and practice.

UOW Authors


  •   Mamun, Abdullah Al
  •   Heyden, Mariano (external author)
  •   Seamer, Michael (external author)
  •   Yasser, Qaiser Rafique (external author)
  •   Rojer, Guido (external author)

Publication Date


  • 2016

Citation


  • Al Mamun, A., Heyden, M. L. M., Seamer, M., Yasser, Q. R. & Rojer, G. (2016). Board international experience and corporate social responsibility in emerging economies: Evidence from Malaysia, Pakistan, and Philippines. AIB 2016 in New Orleans

Abstract


  • Drawing on resource dependence (RDT) and agency theory (AT) we examine the influence of board of director foreign experience on corporate social responsibility (CSR) in Asian emerging economy firms. We argue from an RDT perspective that firm CSR practices in an emerging economy could be influenced by the level of exposure the firm has to international practices by virtue of the foreign experiences of its directors –especially experience in developed countries. Complementing these insights from an AT perspective, we suggest that the presence of board independence plays a moderating role, allowing for directors with these experiences the firm governance infrastructure to challenge the status quo. We develop hypotheses along two core mechanisms (i.e., experience accumulation within international environments and reverse transfer of knowledge from developed economies) and test them on a unique sample of 300 firms based in three Asian emerging economies (Malaysia, Pakistan, and Philippines) from 2010-2014. Our findings show that the foreign members sitting to the board of emerging economies firms has a significant influence on CSR adoption. However, we find no such link between CSR adoption and board international experience and mixed results for the moderating role of board outsiders. We discuss implications for research and practice.

UOW Authors


  •   Mamun, Abdullah Al
  •   Heyden, Mariano (external author)
  •   Seamer, Michael (external author)
  •   Yasser, Qaiser Rafique (external author)
  •   Rojer, Guido (external author)

Publication Date


  • 2016

Citation


  • Al Mamun, A., Heyden, M. L. M., Seamer, M., Yasser, Q. R. & Rojer, G. (2016). Board international experience and corporate social responsibility in emerging economies: Evidence from Malaysia, Pakistan, and Philippines. AIB 2016 in New Orleans