So good, but so far away? The effect of institutional distance on the parent CSR and subsidiary reputation link

Forcadell, Francisco Javier, Nájera, Juan José, Aracil, Elisa and Úbeda, Fernando (2025) So good, but so far away? The effect of institutional distance on the parent CSR and subsidiary reputation link. Business Ethics, the Environment & Responsibility. ISSN 2694-6416

Text - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (1MB)

Abstract

Multinational enterprises (MNEs) leverage strategies of Corporate Social Responsibility (CSR) at the parent and subsidiary levels to build a reputation overseas. Nevertheless, institutional distance can weaken this connection in developing host countries, where MNEs face significant institutional voids. We explore the mechanisms through which CSR enhances subsidiary reputation, focusing on how stakeholders in host developing countries perceive CSR signals sent from headquarters. We further explore the moderating role of formal and informal institutional distance in this relationship. Using a panel of MNEs headquartered in developed countries and operating across Latin America, we employ a multi‐stakeholder indicator of the subsidiary reputation based on assessments from key host country stakeholders. The analysis controls for country, corporate, and subsidiary‐level factors, including a variable derived from big data analytics. By examining the cross‐country parent CSR signals and their subsidiary reputation effects, this study advances the international business literature, providing new insights into how institutional distance shapes the local reputational outcomes of parent CSR strategies.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	LSE
Subjects:	H Social Sciences > HF Commerce
Date Deposited:	05 Nov 2025 10:03
Last Modified:	06 Nov 2025 10:54
URI:	http://eprints.lse.ac.uk/id/eprint/130056

Actions (login required)

View Item