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Dirk Jan de Jong Msc., Dr. Frank Jan Graaf

INSTITUTIONAL ENTREPRENEURSHIP AND CSR WITHIN INTERNATIONAL SME’s: THE A DDED VALUE FOR SME’s OF EMPLOYEE-ORIENTESD CSR IN FOREIGN SUBSIDIARIES. Dirk Jan de Jong Msc., Dr. Frank Jan Graaf. Introduction Conceptual model Research design Case study results Conclusions. AGENDA.

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Dirk Jan de Jong Msc., Dr. Frank Jan Graaf

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  1. INSTITUTIONAL ENTREPRENEURSHIP AND CSR WITHIN INTERNATIONAL SME’s: THE ADDED VALUE FOR SME’s OF EMPLOYEE-ORIENTESD CSR IN FOREIGN SUBSIDIARIES Dirk Jan de Jong Msc., Dr. Frank Jan Graaf

  2. Introduction Conceptual model Research design Case study results Conclusions AGENDA

  3. Result globalisation: labour as resource which cost must be minimised Can employee-oriented CSR act as counterbalance? Case-study research on the role of institutional entrepreneurship in transferring employment relations practices of Dutch multinational SMEs to subsidiaries in Eastern Europe Testing analytical validity conceptual model. INTRODUCTION

  4. Employee-oriented CSR: creates material and/or immaterial value for employees on top of what is already prescribed by law and/or union contract and/or what is generally arranged for in the market (based on Jones, 1980) Research question: To what extent do multinational SMEs need institutional entrepreneurship in order to successfully transfer employee-oriented CSR to foreign subsidiaries? INTRODUCTION

  5. Conceptual model based on three theoretical perspectives: Stakeholder view on CSR: employee-oriented CSR  value creation for employees (Van Buren 2005) Resource-based view: employees as source of competitive advantage  value creation for firms (Wright et al 1994) Institutionalist theory: feasibility transfer employee-oriented CSR to host country subsidiary (Kostova 1999) CONCEPTUAL MODEL

  6. CONCEPTUAL MODEL

  7. Multiple case study Four Dutch firms in both manufacturing and services sectors with subsidiaries in Poland On-site interviews with management and employees in the Netherlands as well as in Poland Internal documents (e.g. personnel handbook, website) and external documents (e.g. newspaper articles) RESEARCH DESIGN

  8. Competitive situation case study companies Market niches Relevance KSAs employees for competitive position CASE STUDY COMPANIES

  9. Link between perceived legitimacy employees as stakeholders and deployment employee-oriented CSR Role of normative and instrumental motives Design home country employee-oriented CSR RESULTS LEGITIMACY EMPLOYEES

  10. Results home country employee-oriented CSR Employees: Labour conditions Job satisfaction Firm: Commitment employees affecting Motivation Initiative Turnover Absenteeism RESULTS HOME EMPLOYEE-ORIENTED SCR

  11. Does succes home country employee-oriented CSR lead directly to introduction employee-oriented CSR in foreign subsidiary? Extent of perceived success home country employee-oriented CSR Perceived effect host country institutional on ease transfer employee-oriented CSR Salience foreign subsidiary employees to owner-managers RESULTS OBSTACLES TRANSFER

  12. Institutional entrepreneurship Needed to succesfully introduce employee-oriented CSR in host country Consists of Initiating divergent change from existing institutions Actively participating in implementing those changes (Battilana et al 2009) RESULTS INSTITUTIONAL ENTREPRENEURSHIP

  13. Existing normative and cognitive institutions host country running counter to home country employee-oriented CSR: Role of hierarchy within firms Employee attitude towards work Mistrust between management and employees Lack of initiative RESULTS EXISTING INSTITUTIONS

  14. Institutional entrepreneurship exercised by case study companies One owner-manager meets both conditions of institutional entrepreneurship Most successful in transfer employee-oriented CSR practices Employee and firm outcomes INSTITUTIONAL ENRTREPRENEURSHIP

  15. Two owner-managers only initiate divergent change from existing institutions Transfer intentions employee-oriented CSR Employee and firm outcomes INSTITUTIONAL ENRTREPRENEURSHIP

  16. Exercising institutional entrepreneurship requires use of resources: Time owner-manager Financial resources Specialised staff (HRM) INSTITUTIONAL ENRTREPRENEURSHIP

  17. Results suggest: Employee-oriented CSR can create additional value for employees and firms Institutional entrepreneurship important in implementing and internalising host country employee-oriented CSR Lack of time is a critical obstacle in exercising institutional entrepreneurship CONCLUSIONS

  18. Frank Jan de Graaff.j.de.Graaf@pl.hanze.nl

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