Protecting CSR ‐based reputation abroad: Intra‐firm trade as a governance mechanism
研究了跨国公司的企业社会责任承诺如何影响其海外子公司的内部贸易，发现CSR承诺越高的公司越倾向于使用内部贸易来监控子公司行为、保护声誉，且这一关系受东道国腐败和联盟经验调节。
Abstract Research Summary This study investigates how multinational enterprises' (MNEs') commitment to corporate social responsibility (CSR) affects intra‐firm trade in international subsidiaries. While CSR‐committed MNEs need to protect their reputation, intra‐firm trade can facilitate monitoring and coordinating the behavior of MNEs' international subsidiaries. Such governance functions help these MNEs mitigate challenges related to bounded rationality and reliability, ultimately reducing governance costs. Thus, we expect CSR‐committed MNEs to be more likely to engage in intra‐firm trade in their international subsidiaries. We further predict that the positive relationship is contingent upon host country corruption and MNE alliance experience, which may amplify or mitigate the levels of bounded rationality and reliability, respectively. We tested our theories using Korean MNE data during the 2006–2013 period and found empirical support. Managerial Summary While MNEs are increasingly embracing CSR, CSR's impact on MNE governance choices (particularly in international subsidiaries) is not fully understood. This study proposes that intra‐firm trade serves as both formal and informal governance mechanisms which protect the CSR‐built reputation of MNEs internationally. Our analysis of Korean MNE data shows that MNEs' CSR commitment increases intra‐firm trade in international subsidiaries. This effect is pronounced in corrupt host countries but is attenuated in MNEs with more alliance experience. Our findings suggest that MNEs' CSR‐built reputation should be protected by preventing irresponsible behavior in their international subsidiaries. Additionally, this study underscores that intra‐firm trade plays a pivotal role as a governance tool for MNEs.