Strategic CSR practices, strategic orientation and business value creation among multinational subsidiaries in Ghana

Abstract

Purpose: This study aims to examine the direct influence of strategic corporate social responsibility (CSR) practices on business value creation while accounting for the moderating and mediating roles of strategic orientation. Design, methodology, and approach: It used data from 118 CSR-intensive multinational subsidiaries operating in five major different industries in Ghana and applying hierarchical regression and bootstrapping via Hayes’ PROCESS Macro for the analyses. Findings: The results showed that strategic CSR practices comprise strategic CSR planning, strategic CSR implementation and strategic CSR positioning contribute positively and significantly to business value creation of multinational subsidiaries. Moreover, it found that strategic orientation has directly predicted business value creation significantly and further mediated the nexus between business value creation and the three strategic CSR practices. However, it did not moderate the influence of strategic CSR practices on business value creation. Originality/value: The study validates and adds to the knowledge on strategic CSR and business value creation theory by demonstrating that strategic CSR practices of multinational corporation (MNCs) are parallel to their subsidiaries’ commitment to shared growth in host countries. Similarly, it provides a better understanding of the dual roles of MNCs’ strategic orientation on strategic CSR practices and business value creation, thereby offering valuable information about the underlying economic process and context that can affect the strategic business value of firms’ strategic CSR practices.