Does size matter? How the access to ICT influences the relationship between firm size and CSR engagement.

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2020-07-30
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en
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It is expected that firms conducting business today act responsibly towards society, which is known as corporate social responsibility (CSR). Recent literature reveals effective CSR engagement at small- and medium-sized enterprises (SMEs), but quantitative research investigating the differences between these businesses and multinational enterprises (MNEs) is rare. This research, therefore, quantitatively tests the differences between SMEs and MNEs in CSR communication and CSR implementation, collectively understood as CSR engagement. Based on CSR literature, it is expected that firm size, measured by the number of employees, has a positive effect on the CSR engagement of a firm. Additionally, it is expected that access to high-quality information and communication technologies (ICT) tempers the effect of firm size on CSR engagement, whereby the differences between SMEs and MNEs in this engagement become smaller when the access to ICT is high. Based on data from 5815 firms in the Asset4/ESG database, the hypotheses are tested using various regression analyses. The results indicate that MNEs are better engaged in CSR than SMEs. The access to ICT tempers this effect of firm size on CSR communication. This outcome indicates that in countries with high access to ICT, SMEs will act more like MNEs regarding communication about CSR. Contrary to the expectation, the access to ICT does not temper the effect of firm size on CSR implementation. This study adds to the debate on the differences between MNEs and SMEs regarding CSR and provides insights into the affordances of good access to ICT for managers and institutions.
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Faculteit der Managementwetenschappen