Management Review

›› 2019, Vol. 31 ›› Issue (3): 193-202.

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Corporate Social Responsibility, Innovation Capability, and International Strategy: The Moderating Role of Executive Compensation Incentive

Wang Zhanjie1, Mai Sheng2   

  1. 1. School of Business, Guizhou University of Finance and Economics, Guiyang 550025;
    2. College of Economics & Management, Shihezi University, Shihezi 832003
  • Received:2017-09-04 Online:2019-03-28 Published:2019-03-27

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Abstract:

Corporate social responsibility and international management are two hot issues in the field of strategic management. However, previous researches conclude inconsistent results about the relationship between corporate social responsibility and international strategy. Meanwhile, the function route is not deep enough and perfect. Based on Stakeholder Theory and institutional theory, using the panel data of 355 listed companies in China from 2013 to 2016, this paper examines the effect of corporate social responsibility on international strategy, furthermore, it also investigates how innovation capability as a mediator and executive compensation incentive as a moderator influence enterprises' international strategy. The empirical results show that:(1) the international strategy is better in enterprises in which the corporate social responsibility in higher fulfilling degree and this also shows corporate social responsibility is a key factor of international strategy; (2) Innovation capacity plays a partial mediating role in the impact of corporate social responsibility on internationalization strategy. And the fulfillment of corporate social responsibility can further act positively on the internationalization strategy through innovation capability; (3) Executive compensation incentive can moderate the relationship between corporate social responsibility and international strategy, higher executive compensation incentive will lead to more negative impact of corporate social responsibility and international strategy. This study provides references for international enterprises to achieve higher international performance by improving the level of social responsibility.

Key words: corporate social responsibility, innovation capability, executive compensation incentive, internationalization strategy