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Overcoming country-of-origin image constraints on hiring: the moderating role of CSR

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Abstract

Unfavorable home country images pose challenges in attracting talent abroad for emerging-market multinational enterprises (EMNEs). Drawing on signaling theory, this study suggests CSR activities may be a strategic way for EMNEs to overcome this issue. An experiment involving 189 Korean job-seekers showed that while they are more likely to pursue jobs with US than with Chinese firms, positive CSR activities have a demonstrably stronger impact on application intentions toward Chinese firms compared to US firms. CSR may thus be instrumental in helping EMNEs secure access to human resources abroad.

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Correspondence to Eunmi Kim.

Appendices

Appendix 1

Scenarios for two conditions of CSR activities

Scenario 1. No information about CSR activities

 Chinese (US) company A is a manufacturer and retailer of consumer goods in Korea. For the last 15 years it has served the Korean market with quality products

Scenario 2. Good CSR activities

 Chinese (US) company A is a manufacturer and retailer of consumer goods in Korea. For the last 15 years it has served the Korean market with quality products. Company A has a track record of doing business without harming any part of society. It believes in fairness to its employees and society as a whole, follows all governmental rules and regulations, and pays taxes regularly. Its consumer goods are sold in the market with a variety of designs and at a reasonable price. Company A properly labels all its products with more than the required information. Its management style is technology focused, which means that it continuously adopts the latest manufacturing techniques. It also actively supports various types of employee benefits and encourages women to apply for jobs, facilitating the recruitment process so that they may compete equally with men. In addition, this company is also working for a specific cause by providing financial and moral support to colleges and universities offering co-education for male and female students. This company allocates a certain portion of its profit every year for this cause. According to a Korean Sustainability Index (KSI), this company has been ranked first among consumer goods companies for the fifth year in a row

Appendix 2

Measures

Country image

 Five-point Likert-type scale, anchored by “Strongly disagree” and “Strongly agree

  1. China (US) is an affluent country

  2. China (US) is an economically developed country

  3. The standard of living in China (US) is high

  4. China (US) is a technologically and scientifically advanced country

  5. The living conditions of China (US) are good

Recognition for CSR activities

 Five-point Likert-type scale, anchored by “Strongly disagree” and “Strongly agree

  1. Company A is good at CSR activities

  2. Company A is actively involved in social responsibility

  3. CSR activities of Company A provide positive feelings for me

  4. CSR activities of Company A are favorable for me

  5. CSR activities of Company A demonstrate trust for me

  6. CSR activities of Company A are ethical

Job-pursuit intention

 Five-point Likert-type scale, anchored by “Strongly disagree” and “Strongly agree

  1. I would be interested in pursuing a job application with this company

  2. I would like to work for this company

  3. I would exert a great deal of effort to work for this company

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Hong, G., Kim, E. Overcoming country-of-origin image constraints on hiring: the moderating role of CSR. Asian Bus Manage 16, 253–271 (2017). https://doi.org/10.1057/s41291-017-0023-5

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