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.
Similar content being viewed by others
References
Allred, A., Chakraborty, G., and Miller, S. J. 2000. Measuring images of developing countries: A scale development study. Journal of Euromarketing 8 (3): 29–49.
Ashforth, D., and Mael, F. 1989. Social identity theory and the organization. Academy of Management Review 14(1): 20–39.
Backhaus, K., and Tikoo, S. 2004. Conceptualizing and researching employer branding. Career Development International 9(5): 501–517.
Barber, A.E. (1998) Recruiting Employees: Individual and Organizational Perspectives. London & New Delhi: Sage.
Baum, M., and Kabst, R. 2013. How to attract applicants in the Atlantic versus the Asia-Pacific region? A cross-national analysis on China, India, Germany, and Hungary. Journal of World Business 48 (2): 175–185.
Berthon, P., Ewing, M., and Hah, L. L. 2005. Captivating company: Dimensions of attractiveness in employer branding. International Journal of Advertising 24 (2): 151–172.
Botero, I. C. 2014. Effects of communicating family ownership and organisational size on an applicant’s attraction to a firm: An empirical examination in the USA and China. Journal of Family Business Strategy 5 (2): 184–196.
Brown, T.J., and Dacin, P. A. 1997. The company and the product: Corporate associations and consumer product responses. Journal of Marketing 61 (1): 68–84.
Cable, D.M., and Turban, D.B. (2001) Establishing the dimensions, sources and value of job-seekers’ employer knowledge during recruitment. In: Research in Personnel and Human Resources Management, ed. G.R. Ferris, 115–163. New York: Elsevier Science.
Carroll, A. B. 1979. A three-dimensional conceptual model of corporate performance. Academy of Management Review 4 (4): 497–505.
Carroll, A. B. 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons 34 (4): 39–48.
Carroll, A. B., and Shabana, K. M. 2010. The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews 12 (1): 85–105.
Chapman, D. S., Uggerslev, K. L., Carroll, S. A., Piasentin, K. A., and Jones, D. A. 2005. Applicant attraction to organizations and job choice: A meta-analytic review of the correlates of recruiting outcomes. Journal of Applied Psychology 90 (5): 928–944.
Chen, M. 2004. Asian Management Systems: Chinese, Japanese and Korean Styles of Business. London: Thomson Learning.
Collins, C. J., and Stevens, C. K. 2002. The relationship between early recruitment-related activities and the application decisions of new labor-market entrants: A brand equity approach to recruitment. Journal of Applied Psychology 87 (6): 1121–1133.
Dahlsrud, A. 2008. How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management 15 (1): 1–13.
Donaldson, T., and Preston, L. E. 1995. The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review 20 (1): 65–91.
Duarte, A.P., Gomes, D.R., and das Neves, J.G. 2014. Tell me your socially responsible practices, I will tell you how attractive for recruitment you are! The impact of perceived CSR on organizational attractiveness. Tékhne – Review of Applied Management Studies 12 (1): 22–29.
Dunning, J. H., Kim, C., and Park, D. 2008. Old wine in new bottles: A comparison of emerging-market TNCs today and developed-country TNCs thirty years ago. In: The rise of transnational corporations from emerging markets: Threat or opportunity, ed. K.P. Sauvant, 158–180. Cheltenham: Edward Elgar.
Ehrhart, K. H., and Ziegert, J. C. 2005. Why are individuals attracted to organizations? Journal of Management 31 (6): 901–919.
Evans, W. R., and Davis, W. D. 2011. An examination of perceived corporate citizenship, job applicant attraction, and CSR work role definition. Business & Society 50(3): 456–480.
Froese, F. J., and Kishi, Y. 2013. Organizational attractiveness of foreign firms in Asia: Soft power matters. Asian Business & Management 12 (3): 281–297.
Froese, F. J., Vo, A., and Garrett, T. C. 2010. Organizational attractiveness of foreign-based companies: A country-of-origin perspective. International Journal of Selection and Assessment 18 (3): 271–281.
Gammeltoft, P., Barnard, H., and Madhok, A. 2010. Emerging multinationals, emerging theory: Macro-and micro-level perspectives. Journal of International Management 16 (2): 95–101.
Gatewood, R. D., Gowan, M. A., and Lautenschlager, G. J. 1993. Corporate image, recruitment image, and initial job choice decisions. Academy of Management Journal 36 (2): 414–427.
Greening, D. W., and Turban, D. B. 2000. Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society 39 (3): 254–280.
Held, K., and Bader, D. 2016. The influence of images on organizational attractiveness: Comparing Chinese, Russian and US companies in Germany. The International Journal of Human Resource Management. doi:10.1080/09585192.2016.1173085.
Herz, M. F., and Diamantopoulos, A. 2013. Country-specific associations made by consumers: A dual-coding theory perspective. Journal of International Marketing 21 (3): 95–121.
Highhouse, S., Lievens, F., and Sinar, E.F. 2003. Measuring attraction to organizations. Educational and Psychological Measurement 63 (6): 986–1001.
Highhouse, S., Thornbury, E. E., and Little, I. S. 2007. Social-identity functions of attraction to organizations. Organizational Behavior and Human Decision Processes 103 (1): 134–146.
Holtbrügge, D., and Kreppel, H. 2015. Employer attractiveness of Chinese, Indian and Russian firms in Germany: Signaling effects of HR practices. Corporate Reputation Review 18 (3): 223–242.
Jones, D. A., Willness, C. R., and Madey, S. 2014. Why are job-seekers attracted by corporate social performance? Experimental and field tests of three signal-based mechanisms. Academy of Management Journal 57 (2): 383–404.
Keller, K. L. 1993. Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing 57 (1): 1–22.
Kim, S. Y., and Park, H. 2011. Corporate social responsibility as an organizational attractiveness for prospective public relations practitioners. Journal of Business Ethics 103 (4): 639–653.
Koschate-Fischer, N., Diamantopoulos, A., and Oldenkotte, K. 2012. Are consumers really willing to pay more for a favorable country image? A study of country-of-origin effects on willingness to pay. Journal of International Marketing 20 (1): 19–41.
Laroche, M., Papadopoulos, N., Heslop, L. A., and Mourali, M. 2005. The influence of country image structure on consumer evaluations of foreign products. International Marketing Review 22 (1): 96–115.
Li, D., Wang, C. L., Jiang, Y., Barnes, B. R., and Zhang, H. 2014. The asymmetric influence of cognitive and affective country image on rational and experiential purchases. European Journal of Marketing 48 (11/12): 2153–2175.
Lievens, F., and Highhouse, S. 2003. The relation of instrumental and symbolic attributes to a company’s attractiveness as an employer. Personnel Psychology 56 (1): 75–102.
Luo, Y., and Tung, R. L. 2007. International expansion of emerging-market enterprises: A springboard perspective. Journal of International Business Studies 38 (4): 481–498.
Madhok, A., and Keyhani, M. 2012. Acquisitions as entrepreneurship: Asymmetries, opportunities, and the internationalization of multinationals from emerging economies. Global Strategy Journal 2 (1): 26–40.
Magnusson, P., Krishnan, V., Westjohn, S. A., and Zdravkovic, S. 2014. The spillover effects of prototype brand transgressions on country image and related brands. Journal of International Marketing 22 (1): 21–38.
Martin, I. M., and Eroglu, S. 1993. Measuring a multi-dimensional construct: Country image. Journal of Business Research 28 (3): 191–210.
Matten, D., and Moon, J. 2008. ‘Implicit’ and ‘explicit’ CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review 33 (2): 404–424.
Melnyk, V., Klein, K., and Völckner, F. 2012. The double-edged sword of foreign brand names for companies from emerging countries. Journal of Marketing 76 (6): 21–37.
Newburry, W., Gardberg, N. A., and Belkin, L. Y. 2006. Organizational attractiveness is in the eye of the beholder: The interaction of demographic characteristics with foreignness. Journal of International Business Studies 37 (5): 666–686.
Newburry, W., Gardberg, N. A., and Sanchez, J. I. 2014. Employer attractiveness in Latin America: The association among foreignness, internationalization and talent recruitment. Journal of International Management 20 (3): 327–344.
Ramachandran, J., and Pant, A. 2010. The liabilities of origin: An emerging-economy perspective on the costs of doing business abroad. In: Advances in International Management: The Past, Present and Future of International Business and Management, ed. T.M. Devinney, T. Pedersen and L. Tihanyi, 231–265. Bingley: Emerald.
Rhee, M., and Haunschild, P. R. 2006. The liability of good reputation: A study of product recalls in the US automobile industry. Organization Science 17 (1): 101–117.
Roth, K. P., and Diamantopoulos, A. 2009. Advancing the country image construct. Journal of Business Research 62 (7): 726–740.
Rupp, D. E., Shao, R., Thornton, M. A., and Skarlicki, D. P. 2013. Applicants’ and employees’ reactions to corporate social responsibility: The moderating effects of first-party justice perceptions and moral identity. Personnel Psychology 66 (4): 895–933.
Rynes, S. L. 1991. Recruitment, job choice, and post-hire consequences: A call for new research directions. In: Handbook of Industrial and Organizational Psychology, ed. M.D. Dunnette and L.M. Hough, 399–444. Palo Alto: Consulting Psychologists.
Saleem, F. Z., and Iglesias, O. 2016. Mapping the domain of the fragmented field of internal branding. Journal of Product & Brand Management 25 (1): 43–57.
Schwartz, M. S., and Carroll, A. B. 2003. Corporate social responsibility: A three-domain approach. Business Ethics Quarterly 13 (4): 503–530.
Turban, D. B., and Greening, D. W. 1997. Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal 40 (3): 658–672.
Wilkinson, A., Wood, G., and Demirbag, M. 2014. Guest editors’ introduction: People management and emerging market multinationals. Human Resource Management 53 (6): 835–849.
Zaheer, S. 1995 Overcoming the liability of foreignness. Academy of Management Journal 38 (2): 341–363.
Zhang, L., and Gowan, M. A. 2012. Corporate social responsibility, applicants’ individual traits, and organizational attraction: A person–organization fit perspective. Journal of Business and Psychology 27 (3): 345–362.
Author information
Authors and Affiliations
Corresponding author
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 |
Rights and permissions
About this article
Cite this article
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
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/s41291-017-0023-5