Session 112

CSR and Environmental Issues

Track A

Date: Friday, March 11, 2011


Time: 14:15 – 15:30

Common Ground

Room: Room 1-005


  • Ivan Montiel, City University of New York

Title: Electoral Institutions and Foreign Direct Investment: An Agency Framework for Mitigating Corruption and Political Risk


  • Cameron Verhaal, Georgia State University

Abstract: This paper addresses the important question of whether democratic and electoral institutions impact economic development in emerging economies. Recent studies have begun to question a direct causal relationship between the two constructs. Drawing from both the strategic management and political science literature, I develop a framework demonstrating how the use of proportional representation (PR) in elections creates elevated agency costs, in the form of corruption and political risk, that impact the level of foreign direct investment in a given country. Furthermore, by incorporating two of Hillman and Hitt’s (1999) corporate political strategies (financial incentive and information) I show how firms can mitigate these elevated agency costs, which moderates the negative relationship between corruption, political risk and foreign direct investment.

Title: Entrepreneurial Opportunities in Abject Poverty


  • Sharon Alvarez, University of Denver
  • Jay Barney, University of Utah

Abstract: Does entrepreneurship theory have anything to say about the alleviation of abject poverty? Building on the assumption that entrepreneurship can lead to economic development, this paper identifies two types of entrepreneurial opportunities—discovery and creation--and argues that individuals living in conditions of abject poverty are more likely to exploit easily observed opportunities and that these opportunities are less likely to generate a sustainable advantage. While creation opportunities are more unlikely to be formed in contexts of poverty, if successfully formed and exploited, they are more likely to be scalable and result in difficult to imitate competitive advantage. However, a limitation of this view is can these opportunities in poverty contexts funded? This might suggest a need for foundations to work together with entrepreneurs to form these creation opportunities. This partnership between foundations and entrepreneurs is the emergence of social entrepreneurship in abject poverty.

Title: Social Franchising: A Multiplier Factor of Knowledge on Corporate Social Responsibility in the Third Sector


  • Roberta Rosa, Catholic University of Parana
  • Tomas Martins, Federal University of Paraná
  • Mozar Ramos, Catholic University of Parana
  • Heitor Kato, Pontifical Catholic University of Paraná
  • June Cruz, Catholic University of Parana

Abstract: The objective of this article is to verify what essential characteristics a social franchising system has that enable organizations to multiply social corporate knowledge. It was observed that social franchising is a way to replicate concepts, without the need to create new expensive structures. The franchisor transfers his formal knowledge and experience to the franchisees like a regular franchising system. Core elements of a project are standardized to ensure quality and effective use of resources. On the other hand, we observed that social franchising has some special characteristics, such as frequent free tacit knowledge transferring through interaction. So, to develop this work a case study - Instituto Bom Aluno do Brasil (IBAB) - was done. Data was collected through semi-structured interviews and IBAB documents.

Title: Sustainability, Stakeholder Management, and Internationalization: Experiences of Brazilian MNCs


  • Flávia Alvim, Dom Cabral Foundation
  • Sherban Leonardo Cretoiu, Dom Cabral Foundation

Abstract: Under the sustainable development agenda, a key underlying question from a strategic management point of view is how firms’ social and environmental practices relate to firms’ economic performance. This paper argues that the adoption of sustainability principles and practices by Brazilian MNCs has helped them to manage stakeholders more effectively in their international operations located in developing countries. This attribute has been further leveraged by the competitive advantages of Brazilian MNCs being flexible and having institutional-related capabilities, which are a result of the turbulent institutional environment of the country in the past decades. Specific examples of how this process has taken place in the international experiences of Brazilian MNCs in developing countries are discussed.

Title: The Role of MNCs in Reducing Rural Poverty in Brazil:


  • Susan Mudambi, Temple University

Abstract: MNC expansion within emerging markets offers firm growth and profit potential, as well as opportunities for “making globalization good” (Dunning 2005). Policy makers hold high expectations for rural economic growth for poverty reduction, and expect MNCs to play a positive role. The objective of this work-in-progress paper is to take a multidisciplinary approach to analyzing MNCs and poverty reduction, and to develop a framework and research agenda, with a particular focus on Brazil. The research framework incorporates MNC activity in nonfarm sectors (direct sales, tourism, extractive
industries), and agricultural sectors (supermarkets and biofuels). The research agenda acknowledges the linkages between poverty and food security, global supply chains, trade, and employment and entrepreneurship incentives, and poses specific questions on the role of MNCs.

All Sessions in Track A...

Fri: 11:30 – 12:45
Session 103: CSR and Environmental Issues in Emerging Markets
Session 111: Performance Issues
Session 114: Internationalization Strategies
Session 117: Learning in Emerging Markets
Session 120: The Characteristics and Effects of the BRIC Economies as Hubs for Regional Economic Development
Fri: 14:15 – 15:30
Session 102: Resources in Emerging Markets
Session 106: Multilatina FDI Strategies
Session 110: Global Competition
Session 112: CSR and Environmental Issues
Session 124: Research Methods for the Study of Competitive Advantage
Fri: 15:30 – 16:45
Session 101: Institutions in Emerging Markets
Session 104: Alliances and Networks
Session 105: Knowledge and Innovation
Session 108: Knowledge and Resources
Session 115: Developing Country Firms
Sat: 10:45 – 12:00
Session 107: Multilatina Performance
Session 113: CEOs and Other Human Resources
Session 123: Banks and their Influence
Session 125: Reviewing Latin America’s Strategic Role in Global Development
Session 126: Publishing and Not Perishing: Strategies for Publishing in Top Journals
Sat: 15:45 – 17:00
Session 100: Entrepreneurship in Emerging Markets
Session 109: Social Issues and Local Development
Session 116: Emerging Market Institutional Reform
Session 118: Management Innovation in Emerging Markets
Session 127: Teaching in Latin America

Strategic Management Society

Rio De Janeiro