The Role of Corporate Social Responsibility in Foreign Market Entry Process — The Case of Korean MNCs in the Chinese Electronics Industry

Abstract

The question under the focus is how an MNC manages the increasing demands for corporate social responsibility when entering and expanding in a market. Based on business network, the study develops a view highlighting the four concepts of learning, commitment, legitimacy and trust for studying of socio-political relationships. The view is employed for analysis of the experiences of a Korean MNC's entry into the Chinese market. The case illustrates that the Korean MNC, Samsung Electronics, has behaved proactively by large commitment in several long- and short-term projects towards the society. Besides the theoretical view, the study contributes new knowledge on how the MNC's activities have enabled the firm to transfer learning, commitment, legitimacy and trust from socio-political relationships to business relationships. Further, it adds new knowledge on how corporate social responsibility plays a critical role in a successful entry, thereby building up a stable market position.

Citation

Lee, J.-W., Park, S. and Hadjikhani, A. (2012), "The Role of Corporate Social Responsibility in Foreign Market Entry Process — The Case of Korean MNCs in the Chinese Electronics Industry", Hadjikhani, A., Elg, U. and Ghauri, P. (Ed.) Business, Society and Politics (International Business and Management, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 233-257. https://doi.org/10.1108/S1876-066X(2012)0000028019