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In weaker institutions, lack of corporate social responsibility (CSR) constituencies causes organizations to naturally incline toward corporate socially irresponsible actions. Grounded in the institutional theory, this paper aims to explore the nature of corporate social irresponsibility (CSIR) in the weaker institution and its effect on legitimacy and reputation. The presence of corporate ability moderates the impact of CSIR on legitimacy and reputation.

A list of manager’s contact information was generated from an online database. In total, 1,500 employees in 560 Pakistani organizations received the self-reported survey. In total, 203 managers working in 110 Pakistani organizations responded with the completed questionnaire that provided empirical support to the hypotheses.

Institutional drivers were positively significant to CSIR and negatively associated with the manager’s CSR attitudes. CSIR was negatively significant to legitimacy and reputation. Group differences between high and low corporate ability indicated that corporate ability played a vital role between CSIR and reputation.

These results have important implications for leaders, business-to-business and human resource (HR) managers in weaker institutions highlighting that organization’s supply chain partners consider adopting CSR practices. This can help the organization avoid undesirable and detrimental impact on its legitimacy and reputation, which are linked to irresponsible behaviors. HR managers should build CSR cognition in employees to bring effective change in the organization.

Lack of investigation into corporate ability and CSIR has raised questions about the organization’s efforts in the weaker institution that are sensitive to institutionalized corruption. This research adds to the literature by exploring how the organizations develop legitimacy and reputation while still acting irresponsibly in a weaker institution, presenting a paradox.

This research aims to examine the relationship between transactive memory systems and team sensemaking in the presence of critical boundary conditions, namely, task conflict and reward interdependence.

The data for Study 1 was collected from 304 team members who worked in 87 organizations in the Information, Communication and Technology sector of Pakistan. Study 2 is based on team-level data that was collected from 180 teams working in the New Product Development sector, with four to seven members in each team. The data tested the three-way interaction effect of the transactive memory systems, task conflict and reward interdependence on team sensemaking.

Results have shown that transactive memory systems have a positive relationship with team sensemaking, particularly when both task conflict and reward interdependence were perceived to be high.

To reap synergies, human resource managers should avoid disrupting team structures, assigning new members to a team or rotating team members very frequently. Moreover, if a team is experiencing high task conflict, reward interdependence may encourage conflict to remain constructive.

The current study is one of the first few attempts that examine the pivotal role of task conflict and reward interdependence as boundary conditions on transactive memory systems and team sensemaking. This research, therefore, highlights the role of transactive memory systems in enhancing team sensemaking at higher levels of task conflict and reward interdependence.