How does MNEs’ sustainable focus and NGO
participation influence conflict situations with
Indigenous Communities?
A Quantitative Analysis on the Dynamics of Conflict
Resolution
Master Thesis
Business Administration – Track International Management Name: Michelle Zwart
Student number: 10430377 Date: 29-01-2015
Thesis supervisor: dr. Ilir Haxhi Second reader: dr. Johan Lindeque
State of originality
This document is written by Michelle Zwart, I declare to take full responsibility for the content of this document. I declare that the text presented in this thesis is original and that no sources other than those mentioned in the text and its references have been used in creating it. The faculty of Economics and Business of the University of Amsterdam is responsible solely for the supervision of completion of the work, not for the content.
Abstract
The resource extraction industry has been characterized by numerous violent conflicts between MNEs and Indigenous communities, recognized for their idiosyncratic cultural and institutional context. The survival of these communities depends on their social and ecological environment, which is exploited by MNEs pursuing economic activities that may lead to conflicting interests. The dynamics of conflict resolution have not received enough attention yet, and in this study, we explore the dynamics of these conflicting situations. More particularly, we first investigate whether a MNE’s sustainable focus positively influences the process of conflict resolution, and second, we analyze to what extent NGO participation moderates this relationship. For a sample of 122 cases located in over 26 countries from Africa and Latin America, we analyze the effect of sustainable focus and NGO participation on conflict resolution, which is measured in conflict length and conflict severity. We argue that sustainable focus has a positive influence on conflict resolution, and that this relationship is positively moderated by NGO participation. Contrary to our predictions, the results show that sustainable focus does not influence the conflict resolution (i.e., the MNEs with a strong sustainable focus do not affect the length of the conflict or its degree of violence) nor does the NGO’s participation. Our contribution is twofold: First, while previous research has explored the dynamics of conflict resolution by examining isolated cases of conflict, we take a quantitative approach providing a more comprehensive picture of these relationships. Second, we investigate the unexplored moderating affect of NGO participation on sustainable focus. Finally, our findings provide valuable insights for managers in the field of international management by refining current knowledge on conflict resolution.
Table of content
1.
Introduction
... 6
2. Literature Review ... 12
2.1 Indigenous communities ... 122.2 Conflict situations between MNEs and Indigenous communities ... 14
2.3 Sustainable Focus ... 17
2.3.1 Environmental Focus ………..17
2.3.2. Social Sustainable Focus ... 19
2.4 NGO Participation ... 20
2.4.1. NGO characteristics ... 20
2.4.3 NGOs in developing countries ... 21
2.4.2 NGO power and pressure ... 23
3. Theoretical Framework ... 25
3.1 The mechanisms influencing conflict resolution ... 25
3.2 MNE’s sustainable focus and conflict length ... 27
3.3 MNE’s sustainable focus and conflict severity ... 29
3.4 NGO participation and conflict lenght ... 29
3.5 NGO participation and conflict severity ... 31
4. Data & Methods ... 34
4.1 Sample & Data collection ... 34
4.2 Dependent variables ... 35
4.3 Independent variable ... 36
4.4 Moderating variable ... 36
4.5 Control variables ... 37
4.6 Method of analysis ... 38
5. Results and Analysis ... 40
5.1 Descriptive Statistic Analyses and Correlation test ... 40
5.2 Regression Analyses ... 44
6. Discussion ... 52
6.1 Findings ... 52
7.2 Theoretical implications ... 55 7.3 Practical implications ... 56 7.4 Limitations ... 57 7.5 Future research ……….. 58
8. Conclusion ... 60
9. References ... 62
10. Appendix I ... 68
List of Figures & Tables
Figure 1: Conceptual model ………. 33
Table 1: Summary of regression analyses ………... 39
Table 2: Descriptive statistics and correlations ………... 43
Table 3: VIF ……….. 44
Table 4: Logistic regression analysis with conflict length ………... 49
Table 5: Linear regression analysis with conflict length ……… 50
Table 6: Linear regression analysis with conflict severity ……… 51
Table 7: List of represented countries ……….. 68
1. Introduction
‘’The Guatemalan government is fuelling the fires of conflict by failing to consult local communities before awarding mining licenses to companies, effectively raising the risk of bloodshed and bulldozing over the rights of its people. Communities are worried about the impact that mining might have on their human rights and have consistently complained that they are not adequately consulted when such projects are proposed’’ (Amnesty International, 2014).
Globalization has created new opportunities for MNEs, expanding to foreign countries abundant in natural resources and low wage practices. When operating abroad, MNEs face the resistance of local communities living on those grounds (Lertzman & Vredenburg, 2005). Especially, the resource extraction industry is characterized by violent conflict between MNEs and Indigenous communities. In most of these cases corporations are criticized for acting in a socially and environmentally irresponsible manner (Calvano, 2008). By extracting resources from the ground they can harm both the ecological as well as the social environment. Indigenous communities are characterized by their dependence on this environment and more particular on their local ecology, history, cultural- and social identity (Lertzman & Vredenburg, 2005; Calvano, 2008; Weaver, 2001; Whiteman & Mamem, 2002). The differences in culture and customs between MNEs as well as Indigenous communities can create miscommunication and conflict. For the MNEs and Indigenous communities it is crucial to discover factors that can enhance conflict resolution, as both sides undergo severe negative effects from these conflict situations.
These conflicts have been on the research agenda for a while, but still little research is done on the dynamics of this business and community relationship (Calvano, 2008). Studies that focus on conflict situations focus mostly on the
dynamics of conflict resolution from a qualitative research design with a single-case perspective (Calvano, 2008; Kolk & Lenfant, 2010; Jamhali & Mirshak, 2009). These studies do give valuable insights on particular cases, but they have failed to enlighten relationships that are transferable across context and settings. This is also the case for studies that attempt to examine the influence of sustainability on conflict resolution (Imbun, 2007; Lertzman & Vredenburg, 2005; Calvano, 2008). This leaves an important gap in the literature. This study attempts to fulfill this gap by studying the influence of sustainable focus on conflict resolution from a quantitative perspective. Thereby, this study sheds light on an important possible relationship, which can be transferred across different geographical settings.
Sustainable focus has been a hot topic over the past decade because of the growing concerns about environmental problems and socio-economic issues. Sustainable development is commonly understood as the development that meets the needs of the present, without compromising the ability of future generations to meet their own needs (Lertzman & Vredenburg, 2005). Sustainable focus can be build out of the three dimensions: environmental, social and economic focus (Lehntonen, 2004). This study will focus primarily on the environmental and social part of sustainability as the resource extraction industries is most harmful in these two dimensions (Kolk & Tulder, 2010).
The environmental dimension of sustainability concerns the integration of environmental issues in a company’s decision making (DesJardins, 1998). According to Goodland (1995) environmental sustainability improves human welfare by protecting the sources of raw materials used for human needs. The wellbeing of humans is closely linked to environmental ecosystems(Bedrich, Janousková & Hák, 2011). A MNE’s business can harm these local ecosystems on which Indigenous
communities depend and this can cause conflict situations. If a MNE has a strong sustainable focus it will make an effort to protect the ecological environment on which the communities depend. The other dimension of sustainability is social focus (Lehntonen, 2004). Black (2004) defines social sustainability as the extent to which social values, social identities, social relationships and social institutions can continue in the future. Lertzman (1999) states that an MNE with a sustainable focus is able to create a sense of trust and maintain the relations and organizational resources necessary for a healthy society. It is argued that when MNEs have a strong sustainable focus, they invest more in their relationships with Indigenous communities. On top of that, they respect their local institutions and create a strong sense of trust. This can have a positive influence on the conflict resolution between both MNEs and Indigenous communities. Thus, by extending previous research, in this current study we explore from a neutral perspective the extent to which the MNE’s sustainable focus affects the conflict resolution between MNEs and Indigenous communities. Considering the relevance of sustainability in the MNE’s business development and activities, we address our first research question:
RQ1: To what extent does the MNE’s sustainable focus affect the conflict resolution between an Indigenous community and a MNE?
MNEs are not the only ones expanding on a global scale; NGOs are also globalizing and especially collaborating with civil society groups in developing countries. As a result, corporations are facing increased surveillance and criticism of their international activities, as well as increased pressure to operate in a socially responsible manner (Kapelus, 2002). Even though it is not uncommon for NGOs to mediate in conflict situations, their role in conflict resolution has not received much attention yet. Some studies investigate the role of NGOs in isolated cases, but its
general influence on conflict resolution has not been studied before (Linton, 2005; Khor, 2011; Jenkins & Yakovleva, 2006; Murphy & Arenas, 2011). Moreover, no other studies examine the moderating role of NGO participation on sustainable focus. In the conflict resolution literature, both NGO participation as well as sustainable focus only received attention as separate constructs.
Most NGOs have experience in peace-building situations and have knowledge about local cultures, institutions and customs (Dahan et. al., 2010; Peterson, 1992). This makes them valuable in conflict settings between MNEs and Indigenous communities. NGOs can share this knowledge about the communities and peace building, to help the MNE act in a more social and environmental sustainable manner and positively moderate the process of conflict resolution. Furthermore, over the years NGOs have gained a strong position because of their high level of expertise and their trusted position (Brown and Kaleagaonkar, 2002). They are very much favored by the main public. This enhances their position and negotiating power towards MNEs. NGOs can use this power to pressure MNEs to perform and operate according to a more sustainable strategy (Khor, 2011; van Teegen, 2004; Conroy, 2001), and thereby positively moderate the relationship between sustainability and conflict resolution. Thus, this study will address the unexplored moderating effect of NGO participation on the relationship between sustainability and conflict resolution. Considering the relevance and increasing role of NGOs in today’s business environment, we address our second research question:
RQ2: To what extent does NGO participation moderate the relationship between the MNE’s sustainable focus and conflict resolution?
As conflict between multinational corporations and local communities escalates, scholars, executives, activists and community leaders are calling for
companies to become more accountable for the impact of their activities on external stakeholders (Calvano, 2008). Especially corporations in socially and environmentally sensitive regions are vulnerable to these critics and are dealing with opposition from both Indigenous communities as from NGOs. Moreover, there is a growing public expectation for improved ethical performance in the resource extraction industries. Therefor, conflict resolution is very important for both the MNE as the Indigenous community. Both sides undergo negative effects from these conflict situations. From the MNE’s point of view, conflicts have both financial and reputational consequences (Calvano, 2008). As for the Indigenous communities these conflicts can lead to serious injuries and sometimes even death of community people. It is crucial to find a solution for these conflicts both from a managerial as well as from an ethical perspective. If sustainable focus and NGO participation have a positive influence on the conflict resolution process, both parties will profit from this and conflicts will be shorter and less violent.
To answer our research questions, for a sample of 122 cases located in over 26 countries from Africa and Latin America, we analyze the effect of sustainable focus and NGO participation on conflict resolution, which is measured in the length of conflict and its severity. We argue that sustainable focus will have a positive influence on conflict resolution and that this relation is also positively moderated by NGO participation.
This study contributes to the existing literature in three ways. First, even though previous studies tried to explore the dynamics of conflict resolution by examining isolated cases of conflict, they do not show relationships that are transferable across different geographical settings. This study fills this gap by using a quantitative setting which allows a more comprehensive understanding of the
relationships that influence conflict resolution. Second, to our knowledge, no other previous study has investigated the moderating affect of NGO participation on sustainable focus. Several studies have investigated the influence of both variables separately on conflict resolution, but the relationship between sustainable focus, NGO participation and conflict resolution has never been studied. Finally, from a practical point of view the results of this study can help managers get a better understanding of the factors influencing conflict situations. Having a better understanding will help ensure that conflicts can be resolved quicker and be prevented in the future.
To answer our research questions, this thesis starts with a literature review on Indigenous communities, conflict situations, sustainable development and NGO participation. Then, we develop a theoretical framework, hypotheses and conceptual model. Furthermore, we discuss the research design with a brief overview of the dependent, independent and control variables as well as the sample and method of analysis. For a sample of 122 cases located in over 26 countries from Africa and Latin America, we analyze the effect of sustainable focus and NGO participation on conflict resolution, which is measured in the length of conflict and its severity.
2. Literature Review
‘Decision-making is not made by those who are affected by those decisions, people who live on the land, but corporations, with an interest which is entirely different than that of the land, and the people, or the woman of the land. This brings forth a fundamental question. What gives these corporations like Conoco, Shell, Exxon, Diashawa, ITT, Rio Tinto Zinc and the World Bank a right with supersedes or is superior to my human rights to live on my land, or that of my family, my community, my nation, our nation and to us as women? They should not have such right, that right of self determination and to determine our destiny, and that of our future generations.’ – Winoma LaDuke, member of the Mississipi Band of Anishinaabeg, Minnesoate, US (LaDuke, 1995).
2.1 Indigenous communities
There is no common definition of Indigenous communities. What can be said however is that Indigenous communities are generally characterized by their traditional lifestyles, customs and laws. They have a distinct culture from the national population and their own social organization (Calvano, 2008). Calvano (2008) points out that Indigenous communities include dimensions of geography, social interaction and identity. From a MNE’s perspective Indigenous communities are viewed as important stakeholders. Especially in the resource extraction industry, MNEs often deal with Indigenous communities (Lertzman & Vredenburg, 2005).
Identity is one of the central concerns to Indigenous people (Whiteman and Mamen, 2002). An Indigenous community shares a common identity and common obligations. Indigenous communities see themselves as the landowners of the grounds MNEs work on. Indigenous communities’ construction of identity is linked to three aspects: self-identification, community-identification and external-identification (Weaver, 2001). Self-identification and community-identification are strongly linked to place, territory, traditional homelands and a shared history. These are strong criteria for belonging to a specific community. When the community is threatened, group identification becomes the most important. Lertzman and Vredenburg (2005) show that ethical relationships between firms and Indigenous people rely upon strong social
institutions and those social institutions and local identity processes are dynamic and interrelated. The identity of Indigenous communities is a powerful resource against external threats. By using their cultural identity they gain global awareness and support for their issues (Bruijn & Whiteman, 2010).
Moreover, Indigenous communities rely heavily on their traditional lands and the resources they contain, not only for their economic survival, but also for their social- and cultural identity and wellbeing. Damage to their cultural environment is an important dimension of conflict (Lewicki et. al, 2003). A study by Bruijn & Whiteman (2010) confirms that Indigenous communities suffer serious cultural damage from negative impacts on their local ecology through societal changes related to oil and gas development. Indigenous communities are not only very dependent on their environment; it is also a part of their culture and very often a part of their heritage. This makes Indigenous communities very often reluctant to changes in their environment or on their lands as this can have a big influence on their cultural and social stability. Bruijn & Whiteman (2010) investigated the Machiguenga communities in Peru and point out that gas extraction by MNEs in their areas forms a serious threat to the Machiguenga’s identity. Hereby they confirm again that these Indigenous communities do indeed suffer cultural damage from harm to their local ecology.
Significant is the emergence of the increased activism by Indigenous communities. Large numbers of Indigenous people are entering in conflict with mining companies (Fabig & Boele, 1999). Indigenous communities are challenging MNEs on a wide range of issues including profit-flows, headquarters’ decision making procedures, representation of the company board, right to extract minerals, reporting procedures and long-term strategies (Kapelus, 2002). Moreover, these
Indigenous communities benefit from the globalization of NGOs. This ensures them more worldwide attention for their issues and helps them gain more power in the discussion with MNEs (Kapelus, 2002).
2.2 Conflict situations between MNEs and Indigenous communities
Conflict situations between local communities and MNEs have received attention from very different fields of interests. Activists, community leaders, scholars and organizations point out that MNEs should become more accountable for the influence they have on external stakeholders (Calvano, 2008). They argue that Indigenous communities often bear the negative social and environmental costs of the extractive industry and they obtain little from the wealth that is generated (O’Faircheallaigh, 2013). Nowadays a growing national and international recognition of community rights, changes in corporate policy and greater Indigenous political capacity are changing the legal and political context for extractive industries (O’Faircheallaigh, 2013). It is important to understand the dynamics and causes of these conflicts to prevent them from happening in the future and minimize their negative influence.
When the interest of a MNE and an Indigenous community in a particular geographic area collide, conflict can occur (Calvano, 2008). Violent conflict is defined as ‘organized physical force resulting from grievances between two or more parties and leading to injury or death to persons or damage or destruction to property’ (Oetzel et al., 2007, p. 331). This conflict is a dynamic process that unfolds over time. Conflicts can be both different in their duration as well as in their degree of violence. Conflicts that take over a longer period of time generally have a higher degree of violence (Pondy, 1967). The resource extraction industry operates in social, environmental and cultural environments. They are directly involved with natural
systems, causing strong environmental impacts. Industrial development caused by MNEs affect the lands that Indigenous communities live and depend on (Lertzman & Vredenburg, 2005). The cultural beliefs, values and use of local ecosystems by Indigenous communities are often very different than those of MNEs in the resource extraction industry (Lertzman & Vredenburg, 2005). These conflicting interests, values and cross-cultural differences often result in conflict situations. In these conflict situations Indigenous communities are very often in a disadvantage compared to the MNE, because the MNE has a dominant ideology and the ability to mobilize resource to communicate their own perspective (Hart & Sharma, 2004).
The mining industry is one of the biggest resource extraction industries and this industry often deals with Indigenous communities. Indigenous communities frequently live in poverty next to the mining complexes that create a lot of wealth (O’Faircheallaigh, 2013). This unequal distribution creates friction between both parties. This friction is worsened because the mining companies have a great deal of negative impact on their lands and resources. Lertzman & Vredenburg (2005) argue that it is unethical to undermine the natural and social resources on which Indigenous communities depend. Or it other words, it is unethical to engage with Indigenous communities in a way that is contrary to their wishes, culture and needs for survival. Therefore, they argue that companies should take a sustainable development approach and take into account the biophysical, organizational and cultural systems of the Indigenous communities of the territories in which they operate to avoid conflict situations.
As pointed out by Crawley & Sinclair (2003) discussion regarding conflicts between Indigenous communities and MNEs almost always happen from the context of corporate/public affairs and stakeholder management. Furthermore, evidence
indicates that the global industrial expansion and consumption of Western countries is often unsustainable. Systems on which local communities depend are often not taken into account. Therefore, they propose a model of enduring ethical engagement. This model is based on two way learning, adaption, long-term sustainable relationships and the recognition of the Indigenous communities’ special relationship to their lands. The model of enduring ethical engagement is the basis for peace between these MNEs and Indigenous communities. However, this model of enduring engagement is not easy to accomplish. In the study of Crawley and Sinclair (2003) none of the Australian companies in the sample have reached the proposed mature stage. This also points out how difficult it is to overcome these cultural differences and to create a situation of enduring peace.
Several studies investigate the dynamics of conflict resolution from a CSR perspective (Kolk & Lenfant, 2010; Jamhali & Mirshak, 2009, Calvano, 2008). These studies all highlight the positive influence of CSR on conflict resolution. According to Calvano (2008) conflict is being influenced by three factors: stakeholder power, stakeholder perception gaps and cultural context. The first is based on the difference in power between MNEs and communities. The second is based on the differences in perception gaps; MNEs view communities as unthankful, while communities view MNEs as imposing their will. The third is based on cultural differences. According to Calvano (2008) MNEs should engage in a CSR strategy that acknowledges these differences to avoid conflict situations.
2.3 Sustainable Focus
Sustainable development is commonly understood as the development that meets the needs of the present, without compromising the ability of future generations to meet their own needs (Lertzman & Vredenburg, 2005). The concept of sustainable development emerged after an increasing concern for environmental problems that were caused by human actions. The stakeholders of sustainable development include all the earth’s inhabitants, human and non-human. Sustainable development provides these stakeholders with the greatest good or in the opposite the least harm (Lertzman & Vredenburg, 2005). Nowadays, attention for sustainable development is the result of the growing awareness for environmental problems, socio-economic issues that deal with poverty and inequality and concerns about a healthy future for humanity. Therefore, sustainable focus strongly links environmental and socio-economic issues (Hopwood, Mellor & O’Brien, 2005). Robinson (2004) argues that sustainable development needs integration across different fields; MNEs, governments and NGOs need to work together to truly make a difference.
Sustainable development is based on three pillars: environmental, social and economic (Montiel, 2009). The first two will be discussed in the following chapters, as firms in the resource extractions industry have the strongest influence on the social- and ecological environment of Indigenous communities (Letzman & Vredenburg, 2005). The economic dimension of sustainable focus will not be addressed in this study.
2.3.1. Environmental Sustainable Focus
One of the dimensions of sustainable development is environmental focus (Lehntonen, 2004). The environmental dimension concerns the integration of environmental issues in a company’s decision making (DesJardins, 1998). DesJardins
(1998) argues that businesses have more responsibility and as a result need to make sure that their activities are ecologically sustainable. According to Goodland (1995) environmental sustainability improves human welfare by protecting the sources of raw materials used for human needs. The wellbeing of humans is closely linked to environmental ecosystems, because they depend on them (Bedrich, Janousková & Hák, 2011). Maintaining these ecosystems is very important and crucial for a sustainable future.
Environmental sustainability and natural capital are closely linked. Natural capital is divided in two types of capital: it can take the form of natural resources (these can be renewable or non-renewable) and it can take the form of ecosystems services, for example: climate stabilization, reproduction of plants and animals. It is important to closely link the natural resources and the ecosystem services. If an industry consumes more energy and materials than it produces, the environment will become unsustainable (Dyllick & Hockerts, 2002). This will have major effect on the whole environmental system and on the humans and animals depending on this system.
In 2001 the OECD made a valuable contribution to the concept of environmental sustainable strategy. They propose an environmental strategy focusing on five key principles: maintaining integrity of ecosystems, enhancing quality of life, measuring progress, de-coupling environmental pressures from economic growth and improving governance and co-operations. These five key principles should be the focus of a MNE’s environmental sustainable strategy (Bedrich, Janousková & Hák, 2011). Most MNEs are directly involved with natural ecosystems. Their business can cause direct environmental impact. Industrial development has impact on the lands and lives of local communities. The way Indigenous people live and depend on these
local ecosystems is often contrary with the business of MNEs. This often results into conflict situations (Lertzman & Vredenburg, 2005). Evidence suggests that currently industrial expansion is unsustainable and hereby undermining the systems on which local communities depend (Lertzman & Vredenburg, 2005).
2.3.2. Social Sustainable Focus
In the past decade the social dimension of sustainable development has received more attention. According to Coleman (1990) the social dimension of sustainable development is linked to social capital. Social capital is described as the organizational resources of relations, trust and institutions on which communities are based (Lertzman, 1999). Social sustainability should be able to maintain and build social capital (Lertzman & Vredenburg, 2005). Based on this statement sustainable development must be able to maintain and create the trust, the relations and organizational resources necessary for a healthy society (Lertzman, 1999).
Social sustainability is also based on cultural capital (Berkes & Folk, 1994). Cultural capital refers to the resources of shared knowledge, beliefs and values upon which communities are based (Lertzman, 1999). For a MNE to be social sustainable it is important to acknowledge these beliefs and values. As Lertzman and Vredenburg (2005) state sustainable development is a cross-cultural proposition. Every culture has different values and meanings and it is unethical to affect the land and lives of Indigenous communities in way that inconsistent with their culture, wishes and needs. This may also result in situations of conflict between both Indigenous communities and MNEs.
Crawley and Sinclair (2003) propose that is important to have a social sustainable model of enduring engagement between the MNE and the Indigenous community. This model is based on two way learning, power sharing and respecting
both cultures. They have developed this model by studying mining companies in conflict with Australian Aboriginals. This model leads to a sustainable, ethical and good relationship and can be used to avoid situations of conflict.
2.4 NGO Participation 2.4.1. NGO characteristics
The NPO Act 71 of 1997 defines NGOs as non-governmental organizations (van Eeden, 2007). NGOs are driven by a social purpose. Teegen, Doh and Vachania (2004, p. 466) describe this social purpose of NGOs as ‘the aim to serve a societal interest by focusing on social, political and environmental goals including equity, education, health, environmental protection and human rights’. Thus, in general NGOs are very often concerned with improving the conditions of the environment and institutional development. They do this without having a profit motive in mind (Teegen, 2005). NGOs focus mostly on social and environmental problems such as improving healthcare, countering environmental degradation and hunger issues (Dahan et. al., 2010). Having this is in common; NGOs vary widely on other standard characteristics like size, duration, range and scope of activities, ideology, cultural background, organizational culture and legal status (Pricen & Finger, 1994). They can have memberships ranging from local to global (Fisher, 1997). Some small NGOs tend to focus locally on addressing environmental activities with only a handful of staff members, while others operate internationally and address a wide range of activities across the globe with a far bigger budget, range and influence.
Over the previous years there has been a growing interest in NGOs. This can be partly explained by their rapid growth in number and influence (Bendell, 2000; Pricen & Finger, 1994). They have established themselves as important stakeholders in world-class affairs. Over the years their focus shifted from international
governance to business (Doh & Teegen, 2003). This has made them a very important and interesting actor in the international field of business. Both newer and more established NGOs show a strong propensity to collaborate with organizations and local communities in the developing world (Kapelus, 2002). Over the recent years, NGOs have established a greater interest in issues regarding the resource extraction industry (Kapelus, 2002).
In the following part the influence of NGOs will be discussed by first looking at the NGO’s knowledge and experience, and second by looking at the ability of NGOs to exert pressure and influence the public opinion.
2.4.3 NGOs in developing countries
NGOs are especially active in developing countries. As a result, they have a lot of experience in working with Indigenous communities. This experience provides them with the necessary knowledge about the local market, the local communities and the local government (Dahan et. al., 2010). There is an increasing willingness of MNEs to collaborate with NGOs (Vachani, Doh & Teegen, 2004). NGOs are better aware of the populations’ economic and social needs. Moreover, they are in touch with social trends, and thus able to identify potential local markets and products. These insights help the firm better adapt to the local market context (Dahan et. al., 2010). Oetzel & Doh (2009) show that with the interaction of NGOs, MNEs can overcome the concept of liability of foreignness. As most NGOs have longstanding relationships with the communities of the countries in which they operate, they can serve as a mediator in situations of miscommunication and conflict. NGOs tend to endure a higher level of trust from these communities than MNEs. This makes their participation very valuable (Oetzel & Doh, 2009). Moreover, NGOs can help MNEs build effective relations with these local communities (Nwankwo, Philips & Tracey,
2007; Dahan et. al., 2010). Their experience in peace-building activities can play a vital role in this (World Bank, 2006).
Linton (2005) investigates the coffee industry, which has been in crisis for more than 20 years. As with many other resource extraction industries, the coffee industry is characterized by poor circumstances; many farmers live in poverty, which decreases their families’ health and education prospects. NGOs work in this industry to create a more sustainable environment. They influence the MNEs operating in the area twofold: by learning them more about the culture, social and environmental problems of the farmers, but also by offering them the chance of cause-related marketing by linking the MNEs to this relevant social issue. The MNEs can use this to improve their social and environmental responsibility and to create a more sustainable brand picture. The NGOs create a more sustainable environment with benefits for both the MNE as well as the local famers.
A case study done on mining activities in Peru by BHP Billiton also shows positive effects of NGO participation on conflict settings. Oxfam Novib facilitated the discussion between BHP Billiton and the harmed Indigenous communities in the mining area. After a period of negotiation, BHP Billiton and the communities signed an agreement, which ended the conflict. In this case Oxfam Novib acted as an independent third party in facilitating the discussion (Murphy & Arenas, 2011). These are just two of the many examples in which NGOs use their local knowledge and strong position to create a more sustainable social and environmental environment (Kolk & Lenfant, 2012; Kolk & Lenfant, 2013; Millar, Choi & Chen, 2004).
Another stream of research focuses on partnerships between NGOs and MNEs. In this case NGOs are not only involved in the conflict, but they deliberately partner-up with MNEs to make a difference. There are several examples of successful
partnerships between NGOs and MNEs. Kolk & Lenfant (Forthcoming) focus on the partnership between MNEs and NGOs in conflict situations in Africa. They show that learning and institution building characterize these partnerships. These partnerships prove to be very useful for MNEs and are highly relevant in conflict situations (Kolk & Lenfant, Forthcoming). In this example, MNEs were able to achieve necessary knowledge from the NGOs about the local culture, institutions and issues. A case study done by Murphy & Arenas (2011) shows another good example of successful partnerships in conflict situations. They investigated the alliance between Goldcorp, a mining company and Citizen’s Development Corps (CDC), a NGO. These two parties founded a Guatemalan NGO, Fundacion Sierra Madre (FSM). Together with FSM, Goldcorp held multiple consultations with local communities to address the problems in the area and looked for an agreement that suited both parties. Several other studies also highlight the value of partnerships between NGOs and MNEs in conflict resolution (Millar, Choi & Chen, 2004; Kolk & Lenfant, 2012).
2.4.2 NGO power and pressure
NGOs work to influence key-decision makers to serve otherwise dormant actors and they attempt to transform the dominant actors’ relationships with each other and with the dormant actors (Doh, Teegen & Vachani, 2004). NGOs’ advocacy strategies can be distinguished as ‘insider’ strategies aimed at influencing decision makers directly and ‘outsiders’ strategies intended to mobilize public opinion (Peterson, 1992). According to Kapelus (2002) the major factor of the increase in emphasis on sustainability is the fact that NGOs have increased their organizational capacity. This allows them to exert much greater pressure on corporations, both directly through actions against their production facilities and campaigns directed at shareholders and consumers as well as indirectly through the political system.
Jenkins and Yakovleva (2006) discuss the issues regarding social and environmental disclosure in the mining industry. They show that engagement with Indigenous groups has become a reputational imperative for mining companies. This is the result of the increased organizational capacity and co-operation of NGOs. There are various examples of NGOs pressuring MNEs to become more accountable and sustainable. On of these examples is the case of MacMillan Bloeder, a Vancouver-based timber and paper company. Greenpeace and other less familiar environmental NGOs pressured the timber company for its unethical and unsustainable production process, in particular for its clear-cutting forest practices in Clayoquoat Sound on Vancouver Island. After the NGO pressure became to high MacMillan announced that it would change its production process from clear-cutting to selective cutting, which is more sustainable. There were two major reasons why MacMillan changed its strategy: First, as mentioned above local environmental groups pressured the Timber Company, and second, it became a target of Greenpeace worldwide marketing campaign (Conroy, 2001).
Khor (2011) investigates the influence of NGOs on the palm-oil industry in Indonesia and Malaysia and shows the same effect. More particular, he shows that several MNEs operating in that geographical area adjusted their operations after being the victim of boycotts resulting out of NGO pressures. Again this example shows the effective power of NGOs. MNEs have a lot to loose when having a powerful NGO working against them. The words of the NGOs tend to be favored by the public over the words of the MNE. NGOs have gained this strong position because of their high level of expertise and trusted positions (Brown and Kaleagaonkar, 2002). The main public knows them as being very valid and viable entities. This enhances their strong position and negotiating power. According to Teegen (2003) the lack of a ‘profit
motive’ is also a reason why NGOs profit from a strong legitimacy in the eyes of the global public.
Even if the MNE has a sustainable brand image the opinion of NGOs can still threaten or enhance this. Robinson (2004) shows that supportive cooperation between MNEs and NGOs leads to a higher credibility of the MNE’s sustainable intention and to a more positive effect of sustainable strategy on competitive advantage. This credibility is very important for the MNE and its overall brand image. If a NGO talks negative about a MNE and its sustainable efforts, it can easily damage the corporation. From this it can be argued that it is in the MNE’s best interest to make sure the NGO is working with the brand instead of against the brand.
3. Theoretical Framework
3.1 The mechanisms influencing conflict resolution
The resource extraction industry has been characterized by numerous violent conflicts concerning Indigenous communities, MNEs and the struggles for resources, rights and land. Although these conflicts have been on the research agenda for a while, not enough attention has been paid to the actual dynamics of these conflicts (Calvano, 2008). Several studies attempt to investigate the factors influencing conflict resolution. Lertzman & Vredenburg (2005) examine the Scientific Panel for Sustainable Forest Practices in Clayoquot Sound. This area was characterized by one of the biggest environmental conflicts, which eventually brought a stop to the industry. In their study they suggest that sustainable development can help MNEs have better and more ethical relationships with Indigenous communities to prevent situations of conflict. Moreover, Linton (2005) addresses the influence of NGO participation in the coffee-industry and shows how the help of NGOs can prevent
situations of conflict. Although these studies are very helpful in creating a broader sense of the characteristics influencing conflict resolution, they ignore establishing relationships that are transferable across different geographical settings. Therefore, a quantitative design is suitable to help enlighten these relationships and to give a broader idea about the dynamics of conflict resolution. Moreover, this study addresses the moderating influence of NGO participation on the relationship between sustainable focus and conflict resolution. Several studies have examined the influence of the constructs sustainable focus and NGO participation on conflict resolution separately, but no study has ever examined their relationship together with conflict resolution. Overall, this study helps to create a more comprehensive picture of the relationships influencing conflict resolution.
This study argues that there are two factors influencing the process of conflict resolution: sustainable focus and NGO participation. Conflict resolution is measured in both length as well as severity of conflict, because conflicts can differ in there duration as well as in their degree of violence (Oetzel et. al., 2007). The resource extraction industry is seen as one of the most damaging industries to both the social as well as the ecological environment and Indigenous communities are characterized by their strong dependence on this environment and more particular on their local ecology, history, cultural- and social identity (Lertzman & Vredenburg, 2005; Calvano, 2008; Weaver, 2001; Whiteman & Mamem, 2002). As shown by several studies, harming this environment can cause situations of conflict (Bruijn & Whiteman, 2010; O’Faircheallaigh, 2013; Crawley & Sinclair, 2003; Calvano, 2008). Therefore, it is reasonable to think that sustainable development plays a key role in this industry and its conflicts. A MNE with a strong environmental and social sustainable focus will try to protect and maintain the ecological and social
environment the communities depend on and therefore communities will be less triggered to start and maintain a conflict (Bedrich, Janousková & Hák, 2011, Lehntonen, 2004, Lertzman, 1999). Thus, we argue that sustainable focus will positively influence the process of conflict resolution.
During the years NGOs have started to play a vital role in world politics, this can be partly explained by their rapid growth in number and influence (Bendell, 2000; Princen & Finger, 1994). NGOs have experience in both peace-building activities and in working with Indigenous communities. Furthermore, NGOs are able to influence the public opinion and influence MNEs’ strategies (Dahan et. al., 2010; Peterson, 1992). This makes NGOs very suitable in the process of conflict resolution. NGOs can share their knowledge with MNEs, which can help them become more sustainable and create a relationship build on trust with Indigenous communities. This will have a positive influence on the process of conflict resolution. Otherwise, NGOs can also force MNEs in a sustainable strategy and thereby influence the process of conflict resolution. In other words, NGO participation can positively moderate the influence of sustainable focus on conflict resolution. Both mechanisms and their influence on conflict resolution will be discussed in further detail below.
3.2 MNE’s sustainable focus and conflict length
A strong sustainable strategy considers both the social as well as the environmental part of sustainability. Bedrich, Janousková & Hák (2011) show the importance of local ecosystems for Indigenous communities. Indigenous communities strongly depend on the sources of raw material that these ecosystems provide, but business often disturbs these ecosystems by using more raw materials than is produced, which will in return lead to unsustainable ecosystems. The importance of these local ecosystems is also shown by Bruijn & Whiteman (2010) who investigate
the Machiguenga community in Peru. They point out that gas extraction by MNEs in their areas can be a serious threat to the Machiguenga’s identity. Moreover, research by Calvano (2008) shows that local communities consider MNEs as imposing their own will and not considering local institutions. Her study emphasizes that a cultural clash between MNEs and local communities is one of the reasons a lot of conflicts start and build on. MNEs with a strong sustainable focus acknowledge these cultural differences and try to reconcile with the local community instead of imposing the MNEs’ will.
When a MNE has a strong sustainable focus, its strategy will focus on maintaining and improving the ecological and social environment of the Indigenous communities. These MNEs will try to keep the ecosystems of the grounds on which they operate sustainable by carefully using the sources of raw materials and support ecosystems services like reproduction of plants and animals. The business of the MNE will be less harmful for the local communities depending on them and the communities will be less motivated to keep the conflict going. This will have a positive influence on conflict length. Moreover, MNEs with a strong sustainable focus will also consider local institutions and the local culture. The MNE will acknowledge the differences in values and beliefs and not try to impose its own culture. This will have a positive effect on the clash between both parties because the communities will feel more understood and appreciated. Again, this will give the communities fewer reasons to keep the conflict going, which will positively influence the conflict length. The positive influence that sustainable focus can have on conflict resolution is shown in the study of O’Faircheallaigh (2013). He emphasizes the negative impact that the resource extraction companies have on the lands and resources of local Aboriginal communities in Australia. According to his study the negative effects on
the social and ecological environment are of great influence on the friction between both parties. He argues that a sustainable strategy can have a positive influence on this friction. Based on these findings, we can therefore predict that:
H1: A strong sustainable focus has a positive influence on conflict length (the conflict will be shorter).
3.3 MNE’s sustainable focus and conflict severity
The same reasoning is used for conflict severity as for conflict length. Several studies show the importance of the ecological and social environment to Indigenous communities (Bedrich, Janousková & Hák, 2011; Bruijn & Whiteman, 2010 & O’Faircheallaigh, 2013). If a MNE has a strong environmental and social sustainable focus, it will try to prevent harming the ecological environment and respect the social environment of the Indigenous communities. When the ecological environment of the communities is maintained and harm is prevented, the communities will be less triggered to act in a highly violent manner. This will positively influence the severity of the conflict. Based on research by Calvano (2008) we argue that the Indigenous communities will feel more appreciated and understood, as MNEs with a strong sustainable focus will make an effort for this. Resulting in fewer motives for the communities to act in a highly violent manner against the MNE and positively influence the conflict severity. Based on these findings, we can predict that:
H2: A strong sustainable focus has a positive influence on conflict severity (the conflict will be less violent).
3.4 NGO participation and conflict lenght
NGOs have a lot of experience in working in developing countries and this provides NGOs with knowledge about the Indigenous culture, institutions, customs and other characteristics (Dahan et. al., 2010). MNEs most often lack this knowledge
and do not act according to it. This creates tension and sometimes conflict. Most NGOs have longstanding relationships with local communities (Oetzel & Doh, 2009), are more trusted by these communities and they have been active in peace-building activities before (WorldBank, 2006; Murphy & Arenas, 2011). When participating in the conflict setting, NGOs can share these valuable resources with the MNE. Linton (2005) shows how NGOs participated in conflicts in the Coffee-industry and by sharing their local knowledge they helped MNEs act in a more sustainable manner. This helped reduce the conflicts between communities and MNEs in this industry. Apart from the NGO’s valuable local knowledge, they also serve a different purpose. In the literature there are various examples of case studies in which NGOs use their power to pressure MNEs in a more sustainable strategy. NGOs are very much favored by the main public and this has enhanced their position and negotiating power towards MNEs (Brown and Kaleagaonkar, 2002). Khor (2011) shows how NGOs influence the palm-oil industry in Indonesia and Malaysia. Firms operating in this area adjusted their strategy after being the victim of boycotts resulting out of NGO pressures and the threat of losing credibility. The same effect is shown in a study by Conroy (2001). In his case study MacMillan changed its strategy after being pressured and victimized by Greenpeace for not operating in a sustainable manner. Thus, it can be concluded that NGOs are very effective in pressuring MNEs to become more sustainable and act in a more environment and social responsible way.
Therefore, we argue that NGO participation will positively moderate the relationship between a MNE’s sustainable focus and conflict resolution. When a NGO is participating in the conflict, the MNE can use its local knowledge to learn more about the Indigenous communities and their ecological and social environment. With this knowledge the MNE can act in a more sustainable matter and this will give the
Indigenous communities less of a reason to endure the conflict. Moreover, NGOs can use their trusted position and peace-building knowledge to facilitate the discussion between both parties and help create an agreement. Last, NGOs can also use their power to pressure the MNE in a more sustainable manner. Again, this will have a positive influence on conflict length, as a more sustainable strategy will keep the communities less motivation to keep the conflict going.
The case study done by Murphy and Arenas (2011) illustrates a good example of the positive influence of NGO participation on conflict resolution. In their case study Oxfam Novib facilitated the discussion between BHP Billiton and an Indigenous community. With the help of Oxfam Novib an agreement was signed by both parties, in which BHP agreed to act in a more sustainable manner. In this case Oxfam Novib did not only convince BHP to change their strategy to a more sustainable one, they also helped resolve the situation of conflict. Based on these findings, we predict that:
H3: NGO participation will positively moderate the influence of sustainable focus on conflict length (the conflict will be shorter).
3.5 NGO participation and conflict severity
Again, the same reasoning and previous studies can be used for conflict severity as for conflict length. In line with the findings of Khor (2011) and Conroy (2001) we argue that NGOs can pressure MNEs to a more sustainable strategy. This makes the MNE less of threat to the Indigenous communities. When the MNE’s business is less harmful to both the ecological as well as social environment of the Indigenous communities, the Indigenous communities will be less motivated to use high violence against the MNE. Thus, NGO participation can have a positive moderating influence on the relationship between sustainable focus and conflict
severity. Moreover, in line with the study of Linton (2005) MNEs can profit from the knowledge and peace-building experience of the NGO participating in the conflict. This can help MNEs to better understand the importance of the ecological and social environment to the Indigenous communities and act according to this in a more sustainable manner. Again, NGO participation can help improve the sustainable focus of the MNE, which will result in less harm for the communities and less reason to use high violence against the MNE. Concluding, we argue that NGO participation positively moderates the relationship between sustainable focus and conflict severity. Based on these findings, we can predict that:
H4: NGO participation will positively moderate the influence of sustainable focus on conflict severity (the conflict will be less violent).
3.6 Conceptual model
Figure 1.1 shows the conceptual model containing the relationships between the independent, dependent and moderating variables. It is proposed that sustainable focus has a positive influence on conflict length and conflict severity. Both relationships are positively moderated by NGO participation.
Figure 1.1: Conceptual model
4. Data & Methods
4.1 Sample & Data collection
This study uses a cross-sectional research design to study the relationship between sustainable focus, NGO participation and conflict resolution between MNEs and Indigenous communities. The analysis is done from a firm-level perspective. For the purpose of this study a sample was drawn of conflict situations in Latin America and Africa. The case selection and reviewing was done by group format, in which each individual reviewed 50 cases. For this study an overall of 122 cases is used. Appendix I shows the distribution of cases across countries. In total the sample contains cases of conflict situations in 26 countries.
First, cases were included if they contained MNEs from the resource extraction industry and described the correct geographical area. Second, cases were included in the sample if they contained any situation of conflict between both a MNE in the resource extraction industry and an Indigenous community. The resource extraction industry contains multiple industries like mining, oil and gas, electric winning activities and logging. Data was collected from the following databases: EJOLT, Intercontinentalcry, Business & Human Rights Resource Center, Minewatch, American University of Washington Database. Other websites were used for additional information on the cases. After collecting the data, the coding was done by using a coding manual, which contained all the necessary variables of each group member. After the overall coding was finished, the cases that fit the geographical area of this study were included in an overall dataset that was finally used to do the analysis of this study.
4.2 Dependent variables
The dependent variable of this research is conflict resolution. This variable is split into two dimensions: (1) severity of conflict (type of violence) and (2) length of conflict. Violent conflicts can be either short or long (Getz & Oetzel, 2009).
(1) The length of conflict is analyzed and categorized into two subgroups: (a) long conflicts and (b) short conflicts. To determine what defines short conflicts and long conflicts, the median of the overall sample was used. The median of conflict length is 73.5 month. Conflicts that took over a longer period of time are coded as long conflicts and conflicts that took over a shorter period of time are coded as short conflicts. A lot of cases included conflicts that were ongoing on the date of collection. To not lose the ability to use these cases, they are coded with an end date of November 2015 (the collection period of the data) and afterwards assessed as either being long or short. As a control, length of conflict is also measured as a linear scale variable with the total months as an outcome to check whether there is a difference between both measurements of conflict length.
(2) Conflicts can be very different in type and intensity (Getz & Oetzel, 2009). In this research conflict severity is measured by measuring type of violence. Different types of conflict are assessed from low violence to more high violence (Calvano, 2008). Type of violence was measured on a seven-point scale from 1 (low violence) to 7 (high violence), respectively: peaceful negotiations & peaceful protests, court actions, low-level violence (from either side) including intimidation tactics, high level violence including physical damage but no kidnapping or deaths, high-level violence (from either side) including kidnappings but no deaths and high-level violence (from either side) including deaths.
4.3 Independent variable
The independent variable in this research is sustainable focus. This variable can be described as: the development that meets the needs of the present, without compromising the ability of future generations to meet their own needs (Lertzman & Vredenburg, 2005). There is no commonly accepted way of measuring sustainability (Lopez, Garcia & Rodriquez, 2007). In this study the MNE’s sustainable focus is measured using two indices: the Dow Jones Sustainability Index and the FTSE4good Sustainability Index. The Dow Jones Sustainability index is a multidimensional construct, which measures sustainability based on economic, social and environmental indicators. It includes the companies with the best sustainable practices in their respective industries (Lopez, Garcia & Rodriquez, 2007). According to SusAinability (2004) the Dow Jones Sustainability index’s requirements concerning sustainability aspects are further reaching than in any other sustainability index. This makes the DJSI a very strong indicator of sustainable focus (Lopez, Garcia & Rodriquez, 2007). The FTSE4good is another well known sustainability index. This index measures the performance of companies that meet the globally recognized sustainability standards. The companies included in the sample were assessed on a three-point scale: (0) either not included in both indices, (1) included in either the DJSI or the FTSE4good index, or (2) included in both indices. When a MNE is included in both of the indices, its sustainable focus is highest. Respectively, when a MNE is included in one of the indices, its sustainable focus is higher than when it is included in none of the indices.
4.4 Moderating variable
NGO participation is the moderating variable in this study. NGO participation constitutes a very broad concept, but overall NGO participation considers a vorm of
collaboration between the NGOs and other stakeholders. NGOs can participate in the conflict resolution process in multiple ways: (1) by facilitating the discussion between communities and MNEs (Murphy & Arenas, 2011), (2) by forcing the MNE and the Indigenous community into some kind of agreements (Conroy, 2001), (3) or by being involved on the projects itself on the long run (Murphy & Arenas, 2011). In this study NGO participation is coded as a dummy variable with two outcomes: (0) NGOs are not participating in the conflict or (1) NGOs are participating in the conflict. When a NGO is participating in the conflict, this is the result of the NGO facilitating the discussion, of the NGO being involved in the project itself, or of the NGO helping on setting an agreement between MNE and the Indigenous community.
4.5 Control variables
This study uses three control variables focused respectively one country level, community level and firm level. The control variable used on firm level is MNE’s experience in the country of conflict. It can be argued that experience in a country by a MNE will influence the conflict resolution process (Oetzel, Getz & Ladek, 2005). The longer a firm operates in a specific country, the more likely that it develops relationships with key stakeholders, establishes operational and political networks and overcomes the costs of liability of foreignness (Eden & Miller, 2004). MNE experience in the country is measured in years. The second control variable used in this research is institutional strength. The countries included in the dataset are different in their country governance structures. Country governance structure consists of Voice & Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption (The World Bank 2013). The institutional strength of a country is measured as the average of these scores and used as a control variable. It can be
argued that institutional strength can have an influence on conflict situations. The last control variable in this research focuses on community level and is cultural isolation. Isolation preserves behaviours through geographic, cultural and language barriers. Isolated communities maintain most of their traditional cultures and choose to live in the isolation from mainstream society (Montenegro & Stephens, 2006). The more cultural isolated the communities are, the more difficult it is to negotiate with MNEs from other countries with different cultural norms and values. Cultural isolation is measured on a 3 points scale: (1) Highly isolated, community has an isolated culture, with a different language, not connected to a broader ethnic group, (2) Community is connected to a broader ethnic group, but isolated within the group and (3) Community is embedded within a broader mainstream ethnic group.
4.6 Method of analysis
As this study contains two dependent variables, the analysis will be done twofold. The relationship between sustainable focus and conflict severity with a potential moderating influence of NGO participation will be measured using linear regression analysis. This relationship can be described as:
𝑌 = 𝛽0 + 𝛽1𝑋1 + 𝛽1*𝛽2𝑋2 + 𝜀
In this case Y represents the dependent variable conflict severity measured by type of violence. The regression coefficients are represented by 𝛽0, the intercept, and 𝛽1,
which represent a MNE’s sustainable focus as an independent variable, and 𝛽1*
𝛽2
which represents the interaction effect between NGO participation and sustainable focus (the moderator). Moreover, 𝜀 stands for the difference between the estimated 𝑋𝑖 and the actual 𝑋𝑖 (Field, 2009).
Conflict length is first coded as binary categorical variable (short vs. long). As described by Field (2009) logistic regression analysis should be used when the dependent variable is a categorical variable and the independent variables are either categorical or continuous. So for conflict length as a binary categorical variable with two outcomes (0) short conflict and (1) long conflict, logistic regression will be used. The logistic regression is done in a stepwise approach starting with the control variables, followed by the predictors. A stepwise approach is a good option when the hypotheses tested are not supported by a lot of claims in the theory (Field, 2009).
Second, as a control, conflict length will be coded using a linear interval variable with total length in months as an outcome. This is done to assess whether there is a difference in outcomes of both regression analyses and to check whether the independent variable and moderator have the same influence on the dependent variable ‘conflict length’ when it is either measured as a binary categorical variable or as an interval variable. Table 1 shows a summary of the combinations of variables used in the various regression analyses. The SPSS software program is used to analyze the data to make the statistical conclusions.
