Development and Mining in sub-Sahara Africa:
Home Country Effects on Emerging and Advanced market MNE
Contributions to Emerging Host Country Development
Master Thesis
MSc. Business Studies – International Management Supervisor: Dr. Johan Lindeque
Second reader: Dr. Michelle Westermann-Behaylo Student: Naomi van Rossum
Student ID: 10871365
Date: 26th of August 2016
Abstract
This qualitative multiple case study takes a comparative approach to analyse the home country effect from an institutional logics perspective. Taking the sub-Sahara African mining industry as the empirical setting, it studies why and how mining multinational enterprises from advanced (AMNEs) and emerging (EMNEs) markets differ in their corporate social responsibility (CSR) behaviour and make different contributions to African resource-rich host country development. Hereby it addresses the CSR literature’s primary focus on AMNEs and relative neglect of EMNEs and the lacuna of CSR research to date not sufficiently addressing the dual embeddedness of multinational enterprises (MNE) in depth yet. The study finds that home country constellations of institutional logics influence the way MNEs conduct CSR in African host countries. Moreover, the findings support the notion that as a result of the home country effect, AMNEs favour community logics over state logics in their CSR behaviour in African host countries whereas EMNEs favour state logics over community logics. However, the analysis also suggests that the home country effect is enforced when home and host country institutional logics are similar. There was insufficient support for their different contributions to host country development, as none of the cases revealed consideration of reciprocal responsibility necessary to increase the incentive for institutional accountability in resource-rich host countries. This study makes a theoretical contribution to understanding how home country influences MNE CSR behaviour in the host country and in what ways MNEs could contribute to the sustainable development of their host countries. This study adds to cross-disciplinary research in international business by looking at business practice from an political economic and sociological perspective.
Keywords: Institutional logics, Corporate Social Responsibility, International Development, Emerging Market MNEs, Advanced Market MNEs, sub-Saharan Africa, Mining Sector
Statement of Originality
This document is written by NAOMI VAN ROSSUM who declares to take full responsibility for the contents of this document.
I declare that the text and the work presented in this document 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 is responsible solely for the supervision of completion of the work, not for the contents.
Acknowledgements
I would like to express my deepest appreciation and gratitude for Dr. Johan Lindeque, for his indispensable guidance, encouragement and supervision. I would also like to thank my family and friends for their moral support.
Table of Content
1. Introduction ... 7
2. Literature review ... 11
2.1 International Development and the private sector ... 11
2.2 Developmental CSR in resource-rich African host countries ... 13
2.3 Institutional theory, CSR and the MNE ... 16
2.4 Institutional logics, organizational fields and actors ... 19
2.4.1 Constellation of institutional orders ... 19
2.4.2 Organizational field frames ... 20
2.4.3 Organizational behaviour ... 20
2.5 Constellation of societal orders informing the field frame of mining CSR ... 21
2.6 Multiple-embeddedness of Mining MNEs in Africa and CSR Activities ... 26
3. Methodology ... 27
3.1 Research Philosophy ... 27
3.2 Multiple embedded case study research design ... 28
3.3 Case selection: Countries ... 30
3.3 Embedded units of analysis: MNE selection ... 31
3.5 Data collection ... 35
3.6 Data analysis ... 36
4. Results ... 38
Part I Within-case analysis ... 38
4.1. Host country field frame: Zambia ... 38
4.2 Host country field frame: Ghana ... 51
Part II Cross-case analysis ... 59
4.3 African resource-rich host country comparison ... 59
4.4 AMNEs and EMNEs: Community versus State logics ... 60
4.5 Transposition across cases ... 61
5. Discussion ... 63
6. Conclusion ... 67
6.1. Theoretical contributions ... 67
6.2. Managerial and policy implications ... 67
6.3 Limitations and suggestions for future research ... 68
7. References illustrative quotes ... 69
List of Figures and Tables
Figure 1: Developmental CSR in resource-rich African host countries……….14
Figure 2: Constellation of Institutional Orders Advanced versus Emerging Markets... 25
Figure 3: Within-case analysis structure ... 38
Figure 5: Similarity institutional logics constellation ... 65
Table 1: Societal institutional orders ideal types ... 22
Table 2: Country selection ... 31
Table 3: MNE selection ... 32
Table 4: Background information embedded units of analysis ... 34
Table 5: Composition study database ... 35
Table 6: Coding scheme ... 37
Table 7: Zambia field frame of mining CSR ... 41
Table 8: Canada field frame of mining CSR ... 43
Table 9: FQM CSR behaviour in Zambia ... 45
Table 10: China field frame on mining CSR ... 47
Table 11: CNMC CSR behaviour Zambia ... 50
Table 12: Ghana field frame on mining CSR ... 52
Table 13: Kinross CSR in Ghana ... 54
Table 14: South Africa field frame mining CSR ... 56
Table 15: Gold Fields CSR behaviour Ghana ... 58
1. Introduction
This thesis draws on three emerging and interlinked topics in International Business scholarship. Firstly, it addresses the growing importance of emerging market multinational enterprises (EMNEs) and studies the way they operate in other emerging market economies compared to advanced market multinationals (AMNEs) (Sinkovics, Yamin, Nadvi, & Zhang, 2014). In particular, the operations of both types of MNEs are investigated in Sub-Saharan Africa (hereafter Africa), addressing the lack of academic knowledge in IB on emerging markets in this particular area (Mol, Stadler, Adegbesan, & Arino, 2015). Lastly, this study places the former two themes in the overarching debate about the role of business in a globalizing society, by assessing the contribution of MNEs to emerging host country sustainable development through Corporate Social Responsibility (CSR) (Van Alstine & Barkemeyer, 2014; Idemudia, 2008; Campbell, 2006).
Due to their increasing power and importance, a growing body of International Business literature is devoted to unravelling the characteristics of emerging markets and the MNEs they bring forth. This discussion generally explores whether EMNEs are effective challengers to established performance regimes, or “the rules of the game” (Sinkovics, Yamin, Nadvi, & Zhang, 2014, p. 676). This study particularly focuses on the behaviour of EMNEs compared to AMNEs in other emerging economies. Some scholars have argued that EMNEs may hold an advantage over AMNEs, because their home country institutional environment has made them experienced in operating in similar contexts and therefore enjoy a reduced liability of foreignness (LOF) compared to AMNEs (Cuervo-Cazurra & Genc, 2008; Khanna & Palepu, 1997). However, in this comparative extant literature, conceptualizations of home country institutional differences between AMNEs and EMNEs often focus on the more visible (formal) institutional differences, with an economic focus (Cuervo-Cazurra & Genc, 2008; Khanna & Palepu, 2010 ; Luiz & Ruplal, 2013; Marano, Arregle, Hitt, Spadafora, & van Essen, 2016). Rather, this study aims to address this gap by gaining a more profound understanding of these differences and how they affect MNE behaviour in emerging host country contexts.
The specific host country context chosen for this study is Sub-Saharan Africa (hereafter Africa), addressing the second gap in IB literature (Mol, Stadler, Adegbesan, & Arino, 2015). Although it is acknowledged that Africa is a very diverse continent, in a general sense it has seen the numerous positive characteristics and developments, such as high growth rates, technological
progress and a growing middle class are recognized increasingly (The Economist, 2011). Nonetheless, emerging markets in Africa still maintain a strong focus on developmental issues, such as increasing economic growth and improving health care and education (United Nations Development Programme, 2016; African Union, 2013; African Economic Outlook, 2011). This characteristic makes Africa an adequate context for studying the final strand of debate within IB addressed in this study, namely the role of international business in host country sustainable development through Corporate Social Responsibility (CSR).
The concept of CSR remains highly ambiguous and criticized (Frynas, 2005; Blowfield & Frynas, 2005). Definitional ambiguity can be explained from the fact that what responsible behaviour is depends on the social contexts within which the behaviour takes place (Brammer, Jackson, & Matten, 2012). In emerging market context, CSR is frequently seen as a means by which multinationals can contribute to emerging host country development (Idemudia, 2008; Kolk, 2010; Kolk, 2016; Blowfield, 2005; Van Alstine & Barkemeyer, 2014). Although CSR’s real contribution to emerging market development remains contested (Frynas, 2005; Blowfield & Frynas, 2005), as a concept, CSR offers a framework of reconceptualising business-society relations, especially since these two spheres have tensed over the last decade (Kolk, 2016; Idemudia, 2008).
These three debates come together in this comparative qualitative multiple case study that aims to gain understanding the differences between CSR behaviour of AMNEs and EMNEs in African host countries, and assess their contributions to African host country sustainable development. An institutional approach is fundamental to researching this question, because as previously argued, institutions account largely for the differences between AMNE and EMNE strategies and behaviour, and all the more for CSR practices (Campbell, 2006; Cochran, 2007; Shestack, 2011; Brammer, Jackson, & Matten, 2012; Marano, Arregle, Hitt, Spadafora, & van Essen, 2016).
Specifically, this study assumes an institutional logics (Greenwood, Diaz , Li, & Lorente, 2010; Lee & Lounsbury, 2015; Marquis, Glynn, & Davis , 2007) approach to investigating the home country effect on CSR behaviour in emerging host countries. In the institutional logic approach, institutions represent frames of reference, or "taken for granted resilient social prescriptions that enable actors to make sense of the situation by providing assumptions and values, usually
implicitly, about how to interpret organizational reality, what constitutes appropriate behaviour and how to succeed" (Thornton, 2004, p. 70).
The institutional logics perspective provides an interesting perspective to this question, as it questions why organizations differ in their behaviour in response to multiple institutional pressures. This is specifically applicable in the case of the multinational firm, since these deal with institutional complexity as a result of their embeddedness in both home and host country institutional contexts (Kostova & Roth, Adoption of an Organizational Practice by Subsidiaries of Multinational Corporations: Institutional and Relational Effects, 2002). It presents a framework to investigate to what extent heterogeneity of CSR practices between AMNE and EMNE is explained by the interplay of different institutional logics of home and host country contexts. Hereby, this thesis contributes to the extension or refinement of the institution-based view in international strategy. Finally, the question that this thesis aims to answer is: To what degree do home country institutional logics determine the differences in CSR behaviour between AMNEs and EMNEs in the African mining sector?
The African mining industry sets the stage to investigate the dynamics between home and host country institutions because of the high visibility of the phenomena under research. The mining industry is widely considered as one of the most environmentally and socially disruptive (Economic Commision for Africa, 2011; Blowfield, Corporate Social Reponsiblity: reinventing the meaning of development?, 2005). On the other hand, it is also an industry that is perceived as an important source of long-term development, if properly managed (Africa Progress Panel, 2015; African Union, 2013; Economic Commision for Africa, 2011; Government of Canada, 2014). Moreover, the continent hosts numerous AMNEs, but EMNEs have significantly increased their activities in Africa, particularly in the extractive sector (African Economic Outlook, 2011). This research is phenomenon- rather than theory-driven, as this enables the establishment of a closer connection between theory and practice, thereby increasing the relevance of business scholarship for managerial practices (Doh, 2015).
In the remainder of this thesis, the second chapter reviews the literature on the International Development paradigm, how it relates to International Business through CSR, and how this applies to an African resource rich host country context. In other words, it seeks to clarify how the MNE can use its CSR as a means to contribute to host country sustainable development.
The second part of the literature review addresses the relevant themes of institutional theory, and explains why and how institutional logics theory is applied to the reality of the MNE with respect to the home country effect on host country CSR behaviour. The third chapter addresses the methodology of this multiply embedded case study. The fourth chapter presents the results of each case and the analysis across cases. The fifth chapter concludes while the final chapter discusses the findings, implications of this study and suggest directions for further research.
2. Literature review
This research adopts an inductive top-down case study design (Shepherd & Sutcliffe, 2011), which has some implications for the literature review. Strictly seen, an inductive approach starts with the data in order to build theory from it, allowing the literature review to give an a-priori specification of central themes and constructs relevant to this study, in order to focus the data collection and inform the research design (Eisenhardt, 1989). However, with an inductive top-down approach, extant literature serves as another source of data, from which the researcher can extract problems (tensions, conflicts and contradictions) and potential solutions to offer a better description and coherent resolution of the research problem (Shepherd & Sutcliffe, 2011). This approach is explained in more detail in the methodology section. However, for the following chapter it means that literature is reviewed more extensively than in a typical inductive study, for the purpose of increasing the coherence in this study.
2.1 International Development and the private sector
The International Development paradigm emerged after the Second World War with the study of the eradication of poverty and the improvement of living standards of the global poor (Harman & Williams, 2014; Moyo, 2009). While an extensive historical review of the International Development paradigm (see e.g. Harman & Williams, 2014; Moyo, 2009) is beyond the scope of this study, for the purpose of evaluating the contributions of MNE to host country development, some concepts need elaboration.
The International Development paradigm has increasingly evolved in a pluralistic field of study in which the concept of ‘development’ remains highly debated (Sumner & Tribe, 2008). The last sixty years has seen a substantial widening of scope in the field of international development from focus on economic growth, income distribution and poverty reduction (Rogers, 1976), to environmental (IUCN, 1980; United Nations, 2016; United Nations World Commission on Environment and Development, 1989) and human (Anand & Sen, 2000) considerations. The current discourse structurally mentions sustainable development, which is defined as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (United Nations World Commission on Environment and Development, 1989), as the road to human progress. Besides this extension of scope over the years, the history of international development has taught that attempts to
apply best practices based on western development experience have, in the case of Africa, been largely futile and perhaps even counterproductive (Stiglitz, 2008; World Bank, 2005; Moyo, 2009). Although having unique development experiences, the emergence of Brazil, India, China and Russia (BRIC) demonstrated the success of state-led development in less advanced economies, in contrast to a market-led approach advocated by western countries that dominated the development field (Gereffi, 2014; Harman & Williams, 2014; Moyo, 2009). Mostly, the emergence of the BRICs proved that development is a country-specific process which entails that the specific conditions of the country of interest must be central in designing and executing a long term and effective development strategy (Harman & Williams, 2014; New Development Bank , 2016). The adoption of a more context-specific approach was further encouraged by the emergence of concepts bottom-up or inclusive economic growth by human empowerment. Development was to be people-driven which extended the focus on the traditional balance between market and state dominance in the development process, by recognizing the civil society, which is the aggregation of state voluntary organizations, including non-governmental organizations (White, 1993; Anand & Sen, 2000; Fukuyama, 1999; Waddell & Brown, 1997). Although it is recognized that civil society non-governmental organizations (NGOs), as members of civil society, play an important facilitating role in international development, sustained development of a given country is founded primarily upon the relationship between three permanent actors of the state, the market and the community, or the so-called democratic triangle (Harman & Williams, 2014).
Post-2015, the state of play in international development thinking is reflected in the Sustainable Development Goals (SDGs) (United Nations, 2016). The goals aim to eradicate poverty and to achieve inclusive economic growth, whilst protecting the environment and promoting human development focusing on health, education and gender equality (United Nations, 2016). While the dominance in the development paradigm has alternated between the state and market primarily, civil society is now considered as the ‘third sector’ and an important domain for international development. Moreover, whereas the private sector was viewed mainly as a provider of jobs and contributed to economic growth, it is increasingly considered a partner in development in more ways than mere job provision and tax payment (Hilson, 2012; Van Alstine & Barkemeyer, 2014). The following part will discuss in what way CSR links to the sustainable development of resource-rich African host countries.
2.2 Developmental CSR in resource-rich African host countries
Over the last decades, MNEs in the extractive sector have been increasingly framed as a crucial actor in the development of (mineral) resource-rich countries (Van Alstine & Barkemeyer, 2014). This section aims to explain how MNEs can tailor their CSR activities such that they contribute, or rather, not hinder the national processes necessary for a solid basis of sustainable development of a resource-rich environment (Abugre, 2014).
2.2.1 Development in resource-rich African host countries: The natural resource curse and corruption
An important phenomenon to consider when thinking about development in resource rich countries in Africa, is the natural resource curse (Genasci & Pray, 2008; de Medeiros Costa & Moutinho dos Santos, 2013). This is an economic and institutional phenomenon in which natural resource exporting countries do not receive the expected economic and social benefits of their natural endowments industry and face lower levels of development compared to non-resource rich countries (de Medeiros Costa & Moutinho dos Santos, 2013; Genasci & Pray, 2008). An important factor here is the quality of the institutional environment and the management of the public recourses derived from the extractive industry (de Medeiros Costa & Moutinho dos Santos, 2013). More specifically, the lack of accountability as a strongly embedded institution, and transparency as a facilitator of accountability, is considered an important reason for the mismanagement of resource revenues (Khadiagala, 2015; Moyo, 2009; Genasci & Pray, 2008; Lawson-Remer & Greenstein, 2012; Transparency International, 2016). Subsequently, all African countries, but mostly those with natural resources deal with corruption, which is defined as the misuse of entrusted power for private gain (Transparency International, 2016). It thrives when institutional checks and accountability are lacking, in which case the practice is sometimes seen as beneficial in facilitating bureaucratic procedures (Uneke, 2010). Nonetheless, the practice is more associated with undermining societal trust in the political system and institutions and benefiting only a small elite and seen as a serious impediment to development (Uneke, 2010). However, in some countries the practice is so deeply rooted (Uneke, 2010), one could question what MNEs can and should do about it.
2.2.2 CSR in African resource-rich context
As explained, the meaning and practice of corporate responsibility differs per institutional context (Campbell, 2006; Matten & Moon , 2008; Kim, Amaeshi, Harris, & Suh, 2013). In
order for CSR to contribute to resource- rich host country development, it must thus consider the specific institutional dynamics that undermine development. This study is builds its analysis on the four-part framework proposed by Carroll (1979). He argues that the first and foremost expectation has from business is the fulfilment of economic responsibility, as the business can be considered as the basic economic unit of society (Carroll, 1979). In particular, economic responsibilities entail for example the satisfaction of customers with goods and services, promotion of innovation, creation and maintenance of jobs, creation of wealth (Novak, 1996). Secondly, the economic conduct must abide by the law that rules in that society (Hilson, 2012; Campbell, 2006; Blindheim, 2015). Thirdly, ethical responsibilities relate to the business behaviour that is expected or prohibited by members of society, although they are not necessarily codified into law (Carroll, 2001). This type of CSR entails a negative injunction to avoid and correct activities that are harmful. There is a moral minimum that implies that however CSR may be defined; it never excludes this moral minimum of negative injunction (Simon, Powers, & Gunnemann, 1972; Lantos, 2001; Campbell, 2006). Lastly and most controversially, there is philanthropic CSR, which is left entirely to the discretion of the corporation and simply aims to do well for society regardless of the returns for the company (Carroll, 1979; Lantos, 2001).
This type of CSR involves the “pursuit of affirmative duties” (Lantos, 2001, p. 605), which is defined as the affirmative pursuit of some good (Simon, Powers, & Gunnemann, 1972). This
Objective Reciprocal Responsibility (Idemudia, 2008) Principle actors
Sustainable development in resource-rich emerging host countries
Social contract drives the development of institutional regulatory environment (Frynas,
2005; Idemudia, 2008)
Negative injunction duties Affirmative strategic action (Simon et al., 1979; Lantos,
2001) Government (State logic) Civil Society (Community logic) MNEs (Market logic) Figure 1: Developmental CSR in resource-rich African host countries
Source: Author
can be divided under philanthropic or altruistic affirmative action or strategic action (Lantos, 2001). Below follows an explanation of how CSR can benefit the resource rich African host country context on a longer term. I argue that, despite the greater pressures from stakeholders for development goals, MNEs should conduct their CSR with consideration of the long-term institutional needs of its host country and should refrain from affirmative philanthropic actions. If affirmative action is at all desired, it should be clearly focused on strategic development goals and in cooperation with the host government.
2.2.3. Affirmative action: Philanthropic or Strategic
MNE charitable or altruistic CSR may result in a dependency of the host country stakeholders on the MNE (Blowfield, Corporate Social Reponsiblity: reinventing the meaning of development?, 2005) and undermine reciprocal responsibility (Idemudia, 2008). Reciprocal responsibility emphasizes that the social responsibility of the firm does not replace the responsibility of all other stakeholders involved, in this case the government and the mining communities which mediates the impact of CSR on development (Idemudia, 2008).
This study argues that affirmative action could be a contribution to long-term host country development if it serves a mutually strategic purpose that contributes to both the benefit of the MNE as well as the host country long-term development goals. This would fall under what Porter and Kramer (2006) term ‘creating shared value’ (Porter & Kramer, 2006). An example of this is when an MNE is voluntarily involved in the construction of a railway that would create benefits for both the MNE itself (through better transportation of its goods), but at the same time aid in catalysing other industries that can make use of that same railway (Economic Commission for Africa, 2011). This then, depends on the development goals the host country has formulated itself. For one country the focus may lie at increasing sustainability and for the other focus may lie at developing infrastructure. Close cooperation on these actions between the MNE, communities and governments could ensure that the resources invested indeed create real value for the stakeholders involved. This type of CSR could then be termed ‘strategic affirmative action’ and is expected to make a purposeful contribution to host country sustainable development.
On the other hand, philanthropic affirmative action, for example the building of a hospital, although it may serve the strategic purpose have maintaining a healthy workforce, should be approached with more scrutiny. This kind of activity mostly aims to fill up government gaps and thereby diminishes the incentive to improve the social contract between host community and host governments (Moyo, 2009). As such, it distracts attention from the root cause of underdevelopment in resource-rich states (Campbell, 2012). By refraining from such activity, MNEs incentivize reciprocal responsibility between the central stakeholders of the government, the community and the MNE to develop (Idemudia, 2008; Moyo, 2009; Blindheim, 2015). Additionally, the institutional dynamics that affect developmental processes are far beyond the immediate direct control of MNEs (Frynas, 2005). In this regard it must also be taken into account that that many African countries have formally stated to be in control of their own development process and are, due to their colonial history, wary of allowing too much reliance on foreign entities (African Union, 2013; The Africa Report, 2015; Southern African Development Community, 2015)
In sum, considering that resources are scarce, MNEs can make a more deliberate and long-term contribution to development if it spends its resources on fulfilling its basic economic and legal duties in an ethical manner, considering negative injunction duties with respect to the human and environmental impacts. Extra CSR may than be focused on strategic affirmative action, tailored on the specific development goals of the host country and contributing to the benefit of the MNE. Philanthropic affirmative action is not likely to contribute to long-term development in resource rich host countries as it diminishes the incentive for other stakeholders to take responsibility for their development, thereby undermining the necessary process for institutional maturation needed to purposely manage the country’s natural resources revenues. Resources spent on altruistic CSR may rather be spent on improving negative injunction duties or strategic affirmative action. A necessary condition for this approach is that MNEs be transparent and that regular contact with stakeholders is guarded to exploit the benefits of transparency, which aids in the formation of clear and reasonable expectations of stakeholders (Blowfield, Corporate Social Reponsiblity: reinventing the meaning of development?, 2005; Genasci & Pray, 2008; Khadiagala, 2015; Lawson-Remer & Greenstein, 2012).
The following section gives an overview of the relevant theory of the MNE and how the complex reality of the MNE may affect its CSR conduct.
Due to their embeddedness in multiple and different contexts, MNEs face institutional complexity (Kostova & Roth, 2002). Institutions consist of "cognitive, normative and regulative structures and activities that provide stability and meaning to social behaviour. They are transported by various carriers, culture structures and routines, and they operate at multiple levels of jurisdiction” (Scott, 1995, p. 33). Institutions carry a “generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values beliefs and definitions” (Suchman, 1995, p. 547). The environments in which MNEs are embedded thus each exert institutional pressures on what legitimate MNE conduct is in that specific context (Kostova & Roth, 2002; Noorderhaven & Harzing, 2003; Marano, Arregle, Hitt, Spadafora, & van Essen, 2016). One can imagine that this is all the more complex when this practice concerns CSR, as this concept has an intricate relation with cultural norms that rule society. There is no consensus about a single ‘right’ form of CSR and its manifestation tends to differ per institutional context (Campbell, 2006; Matten & Moon , 2008; Kim, Amaeshi, Harris, & Suh, 2013).
In order to conceptualize the sources of institutional pressures the MNE faces with respect to its CSR conduct, one can distinguish three sources. Firstly, there are pressures from the host country context. In case the MNE responds to host country pressures, it is locally responsive (Reddy & Hamann, 2016; Tan & Wang, 2011). Secondly, there are pressures coming from the home country, leading to a home country effect, or country of origin effect (Noorderhaven & Harzing, 2003). The home country effect concerns that part of differentiation of MNE CSR behaviour that is ascribed to different national origins of the MNEs rather than variations in their task environment (Noorderhaven & Harzing 2003). Lastly, there are pressures from the international institutional environment, encouraging the adoption of global CSR leading to standardization or harmonization of CSR (Fortanier, Kolk, & Pinske, 2011). Although it is recognized that the CSR behaviour of MNEs is eventually a function of all three sources of pressures, this study focuses mainly on the home country effect because of its interest in gaining better understanding of differences between AMNEs and EMNEs.
The home country effect is particularly well observable when comparing AMNEs and EMNEs, because it is argued that differences between these two types of firms are mostly ascribed to their different origins (Khanna & Palepu, 2010 ; Sinkovics, Yamin, Nadvi, & Zhang, 2014; Cuervo-Cazurra & Genc, 2008). Palepu & Khanna (1997) argue that emerging economies differ from advanced economies mainly in the sense that the former lack the intermediary institutions necessary to minimize transaction costs between buyers and sellers, leaving institutional voids (Palepu & Khanna, 1997). EMNEs may experience disadvantages when internationalizing to advanced markets because of their poorly developed institutional structure in the home country (Barlett & Ghoshal, 2002). However, when operating in other emerging markets they may have a competitive advantage over AMNEs because of their experience in dealing with difficult institutional environments. Due to this experience they have developed a coping mechanism that enables them to decrease their liability of foreignness (LOF) compared to AMNEs (Khanna & Palepu, 1997; Cuervo-Cazurra & Genc, 2008; Khanna & Palepu, 2010 ).
In relation to differences in CSR behaviour, it could be argued that AMNEs use CSR as a mechanism to overcome LOF in emerging host countries (Tochman Campbell, Eden, & Miller, 2012; Luo & Tung, 2007). As a consequence, one could expect AMNEs to portray higher levels of CSR than EMNEs, because of their relatively greater distance, as an expression of cultural and administrative differences (Ghemawat, 2001) with the host country context. However, Campbell, Eden & Miller (2012) find that despite strategic reasons to engage in CSR to reduce LOF, distance between the home and host country on cultural and administrative parameters, may decrease the MNEs level of CSR. They argue that larger cultural differences decrease the empathy and willingness to conduct CSR, and that larger administrative differences will decrease the understanding and thus the ability to conduct CSR (Tochman Campbell, Eden, & Miller, 2012).
This study aims to investigate the home country effect on host country CSR behaviour from an institutional logics lens, because not only has extant literature not focused on conceptualizing AMNE and EMNE differences from a more profound institutional perspective, it has also not sufficiently addressed differences in CSR from such perspective (Tan & Wang, 2011)
The institutional logics perspective aims to explain how the underlying differentiated belief systems of higher order societal institutions shape the cognition and behaviour of individuals
that, if in managing positions, also shape organizational conduct (Thornton, Ocasio, & Lounsbury, 2012; Ocasio, 1997). The following section will elaborate on the home country effect from an institutional logics perspective.
2.4 Institutional logics, organizational fields and actors
This chapter will explain the key concepts of the institutional logics perspective and elaborates on how institutional logics shape organizational behaviour. It will provide an elaboration on how institutional logics influence organizational behaviour, via the organizations’ managers as key decision makers (Ocasio, 1997). It must be stated that an external focus is taken in this study, thereby excluding focus on how institutional logics play out internal to the focal organization (Kostova & Roth, 2002).
2.4.1 Constellation of institutional orders
The institutional logics perspective conceptualized modern society as an inter-institutional system, consisting of different higher-level implicit institutional orders, namely those of the religion, the state, the family, the state, the market, the profession and the community (Friedland & Alford, 1991; Thornton, Ocasio, & Lounsbury, 2012). Each institutional order has its own central logic that contains “the formal and informal rules of action, interaction, and interpretation that guide and constrain decision makers” (Thornton & Ocasio, 1999, p. 804) and thus provide actors with sources of legitimate behaviour. However, these institutional orders and their logics are not uniform in their influence on actors as they compete for cultural space in society by vying for individuals and organizations attention and patronage (Thornton, Ocasio, & Lounsbury, 2012; Friedland & Alford, 1991).
The power relationships between actors that adhere to a different logic, are reflected in the constellation of institutional logics in which one particular logic is dominant. The dominance of a particular logic is dependent on the interrelationships between field level actors that promulgate that particular logic (Marano & Kostova, 2016; Lee & Lounsbury, 2015). As field frames are embedded in power relationships that authorize certain actors and perspectives while neglecting others (Lukes, 1974). The more the focal actor is dependent on actors with different logics, the more it will need to be considered legitimate by that actor (Purdy & Gray, 2009;
Kostova & Roth, 2002; Oliver, 1991). While it is acknowledged that this constellation can change over long periods of time due to the agency of actors that materialize and reinforce institutional logics by their actions (Thornton, Ocasio, & Lounsbury, 2012) the limited scope of this study assumes a stable constellation of a particular set of institutional logics (Goodrick & Reay, 2011).
2.4.2 Organizational field frames
This particular constellation of implicit institutional logics, in which one logic is dominant, then materializes to the organizational field. In an organizational field (hereafter simply fields), actors “take on another into account as they carry out interrelated categories of symbols and practices within and across individuals and organizations” (Thornton, Ocasio, & Lounsbury, 2012, p. 61). Here, practices refer to a set of material activity that generally reflects a deeper social meaning that are captured in symbols (Lounsbury & Crumley, 2007). Practices in an organizational field are guided by a field frame, which is a means-ends frame that is informed by the constellation of institutional logics (Boxembaum & Battilana, 2005). More specifically:
A field frame is a political construction that provides order and meaning to fields of activity by creating a status ordering for practices that deem some practices as more appropriate than others. Field frames emerge as a result of efforts by producers, trade associations, professions and government actors to make sense of practices and define norms of appropriateness. Field frames are forged, maintained and eroded through discourse in policy forums such as Congressional hearings as well as in industry media and events such as trade association annual meetings. (Lounsbury, Ventresca, & Hirsch, 2003, p. 97).
2.4.3 Organizational behaviour
This field frame, which will reflect the dominant logic in the means-ends relationships, then shapes organizational behaviour by structuring the limited attention of managers (Thornton & Ocasio, 1999). The dominant logics will focus managerial attention on both particular features of the organizations and their environment, as well as shape the availability of the repertoire of organizational solutions and initiatives’ (Thornton, Ocasio, & Lounsbury, 2012, p. 82). Thus, in order to predict how attention of managers is structured and how they in turn influence organizational conduct, it should be clarified how an institutional logic becomes dominant.
The dominance of a particular logic is dependent on the interrelationships between field level actors that promulgate that particular logic (Marano & Kostova, 2016; Lee & Lounsbury, 2015), as field frames are embedded in power relationships that authorize certain actors and perspectives while neglecting others (Lukes, 1974). The more the focal actor is dependent on actors with different logics, the more it will need to be considered legitimate by that actor (Purdy & Gray, 2009; Kostova & Roth, 2002; Oliver, 1991). So, in order to predict what societal logic dominates the constellation, and its reflection in the field frame, we have to look at the interdependent relationship between actors in a given society that draw on those logics. We will do so in the following chapter in order to determine the constellation that will be reflected in the field frame of CSR in the mining sector.
2.5 Constellation of societal orders informing the field frame of mining CSR
The following section will explain why this study focuses on a constellation of logics consisting of three societal orders, namely those of the state, the community and the market. Subsequently, it provides an argumentation of why this constellation is likely to be different in emerging versus advanced markets and thus is likely to explain for differences in CSR practices in African host countries.
Extant literature regarding (international) development, CSR and more specifically regarding the role of the mining sector in host country development, three domains are structurally highlighted: the state, the market and the community (Economic Commision for Africa, 2011; Harman & Williams, 2014). Specifically in the mining sector, mining firms must engage in a trilateral dialogue with the mining communities and the government to achieve legitimacy in order to obtain and maintain a social license to operate (Economic Commision for Africa, 2011; Hilson, 2012; Macmillan, 2012).
Table 1 presents an overview of the ideal types of these societal institutional orders that are most likely to inform the field frame of mining CSR. These ideal types are means to allow for comparison in the analysis (Thornton, Ocasio, & Lounsbury, 2012).
Table 1: Societal institutional orders ideal types
Central logics of societal institutional orders
State Market Community
Categories
Root metaphor State as redistribution mechanism
transaction common boundary
Sources of legitimacy
democratic participation share price unity of will (trust reciprocity)
Sources of authority bureaucratic domination shareholder activism
commitment to community values and ideology
Sources of identity social and economic class faceless emotional connection
Basis of norms citizenship in nation self interest group membership
Basis of attention status of interest group status in market personal investment in group
Basis of strategy increase in community good increase efficiency profit
increase of status of members
Informal control mechanism
backroom politics industry analyst visibility of actions
Economic system welfare capitalism market capitalism cooperative capitalism Source: Adapted from Thornton et. Al. 2012, p. 73
In a general sense, firms are guided by market logic. However, this is particularly the case with firms in commodity markets, as they deal with a highly volatile market characterized by frequent price fluctuations. Mines need to "pay workers, taxes, repay investment, provide a return on investors and generate funds for development within a relatively short period of time. Therefore they require small quantities of expensive skilled labour, large quantities of cheap unskilled labour and high rates of profits" (Macmillan, 2012, p. 540). As their survival hinges on their ability to deal with volatile markets, mining firms are expected adhere to market logic to an extensive degree. Market logic is expected to exert pressures on CSR behaviour, as the conduct of CSR requires resources (time, effort, capital) that might otherwise be invested in the accumulation of profit (Friedman, 1962).
Government agencies adhere to the logic of the state, which refers to the centrality of the state in securing social and political order by using a command and control framework based on law and bureaucratic hierarchy (Lee & Lounsbury, 2015). State logics legitimize that government takes direct responsibility and control for shaping CSR and development. Moreover, regulations may give legal and political incentives to conduct CSR (Marquis, Glynn, & Davis , 2007)
Lastly, mining communities expected to be guided by community logic (Marquis, Glynn, & Davis , 2007; Lee & Lounsbury, 2015). They are geographically bounded units where the mining activities will have the greatest impact. They are also units with a shared sense of belonging and orientation toward social action (Lee & Lounsbury, 2015; Marquis, Glynn, & Davis , 2007). Marquis, Glynn and Davis (2007) argue that communities are the principal influence on CSR in terms of its nature and level because the standards of appropriateness regarding the nature and level of CSR are embedded within local communities that are the target of CSR and as such serve as touchstone for legitimacy (Marquis, Glynn, & Davis , 2007).
Dominance in the home country societal logics constellation: advanced and emerging markets The dominance in the constellation of the above mentioned intuitional orders is argued to be determined by the way they interrelate, or more specifically they degree to which they depend on each other (Oliver, 1991; Kostova & Roth, 2002; Goodrick & Reay, 2011; Lukes, 1974). Since fields are established through processes of structuration that suit the most powerful actors, the values and beliefs (logics) of these actors come to be reflected in the dominant logic (DiMaggio & Powell, 1983). Institutional logics supported by powerful actors contribute to maintaining the status quo since they ‘provide the formal and informal rules of action, interaction, and interpretation that guide and constrain decision makers’ (Thornton & Ocasio, 1999).
Advanced markets are typically characterized by a strong institutional environment supporting economic activity (Palepu & Khanna, 1998). State logics have lesser influence because of the relative detachment of the state with the market compared to emerging markets. In liberal market economies such as the US, the UK or Canada, the market plays the dominant role and the state remains at an arms- length distance (Jackson & Deeg, 2008). Communities in advanced market tend to have more institutional structures to express demands and take action (The World Bank, 2016; Fukuyama, 1999). More so, because advanced markets frequently have a
more fragmented state structures, giving communities more influence (Lee & Lounsbury, 2015). Their higher levels of development are reflected in stronger developed and vocal communities, whose demands may have more structuralized power via stronger institutions (Fukuyama, 1999). Thus, in advanced markets, the constellation is likely to portray a dominant market logic, a secondary community logic and a tertiary state logic (in order of dominance). The study expects that this institutional constellation translates into a field frame of CSR (Boxembaum & Battilana, 2005).
Working Proposition 1a: In advanced markets, the field frame on CSR in the mining industry is dominated by market logic, followed by community logic and state logic respectively.
In emerging markets, the state typically claims a central role within society and economic relations, which could be attributed to the frequent adoption of state-led development models in emerging economies that focus on economic growth (Woolcock, 2012; Yin J. , 2015; New Development Bank , 2016). Communities may have less power due to more centralized political systems in which communities have weaker institutionalized structures to exert power. Thus, in emerging market the constellation is likely to portray a dominant state logic, a secondary market logic and a tertiary community logic.
Working Proposition 1b: In emerging markets, the field frame on CSR in the mining industry is dominated by state logic, followed by market and community logic respectively.
By means of visual summary, Figure 2 depicts the expected differences of constellations of institutional orders and adhering logics between advanced and emerging markets.
Figure 2: Constellation of Institutional Orders Advanced versus Emerging Markets
Source: Author
Turning to the level of the firm, it was argued above that MNEs, especially mining MNEs are primarily guided by a market logic. Since both AMNEs and EMNEs are active in a global market, in this case the global commodity market, this study adopts a baseline assumption that both types of MNEs are principally by market logic. However, due to different field frames with respect to the dominance of state and community logics, it is expected that CSR differences between AMNEs and EMNEs will primarily reflect different degrees of state and community logics. This leads to the following working propositions:
Working Proposition 2a: AMNE CSR behaviour is likely to favour community logic over state logic. Working Proposition 2b: EMNE CSR behaviour is likely to favour state logic over community logic.
The question that arises now is how this home country field frame and the subsequent propensity of AMNEs to favour community logics and EMNEs to favour state logics in their CSR behaviour, will translate to contributions to host country development. This study expects that a favour towards community logics will guide managerial attention towards the demands of the local communities, which is likely to translate into community development projects and increased inclusion of communities in problem solving. This is argued that have negative effects on long-term development of African resource-rich host countries as it will undermine reciprocal responsibility (Idemudia, 2008) and the necessity of communities to demand of their governments to fill in the government gaps (Frynas, 2005; Blowfield, 2005).
State logic Market logic Commu nity logic Advanced market Emerging market
2.6 The home country effect: Field frame transposition
The previous section conceptualized how the home country constellation and resulting field frame would look like in advanced and emerging markets. It then explained how this field frame inclines mining MNEs to favour different institutional logics in their CSR behaviour. However, the study ultimately aims to assess the how this home country institutional background will influence CSR behaviour in the host country context. The following part elaborates how the home country effect (Marano & Kostova, 2016; Noorderhaven & Harzing, 2003) applies to the institutional logics perspective as explained above.
Section 2.3 explained how MNEs experience institutional duality, because they are embedded in both the home and the host country organizational field (Marano & Kostova, 2016; Kostova & Roth, 2002). This study contends that the home and host country fields each their own particular field frame related to CSR, based on a different constellation of institutional logics. This institutional duality causes the MNE to deal with the complex balancing act of maintaining legitimacy in both contexts. In this context, it is argued that MNEs experience home country effect as they carry the home country field frame related to CSR to the host country organizational field (Reddy & Hamann, 2016). This then causes the MNE to transpose practices that are dictated by the home country field frame to the host country organization field (Sewell, 1992; Boxembaum & Battilana, 2005). However, when home and host country field frames differ, because of different constellations of logics, transposition of a CSR practices will become difficult. MNEs may then be prone to adapt to the host field in order to be deemed legitimate in the host country organizational field (Boxembaum & Battilana, 2005; Tan & Wang, 2011). Reversely, when home and host country field frames are similar, the transposition of a certain practice will become easier (Boxembaum & Battilana, 2005; Ghemawat, 2001; Reddy & Hamann, 2016). This leads to the following propositions:
Working proposition 3a: The degree to which the practice of CSR is transposed to the host country field positively relates to the degree to which the home and host country field frames are similar.
Working proposition 3b: Different home and host country field frames will hinder transposition of the home country field frame and weaken the home country effect.
3. Methodology
The following section discusses the appropriate research design for the research question and the research philosophy underpinning it.
3.1 Research Philosophy
Research philosophy of the researcher adheres to relates to her beliefs of how knowledge is constructed or developed and what is the nature of knowledge concerning this research topic. It is important to make these assumptions explicit because they underpin the research strategy and methods used and clarify the nature of the object under study (Saunders, Lewis, & Thornhill, 2009).
Ontology is concerned with the nature of reality, which can be viewed as objective or subjective. An objective idea about reality implies a separation between the observer and the observed, or that social entities exist independent of social actors. Subjectivism, contrarily, assumes and interrelation between the social actor and the phenomenon. It holds that reality is
a complex social construction, as actors interpret their environments differently (Saunders, Lewis, & Thornhill, 2009). Hence, this research adheres to the subjectivist ontology, as it assumes that MNEs consist of social actors who interpret their host environment differently due to the underlying values and logics from their home countries, which ultimately affects the organizational behaviour in terms of CSR.
Epistemology is concerned with the nature and development of knowledge. Here the researcher may reflect a positivist approach, assuming that only observable facts can lead to knowledge. On the other hand, research could assume an interpretivist approach. This entails that the research understands the ‘differences between humans in our role of as social actors’ (Saunders, Lewis, & Thornhill, 2009, p. 116). This study adopts an interpretivist epistemology, thus perceptions of the social actors matter as much as the sensory observation of phenomena. Apart from hard data and facts, subjective meanings are also considered valuable indicators of drivers of a CSR activity. As a consequence, this ontological stance requires that the researcher adopt an empathetic stance in trying to understand the data from the perspective of its source.
Finally, axiology is about the role of the researcher’s values in the research. It is important to identify the role that the researchers value play in all stages of the research process in order to have credible results (Saunders, Lewis, & Thornhill, 2009). In that respect, the researcher values the long- term development of the African continent and holds that the African people and governments should be allowed and expected to be the principal designers and executors of their own development, following their own expressions (African Union, 2013; Southern African Development Community, 2015). The researcher refutes paternalistic attitudes concerning African development and believes and that African peoples have their future in their own hands.
This research approach demands that the researcher remains sensitive to values and meanings that are associated with CSR in the mining industry in the field frames of home and host countries.
In order to compare the differences in CSR between AMNEs and EMNEs and the underlying institutional sources of these differences, a qualitative multiple embedded case study is adopted (Yin, 2009). A qualitative case study is appropriate for gaining in depth knowledge about how or why the phenomenon under study comes about, especially when theories only explain the phenomenon to a limited extent (Saunders, Lewis, & Thornhill, 2009; Yin R. K., 2009). In this case, it is preferable to use such approach also because of the unclear relation between the phenomenon and its real-life context (Yin, 1994), which is exactly the focus of the research. Because of the comparative nature of the research question, multiple cases are studied, as this will allow for exploring differences within and between cases. A multiple embedded case study is considered to produce robust and reliable results (Baxter & Jack, 2008).
This study adopts an inductive top-down case study design following Shepherd and Sutcliffe (2011). First the distinction between induction and deduction is clarified in order to demonstrate the use of such approach. Inductive research means that theory is built from the data as it goes from the particular (data) to the general (theory). This is bottom-up theorizing. On the other hand, top-down theorizing is deductive, which starts with the theory and analyses the data in order to test the theory or to improve existing theory (Saunders, Lewis, & Thornhill, 2009; Shepherd & Sutcliffe, 2011). Inductive top-down theorizing uses extant literature about the phenomenon in order to integrate these two approaches, by beginning with data contained in the literature from which problems (tensions, conflicts or contradictions) and potential solutions emerge to offer a description and then a coherent resolution of a research problem. However, the researcher remains guided by the data to build theory rather than test theory. This approach is especially appropriate when “the body of previous research is vast, dynamic, complex and/or from disparate sources”(Shepherd & Sutcliffe, 2011; p.347). Thus, as this study draws on literatures of international development, international business and sociology (institutional theory), an inductive top down approach is appropriate.
As such, the research is phenomenon-driven (Doh, 2015), focusing on the dynamics within a given real-live setting (Eisenhardt, 1989; Saunders, Lewis, & Thornhill, 2009). A phenomenon-driven approach especially contributes to the usefulness of the developed theory to management practice (Doh, 2015).
3.3 Case selection: Countries
This study adopts a theoretical sampling strategy in order to make analytic generalizations (Yin R. K., 2009; Eisenhardt, 1989). Given the limited number of cases that can be reasonably studied, the principle aim is to select cases that are likely to display the phenomena of interest, such as extreme situations and polar types (Miles and Huberman, 1994) as these cases are likely to replicate or extend the emergent theory (Baxter and Jack, 2008; Eisenhardt, 1989). Although a multiple embedded case study design has the potential of producing robust and reliable results, the trade-off to such a research approach includes the problem of case selection and the danger of selection bias. In order to mitigate these trade-offs, it is critical that the researcher specify the independent, dependent and intervening variables and decide which of these are to be controlled for and which are to vary across cases (George & Bennett, 2005). However, as the research approach of this study is predominantly inductive, the conceptual framework above purposely avoids detailed theorizing in order for the researcher to remain an open stance toward the data. Nonetheless, the conceptual model distinguishes between the following influences. Firstly, the outcome variable, or dependent variable is MNE host country CSR. The factors that are expected to have a causal effect on the CSR outcomes are: constellation of home country institutional orders and field frame on mining CSR, constellation of host country institutional orders and field frame on mining CSR.
The mining industry in sub-Saharan Africa presents a suitable context within which to investigate the focal phenomenon for the following reasons. Firstly, mining activities are known to have a heavy social and environmental impact that results in a high amount of pressure to CSR behaviour (Economic Commision for Africa, 2011; United Nations Development Programme, 2016). More specifically, the sector allows for the observation of the link between MNE CSR behaviour and host country development, as the extractive industry in resource rich countries is a strategic area (The Africa Report, 2015; Ayee, Soreide, Shukla, & Minh Le, 2011; Andrews, 2016). Secondly, in Africa, this industry is characterized by a large amount of MNEs from both developed and emerging economies, which facilitates the comparative approach of this study (Economic Commision for Africa, 2011).
Table 2: Country selection
Mineral rich African countries (English Official Language) Mineral rents % of GDP (2014) Overall institutional strength ranking Zambia 13.2 3 Ghana 6.5 2 Zimbabwe 4.2 5 Madagascar 3.3 4 South Africa 3.2 1
Source: Adapted from WorldBank (2016)
A selection is made from the countries in which the official language is English, because this allows the researcher to collect and analyse a larger amount of data compared to French or Portuguese speaking countries, in addition to better assessing their reliability. Subsequently, preference lies with countries that display the highest percentage of mineral rents of Gross Domestic Product (GDP) (The World Bank, 2016). These countries are expected to be more prone to exhibit the dynamics of the resource curse and focus on development (Genasci & Pray, 2008). Lastly, factors that may disrupt the MNE CSR and the trilateral dialogue are controlled, by selecting countries that are relatively stable in terms of violent (political) conflict. Conflict situations are likely to cause a fundamental change in the way CSR is conducted, for example firms may engage in conflict mediation, lobby, or focus more on human rights issues (Kolk & Lenfant, 2010). Considering the above, Ghana and Zambia are selected as the case contexts as they have the highest dependency on resource rents and have the most stable institutional environment, as is visualized in Table 3.
Applying a theoretical sampling logic results in the selection of an additional case which may be different from the first case with respect to two experimental conditions that are deemed marginal, in order to see if the findings still hold in this different context (Yin, 2009). The conditions in Ghana and Zambia differ with respect to the type of commodity (gold in Ghana and copper in Zambia) and a slightly better developed institutional environment in Ghana compared to Zambia.
This part elaborates on how the embedded units of analysis are selected. The level of analysis is the MNE and the comparative approach results in the selection of one AMNE and one EMNE in each context selected above. It is expected that the constructs that influence CSR behaviour operate via key decision makers, or managers, in the focal MNE (Ocasio, 1997; Boxembaum & Battilana, 2005). Therefore, the management of the MNE is of special interest in the process of selecting adequate embedded units of analysis.
Table 3: MNE selection
Source: Author
In Ghana and in Zambia, mines are often owned by more than one company. In many cases, the national mining corporation has a minority stake in the mining operations. Nonetheless, there are several MNEs in both countries that have a majority stake in a joint venture or wholly own the subsidiary. Dominance in terms of ownership will likely influence the control of the firm and is likely to be reflected in the management of the joint venture (Beamish & Lupton, 2009). Furthermore, it is also stated that firms that have a large footprint are more susceptible than smaller firms to community pressures (Marano & Kostova, 2016), which explains the preference for top-tier mining MNEs in this study.
The most dominant players from advanced market in the African mining industry are from Canada, Australia, England and the United States. From emerging markets the most dominant players are China, Brazil and South Africa (Economic Commision for Africa, 2011). A review of the top-tier mining firms and their management structures resulted in the selection of two Canadian mining firms to analyse AMNE CSR. Regarding the analysis of EMNEs, one Chinese mining company is reviewed and one South African. The South African mining company is especially interesting to analyse, because it is expected to be most similar to the host country in terms of its CSR field frame (Ayee, Soreide, Shukla, & Minh Le, 2011; Babarinde, 2009). It may be insightful to assess if more similar home country logics in this case would affect CSR
MNE type Host country
Zambia Ghana
AMNE First Quantum Minerals (CA) Kinross Gold (CA)
behaviour differently compared to the other cases. Table 4 summarizes back ground information about the embedded cases in their host country context.
Table 4: Background information embedded units of analysis
MNE First Quantum Minerals
(FQM)
China Nonferrous Metal mining group (CNMC)
Kinross Gold Gold Fields
Home country Canada China Canada South Africa
Host country Zambia Zambia Ghana Ghana
Company background
FQM was founded in 1983 under the name Xenium resources in Canada, but changed its name in 1996, when it acquired the Bwana Mkubwa mine in Zambia. Since 1996, FQM has grown into the 10th largest copper
producing mining and metal multinational with operations and projects in Zambia, Mauritania, Peru, Australia and Finland. Operations in Zambia include Kansanshi copper mine and the Trident project, comprised of the Sentinel copper mine and the Enterprise nickel project.
Founded in 1983, CNMC is a large-scale central enterprise under the management of the State-owned Assets
Supervision and
Administration Commission of the Chinese State Council. Its major businesses include the development of nonferrous metal mineral resources, construction engineering, and the relevant trade and
technological services.
Operations in Zambia include Chambishi Copper Mine in Zambia, Chambishi 150,000-ton copper smeltery,
Chambishi Leach Plant, Chambishi Sulfuric Acid Plant and Luanshya copper mines.
Founded in 1993, Kinross Gold is a senior gold mining company with a diverse portfolio of mines and projects in the United States, Brazil, Chile, Ghana, Mauritania, and Russia. Headquartered in Toronto, Canada, Kinross employs approximately 9,100 people worldwide. In Ghana it operates the Chirano mine.
Gold Fields has operated in South Africa since 1887, when Cecil John Rhodes and Charles Rudd formed Gold Fields of South Africa. A merger between Gold Fields of South Africa and Gencor in 1998 led to the formation of Gold Fields Limited. Today, Gold Fields is a leading global gold mining company that has built on its South African reserves and resources to become a truly global miner, with eight leading mining operations across three continents. In Ghana, it operates the Tarkwa and Damang Gold mine.
3.5 Data collection
The following section explains how the database for this study is created and offers a description of the collected data.
The researcher created a unique database of archival qualitative data form a variety of public sources. These include company reports and websites, industry reports, civil society reports, government reports and news reporting from home and host countries. This will facilitate data triangulation and will increase the credibility of the results (Yin, 2009). The collection of data is continued until the point of data saturation is reached and no new information is extracted from additional data such that theoretical generalizations can be drawn (Eisenhardt, 1989; Yin, 2003). The use of qualitative data is especially appropriate for this type of study, because it allows for capturing the complexity of the case and an analysis of context (Saunders, Lewis, & Thornhill, 2009). Qualitative data may also aid in the formulation of thick descriptions, which contributes to the degree to which this study can be repeated (Saunders et al., 2009). In the context of this study, qualitative data can reveal the discourses between field actors that capture the values of appropriate action with regards to the practice of CSR. However, drawbacks of qualitative data include challenges with regards to organizing, storing and consistent coding (Vaughn & Turner, 2016).
Table 5: Composition study database
Zambia Ghana
FQM CNMC Kinross Gold Gold Fields
Company reports CSR 8 4 4 4
News report Home 4 0 4 3
New report Host 18 19 18 21
Government reports Home 2 3 2 2
Government reports Host 2 5 2 3
Civil Society reports 5 4 2 6
Industry reports 6 6 7 4
Interviews (secondary) 5 0 2 0
Total 50 37 41 43
