Abstract
The purpose of this study is to improve the understanding of firm internationalization as it relates to CSR and firm performance. Business literature has long explored the idea of globalized trade, however, the recent rise of CSR has shifted some of the focus of internationalization research away from financial metrics (the serving of stockholders), and into the serving of all stakeholders. The hypotheses utilize transaction cost theory, the resource-based view, and stakeholder theory to rationalize the association between firm internationalization, CSR performance, and firm performance. Using SmartPLS to model the association, it was found that firm internationalization level has significant influence on firm CSR performance, while CSR performance has a significant influence on firm performance. Additionally, there was evidence of an effect from internationalization on firm performance, which is mediated by CSR performance.
Although limited, these findings confirm the results from much the internationalization-CSR performance literature which does exist. While further studies will surely improve upon what is very much a field in its ‘growth’ stage, it is evident that internationalization must be measured with a variety of indicators.
