Advertisement

KSCE Journal of Civil Engineering

, Volume 23, Issue 5, pp 1939–1951 | Cite as

Driving Mechanism of CSR Strategy in Chinese Construction Companies based on Neo-Institutional Theory

  • Xiaojiang Gao-Zeller
  • Xiaodong Li
  • Fan YangEmail author
  • Weina Zhu
Construction Management
  • 66 Downloads

Abstract

Chinese construction companies, represented by huge Chinese construction corporations (HCCCs), have taken steps to develop their CSR (corporate social responsibility) strategy. To investigate the driving mechanisms of the CSR strategy of HCCCs, an analytical framework is proposed based on neo-institutional theory to explore how organizational legitimacy affects managerial perceptible institutional pressures and ultimately affects the development of CSR strategy. Specific scales were developed for HCCCs, and a questionnaire survey was conducted. Structural equation modelling was adopted to verify the paths proposed by the theoretical model. The results show that the expectations of the public and subcontractors/suppliers do not constitute sources of HCCCs’ organizational legitimacy. Different stakeholders have different influences on different institutional pressures. Environmental organizations have the most prominent effects. Government can reduce concerns about the CSR performance of HCCCs in society, and clients have a significant influence on the formation of institutional pressure, but employees’ demands still need to be taken seriously by management. Additionally, due to the lack of regulations and norms in China, the promotion of CSR strategies relies mainly on the spontaneous demands of HCCCs. The applicability of neo-institutional theory to construction corporations is verified. The identified driving mechanisms help to effectively promote business strategy for HCCCs.

Keywords

corporate social responsibility Chinese construction corporation neo-institutional theory institutional pressure organizational legitimacy 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aguilera, R. V., Rupp, D. E., Williams, C. A., and Ganapathi, J. (2007). “Putting the S. Back in corporate social responsibility: A multilevel theory of social change in organizations.” Academy of Management Review, Vol. 32, No. 3, pp. 836–863, DOI: 10.5465/amr.2007.25275678.CrossRefGoogle Scholar
  2. Bagozzi, R. P. and Yi, Y. (1988). “On the evaluation of structural equation models.” Journal of the Academy of Marketing Science, Vol. 16, No. 1, pp. 74–94, DOI: 10.1007/BF02723327.CrossRefGoogle Scholar
  3. Barthorpe, S., James, R., and Taylor, S. (2004). Corporate social responsibility: An imperative or imposition upon the UK construction industry, CIB World Congress, Toronto, Ontario, Canada.Google Scholar
  4. Bhattacharya, C. B. and Sen, S. (2004). “Doing better at doing good: When, why, and how consumers respond to corporate social initiatives.” California Management Review, Vol. 47, No. 1, pp. 9–24, DOI: 10.2307/41166284.CrossRefGoogle Scholar
  5. Bice, S. (2017). “Corporate social responsibility as institution: A social mechanisms framework.” Journal of Business Ethics, Vol. 143, No. 1, pp. 17–34, DOI: 10.1007/s10551-015-2791-1.CrossRefGoogle Scholar
  6. Bondy, K., Moon, J., and Matten, D. (2012). “An institution of corporate social responsibility (CSR) in multi-national corporations (MNCs): Form and implications.” Journal of Business Ethics, Vol. 111, No. 2, pp. 281–299, DOI: 10.1007/s10551-012-1208-7.CrossRefGoogle Scholar
  7. Campbell, J. L. (2007). “Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility.” Academy of Management Review, Vol. 32, No. 3, pp. 946–967, DOI: 10.5465/amr.2007.25275684.CrossRefGoogle Scholar
  8. Coombs, W. T. and Holladay, S. J. (2011). Managing corporate social responsibility: A communication approach, Wiley-Blackwell, Hoboken, NJ, USA.CrossRefGoogle Scholar
  9. DiMaggio, P. and Powell, W. W. (1983). “The iron cage revisited: Collective rationality and institutional isomorphism in organizational fields.” American Sociological Review, Vol. 48, No. 2, pp. 147–160.CrossRefGoogle Scholar
  10. Dixon, W. (2010). The impacts of construction and the built environment, WD Re-Thinking Ltd., Letchworth, UK. https://doi.org/www.willmottdixon.co.uk/asset/download/9462.Google Scholar
  11. Feng, J. (2010). The path of the impact on corporate social responsibility behaviour, PhD Thesis, University of Fudan, Shanghai, China.Google Scholar
  12. Gavetti, G. and Levinthal, D. (2000). “Looking forward and looking backward: Cognitive and experiential search.” Administrative Science Quarterly, Vol. 45, No. 1, pp. 113–137.CrossRefGoogle Scholar
  13. Betts, M. (2009). Global construction 2020-A global forecast for the construction industry over the next, decade to 2020, Global Construction Perspectives and Oxford Economics, London, UK.Google Scholar
  14. Griffith, A. (2011). “Fulfilling contractors’ corporate social responsibilities using standards-based management systems.” International Journal of Construction Management, Vol. 11, No. 2, pp. 37–47, DOI: 10.1080/15623599.2011.10773167.CrossRefGoogle Scholar
  15. Jiang, W. and Wong, J. K. W. (2016). “Key activity areas of corporate social responsibility (CSR) in the construction industry: A study of China.” Journal of Cleaner Production, Vol. 113, pp. 850–860, DOI: 10.1016/j.jclepro.2015.10.093.CrossRefGoogle Scholar
  16. Jones, P., Comfort, D., and Hillier, D. (2006). “Corporate social responsibility and the UK construction industry.” Journal of Corporate Real Estate, Vol. 8, No. 3, pp. 134–150, DOI: 10.1108/14630010610711757.CrossRefGoogle Scholar
  17. Kshetri, N. (2007). “Institutional factors affecting offshore business process and information technology outsourcing.” Journal of International Management, Vol. 13, No. 1, pp. 38–56, DOI: 10.1016/j.intman.2006.05.003.CrossRefGoogle Scholar
  18. Lee, M. D. P. (2011). “Configuration of external influences: The combined effects of institutions and stakeholders on corporate social responsibility strategies.” Journal of Business Ethics, Vol. 102, No. 2, pp. 281–298, DOI: 10.1007/s10551-011-0814-0.CrossRefGoogle Scholar
  19. Lichtenstein, S., Badu, E., Owusu-Manu, D. G., Edwards, D. J., and Holt, G. D. (2013). “Corporate social responsibility architecture and project alignments: A study of the Ghanaian construction industry.” Journal of Engineering, Design and Technology, Vol. 11, No. 3, pp. 334–353, DOI: 10.1108/JEDT-09-2012-0041.CrossRefGoogle Scholar
  20. Loosemore, M. and Lim, B. T. H. (2017). “Linking corporate social responsibility and organizational performance in the construction industry.” Construction Management and Economics, Vol. 35, No. 3, pp. 90–105, DOI: 10.1080/01446193.2016.1242762.CrossRefGoogle Scholar
  21. Lu, W., Shen, L., and Yam, M. C. H. (2008). “Critical success factors for competitiveness of contractors: China study.” Journal of Construction Engineering and Management, Vol. 134, No. 12, pp. 972–982, DOI: 10.1061/(ASCE)0733-9364(2008)134:12(972).CrossRefGoogle Scholar
  22. Manville, B. and Ober, J. (2003). “Beyond empowerment: Building a company of citizens.” Harvard Business Review, Vol. 81, No. 1, pp. 48–53.Google Scholar
  23. Marquis, C., Glynn, M. A., and Davis, G. F. (2007). “Community isomorphism and corporate social action.” Academy of Management Review, Vol. 32, No. 3, pp. 925–945.CrossRefGoogle Scholar
  24. Meyer, J. W. and Rowan, B. (1977). “Institutionalized organizations: Formal structure as myth and ceremony.” American Journal of Sociology, Vol. 83, No. 2, pp. 340–363.CrossRefGoogle Scholar
  25. Meyer, K. E., Estrin, S., Bhaumik, S. K., and Peng, M. W. (2009). “Institutions, resources, and entry strategies in emerging economies.” Strategic Management Journal, Vol. 30, No. 1, pp. 61–80, DOI: 10.1002/smj.720.CrossRefGoogle Scholar
  26. Mitchell, R. K., Agle, B. R., and Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts.” Academy of Management Review, Vol. 22, No. 4, pp. 853–886.CrossRefGoogle Scholar
  27. Nadkarni, S. and Barr, P. S. (2008). “Environmental context, managerial cognition, and strategic action: An integrated view.” Strategic Management Journal, Vol. 29, No. 13, pp. 1395–1427, DOI: 10.1002/smj.717.CrossRefGoogle Scholar
  28. Ntim, C. G. and Soobaroyen, T. (2013). “Corporate governance and performance in socially responsible corporations: New empirical insights from a neo-institutional framework.” Corporate Governance: An International Review, Vol. 21, No. 5, pp. 468–494, DOI: 10.1111/corg.12026.CrossRefGoogle Scholar
  29. Nunnally, J. C. and Bernstein, I. H. (1994). “The theory of measurement error.” Psychometric Theory, Vol. 3, pp. 209–247.Google Scholar
  30. Petrovic-Lazarevic, S. (2008). “The development of corporate social responsibility in the Australian construction industry.” Construction Management and Economics, Vol. 26, No. 2, pp. 93–101, DOI: 10.1080/01446190701819079.CrossRefGoogle Scholar
  31. Porter, M. E. and Kramer, M. R. (2006). “Strategy and society: The link between corporate social responsibility and competitive advantage.” Harvard Business Review, Vol. 84, No. 12, pp. 78–92.Google Scholar
  32. Price, A. D. and Newson, E. (2003). ‘The strategy process within large construction organizations.” Engineering, Construction and Architectural Management, Vol. 10, No. 4, pp. 283–296, DOI: 10.1108/09699980310489997.CrossRefGoogle Scholar
  33. Sama, L. and Shoaf, V. (2003). “Global governance in time of crisis containing the incidence and implications of corporate abuses.” Proc., International Conference of the Global Business and Technology Association, GBATA, Budapest, Hungary, pp. 1151–1158.Google Scholar
  34. Scholtens, B. (2006). “Finance as a driver of corporate social responsibility.” Journal of Business Ethics, Vol. 68, pp. 19–33, DOI: 10.1007/s10551-006-9037-1.CrossRefGoogle Scholar
  35. Scott, W. R. (2008). Institutions and organizations, Sage Publications Inc., Thousand Oaks, CA, USA.Google Scholar
  36. Scott, W. R. and Meyer, J. W. (1983). “The organization of societal sectors.” Organizational Environments: Ritual and Rationality, Sage Publications Inc., Thousand Oaks, CA, USA.Google Scholar
  37. Shang, H. B. and Huang, P. L. (2011). “Management implications of the new institutionalism to strategic management theory.” Chinese Journal Management, Vol, 8, No. 3, p. 396.Google Scholar
  38. Shen, C. H. and Chang, Y. (2009). “Ambition versus conscience, does corporate social responsibility pay off? The application of matching methods.” Journal of Business Ethics, Vol. 88, No. 1, pp. 133–153, DOI: 10.1007/s10551-008-9826-9.CrossRefGoogle Scholar
  39. Shen, L. Y., Tam, V. W. Y., Tam, L., and Ji, Y. B. (2010). “Project feasibility study: The key to successful implementation of sustainable and socially responsible construction management practice.” Journal of Cleaner Production, Vol. 18, No. 3, pp. 254–259, DOI: 10.1016/j.jclepro.2009.10.014.CrossRefGoogle Scholar
  40. Statistics Department of Fixed Assets Investment (2016). China statistical yearbook on construction, National Bureau of Statistics, Beijing, China.Google Scholar
  41. Tam, V. W., Shen, L. Y., and Tam, C. M. (2007). “Assessing the levels of material wastage affected by sub-contracting relationships and projects types with their correlations.” Building and Environment, Vol. 42, No. 3, pp. 1471–1477, DOI: 10.1016/j.jclepro.2009.10.014.CrossRefGoogle Scholar
  42. Wang, J. Y., Kang, X. P., and Tam, V. W. Y. (2008). “An investigation of construction wastes: an empirical study in Shenzhen.” Journal of Engineering, Design and Technology, Vol. 6, No. 3, pp. 227–236 DOI: 10.1108/17260530810918252.CrossRefGoogle Scholar
  43. Wilson, I. (1975). “What one company is doing about today’s demands on business.” Changing Business-society Interrelationships, pp. 23–53.Google Scholar
  44. Xin, J. (2008). “CSR performance evaluation indicators based on stakeholder perspective.” Shandong Social Science, Vol. 11, No. 5, pp. 83–86.Google Scholar
  45. Zhao, Z. Y., Zhao, X. J., Davidson, K., and Zuo, J. (2012). “A corporate social responsibility indicator system for construction corporations.” Journal of Cleaner Production, Vol. 29, pp. 277–289, DOI: 10.1016/j.jclepro.2011.12.036.CrossRefGoogle Scholar
  46. Zhu, Q. and Zhang, Q. (2015). “Evaluating practices and drivers of corporate social responsibility: The Chinese context.” Journal of Cleaner Production, Vol. 100, pp. 315–324, DOI: 10.1016/j.jclepro.2015.03.053.CrossRefGoogle Scholar

Copyright information

© Korean Society of Civil Engineers 2019

Authors and Affiliations

  • Xiaojiang Gao-Zeller
    • 1
  • Xiaodong Li
    • 1
  • Fan Yang
    • 2
    Email author
  • Weina Zhu
    • 1
  1. 1.Dept. of Construction ManagementTsinghua UniversityBeijingChina
  2. 2.School of Management Science & EngineeringCentral University of Finance and EconomicsBeijingChina

Personalised recommendations