【公开学术报告】A Tale of Two Signals: Partner CSR versus CSI and Alliance Formation

A Tale of Two Signals: Partner CSR versus CSI and Alliance Formation

Guest Speaker:   YU Qiwen (Singapore Management University)

Date & Time:      9:30-11:00 (Beijing Time), Fri. 21st, Oct. 2022

Zoom Meeting:   883 635 84606（Password: 360271）

Click the Link:    https://us02web.zoom.us/j/88363584606

ABSTRACT

This study examines how a potential partner’s performances in corporate social responsibility (CSR) and corporate social irresponsibility (CSI) may play distinct signaling roles in influencing alliance formation. We argue that partner CSR primarily serves as a signal of the partner’s trustworthiness, increasing a focal firm’s willingness to collaborate with a high-CSR partner. In contrast, partner CSI primarily signals the risks of negative spillover of a partner’s reputation for social irresponsibility to a focal firm, reducing the focal firm’s propensity to ally with a high-CSI partner. We further identify three key boundary conditions, namely, same industry, same location, and greater partner-specific alliance experience, that help verify the distinct signaling roles of partner CSR and CSI. Using a sample of alliances formed by high-tech firms in the United States between 1995 and 2016, we found a positive (negative) relationship between partner CSR (CSI) and the likelihood of alliance formation. Moreover, we found that the presence of the three conditions weakens the positive relationship between partner CSR and alliance formation but strengthens the negative relationship between partner CSI and alliance formation.

Keywords: Alliance formation, Corporate social responsibility (CSR), Corporate social irresponsibility (CSI), Partner trustworthiness, Spillover effect