Dual Drivers of Institutional Pressure and Socio-Psychological Expectations: A Multilevel Analysis of CSR Practices in Emerging Markets
DOI:
https://doi.org/10.62486/agma2025273Keywords:
Corporate Social Responsibility (CSR), Structural Equation Modeling (SEM), Confirmatory Factor Analysis (CFA), Environmental Commitments, Reliability TestingAbstract
Corporate Social Responsibility (CSR) has gained increasing relevance in emerging markets, driven by globalization, stakeholder expectations, and evolving regulatory frameworks. Firms are expected to balance profit-making with broader social and environmental commitments. CSR adoption is inconsistent across firms, often influenced by external institutional demands and internal socio-psychological dynamics, and there is limited understanding of how these drivers shape CSR behaviors in a transitional economic environment. This research investigates the combined influence of institutional pressures and socio-psychological expectations on CSR engagement through a multilevel lens. Data were collected from 312 companies across emerging markets using a structured questionnaire capturing key institutional factors, regulatory pressure, normative pressure, and cognitive pressure, along with core socio-psychological constructs, including leadership commitment, organizational values, and employee CSR expectations. Confirmatory Factor Analysis (CFA) and reliability testing (Cronbach’s alpha > 0.80) ensured the validity and internal consistency of the constructs. The relationships were analyzed using Structural Equation Modeling (SEM) and path analysis to identify both direct and mediated effects. The SEM model demonstrated the most important factors in increasing CSR are RP (β = 0,32, p < 0,05), LC (β = 0,29, p < 0,05), and ECE (β = 0,30, p < 0,05). Findings reveal that institutional pressures significantly influence CSR adoption, but their effect is enhanced or diminished based on the strength of internal socio-psychological alignment. This research provides a nuanced understanding of CSR drivers in emerging markets, highlighting the interplay between external forces and internal motivations. It provides valuable insights for corporate strategists and policymakers aiming to foster sustainable, values-driven business practices in developing economies.
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