Knowledge Flows in Social Business Joint Ventures : contribution to innovative capabilities of parent firms, and strategic implication for corporate social responsibility

Abstract

This study aims to understand what relationship exists between the Corporate Social Responsibility (CSR) orientation of a firm and the innovative capabilities that shape its ability to prosper in its environment. To analyze these relationships, Social Business Joint Ventures (SBJV) were chosen as demonstration of a firm’s CSR orientation, as they are recognized in related literature as source of creativity and flexibility. A review of relevant literature revealed a gap between inter-organizational learning theories and cases of cross-sector partnerships stemming from CSR initiatives. In turn, this study relied on open innovation theories to establish a link between the two fields of research. It applied a multiple qualitative exploratory case study methodology using secondary data. The three case studies from large Multinational Enterprises (MNEs) operating in Bangladesh illustrate knowledge transfer dynamics within the context of SBJVs and within the CSR and global strategies of the firm. The findings suggest that engagement in a SBJV contributes to innovative capabilities of the parent firm in terms of knowledge flows and knowledge base management, as well as in terms of strategic positioning of CSR in the core business of the parent firm.