Influences of social ties on firms’ performance - A study in Vietnam on corporate social responsibility practices

Abstract

Social ties and their influences on firm’s performance are still issues of many debates. The reason is that previous studies gave different findings about the effects of social ties on firm’s performance. This study, therefore, focuses on finding what managers in construction firms perceive of social ties in their business and how these ties affect corporate social responsibility (CSR) practices – an aspect of firm’s performance. To address these research objectives, qualitative approach is employed and in-depth interview with managers in construction firms is conducted to collect the data. Furthermore, the study also explores how managers think of CSR changes in the near future. The research findings show that interviewees strongly believe in CSR changes including both internal and external changes. In terms of social ties, the research also identifies government authorities and professional associations; and business partners as political and business ties, respectively. The findings show that managers easily realize business ties and their effects on CSR practices. Meanwhile, only some managers with years of seniority can perceive of political ties and their effects. The research findings also suggest some noteworthy issues for the authorities of the industry to consider including lack of information among managers about firm’s aspects and relationships, and the significance of professional associations (a type of political ties) although these ties currently have no influences on CSR practices of construction businesses.