Abstract
Although the relationship between institutional pressures and corporate social responsibility (CSR) has been well studied, its underlying mechanisms and boundary conditions are not well understood. To remedy these gaps, we draw on institutional theory and the literature on organisational sensemaking, stakeholder salience and the resource-based view of the firm. We test our conceptual model using survey data from 442 managers of hospitality and tourism enterprises based in Egypt and the United Kingdom. SEM-based results show that both stakeholder issue salience and discretionary slack mediate the link between institutional pressures and external CSR. National culture moderates the effects of institutional pressures on both stakeholder issue salience and external CSR. Multi-group analyses reveal noticeable differences between Egyptian and British managers regarding their interpretations of CSR issues and the institutional environment. This study contributes to the emerging micro-institutional stream and cross-cultural CSR research, providing important insights for managers, policymakers and researchers.