A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators

Corporate embeddedness, the extent to which companies anchor themselves in a local context through political, economic, academic, social, and environmental connections, remains a key area of research in social and regional sciences. Due to the limited availability of secondary data on corporate...

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Main Author: Zsuzsanna PÁLFFY
Format: Article
Language:English
Published: Academy of Economic Studies (ASE) 2025-06-01
Series:European Journal of Interdisciplinary Studies
Online Access:https://ejist.ro/files/pdf/560.pdf
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author Zsuzsanna PÁLFFY
author_facet Zsuzsanna PÁLFFY
author_sort Zsuzsanna PÁLFFY
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description Corporate embeddedness, the extent to which companies anchor themselves in a local context through political, economic, academic, social, and environmental connections, remains a key area of research in social and regional sciences. Due to the limited availability of secondary data on corporate relationships, measurement methods often rely on qualitative data. Corporate communication, especially CEO letters in annual reports, is a frequently neglected secondary data source that has grown in significance in meeting stakeholder expectations and providing insights into corporate strategies and operations. Despite the growing scholarly interest in CEO letters, little is known about embeddedness narratives and the cultural factors that influence them. Through an analysis of the cultural variations in embeddedness narratives found in CEO letters from the fashion and cosmetics industries, this study suggests a novel approach to operationalising corporate local embeddedness. The focus on these sectors is justified by the significant variations in embeddedness orientations across industries and the accessibility of relevant data. The study finds that CEO letters can serve as a complementary data source for assessing corporate embeddedness, as they reveal both local and global orientations. Using software-based content analysis, key themes and keywords were identified along the Quintuple Helix model, providing a structured approach to analysing embeddedness. The results highlight cultural influences, with reactive cultures emphasising social sustainability, while academic engagement challenges existing assumptions. In addition to reflecting corporate strategies, CEO letters offer insights into sectoral characteristics. However, more qualitative research is still required to fully comprehend a company’s level of embedding.
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spelling doaj-art-2ee3907bd2bb4712b1aa6ed05dd347e32025-08-20T03:28:10ZengAcademy of Economic Studies (ASE)European Journal of Interdisciplinary Studies2067-37952025-06-0117110112310.24818/ejis.2025.07A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as IndicatorsZsuzsanna PÁLFFY Corporate embeddedness, the extent to which companies anchor themselves in a local context through political, economic, academic, social, and environmental connections, remains a key area of research in social and regional sciences. Due to the limited availability of secondary data on corporate relationships, measurement methods often rely on qualitative data. Corporate communication, especially CEO letters in annual reports, is a frequently neglected secondary data source that has grown in significance in meeting stakeholder expectations and providing insights into corporate strategies and operations. Despite the growing scholarly interest in CEO letters, little is known about embeddedness narratives and the cultural factors that influence them. Through an analysis of the cultural variations in embeddedness narratives found in CEO letters from the fashion and cosmetics industries, this study suggests a novel approach to operationalising corporate local embeddedness. The focus on these sectors is justified by the significant variations in embeddedness orientations across industries and the accessibility of relevant data. The study finds that CEO letters can serve as a complementary data source for assessing corporate embeddedness, as they reveal both local and global orientations. Using software-based content analysis, key themes and keywords were identified along the Quintuple Helix model, providing a structured approach to analysing embeddedness. The results highlight cultural influences, with reactive cultures emphasising social sustainability, while academic engagement challenges existing assumptions. In addition to reflecting corporate strategies, CEO letters offer insights into sectoral characteristics. However, more qualitative research is still required to fully comprehend a company’s level of embedding.https://ejist.ro/files/pdf/560.pdf
spellingShingle Zsuzsanna PÁLFFY
A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
European Journal of Interdisciplinary Studies
title A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
title_full A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
title_fullStr A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
title_full_unstemmed A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
title_short A Novel Approach to the Operationalization of Corporate Local Embeddedness: Cultural Perspectives on Narratives as Indicators
title_sort novel approach to the operationalization of corporate local embeddedness cultural perspectives on narratives as indicators
url https://ejist.ro/files/pdf/560.pdf
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