IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v186y2025ics0148296324005459.html
   My bibliography  Save this article

Innovative organizations’ CSR signaling: Consumer perceptions, expectations, and outcomes

Author

Listed:
  • Aronson, Olivia
  • Hanson, Sara
  • LaFont, Matthew

Abstract

This research builds upon signaling theory and employs three studies to examine the unique CSR signaling of innovative organizations and the associated consumer perceptions, expectations, and outcomes. Archival data analysis reveals that high innovativeness organizations participate in more and distinct types of CSR signaling, compared to their less innovative counterparts. A theoretical framework integrating signaling and expectations theories explores whether the unique CSR signaling of innovative organizations aligns with consumer expectations and the associated outcomes. Two experimental studies demonstrate that consumers have heightened CSR signaling expectations for innovative brands, leading to greater purchase intentions when CSR practices and expectations align. A final study explores how multiple signals inform consumer expectations, specifically the interactive influence of a CEO transition signal. These findings yield insight into the unique CSR signaling of innovative organizations, the related consumer perceptions, expectations, and outcomes, and the importance of signal portfolio management to attain marketplace advantages.

Suggested Citation

  • Aronson, Olivia & Hanson, Sara & LaFont, Matthew, 2025. "Innovative organizations’ CSR signaling: Consumer perceptions, expectations, and outcomes," Journal of Business Research, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324005459
    DOI: 10.1016/j.jbusres.2024.115041
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324005459
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2024.115041?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Olga Hawn & Ioannis Ioannou, 2016. "Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2569-2588, December.
    2. Oliver, Richard L. & Winer, Russell S., 1987. "A framework for the formation and structure of consumer expectations: Review and propositions," Journal of Economic Psychology, Elsevier, vol. 8(4), pages 469-499, December.
    3. Wilbur Chung & Arturs Kalnins, 2001. "Agglomeration effects and performance: a test of the Texas lodging industry," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 969-988, October.
    4. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    5. Sprinkle, Geoffrey B. & Maines, Laureen A., 2010. "The benefits and costs of corporate social responsibility," Business Horizons, Elsevier, vol. 53(5), pages 445-453, September.
    6. Jung, Hyukjin & Bae, Joonheui & Kim, Hanku, 2022. "The effect of corporate social responsibility and corporate social irresponsibility: Why company size matters based on consumers’ need for self-expression," Journal of Business Research, Elsevier, vol. 146(C), pages 146-154.
    7. Verhees, Frans J.H.M. & Meulenberg, Matthew T.G. & Pennings, Joost M.E., 2010. "Performance expectations of small firms considering radical product innovation," Journal of Business Research, Elsevier, vol. 63(7), pages 772-777, July.
    8. Yi Tang & Cuili Qian & Guoli Chen & Rui Shen, 2015. "How CEO hubris affects corporate social (ir)responsibility," Strategic Management Journal, Wiley Blackwell, vol. 36(9), pages 1338-1357, September.
    9. Gaia Rubera & Andrea Ordanini & David A Griffith, 2011. "Incorporating cultural values for understanding the influence of perceived product creativity on intention to buy: An examination in Italy and the US," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(4), pages 459-476, May.
    10. Sanjay Sharma & Irene Henriques, 2005. "Stakeholder influences on sustainability practices in the Canadian forest products industry," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 159-180, February.
    11. Ilya R. P. Cuypers & Ping-Sheng Koh & Heli Wang, 2016. "Sincerity in Corporate Philanthropy, Stakeholder Perceptions and Firm Value," Organization Science, INFORMS, vol. 27(1), pages 173-188, February.
    12. Elitzur, Ramy & Gavious, Arieh, 2003. "Contracting, signaling, and moral hazard: a model of entrepreneurs, 'angels,' and venture capitalists," Journal of Business Venturing, Elsevier, vol. 18(6), pages 709-725, November.
    13. Julian Bafera & Simon Kleinert, 2023. "Signaling Theory in Entrepreneurship Research: A Systematic Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2419-2464, November.
    14. Yuri Mishina & Emily S. Block & Michael J. Mannor, 2012. "The path dependence of organizational reputation: how social judgment influences assessments of capability and character," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 459-477, May.
    15. Scott R. Colwell & Ashwin W. Joshi, 2013. "Corporate Ecological Responsiveness: Antecedent Effects of Institutional Pressure and Top Management Commitment and Their Impact on Organizational Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 73-91, February.
    16. Mahfuja Malik, 2015. "Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature," Journal of Business Ethics, Springer, vol. 127(2), pages 419-438, March.
    17. Pérez-Luño, Ana & Wiklund, Johan & Cabrera, Ramón Valle, 2011. "The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption," Journal of Business Venturing, Elsevier, vol. 26(5), pages 555-571, September.
    18. Timothy B. Heath & Devon Delvecchio & Michael S. Mccarthy, 2011. "The Asymmetric Effects of Extending Brands to Lower and Higher Quality," Post-Print hal-00668763, HAL.
    19. Mitra, Debanjan & Fay, Scott, 2010. "Managing Service Expectations in Online Markets: A Signaling Theory of E-tailer Pricing and Empirical Tests," Journal of Retailing, Elsevier, vol. 86(2), pages 184-199.
    20. Constance E. Helfat, 1994. "Firm-Specificity in Corporate Applied R&D," Organization Science, INFORMS, vol. 5(2), pages 173-184, May.
    21. Pollock, Timothy G. & Chen, Guoli & Jackson, Eric M. & Hambrick, Donald C., 2010. "How much prestige is enough? Assessing the value of multiple types of high-status affiliates for young firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 6-23, January.
    22. Clyde Eiríkur Hull & Sandra Rothenberg, 2008. "Firm performance: the interactions of corporate social performance with innovation and industry differentiation," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 781-789, July.
    23. Will Drover & Matthew S. Wood & Andrew C. Corbett, 2018. "Toward a Cognitive View of Signalling Theory: Individual Attention and Signal Set Interpretation," Journal of Management Studies, Wiley Blackwell, vol. 55(2), pages 209-231, March.
    24. Danny Miller & Peter H. Friesen, 1978. "Archetypes of Strategy Formulation," Management Science, INFORMS, vol. 24(9), pages 921-933, May.
    25. Waheed Kareem Abdul, 2018. "How do consumers react to price reduction of innovative products? An empirical investigation of price fairness perceptions of past purchase," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 276-290, August.
    26. Moldovan, Sarit & Shoham, Meyrav & Steinhart, Yael, 2023. "Sending mixed signals: How congruent versus incongruent signals of popularity affect product appeal," International Journal of Research in Marketing, Elsevier, vol. 40(4), pages 881-897.
    27. Balboa, Marina & Marti, Jose, 2007. "Factors that determine the reputation of private equity managers in developing markets," Journal of Business Venturing, Elsevier, vol. 22(4), pages 453-480, July.
    28. Randolph P. Beatty & Edward J. Zajac, 1987. "Ceo change and firm performance in large corporations: Succession effects and manager effects," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 305-317, July.
    29. Joseph E. Stiglitz, 2000. "The Contributions of the Economics of Information to Twentieth Century Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1441-1478.
    30. Filieri, Raffaele, 2015. "What makes online reviews helpful? A diagnosticity-adoption framework to explain informational and normative influences in e-WOM," Journal of Business Research, Elsevier, vol. 68(6), pages 1261-1270.
    31. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    32. Norbert Steigenberger & Hendrik Wilhelm, 2018. "Extending Signaling Theory to Rhetorical Signals: Evidence from Crowdfunding," Organization Science, INFORMS, vol. 29(3), pages 529-546, June.
    33. Zhi Tang & Clyde Eiríkur Hull & Sandra Rothenberg, 2012. "How Corporate Social Responsibility Engagement Strategy Moderates the CSR–Financial Performance Relationship," Journal of Management Studies, Wiley Blackwell, vol. 49(7), pages 1274-1303, November.
    34. Luis Perez-Batres & Jonathan Doh & Van Miller & Michael Pisani, 2012. "Stakeholder Pressures as Determinants of CSR Strategic Choice: Why do Firms Choose Symbolic Versus Substantive Self-Regulatory Codes of Conduct?," Journal of Business Ethics, Springer, vol. 110(2), pages 157-172, October.
    35. Christopher Wickert & Andreas Georg Scherer & Laura J. Spence, 2016. "Walking and Talking Corporate Social Responsibility: Implications of Firm Size and Organizational Cost," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1169-1196, November.
    36. Pushpika Vishwanathan & Hans (J.) van Oosterhout & Pursey P. M. A. R. Heugens & Patricio Duran & Marc van Essen, 2020. "Strategic CSR: A Concept Building Meta‐Analysis," Journal of Management Studies, Wiley Blackwell, vol. 57(2), pages 314-350, March.
    37. Mikko Manner, 2010. "The Impact of CEO Characteristics on Corporate Social Performance," Journal of Business Ethics, Springer, vol. 93(1), pages 53-72, June.
    38. Taj, Saud A., 2016. "Application of signaling theory in management research: Addressing major gaps in theory," European Management Journal, Elsevier, vol. 34(4), pages 338-348.
    39. Gaia Rubera & Ahmet H. Kirca, 2017. "You gotta serve somebody: the effects of firm innovation on customer satisfaction and firm value," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 741-761, September.
    40. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    41. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Javier Forcadell & Antonio Lorena & Elisa Aracil, 2023. "The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1258-1272, May.
    2. Ponce de Leon, Rebecca & Carter, James T. & Rosette, Ashleigh Shelby, 2024. "Sincere solidarity or performative pretense? Evaluations of organizational allyship," Organizational Behavior and Human Decision Processes, Elsevier, vol. 180(C).
    3. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    4. Maurer, Joshua D. & Creek, Steven A. & Allison, Thomas H. & Bendickson, Joshua S. & Sahaym, Arvin, 2023. "Affiliation rhetoric and digital orientation in crowdfunding appeals," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. Jin Yan & Talat Mehmood Khan & Naiping Zhu & Muhammad Awais Khan & Hazrat Hassan, 2024. "Does CEO’s initial tenure enhance CSR practices? Evaluating the consequences of CEO’s initial tenure CSR engagement in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22839-22862, September.
    6. Bhaskar, Ratikant & Bansal, Shashank & Abbassi, Wajih & Pandey, Dharen Kumar, 2023. "CEO compensation and CSR: Economic implications and policy recommendations," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 232-256.
    7. Lu, Hao & Oh, Won-Yong & Kleffner, Anne & Chang, Young Kyun, 2021. "How do investors value corporate social responsibility? Market valuation and the firm specific contexts," Journal of Business Research, Elsevier, vol. 125(C), pages 14-25.
    8. Li, Yaoqin, 2024. "Linking labor with capital: How employee friendly treatment impact trade credit availability," Pacific-Basin Finance Journal, Elsevier, vol. 87(C).
    9. Saridakis, Charalampos & Angelidou, Sofia & Woodside, Arch G., 2023. "How historical and social aspirations reshape the relationship between corporate financial performance and corporate social responsibility," Journal of Business Research, Elsevier, vol. 157(C).
    10. Julian Bafera & Simon Kleinert, 2023. "Signaling Theory in Entrepreneurship Research: A Systematic Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2419-2464, November.
    11. Gnekpe, Christian & Jimenez, Alfredo, 2023. "Smoke signal: When firms' patent strategy and local patent protection system affect equity stakes in cross-border acquisitions," Journal of International Management, Elsevier, vol. 29(6).
    12. Mataigne, Virginie & Meoli, Michele & Vanacker, Tom & Vismara, Silvio, 2025. "False signaling by platform team members and post-campaign venture outcomes: Evidence from an equity crowdfunding platform," Journal of Business Venturing, Elsevier, vol. 40(1).
    13. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    14. Taj, Saud A., 2016. "Application of signaling theory in management research: Addressing major gaps in theory," European Management Journal, Elsevier, vol. 34(4), pages 338-348.
    15. Francesco Martielli & Vittorio Laus & Antonio Salvi & Anna Kotaskova, 2025. "Unlocking funding success: intercultural entrepreneurship dynamics in European startups," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-31, December.
    16. Mendiola Teng-Calleja & Alfred Presbitero & Mira Michelle Guzman, 2023. "Organizational direction, expectations, and employees’ intention for Green HRM practices in the Philippines: a signaling theory perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1301-1327, September.
    17. Ioannis Ioannou & George Kassinis & Giorgos Papagiannakis, 2023. "The Impact of Perceived Greenwashing on Customer Satisfaction and the Contingent Role of Capability Reputation," Journal of Business Ethics, Springer, vol. 185(2), pages 333-347, June.
    18. Wójcik Piotr, 2018. "The business case for corporate social responsibility: A literature overview and integrative framework," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(1), pages 121-148, March.
    19. Pieter de Jong & Lakshmi Goel, 2016. "The influence of security analysts on CEO pay cuts," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(1), pages 26-52, February.
    20. Yann Truong & Brian G. Nagy, 2021. "Nascent ventures’ green initiatives and angel investor judgments of legitimacy and funding," Small Business Economics, Springer, vol. 57(4), pages 1801-1818, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324005459. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.