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Finding the Missing Link between Corporate Social Responsibility and Firm Competitiveness through Social Capital: A Business Ecosystem Perspective

Author

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  • Jaehun Joo

    (Division of Management, College of Business and Economics, Dongguk University-Gyeongju, Gyeongju, Gyeonsangbuk-do 780-714, Korea)

  • Mike Tae-In Eom

    (Pamplin School of Business, University of Portland, Portland, OR 97203, USA)

  • Matthew Minsuk Shin

    (Department of International Trade, College of Commerce and Economics, Konkuk University, Seoul 05029, Korea)

Abstract

There are existing studies that successfully show the impact of corporate social responsibility (CSR) on firms’ financial performance. However, limited attention is paid to its impact on the business ecosystem. CSR could be seen as an investment for building a sustainable business ecosystem, which enhances the competitiveness of this system’s members. In that context, this study apprehends and captures the virtuous cycle of firm competitiveness. On analyzing data from interviews with seven firms, the study offers four propositions identifying the structure of the virtuous cycle linking CSR activities to firm competitiveness through the accumulation of social capital within business ecosystems. Based on those propositions, the study offers new insights into CSR research for academics and strategic planning guidelines for managers that integrate social and economic values for a sustainable business ecosystem and firm competitiveness.

Suggested Citation

  • Jaehun Joo & Mike Tae-In Eom & Matthew Minsuk Shin, 2017. "Finding the Missing Link between Corporate Social Responsibility and Firm Competitiveness through Social Capital: A Business Ecosystem Perspective," Sustainability, MDPI, vol. 9(5), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:5:p:707-:d:97108
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    References listed on IDEAS

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    2. Kimpimäki, Jaan-Pauli & Malacina, Iryna & Lähdeaho, Oskari, 2022. "Open and sustainable: An emerging frontier in innovation management?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Castillo-Palacio & M. & Vargas-García & M.L. & Gomez-Lopez & M.J., 2022. "Intellectual Capital and Innovation in Organizational Competitiveness: An Analysis in the Business Process Outsourcing (BPO)," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 29-48.
    4. Eurídice Mamede de Andrade & Lúcia Lima Rodrigues & José Paulo Cosenza, 2020. "Corporate Behavior: An Exploratory Study of the Brazilian Tax Management from a Corporate Social Responsibility Perspective," Sustainability, MDPI, vol. 12(11), pages 1-21, May.
    5. Xiaotang Zhang & Haili Zhang & Michael Song, 2019. "Does Social Capital Increase Innovation Speed? Empirical Evidence from China," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    6. Jingxun Li & Ruby P. Lee & Lian Zhang, 2018. "Managerial ties and knowledge transfer in business ecosystems: Evidence from Korean subsidiaries in China," Asian Business & Management, Palgrave Macmillan, vol. 17(3), pages 183-207, July.
    7. Jaehun Joo & Jeong-Ja Choi & Namhyun Kim, 2019. "Examining Roles of Tour Dure Producers for Social Capital and Innovativeness in Community-Based Tourism," Sustainability, MDPI, vol. 11(19), pages 1-17, September.
    8. Urszula Markowska-Przybyła & David M. Ramsey, 2018. "Social Capital and Long-Term Regional Development within Poland in the Light of Experimental Economics and Data from a Questionnaire," Sustainability, MDPI, vol. 10(9), pages 1-26, August.
    9. Svetlana S. Galazova, 2023. "Digital banking ecosystems: Comparative analysis and competition regulation in Russia," Journal of New Economy, Ural State University of Economics, vol. 24(4), pages 82-106, January.

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