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The Role of Corporate Social Responsibility in Enhancing Firm Performance from the Perspective of IT Employees in Jordanian Banking Sector: The Mediating Effect of Transformational Leadership

Author

Listed:
  • Ra’ed Masa’deh
  • Ala'aldin Alrowwad
  • Forat Alkhalafat
  • Bader Obeidat
  • Shadi Abualoush

Abstract

Direct relationship between Corporate Social Responsibility (CSR) and firm performance has been extensively studied by scholars in several majors. The direct examination of this relationship seems to be relatively imprecise since many other variables have indirect influence on this relationship. Therefore, this study takes into considerations Transformational Leadership (TFL) as a probable mediator in the role CSR plays to enhance the firm performanceamong Information Technology (IT) employees in banking sector. Data were collected from IT employees within IT departments from 25 banks in Jordan through a questionnaire survey. 354 valid questionnaires were returned and analyzed using different quantitative techniques. This research finds that CSR has a significant influence on firm performance and three of its dimensions, namely, economic responsibility, ethical responsibility, and discretionary responsibility have a significant effect on firm performance, whereas legal responsibility has no remarkable effect. It also finds that CSR has a positive influence on TFL. Specifically, discretionary responsibility has a significant effect on TFL, whereas other dimensions have no significant contribution to TFL. As well as, it finds that TFL has a positive contribution to the firm performance. Inspirational motivation and individualized consideration have the only remarkable contribution to the firm performance. Finally, it has been revealed that TFL partially mediates the relationship between CSR and firm performance.

Suggested Citation

  • Ra’ed Masa’deh & Ala'aldin Alrowwad & Forat Alkhalafat & Bader Obeidat & Shadi Abualoush, 2018. "The Role of Corporate Social Responsibility in Enhancing Firm Performance from the Perspective of IT Employees in Jordanian Banking Sector: The Mediating Effect of Transformational Leadership," Modern Applied Science, Canadian Center of Science and Education, vol. 12(7), pages 1-1, July.
    • Handle: RePEc:ibn:masjnl:v:12:y:2018:i:7:p:1
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    Cited by:

    1. Raed Kareem Kanaan & Ra’ed Masa’deh, 2018. "Increasing Citizen Engagement and Participation through eGovernment in Jordan," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 351-351, November.
    2. Bader Obeidat & Razan Nofal & Ra’ed Masa’deh, 2018. "The Effect of Transformational Leadership on Entrepreneurial Orientation: The Mediating Role of Organizational Learning Capability," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-77, November.
    3. Bader Obeidat & Sura Altheeb & Ra’ed Masa’deh, 2018. "The Impact of Internal Corporate Social Responsibility on Job Satisfaction in Jordanian Pharmaceutical Companies," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 105-105, November.
    4. Bader Obeidat & Lama Hashem & Ra’ed Masa’deh, 2018. "The Influence of Knowledge Management Uses on Total Quality Management Practices in Commercial Banks of Jordan," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-1, November.
    5. Rand Al-Dmour & Omayma Yassine & Ra’ed Masa’deh, 2018. "A Review of Literature on the Associations among Employee Empowerment, Work Engagement and Employee Performance," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 313-313, November.
    6. Alaaldin Alrowwad & Bader Obeidat & Areej Al-Khateeb & Ra’ed Masa’deh, 2018. "The Role of Work/Life Balance and Motivational Drivers of Employee Engagement on the Relationship between Talent Management and Organization Performance: A Developing Country Perspective," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-35, November.
    7. Abu Elnasr E. Sobaih & Hassane Gharbi & Ahmed M. Hasanein & Ahmed E. Abu Elnasr, 2022. "The Mediating Effects of Green Innovation and Corporate Social Responsibility on the Link between Transformational Leadership and Performance: An Examination Using SEM Analysis," Mathematics, MDPI, vol. 10(15), pages 1-19, July.
    8. Bader Obeidat & Hadeel Fareed Tawalbeh & Ra’ed Masa’deh, 2018. "The Relationship between Human Resource Management (HRM) Practices, Total Quality Management (TQM) Practices and Competitive Advantages," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-17, November.
    9. Bader Obeidat & Haneen Yassin & Ra’ed Masa’deh, 2018. "The Effect of Talent Management on Organizational Effectiveness in Healthcare Sector," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-55, November.
    10. Collins Kankam-Kwarteng & George Nana Agyekum Donkor & Francis Osei & Ofosu Amofah, 2024. "Do corporate social responsibility and corporate image influence performance of the financial sector?," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 306-317, June.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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