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The impact of tourism firm’s philanthropy decision on its business objective

Author

Listed:
  • Keling Wang

    (Yunnan University, China)

  • Chien-Pang Lin

    (Chang Jung Christian University, Republic of China)

  • Ming-Hsiang Chen

    (Washington State University, USA)

  • Evelina Gillard

    (César Ritz Colleges, Switzerland; ABMS Open University of Switzerland, Switzerland)

Abstract

This study explains the impact of tourism firm’s corporate philanthropy (CP) decision on its business objective in a competition environment from a strategic management perspective. Key results are summarized as follows. First, tourism firms can use CP as an effective strategy to compete for higher sales revenue and achieve their organizational objective of higher profit if CP generates market competitiveness. Second, if only one of the two competing tourism firms gives to charity and CP generates market competitiveness, the tourism firm’s giving will deteriorate its competitor’s performance. Third, if CP induces no competitive advantage, neither competing tourism firm has an incentive to engage in CP.

Suggested Citation

  • Keling Wang & Chien-Pang Lin & Ming-Hsiang Chen & Evelina Gillard, 2018. "The impact of tourism firm’s philanthropy decision on its business objective," Tourism Economics, , vol. 24(5), pages 503-509, August.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:5:p:503-509
    DOI: 10.1177/1354816617746063
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    References listed on IDEAS

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    1. Navarro, Peter, 1988. "Why Do Corporations Give to Charity?," The Journal of Business, University of Chicago Press, vol. 61(1), pages 65-93, January.
    2. Stephen Brammer & Andrew Millington, 2005. "Profit maximisation vs. agency: an analysis of charitable giving by UK firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(4), pages 517-534, July.
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    5. Baruch Lev & Christine Petrovits & Suresh Radhakrishnan, 2010. "Is doing good good for you? how corporate charitable contributions enhance revenue growth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 182-200, February.
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    Cited by:

    1. Keling Wang & Yaqiong Miao & Ming-Hsiang Chen & Dengfeng Hu, 2019. "Philanthropic giving, sales growth, and tourism firm performance: An empirical test of a theoretical assumption," Tourism Economics, , vol. 25(6), pages 835-855, September.
    2. Keling Wang & Yaqiong Miao & Ching-Hui (Joan) Su & Ming-Hsiang Chen & Zhongjun Wu & Tie Wang, 2019. "Does Corporate Charitable Giving Help Sustain Corporate Performance in China?," Sustainability, MDPI, vol. 11(5), pages 1-17, March.

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