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Corporate social responsibility activities and firm performance: The moderating role of strategic emphasis and industry competition

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  • Xingping Jia

Abstract

This study extends the literature on the relationship between corporate social responsibility (CSR) activities and firm performance by incorporating the role of strategic emphasis, defined as the resources that firms allocate to value appropriation (with the emphasis on advertising expenditure) versus value creation (with the emphasis on research and development investment), and how industry competition creates a three‐way interaction with CSR and strategic emphasis to affect firm performance. Using data from 3,401 publicly traded firm‐year observations in China for the years 2009–2015, the study demonstrates that CSR enhances firm performance when the firm's strategy emphasizes value appropriation over value creation. The interaction effect of CSR and strategic emphasis is also shown to vary with the level of competition in the industry. The results not only contribute to the literature on the relationship between CSR and firm performance, but can also inform firms' resource allocation decisions, enabling them to gain instrumental value from CSR initiatives.

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  • Xingping Jia, 2020. "Corporate social responsibility activities and firm performance: The moderating role of strategic emphasis and industry competition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 65-73, January.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:1:p:65-73
    DOI: 10.1002/csr.1774
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    9. Fu‐Chiang Chen & Imen Tebourbi, 2021. "The relationship between business performance, corporate social responsibility, and innovation capital: A case study of Taiwan," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 360-368, March.
    10. Yuan Qiu & Di Zhou, 2024. "De‐politicization and corporate social responsibility: Empirical evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3668-3684, July.
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    13. Slobodan Marić & Nemanja Berber & Agneš Slavić & Marko Aleksić, 2021. "The Mediating Role of Employee Commitment in the Relationship Between Corporate Social Responsibility and Firm Performance in Serbia," SAGE Open, , vol. 11(3), pages 21582440211, August.
    14. Meftah Gerged, Ali & Kuzey, Cemil & Uyar, Ali & Karaman, Abdullah S., 2023. "Does investment stimulate or inhibit CSR transparency? The moderating role of CSR committee, board monitoring and CEO duality," Journal of Business Research, Elsevier, vol. 159(C).
    15. Ramzi Benkraiem & Maria Qureshi & Asif Saeed & Constantin Zopounidis, 2024. "Corporate social responsibility, carbon footprints and stock market valuation," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 33(3), pages 213-237, August.
    16. Muhammad Mubushar & Shahid Rasool & Muhammad Imtiaz Haider & Roberto Cerchione, 2021. "The impact of corporate social responsibility activities on stakeholders' value co‐creation behaviour," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1906-1920, November.
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    18. Qianqian Hu & Tianlun Zhu & Chien-Liang Lin & Tiejun Chen & Tachia Chin, 2021. "Corporate Social Responsibility and Firm Performance in China’s Manufacturing: A Global Perspective of Business Models," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    19. Jyotirani Gupta & Niladri Das, 2022. "Multidimensional corporate social responsibility disclosure and financial performance: A meta‐analytical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 731-748, July.
    20. Tian, Meng & Chen, Yang & Tian, Guanghao & Huang, Wei & Hu, Chuan, 2023. "The role of digital transformation practices in the operations improvement in manufacturing firms: A practice-based view," International Journal of Production Economics, Elsevier, vol. 262(C).

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