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How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction

Saeidi, Sayedeh Parastoo and Sofian, Saudah and Saeidi, Parvaneh and Saeidi, Sayyedeh Parisa and Saaeidi, Seyyed Alireza (2015) How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68 (2). pp. 341-350. ISSN 0148-2963

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Official URL: http://dx.doi.org/10.1016/j.jbusres.2014.06.024

Abstract

Direct relationship between corporate social responsibility (CSR) and firm performance has been examined by many scholars, but this direct test seems to be spurious and imprecise. This is because many factors indirectly influence this relation. Therefore, this study considers sustainable competitive advantage, reputation, and customer satisfaction as three probable mediators in the relationship between CSR and firm performance. The findings from 205 Iranian manufacturing and consumer product firms reveal that the link between CSR and firm performance is a fully mediated relationship. The positive effect of CSR on firm performance is due to the positive effect CSR has on competitive advantage, reputation, and customer satisfaction. The final findings show that only reputation and competitive advantage mediate the relationship between CSR and firm performance. Taken together, these findings suggest a role for CSR in indirectly promoting firm performance through enhancing reputation and competitive advantage while improving the level of customer satisfaction

Item Type:Article
Uncontrolled Keywords:customer satisfaction, firm performance
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:Management
ID Code:55601
Deposited By: Fazli Masari
Deposited On:21 Sep 2016 08:56
Last Modified:15 Feb 2017 11:34

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