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Corporate Social Responsibility and Competitive Advantage: Relationships and Mechanisms

Author

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  • Mohammed L. Ashour
  • Nafez N. Ali
  • Mahmoud S. Allan

Abstract

Purpose: This study is intended to gain insight into the association of Corporate Social Responsibility (CSR) implementations and the achievement of competitive advantage focusing on the mediation role of company reputation (CR) in this relationship. Design/Methodology/Approach: Semi-structured interview technique was used to confirm the validity of the research model. In addition, the purposive sampling method has been used targeting senior decision makers in different well-known 5-star hotels and resorts in Jordan. A total of three hundred (300) questionnaires were distributed. While two hundred and forty (240) questionnaires were retrieved from respondents, two hundred and eleven (211) questionnaires were valid and usable. Findings: The results elucidated the mechanism of CSR and competitive advantage relationship. Although the results confirmed the positive (direct and indirect) effect of the social, the legal, and the ethical dimensions of (CSR) on competitive advantage, data analysis did not support any significant impact for the environmental dimension on competitive advantage (CA) through the company reputation (CR) as a mediator variable. Practical Implications: This study raises awareness of (CSR) implementations in service-oriented developing economies through highlighting the mechanism and relationships of CSR and competitive advantage. It is hoped that, it will contribute to generate interest towards the concept of ``Environmental Corporate Social Responsibility`` (ECSR), as a strategic alternative at the aim of the achievement of competitive advantage. Originality/Value: The study goes beyond examining the causal relationship between (CSR) and competitive advantage. It focuses on achieving a deep understanding of this relationship by exploring the mechanisms of its work through illustrating the mediation role of reputation.

Suggested Citation

  • Mohammed L. Ashour & Nafez N. Ali & Mahmoud S. Allan, 2020. "Corporate Social Responsibility and Competitive Advantage: Relationships and Mechanisms," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 161-175.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:161-175
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    References listed on IDEAS

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    2. Grayna Wolska & Iwona Bak & Maciej Oesterreich & Joanna Hawlena, 2020. "Institutions in the Context of Implementing the CSR Concept and Social Trust," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 131-146.
    3. Jung Ha-Brookshire, 2017. "Toward Moral Responsibility Theories of Corporate Sustainability and Sustainable Supply Chain," Journal of Business Ethics, Springer, vol. 145(2), pages 227-237, October.
    4. Leonardo Becchetti & Giovanni Trovato, 2011. "Corporate social responsibility and firm efficiency: a latent class stochastic frontier analysis," Journal of Productivity Analysis, Springer, vol. 36(3), pages 231-246, December.
    5. Thomas P. Lyon & John W. Maxwell, 2008. "Corporate Social Responsibility and the Environment: A Theoretical Perspective," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 240-260, Summer.
    6. Mochamad Soelton & Yanto Ramli & Dewi Anggraini & Danny Khosasi, 2020. "Implementing Good Corporate Governance to Engage Corporate Social Rerponsibility in Financial Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 239-258.
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    Cited by:

    1. Radosław Wolniak & Adam Wyszomirski & Marcin Olkiewicz & Anna Olkiewicz, 2021. "Environmental Corporate Social Responsibility Activities in Heating Industry—Case Study," Energies, MDPI, vol. 14(7), pages 1-19, March.

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    More about this item

    Keywords

    Corporate Social Responsibility; competitive advantage; tourism; and hospitality.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Z33 - Other Special Topics - - Tourism Economics - - - Marketing and Finance

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