IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i6p2525-d336097.html
   My bibliography  Save this article

Linking Corporate Social Responsibility to Customer Loyalty through Co-Creation and Customer Company Identification: Exploring Sequential Mediation Mechanism

Author

Listed:
  • Ali Raza

    (Knowledge Unit of Business, Economics, Accountancy, and Commerce, University of Management and Technology, Sialkot 51310, Pakistan)

  • Amer Saeed

    (School of Business and Economics, University of Management and Technology, Lahore 54770, Pakistan)

  • Muhammad Khalid Iqbal

    (Knowledge Unit of Business, Economics, Accountancy, and Commerce, University of Management and Technology, Sialkot 51310, Pakistan)

  • Umair Saeed

    (Business Administration Department, College of Sciences, Ministry of Higher Education, Ibri 511, Oman)

  • Imran Sadiq

    (School of Business and Economics, University of Management and Technology, Lahore 54770, Pakistan)

  • Naveed Ahmad Faraz

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

Abstract

Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture.

Suggested Citation

  • Ali Raza & Amer Saeed & Muhammad Khalid Iqbal & Umair Saeed & Imran Sadiq & Naveed Ahmad Faraz, 2020. "Linking Corporate Social Responsibility to Customer Loyalty through Co-Creation and Customer Company Identification: Exploring Sequential Mediation Mechanism," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2525-:d:336097
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/6/2525/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/6/2525/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Longinos Marin & Salvador Ruiz & Alicia Rubio, 2009. "The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior," Journal of Business Ethics, Springer, vol. 84(1), pages 65-78, January.
    2. Béatrice Parguel & Florence Benoît-Moreau & Fabrice Larceneux, 2011. "How Sustainability Ratings Might Deter ‘Greenwashing’: A Closer Look at Ethical Corporate Communication," Journal of Business Ethics, Springer, vol. 102(1), pages 15-28, August.
    3. Won‐Moo Hur & Hanna Kim & Hyun Kyung Kim, 2018. "Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1258-1269, November.
    4. Mobin Fatma & Zillur Rahman, 2016. "Consumer responses to CSR in Indian banking sector," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 13(3), pages 203-222, October.
    5. Ishfaq Ahmed & Mian Sajid Nazir & Imran Ali & Mohammad Nurunnabi & Arooj Khalid & Muhammad Zeeshan Shaukat, 2020. "Investing In CSR Pays You Back in Many Ways! The Case of Perceptual, Attitudinal and Behavioral Outcomes of Customers," Sustainability, MDPI, vol. 12(3), pages 1-15, February.
    6. Trong Tuan Luu, 2019. "CSR and Customer Value Co-creation Behavior: The Moderation Mechanisms of Servant Leadership and Relationship Marketing Orientation," Journal of Business Ethics, Springer, vol. 155(2), pages 379-398, March.
    7. Joëlle Vanhamme & Bas Grobben, 2009. "“Too Good to be True!”. The Effectiveness of CSR History in Countering Negative Publicity," Journal of Business Ethics, Springer, vol. 85(2), pages 273-283, April.
    8. Stefan Markovic & Oriol Iglesias & Jatinder Jit Singh & Vicenta Sierra, 2018. "How does the Perceived Ethicality of Corporate Services Brands Influence Loyalty and Positive Word-of-Mouth? Analyzing the Roles of Empathy, Affective Commitment, and Perceived Quality," Journal of Business Ethics, Springer, vol. 148(4), pages 721-740, April.
    9. Xinming Deng & Yang Xu, 2017. "Consumers’ Responses to Corporate Social Responsibility Initiatives: The Mediating Role of Consumer–Company Identification," Journal of Business Ethics, Springer, vol. 142(3), pages 515-526, May.
    10. Cossío-Silva, Francisco-José & Revilla-Camacho, María-Ángeles & Vega-Vázquez, Manuela & Palacios-Florencio, Beatriz, 2016. "Value co-creation and customer loyalty," Journal of Business Research, Elsevier, vol. 69(5), pages 1621-1625.
    11. J. Vanhamme & B. Grobben, 2009. "Too good to be true ! : the effectiveness of CSR History in Countering Negative Publicity," Post-Print hal-00581630, HAL.
    12. repec:dau:papers:123456789/4687 is not listed on IDEAS
    13. Ovidiu I. Moisescu & Oana A. Gică & Victor O. Müller & Camelia Ancuța Müller, 2019. "Can Corporate Fairness towards Public Authorities Enhance Customer Loyalty? A Multi-Sectorial Investigation in a Developing Country," Sustainability, MDPI, vol. 12(1), pages 1-14, December.
    14. Amer Saeed & Yun Jun & Saviour Ayertey Nubuor & Hewawasam Puwakpitiyage Rasika Priyankara & Mahabaduge Prasad Fernando Jayasuriya, 2018. "Institutional Pressures, Green Supply Chain Management Practices on Environmental and Economic Performance: A Two Theory View," Sustainability, MDPI, vol. 10(5), pages 1-24, May.
    15. Jianxin Ge & Hongjia Xu & Massimiliano M. Pellegrini, 2019. "The Effect of Value Co-Creation on Social Enterprise Growth: Moderating Mechanism of Environment Dynamics," Sustainability, MDPI, vol. 11(1), pages 1-20, January.
    16. Shawn Pope & Arild Wæraas, 2016. "CSR-Washing is Rare: A Conceptual Framework, Literature Review, and Critique," Journal of Business Ethics, Springer, vol. 137(1), pages 173-193, August.
    17. Becker-Olsen, Karen L. & Cudmore, B. Andrew & Hill, Ronald Paul, 2006. "The impact of perceived corporate social responsibility on consumer behavior," Journal of Business Research, Elsevier, vol. 59(1), pages 46-53, January.
    18. Markovic, Stefan & Bagherzadeh, Mehdi, 2018. "How does breadth of external stakeholder co-creation influence innovation performance? Analyzing the mediating roles of knowledge sharing and product innovation," Journal of Business Research, Elsevier, vol. 88(C), pages 173-186.
    19. Baskentli, Sara & Sen, Sankar & Du, Shuili & Bhattacharya, C.B., 2019. "Consumer reactions to corporate social responsibility: The role of CSR domains," Journal of Business Research, Elsevier, vol. 95(C), pages 502-513.
    20. Eric J. Arnould & Craig J. Thompson, 2005. "Consumer Culture Theory (CCT): Twenty Years of Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 868-882, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kyle D. Turner, 2022. "Actions in the spotlight: Differential effects of corporate social responsibility actions on organizational celebrity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 860-870, July.
    2. Skarmeas, Dionysis & Leonidou, Constantinos N., 2013. "When consumers doubt, Watch out! The role of CSR skepticism," Journal of Business Research, Elsevier, vol. 66(10), pages 1831-1838.
    3. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    4. Jordy F. Gosselt & Thomas Rompay & Laura Haske, 2019. "Won’t Get Fooled Again: The Effects of Internal and External CSR ECO-Labeling," Journal of Business Ethics, Springer, vol. 155(2), pages 413-424, March.
    5. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    6. Nadeem, Waqar & Alimamy, Saifeddin & Ashraf, Abdul Rehman, 2023. "Navigating through difficult times with ethical marketing: Assessing consumers' willingness-to-pay in the sharing economy," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    7. Constantinos N. Leonidou & Dionysis Skarmeas, 2017. "Gray Shades of Green: Causes and Consequences of Green Skepticism," Journal of Business Ethics, Springer, vol. 144(2), pages 401-415, August.
    8. Lasarov, Wassili & Mai, Robert & Krause, Jan S. & Schmidt, Ulrich & Hoffmann, Stefan, 2021. "Too Cold to be Skeptical: How Ambient Temperature Moderates the Effects of CSR Communication," Ecological Economics, Elsevier, vol. 183(C).
    9. Reimer, Thomas & Benkenstein, Martin, 2018. "Not just for the recommender: How eWOM incentives influence the recommendation audience," Journal of Business Research, Elsevier, vol. 86(C), pages 11-21.
    10. Mahrinasari MS, 2019. "Determinants of Brand Equity: Communication of Corporate Social Responsibility (CSR) versus CSR itself and Company Credibility," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(3), September.
    11. Won‐Moo Hur & Yeonshin Kim, 2017. "How Does Culture Improve Consumer Engagement in CSR Initiatives? the Mediating Role of Motivational Attributions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 620-633, November.
    12. Simona Romani & Silvia Grappi & Richard P. Bagozzi, 2016. "Corporate Socially Responsible Initiatives and Their Effects on Consumption of Green Products," Journal of Business Ethics, Springer, vol. 135(2), pages 253-264, May.
    13. Su‐Jung Nam & Hyesun Hwang, 2019. "What makes consumers respond to creating shared value strategy? Considering consumers as stakeholders in sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 388-395, March.
    14. Jinhua Li & Yongyi Chen & Qiankai Qing, 2021. "Differentiated consumer responses to corporate social responsibility domains moderated by corporate social responsibility perceptions: A Kano model‐based perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1606-1619, November.
    15. Chang-Hyun Jin & Jung-Yong Lee, 2019. "The Halo Effect of CSR Activity: Types of CSR Activity and Negative Information Effects," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    16. Gergely Nyilasy & Harsha Gangadharbatla & Angela Paladino, 2014. "Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions," Journal of Business Ethics, Springer, vol. 125(4), pages 693-707, December.
    17. Small, Felicity & Mehmet, Michael & Miles, Morgan P., 2019. "Applying a causal ambush marketing framework to social media: The ‘Pleasure is Diverse’ campaign and the Australian marriage amendment," Australasian marketing journal, Elsevier, vol. 27(3), pages 149-157.
    18. Jahn, Johannes & Brühl, Rolf, 2019. "Can bad news be good? On the positive and negative effects of including moderately negative information in CSR disclosures," Journal of Business Research, Elsevier, vol. 97(C), pages 117-128.
    19. Ko, Kuan-Cheng & Nie, Jun & Ran, Rong & Gu, Yuan, 2020. "Corporate social responsibility, social identity, and innovation performance in China," Pacific-Basin Finance Journal, Elsevier, vol. 63(C).
    20. Chang-Dae Ham & Jeesun Kim, 2019. "The Role of CSR in Crises: Integration of Situational Crisis Communication Theory and the Persuasion Knowledge Model," Journal of Business Ethics, Springer, vol. 158(2), pages 353-372, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2525-:d:336097. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.