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Motivating corporate social responsibility practices under customer pressure among small‐ and medium‐sized suppliers in China: The role of dynamic capabilities

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  • Seok‐Beom Choi
  • Yunting Feng
  • Junjun Liu
  • Qinghua Zhu

Abstract

Small‐ and medium‐sized suppliers (SMSs) have experienced customer pressure to implement corporate social responsibility (CSR) practices. However, capabilities are needed for SMSs to respond to such pressure. To explore how SMSs can be effectively motivated to make CSR efforts under customer pressure, based on the theory of dynamic capabilities (DCs), this paper identifies five factors of DCs—knowledge accessing (DC1), codevelopment (DC2), supply chain partner development (DC3), supply chain rebuilding (DC4), and flexibility (DC5). Moreover, this paper develops a conceptual model assuming that the five DCs moderate the relationship between customer pressure and CSR practices among SMSs. Using questionnaires collected from 333 Chinese SMSs in manufacturing industries, hierarchical statistical results demonstrate the moderating effect for three of four identified CSR practices. An interaction analysis further reveals that a certain level of DCs is necessary. The results provide managerial implications for large customers and SMSs to improve CSR‐related DCs among SMSs.

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  • Seok‐Beom Choi & Yunting Feng & Junjun Liu & Qinghua Zhu, 2019. "Motivating corporate social responsibility practices under customer pressure among small‐ and medium‐sized suppliers in China: The role of dynamic capabilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 213-226, January.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:1:p:213-226
    DOI: 10.1002/csr.1673
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    4. Yuan, Baolong & Cao, Xueyun, 2022. "Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability," Technology in Society, Elsevier, vol. 68(C).
    5. Christian Hauser, 2022. "Trade-Control Compliance in SMEs: Do Decision-Makers and Supply Chain Position Make a Difference?," Journal of Business Ethics, Springer, vol. 179(2), pages 473-493, August.
    6. Sher Zaman Khan & Qing Yang & Najib Ullah Khan & Sonia Kherbachi & Martina Huemann, 2020. "Sustainable social responsibility toward multiple stakeholders as a trump card for small and medium‐sized enterprise performance (evidence from China)," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 95-108, January.
    7. Nor'Aini Yusof & Amin Akhavan Tabassi & Muneera Esa, 2020. "Going beyond environmental regulations—The influence of firm size on the effect of green practices on corporate financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 32-42, January.
    8. Volkan Ezcan & Jack Steven Goulding, 2022. "Offsite Sustainability—Disentangling the Rhetoric through Informed Mindset Change," Sustainability, MDPI, vol. 14(8), pages 1-27, April.
    9. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    10. Laura Macchion & Antonella Moretto & Federico Caniato & Pamela Danese & Andrea Vinelli, 2020. "Static supply chain complexity and sustainability practices: A multitier examination," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2679-2691, November.
    11. Jingxiao Zhang & You Ouyang & Simon P. Philbin & Xiaojing Zhao & Pablo Ballesteros‐Pérez & Hui Li, 2020. "Green dynamic capability of construction enterprises: Role of the business model and green production," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2920-2940, November.
    12. Fazli Haleem & Sami Farooq & Yang Cheng & Brian Vejrum Waehrens, 2022. "Sustainable Management Practices and Stakeholder Pressure: A Systematic Literature Review," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    13. Giacomo Buzzao & Francesco Rizzi, 2021. "On the conceptualization and measurement of dynamic capabilities for sustainability: Building theory through a systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 135-175, January.
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    15. Alwyn Lim & Shawn Pope, 2022. "What drives companies to do good? A “universal” ordering of corporate social responsibility motivations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 233-255, January.

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