IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v27y2020i1p383-392.html
   My bibliography  Save this article

Entrepreneurial orientation and corporate social responsibility performance: An empirical study of state‐controlled and privately controlled firms in China

Author

Listed:
  • Yiming Zhuang
  • Younggeun Lee
  • Xinyue Chang
  • Renee B. Kim

Abstract

In this paper, we examine the role of a firm's entrepreneurial orientation (EO) in the advancement of corporate social responsibility (CSR) performance. We argue that a firm's innovativeness, proactiveness, and risk‐taking would lead it to employ more socially responsible practices and generate benefits to society. Moreover, we theorize that this influence would differ, depending on the firm ownership. Specifically, our argument is based on the Chinese context where state‐controlled firms dominate the economy. We test our hypotheses by utilizing secondary data on 738 Chinese public firms over an 8‐year period (2008–2015). Our empirical results demonstrate a positive and significant relationship between EO and CSR performance among state‐controlled firms. However, this relationship is not significant among privately controlled firms.

Suggested Citation

  • Yiming Zhuang & Younggeun Lee & Xinyue Chang & Renee B. Kim, 2020. "Entrepreneurial orientation and corporate social responsibility performance: An empirical study of state‐controlled and privately controlled firms in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 383-392, January.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:1:p:383-392
    DOI: 10.1002/csr.1872
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1872
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1872?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrei Shleifer, 1998. "State versus Private Ownership," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 133-150, Fall.
    2. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    3. Wenjing Li & Ran Zhang, 2010. "Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence from China," Journal of Business Ethics, Springer, vol. 96(4), pages 631-645, November.
    4. Danny Miller & Peter H. Friesen, 1978. "Archetypes of Strategy Formulation," Management Science, INFORMS, vol. 24(9), pages 921-933, May.
    5. Thompson, Samuel B., 2011. "Simple formulas for standard errors that cluster by both firm and time," Journal of Financial Economics, Elsevier, vol. 99(1), pages 1-10, January.
    6. Jonathan P. Doh & Terrence R. Guay, 2006. "Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional‐Stakeholder Perspective," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 47-73, January.
    7. Sherry M.B. Thatcher & Karen A. Jehn & Elaine Zanutto, 2003. "Cracks in Diversity Research: The Effects of Diversity Faultlines on Conflict and Performance," Group Decision and Negotiation, Springer, vol. 12(3), pages 217-241, May.
    8. DiVito, Lori & Bohnsack, René, 2017. "Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms," Journal of Business Venturing, Elsevier, vol. 32(5), pages 569-587.
    9. Yiming Zhuang & Xinyue Chang & Younggeun Lee, 2018. "Board Composition and Corporate Social Responsibility Performance: Evidence from Chinese Public Firms," Sustainability, MDPI, vol. 10(8), pages 1-12, August.
    10. Kristel Buysse & Alain Verbeke, 2003. "Proactive environmental strategies: a stakeholder management perspective," Strategic Management Journal, Wiley Blackwell, vol. 24(5), pages 453-470, May.
    11. Pol Herrmann & Deepak K Datta, 2002. "CEO Successor Characteristics and the Choice of Foreign Market Entry Mode: An Empirical Study," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 551-569, September.
    12. Parrish, Bradley D., 2010. "Sustainability-driven entrepreneurship: Principles of organization design," Journal of Business Venturing, Elsevier, vol. 25(5), pages 510-523, September.
    13. Yuan Yuan Hu & Yanhui Zhu & Jon Tucker & Yuxiao Hu, 2018. "Ownership influence and CSR disclosure in China," Accounting Research Journal, Emerald Group Publishing Limited, vol. 31(1), pages 8-21, May.
    14. Ding, Shujun & Jia, Chunxin & Wu, Zhenyu & Zhang, Xiaoqing, 2014. "Executive political connections and firm performance: Comparative evidence from privately-controlled and state-owned enterprises," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 153-167.
    15. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    16. Johanna Mair & Ignasi Marti, 2006. "Social Entrepreneurship Research: A Source of Explanation, Prediction, and Delight," Post-Print hal-02311880, HAL.
    17. S. Bacq & F. Janssen, 2011. "The multiple faces of social entrepreneurship: A review of definitional issues based on geographical and thematic criteria," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(5-6), pages 373-403, June.
    18. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    19. Abramov, Alexander & Radygin, Alexander & Chernova, Maria, 2017. "State-owned enterprises in the Russian market: Ownership structure and their role in the economy," Russian Journal of Economics, Elsevier, vol. 3(1), pages 1-23.
    20. Peter Dobers & Minna Halme, 2009. "Corporate social responsibility and developing countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(5), pages 237-249, September.
    21. Laura Broccardo & Elisa Truant & Adrian Zicari, 2019. "Internal corporate sustainability drivers: What evidence from family firms? A literature review and research agenda," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 1-18, January.
    22. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    23. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    24. Po Ip, 2009. "Is Confucianism Good for Business Ethics in China?," Journal of Business Ethics, Springer, vol. 88(3), pages 463-476, September.
    25. Danny Miller & Isabelle Le Breton–Miller, 2011. "Governance, Social Identity, and Entrepreneurial Orientation in Closely Held Public Companies," Entrepreneurship Theory and Practice, , vol. 35(5), pages 1051-1076, September.
    26. Pol Herrmann & Deepak K. Datta, 2006. "CEO Experiences: Effects on the Choice of FDI Entry Mode," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 755-778, June.
    27. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    28. Danny Miller, 2011. "Miller (1983) Revisited: A Reflection on EO Research and Some Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 35(5), pages 873-894, September.
    29. Katia Furlotti & Tatiana Mazza & Veronica Tibiletti & Silvia Triani, 2019. "Women in top positions on boards of directors: Gender policies disclosed in Italian sustainability reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 57-70, January.
    30. Sara Hajmohammad & Stephan Vachon, 2016. "Mitigation, Avoidance, or Acceptance? Managing Supplier Sustainability Risk," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(2), pages 48-65, April.
    31. Kerstin Lopatta & Reemda Jaeschke & Chen Chen, 2017. "Stakeholder Engagement and Corporate Social Responsibility (CSR) Performance: International Evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(3), pages 199-209, May.
    32. Jeffrey Unerman & Brendan O’Dwyer, 2007. "The business case for regulation of corporate social responsibility and accountability," Accounting Forum, Taylor & Francis Journals, vol. 31(4), pages 332-353, December.
    33. Chong-En Bai & Jiangyong Lu & Zhigang Tao, 2006. "The Multitask Theory of State Enterprise Reform: Empirical Evidence from China," American Economic Review, American Economic Association, vol. 96(2), pages 353-357, May.
    34. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    35. Asif, M. & Muneer, T., 2007. "Energy supply, its demand and security issues for developed and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1388-1413, September.
    36. Judith L. Walls & Pascual Berrone & Phillip H. Phan, 2012. "Corporate governance and environmental performance: is there really a link?," Strategic Management Journal, Wiley Blackwell, vol. 33(8), pages 885-913, August.
    37. Xiaohua Yang & Cheryl Rivers, 2009. "Antecedents of CSR Practices in MNCs’ Subsidiaries: A Stakeholder and Institutional Perspective," Journal of Business Ethics, Springer, vol. 86(2), pages 155-169, March.
    38. M. Tina Dacin & Peter A. Dacin & Paul Tracey, 2011. "Social Entrepreneurship: A Critique and Future Directions," Organization Science, INFORMS, vol. 22(5), pages 1203-1213, October.
    39. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    40. Stefan Schaltegger & Marcus Wagner, 2011. "Sustainable entrepreneurship and sustainability innovation: categories and interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 20(4), pages 222-237, May.
    41. Christopher Marquis & Cuili Qian, 2014. "Corporate Social Responsibility Reporting in China: Symbol or Substance?," Organization Science, INFORMS, vol. 25(1), pages 127-148, February.
    42. Peter Wright & Mark Kroll & Jeffrey A. Krug & Michael Pettus, 2007. "Influences of top management team incentives on firm risk taking," Strategic Management Journal, Wiley Blackwell, vol. 28(1), pages 81-89, January.
    43. Abramov, Alexander & Radygin, Alexander & Chernova, Maria, 2017. "State-owned enterprises in the Russian market: Ownership structure and their role in the economy," Russian Journal of Economics, Elsevier, vol. 3(1), pages 1-23.
    44. Yanhong Tang & Yanling Ma & Christina W.Y. Wong & Xin Miao, 2018. "Evolution of Government Policies on Guiding Corporate Social Responsibility in China," Sustainability, MDPI, vol. 10(3), pages 1-20, March.
    45. Pedro Cuesta‐Valiño & Pablo Gutiérrez Rodríguez & Estela Núñez‐Barriopedro, 2019. "The impact of corporate social responsibility on customer loyalty in hypermarkets: A new socially responsible strategy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 761-769, July.
    46. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    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. Régis Y. Chenavaz & Alexandra Couston & Stéphanie Heichelbech & Isabelle Pignatel & Stanko Dimitrov, 2023. "Corporate Social Responsibility and Entrepreneurial Ventures: A Conceptual Framework and Research Agenda," Sustainability, MDPI, vol. 15(11), pages 1-30, May.
    2. DiVito, Lori & Bohnsack, René, 2017. "Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms," Journal of Business Venturing, Elsevier, vol. 32(5), pages 569-587.
    3. Zhiwei Yan & Xuerong Peng & Seoki Lee & Leibao Zhang, 2023. "How do multiple cognitions shape corporate proactive environmental strategies? The joint effects of environmental awareness and entrepreneurial orientation," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1592-1617, September.
    4. Zhe Zhang & Xin Wang & Ming Jia, 2021. "Echoes of CEO Entrepreneurial Orientation: How and When CEO Entrepreneurial Orientation Influences Dual CSR Activities," Journal of Business Ethics, Springer, vol. 169(4), pages 609-629, April.
    5. Paola Bernardi & Alberto Bertello & Canio Forliano & Ludovico Bullini Orlandi, 2022. "Beyond the “ivory tower”. Comparing academic and non-academic knowledge on social entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 999-1032, September.
    6. Francoise Contreras & Utz Dornberger, 2022. "Sustainable Entrepreneurship as a Field of Knowledge: Analyzing the Global South," Sustainability, MDPI, vol. 15(1), pages 1-28, December.
    7. Carla D. Jones & Phillip M. Jolly & Connor J. Lubojacky & Geoffrey P. Martin & Luis R. Gomez-Mejia, 2019. "Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 1017-1039, September.
    8. Jintong Tang & Zhi Tang & Birton J. Cowden, 2017. "Exploring the Relationship between Entrepreneurial Orientation, CEO Dual Values, and SME Performance in State–Owned vs. Nonstate–Owned Enterprises in China," Entrepreneurship Theory and Practice, , vol. 41(6), pages 883-908, November.
    9. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    10. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    11. Madison, Kristen & Runyan, Rodney C. & Swinney, Jane L., 2014. "Strategic posture and performance: Revealing differences between family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 239-251.
    12. Anna Watson & Olufunmilola (Lola) Dada & Owen Wright & Rozenn Perrigot, 2019. "Entrepreneurial Orientation Rhetoric in Franchise Organizations: The Impact of National Culture," Entrepreneurship Theory and Practice, , vol. 43(4), pages 751-772, July.
    13. Torbjörn Ljungkvist & Jim Andersén, 2021. "A taxonomy of ecopreneurship in small manufacturing firms: A multidimensional cluster analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1374-1388, February.
    14. Denise Fischer & Malte Brettel & René Mauer, 2020. "The Three Dimensions of Sustainability: A Delicate Balancing Act for Entrepreneurs Made More Complex by Stakeholder Expectations," Journal of Business Ethics, Springer, vol. 163(1), pages 87-106, April.
    15. Matthew P. Johnson & Stefan Schaltegger, 2020. "Entrepreneurship for Sustainable Development: A Review and Multilevel Causal Mechanism Framework," Entrepreneurship Theory and Practice, , vol. 44(6), pages 1141-1173, November.
    16. Etayankara Muralidharan & Saurav Pathak, 2019. "Consequences of Cultural Leadership Styles for Social Entrepreneurship: A Theoretical Framework," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    17. Pradeep Kumar Hota, 2023. "Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions," Journal of Business Ethics, Springer, vol. 182(3), pages 637-659, January.
    18. EuiBeom Jeong & Hanna Yoo, 2022. "A systematic literature review of women in social entrepreneurship," Service Business, Springer;Pan-Pacific Business Association, vol. 16(4), pages 935-970, December.
    19. Etayankara Muralidharan & Saurav Pathak, 2018. "Sustainability, Transformational Leadership, and Social Entrepreneurship," Sustainability, MDPI, vol. 10(2), pages 1-22, February.
    20. Gabriel Linton, 2019. "Innovativeness, risk-taking, and proactiveness in startups: a case study and conceptual development," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-21, December.

    More about this item

    Statistics

    Access and download statistics

    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:wly:corsem:v:27:y:2020:i:1:p:383-392. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.