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When do high-CSR investments pay off? The role of competitive repertoire adjustments

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  • Lee, Hun
  • Andrevski, Goce
  • Ferrier, Walter J.
  • Waldron, Theodore L.

Abstract

This study contributes to research that explores the conditions under which corporate social responsibility (CSR) can enhance financial outcomes. We focus specifically on firms with substantial CSR commitments and argue that performance benefits may accrue to high-CSR firms when they increase competitive complexity and reduce competitive intensity. Increasing competitive complexity allows high-CSR firms to utilize CSR investments to transform resources to develop novel and diverse competitive actions. Reducing competitive intensity allows high-CSR firms to reallocate more organizational attention and resources towards strategically aligned CSR initiatives. Our findings suggest that these strategic adjustments to the complexity and intensity of a firm’s competitive action repertories indeed enhance the positive effect of CSR on financial performance. These effects, which are not influenced by the extent of competitive pressure, underscore the primacy of competitive behavior in linking CSR to performance.

Suggested Citation

  • Lee, Hun & Andrevski, Goce & Ferrier, Walter J. & Waldron, Theodore L., 2026. "When do high-CSR investments pay off? The role of competitive repertoire adjustments," Journal of Business Research, Elsevier, vol. 203(C).
    • Handle: RePEc:eee:jbrese:v:203:y:2026:i:c:s0148296325006253
    DOI: 10.1016/j.jbusres.2025.115802
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