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Where the eyes go, the body follows?: Understanding the impact of strategic orientation on corporate social performance

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  • Brower, Jacob
  • Rowe, Katie

Abstract

This research seeks to address two questions with respect to firm corporate social performance (CSP): (1) “do different strategic orientations have differential impacts on a firm's overall CSP?”; and, if so, (2) “is there an effect of a firm's strategic orientation on the types of CSP that a firm implements?” Using a unique dataset that combines survey data on firms' strategic orientations for 115 US-based firms with CSP data from MSCI-ESG, we empirically examine the impacts on CSP levels of four different firm strategic orientations: customer, competitor, interfunctional coordination, and shareholder. Our empirical analysis demonstrates that (1) firms with a stronger orientation toward customers have higher levels of CSP overall, and (2) when firms have a stronger customer orientation, we find that the firm has higher CSP levels in domains dedicated toward secondary stakeholders, while firms with a stronger shareholder orientation exhibit higher levels of CSP dedicated toward primary stakeholders.

Suggested Citation

  • Brower, Jacob & Rowe, Katie, 2017. "Where the eyes go, the body follows?: Understanding the impact of strategic orientation on corporate social performance," Journal of Business Research, Elsevier, vol. 79(C), pages 134-142.
    • Handle: RePEc:eee:jbrese:v:79:y:2017:i:c:p:134-142
    DOI: 10.1016/j.jbusres.2017.06.004
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    References listed on IDEAS

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    1. G. Tomas M. Hult & David J. Ketchen & Stanley F. Slater, 2005. "Market orientation and performance: an integration of disparate approaches," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1173-1181, December.
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    Cited by:

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    3. Najwa Asha’al & Bader Obeidat & Hazar Alhmoud, 2019. "A Theoretical Study on the Impact of Strategic Orientation on Organizational Performance: Examining the Mediating Role of Learning Culture in Jordanian Telecommunication Companies," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(1), pages 24-40, January.
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    10. Nitya Singh & Paul Hong, 2023. "CSR, Risk Management Practices, and Performance Outcomes: An Empirical Investigation of Firms in Different Industries," JRFM, MDPI, vol. 16(2), pages 1-20, January.
    11. Di Song & Canyu Xu & Zewei Fu & Chao Yang, 2023. "How Does a Regulatory Minority Shareholder Influence the ESG Performance? A Quasi-Natural Experiment," Sustainability, MDPI, vol. 15(7), pages 1-22, April.
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    13. Adams, Dawda & Adams, Kweku & Attah-Boakye, Rexford & Ullah, Subhan & Rodgers, Waymond & Kimani, Danson, 2022. "Social and environmental practices and corporate financial performance of multinational corporations in emerging markets: Evidence from 20 oil-rich African countries," Resources Policy, Elsevier, vol. 78(C).
    14. Wang, Fenfen & Zhang, Yu & Luo, Qingfeng & Wang, Can, 2025. "Corporate green transition and financial risk: Evidence from China's micro-enterprises," Finance Research Letters, Elsevier, vol. 79(C).
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    16. Izunildo Cabral & Antonio Grilo, 2018. "Impact of Business Interoperability on the Performance of Complex Cooperative Supply Chain Networks: A Case Study," Complexity, Hindawi, vol. 2018, pages 1-30, February.

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