IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i2p523-d476512.html
   My bibliography  Save this article

The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty

Author

Listed:
  • Naveed Ahmad

    (Faculty of Management Studies, University of Central Punjab, Lahore 54000, Pakistan)

  • Miklas Scholz

    (Division of Water Resources Engineering, Department of Building and Environmental Technology, Faculty of Engineering, Lund University, 221 00 Lund, Sweden
    Department of Civil Engineering Science, School of Civil Engineering and the Built Environment, Kingsway Campus, University of Johannesburg, Johannesburg 2006, South Africa
    Civil Engineering Research Group, School of Science, Engineering and Environment, The University of Salford, Newton Building, Salford M5 4WT, UK)

  • Zia Ullah

    (Leads Business School, Lahore Leads University, Lahore 54000, Pakistan)

  • Muhammad Zulqarnain Arshad

    (Department of Management Sciences, Lahore Garrison University, Lahore 54000, Pakistan)

  • Raja Irfan Sabir

    (Faculty of Management Studies, University of Central Punjab, Lahore 54000, Pakistan)

  • Waris Ali Khan

    (Faculty of Business, Economics and Accounting, Universiti Malaysia Sabah, Sabah 88400, Malaysia)

Abstract

Corporate Social Responsibility (CSR) is regarded as an effort to be undertaken by the businesses to contribute towards society at large positively. The idea behind the concept of CSR is that businesses are required to pursue the notion of pro-social objectives along with economic objectives. Research has long established that corporate social responsibility, along with its philanthropic nature, can also produce extraordinary marketing results for businesses. The relationship between CSR and consumer loyalty is well acknowledged in extant literature. Likewise, involving consumers through co-creation in the product/service development process may provide an exciting experience to consumers, which is likely to influence their loyalty. With these arguments, the present research investigates the impact of CSR on consumer loyalty with the mediating role of co-creation in the banking sector of an emerging economy such as Pakistan. Structural equation modeling (SEM) is used for data analysis in the present study. The results validate that CSR improves consumer loyalty, and co-creation partially mediates this relationship. The results of the current survey will help banking institutions to identify how they can develop core strategic considerations based on CSR and co-creation.

Suggested Citation

  • Naveed Ahmad & Miklas Scholz & Zia Ullah & Muhammad Zulqarnain Arshad & Raja Irfan Sabir & Waris Ali Khan, 2021. "The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:523-:d:476512
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/2/523/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/2/523/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hajli, Nick & Shanmugam, Mohana & Papagiannidis, Savvas & Zahay, Debra & Richard, Marie-Odile, 2017. "Branding co-creation with members of online brand communities," Journal of Business Research, Elsevier, vol. 70(C), pages 136-144.
    2. 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.
    3. Nadeem, Waqar & Juntunen, Mari & Shirazi, Farid & Hajli, Nick, 2020. "Consumers’ value co-creation in sharing economy: The role of social support, consumers’ ethical perceptions and relationship quality," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    4. Herbert Woratschek & Chris Horbel & Bastian Popp, 2020. "Determining customer satisfaction and loyalty from a value co-creation perspective," The Service Industries Journal, Taylor & Francis Journals, vol. 40(11-12), pages 777-799, July.
    5. Bonnie Simpson & Jennifer L. Robertson & Katherine White, 2020. "How Co-creation Increases Employee Corporate Social Responsibility and Organizational Engagement: The Moderating Role of Self-Construal," Journal of Business Ethics, Springer, vol. 166(2), pages 331-350, October.
    6. Assiouras, Ioannis & Skourtis, George & Giannopoulos, Antonios & Buhalis, Dimitrios & Koniordos, Michalis, 2019. "Value co-creation and customer citizenship behavior," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    7. Park, Eunil & Kim, Ki Joon & Kwon, Sang Jib, 2017. "Corporate social responsibility as a determinant of consumer loyalty: An examination of ethical standard, satisfaction, and trust," Journal of Business Research, Elsevier, vol. 76(C), pages 8-13.
    8. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    9. Meehyang Chang & Han-Byeol Jang & Yi-Mei Li & Daecheol Kim, 2017. "The Relationship between the Efficiency, Service Quality and Customer Satisfaction for State-Owned Commercial Banks in China," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    10. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 1-18, January.
    11. Chang, Yu-Hern & Yeh, Chung-Hsing, 2017. "Corporate social responsibility and customer loyalty in intercity bus services," Transport Policy, Elsevier, vol. 59(C), pages 38-45.
    12. Russell Lacey & Pamela Kennett-Hensel, 2010. "Longitudinal Effects of Corporate Social Responsibility on Customer Relationships," Journal of Business Ethics, Springer, vol. 97(4), pages 581-597, December.
    13. Park, Joohyung & Ha, Sejin, 2016. "Co-creation of service recovery: Utilitarian and hedonic value and post-recovery responses," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 310-316.
    14. Huidong Sun & Mustafa Raza Rabbani & Naveed Ahmad & Muhammad Safdar Sial & Guping Cheng & Malik Zia-Ud-Din & Qinghua Fu, 2020. "CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy," Sustainability, MDPI, vol. 12(24), pages 1-22, December.
    15. 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.
    16. 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.
    17. Flavio Boccia & Rosa Malgeri Manzo & Daniela Covino, 2019. "Consumer behavior and corporate social responsibility: An evaluation by a choice experiment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 97-105, January.
    18. Muhammad Haris & HongXing Yao & Gulzara Tariq & Ali Malik & Hafiz Mustansar Javaid, 2019. "Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan," JRFM, MDPI, vol. 12(2), pages 1-26, April.
    19. Roger C.Y. Chen & Shih‐Wei Hung & Chen‐Hsun Lee, 2018. "Corporate Social Responsibility and Firm Idiosyncratic Risk in Different Market States," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 642-658, July.
    20. Vicente Lima Crisóstomo & Fátima de Souza Freire & Felipe Cortes de Vasconcellos, 2011. "Corporate social responsibility, firm value and financial performance in Brazil," Social Responsibility Journal, Emerald Group Publishing, vol. 7(2), pages 295-309, July.
    21. 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.
    22. Mr. Luc Laeven & Mr. Fabian Valencia, 2018. "Systemic Banking Crises Revisited," IMF Working Papers 2018/206, International Monetary Fund.
    23. Palihawadana, Dayananda & Oghazi, Pejvak & Liu, Yeyi, 2016. "Effects of ethical ideologies and perceptions of CSR on consumer behavior," Journal of Business Research, Elsevier, vol. 69(11), pages 4964-4969.
    24. Dongho Yoo & Jieun Lee, 2018. "The Effects of Corporate Social Responsibility (CSR) Fit and CSR Consistency on Company Evaluation: The Role of CSR Support," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    25. Pham Ngoc Thuy & Le Nguyen Hau & Felicitas Evangelista, 2016. "Service value and switching barriers: a personal values perspective," The Service Industries Journal, Taylor & Francis Journals, vol. 36(3-4), pages 142-162, February.
    26. 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.
    27. Adam Lindgreen & José-Rodrigo Córdoba, 2010. "Editorial: Corporate Social Responsibility in Latin America," Journal of Business Ethics, Springer, vol. 91(2), pages 167-170, February.
    28. von Wallpach, Sylvia & Voyer, Benjamin & Kastanakis, Minas & Mühlbacher, Hans, 2017. "Co-creating stakeholder and brand identities: Introduction to the special section," Journal of Business Research, Elsevier, vol. 70(C), pages 395-398.
    29. Ailawadi, Kusum L. & Neslin, Scott A. & Luan, Y. Jackie & Taylor, Gail Ayala, 2014. "Does retailer CSR enhance behavioral loyalty? A case for benefit segmentation," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 156-167.
    30. Seonggoo Ji & Ihsan Ullah Jan, 2019. "The Impact of Perceived Corporate Social Responsibility on Frontline Employee’s Emotional Labor Strategies," Sustainability, MDPI, vol. 11(6), pages 1-14, March.
    31. 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.
    32. Kim, Dong W. & Trimi, Silvana & Hong, Soon G. & Lim, Seongbae, 2020. "Effects of co-creation on organizational performance of small and medium manufacturers," Journal of Business Research, Elsevier, vol. 109(C), pages 574-584.
    33. Izaskun Agirre Aramburu & Irune Gómez Pescador, 2019. "The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation in Cooperative Banks Versus Commercial Banks in the Basque Country," Journal of Business Ethics, Springer, vol. 154(3), pages 701-719, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chao Ma & Mazhar Farid Chishti & Muhammad Kashif Durrani & Rizwana Bashir & Sofia Safdar & Rana Tanveer Hussain, 2023. "The Corporate Social Responsibility and Its Impact on Financial Performance: A Case of Developing Countries," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    2. Naveed Ahmad & Asif Mahmood & Antonio Ariza-Montes & Heesup Han & Felipe Hernández-Perlines & Luis Araya-Castillo & Miklas Scholz, 2021. "Sustainable Businesses Speak to the Heart of Consumers: Looking at Sustainability with a Marketing Lens to Reap Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    3. Rong Wu & Jian Zhang & Yubing Yu & Sajjad M. Jasimuddin & Justin Zuopeng Zhang, 2023. "The Impact of Value Cocreation on CSR Innovation and Economic Performance," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    4. Rui Ma & Jacob Cherian & Wen-Hsien Tsai & Muhammad Safdar Sial & Li Hou & Susana Álvarez-Otero, 2021. "The Relationship of Corporate Social Responsibility on Digital Platforms, Electronic Word-of-Mouth, and Consumer-Company Identification: An Application of Social Identity Theory," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    5. Asif Mahmood & Rana Tahir Naveed & Naveed Ahmad & Miklas Scholz & Muhammad Khalique & Mohammad Adnan, 2021. "Unleashing the Barriers to CSR Implementation in the SME Sector of a Developing Economy: A Thematic Analysis Approach," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    6. Yating Tian & Qeis Kamran, 2021. "A Review of Antecedents and Effects of Loyalty on Food Retailers toward Sustainability," Sustainability, MDPI, vol. 13(23), pages 1-18, December.
    7. Wang Hongxin & Mohammed Arshad Khan & Jian Zhenqiang & Laura-Mariana Cismaș & Mohammad Athar Ali & Usama Saleem & Lucia Negruț, 2022. "Unleashing the Role of CSR and Employees’ Pro-Environmental Behavior for Organizational Success: The Role of Connectedness to Nature," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    8. Naveed Ahmad & Rana Tahir Naveed & Miklas Scholz & Muhammad Irfan & Muhammad Usman & Ilyas Ahmad, 2021. "CSR Communication through Social Media: A Litmus Test for Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    9. Ahmad, Naveed & Ullah, Zia & AlDhaen, Esra & Han, Heesup & Scholz, Miklas, 2022. "A CSR perspective to foster employee creativity in the banking sector: The role of work engagement and psychological safety," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    10. Naveed Ahmad & Asif Mahmood & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Mohi ud Din & Ghazanfar Iqbal Khan & Zia Ullah, 2021. "Sustainability as a “New Normal” for Modern Businesses: Are SMEs of Pakistan Ready to Adopt It?," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    11. Shuchi Gupta & Nishad Nawaz & Abhishek Tripathi & Saqib Muneer & Naveed Ahmad, 2021. "Using Social Media as a Medium for CSR Communication, to Induce Consumer–Brand Relationship in the Banking Sector of a Developing Economy," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    12. Huan Zhang & Khaoula Omhand & Huaizheng Li & Aqeel Ahmad & Sarminah Samad & Darie Gavrilut & Daniel Badulescu, 2022. "Corporate Social Responsibility and Energy-Related Pro-Environmental Behaviour of Employees in Hospitality Industry," IJERPH, MDPI, vol. 19(23), pages 1-19, December.

    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. Huidong Sun & Mustafa Raza Rabbani & Naveed Ahmad & Muhammad Safdar Sial & Guping Cheng & Malik Zia-Ud-Din & Qinghua Fu, 2020. "CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy," Sustainability, MDPI, vol. 12(24), pages 1-22, December.
    2. Anthony Okoeguale, 2023. "Brand Value Co-creation Revisited: A Critical Review of Studies," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, March.
    3. Luigi Leclercq-Machado & Aldo Alvarez-Risco & Sharon Esquerre-Botton & Camila Almanza-Cruz & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Arcentales & Jaime A. Yáñez, 2022. "Effect of Corporate Social Responsibility on Consumer Satisfaction and Consumer Loyalty of Private Banking Companies in Peru," Sustainability, MDPI, vol. 14(15), pages 1-17, July.
    4. 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.
    5. 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).
    6. Dianxi Zhang & Asif Mahmood & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Naveed Ahmad & Heesup Han & Muhammad Safdar Sial, 2021. "Exploring the Impact of Corporate Social Responsibility Communication through Social Media on Banking Customer E-WOM and Loyalty in Times of Crisis," IJERPH, MDPI, vol. 18(9), pages 1-14, April.
    7. Dang, Van Thac & Nguyen, Ninh & Pervan, Simon, 2020. "Retailer corporate social responsibility and consumer citizenship behavior: The mediating roles of perceived consumer effectiveness and consumer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    8. Ghanbarpour, Tohid & Gustafsson, Anders, 2022. "How do corporate social responsibility (CSR) and innovativeness increase financial gains? A customer perspective analysis," Journal of Business Research, Elsevier, vol. 140(C), pages 471-481.
    9. Naveed Ahmad & Rana Tahir Naveed & Miklas Scholz & Muhammad Irfan & Muhammad Usman & Ilyas Ahmad, 2021. "CSR Communication through Social Media: A Litmus Test for Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    10. Naveed Ahmad & Asif Mahmood & Antonio Ariza-Montes & Heesup Han & Felipe Hernández-Perlines & Luis Araya-Castillo & Miklas Scholz, 2021. "Sustainable Businesses Speak to the Heart of Consumers: Looking at Sustainability with a Marketing Lens to Reap Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    11. Saloua Bennaghmouch & Martine Deparis & Hanene Oueslati & Marie-Catherine Paquier & Gerald Cohen & Laurent Grimal & Hocine Sadok, 2021. "Franchise et RSE : impact social et environnemental de la franchise," Working Papers hal-03694438, HAL.
    12. Aboul-Dahab, Sameh & Agag, Gomaa & Hassan Abdelmoety, Ziad, 2021. "Examining the influence of cultural and ethical ideology on consumers’ perceptions about the ethics of online retailers and its effects on their loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    13. T. Praveen Kumar & Santosh Basavaraj & K. Soundarapandiyan, 2024. "Can co‐creating in CSR initiatives influence loyal customers? Evidence from the banking industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 180-195, January.
    14. Baoliang Hu & Wei Huang & Shuai Yan & Guang Liu & Tao Zhang, 2020. "Business Model Design and Customer Loyalty: The Mediating Role of Customer Citizenship Behavior," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    15. Marcelo Royo-Vela & Jonathan Cuevas Lizama, 2022. "Creating Shared Value: Exploration in an Entrepreneurial Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    16. Muflih, Muhammad, 2021. "The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    17. Ye Sang & Eunkyoung Han, 2023. "A win‐win way for corporate and stakeholders to achieve sustainable development: Corporate social responsibility value co‐creation scale development and validation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1177-1190, May.
    18. Faiza Manzoor & Longbao Wei & Mohammad Nurunnabi & Qazi Abdul Subhan & Syed Irshad Ali Shah & Samaher Fallatah, 2019. "The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    19. António Mateus & Luís Martins, 2021. "Building a mineral-based value chain in Europe: the balance between social acceptance and secure supply," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(2), pages 239-261, July.
    20. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & Ángela María Castuera-Díaz, 2019. "Corporate Social Responsibility as an Antecedent of Innovation, Reputation, Performance, and Competitive Success: A Multiple Mediation Analysis," Sustainability, MDPI, vol. 11(20), pages 1-28, October.

    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:13:y:2021:i:2:p:523-:d:476512. 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.