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Corporate Social Responsibility and Firm Performance in China’s Manufacturing: A Global Perspective of Business Models

Author

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  • Qianqian Hu

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Tianlun Zhu

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Chien-Liang Lin

    (College of Science and Technology, Ningbo University, Ningbo 315211, China)

  • Tiejun Chen

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Tachia Chin

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

Abstract

In a globalized and digital world, manufacturing firms have used internet technology to conduct value appropriation (VA). However, during the COVID-19 crisis, export-led manufacturing firms around the world, particularly those in developing countries, have been forced to lay off workers and cope with VA-related problems, and serious survival problems have resulted in critical corporate social responsibility (CSR)-related challenges. Whereas limited research has discussed relevant issues in nonwestern contexts, we adopt a global perspective of business model and transactional cost theory, aiming to fill this gap by investigating the mechanisms among different dimensions of CSR implementation, firm performance, and VA herein. Based on a sample of listed Chinese manufacturing firms, the results show that the CSR technique dimension is negatively related to firm performance, that the CSR content dimension is positively related to firm performance, and that VA positively moderates the relationships of all three CSR dimensions to firm performance. The main contribution here is providing a more comprehensive understanding of how different CSR dimensions reflect firms’ multiple ethical behaviors, which influence their sustainable performance, respectively, thus enriching the existing knowledge of CSR studies in a new digital era riddled with uncertainties and complexities. We also offer practical implications for other export-led manufacturing firms in developing countries facing turbulent times.

Suggested Citation

  • Qianqian Hu & Tianlun Zhu & Chien-Liang Lin & Tiejun Chen & Tachia Chin, 2021. "Corporate Social Responsibility and Firm Performance in China’s Manufacturing: A Global Perspective of Business Models," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:2388-:d:504163
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    6. Lin Zhang & Xiaochen Zhang & Jingjing An & Wei Zhang & Jingshen Yao, 2022. "Examining the Role of Stakeholder-Oriented Corporate Governance in Achieving Sustainable Development: Evidence from the SME CSR in the Context of China," Sustainability, MDPI, vol. 14(13), pages 1-22, July.
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    8. Minimol M. Chandrasekaran, 2022. "Does Corporate Social Responsibility Fuel Firm Performance? Evidence from the Asian Automotive Sector," Sustainability, MDPI, vol. 14(22), pages 1-12, November.
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