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Corporate social responsibility and firm performance: The mediating role of marketing competence and the moderating role of market environment

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  • Xuan Bai
  • Jeanine Chang

Abstract

The influence of corporate social responsibility (CSR) on firm performance in developed economies has been studied extensively. However, extant studies provide mixed findings on the relationship between CSR and firm performance in emerging economies. Drawing on stakeholder theory and institutional theory, we look at CSR in China, taking a multi-dimensional view of CSR and introducing marketing competence as an important intermediate between CSR and firm performance. We also use a contingent perspective to examine the role of market environments in moderating the impact of CSR on marketing competence. The findings of an empirical study conducted in China show that marketing competence fully mediates the effects of all CSR activities on firm performance. Competitive intensity weakens the positive impact of CSR toward employees on marketing competence, while it strengthens the positive effect of CSR toward society on marketing competence. The positive relationship between CSR toward customers and marketing competence is enhanced by market turbulence. The results of this study highlight the importance of CSR to marketing competence and firm performance in China. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Xuan Bai & Jeanine Chang, 2015. "Corporate social responsibility and firm performance: The mediating role of marketing competence and the moderating role of market environment," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 505-530, June.
    • Handle: RePEc:kap:asiapa:v:32:y:2015:i:2:p:505-530
    DOI: 10.1007/s10490-015-9409-0
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