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Research Note: Strategic Corporate Social Responsibility and Competition in the Tourism Industry — A Theoretical Approach

Author

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  • Evangelos Mitrokostas
  • Alexandros Apostolakis

Abstract

This paper sheds light on tourist firms' incentives to engage in corporate social responsibility (CSR) activities in an imperfectly competitive environment. The focus on CSR in the tourism sector has emerged owing to the existence of a critical mass of consumers' willingness to pay a premium for such initiatives. A problem, however, emerges in the production of CSR activities from the supply-side. This is because entrepreneurs exhibit a strong free riding behaviour in their provision. The theoretical results illustrate that the existence of voluntary certification schemes would provide firms with a more efficient framework for undertaking CSR efforts.

Suggested Citation

  • Evangelos Mitrokostas & Alexandros Apostolakis, 2013. "Research Note: Strategic Corporate Social Responsibility and Competition in the Tourism Industry — A Theoretical Approach," Tourism Economics, , vol. 19(4), pages 967-975, August.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:4:p:967-975
    DOI: 10.5367/te.2013.0231
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    References listed on IDEAS

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    1. Aleix Calveras & Marcos Vera-Hernández, 2005. "Quality Externalities among Hotel Establishments: What is the Impact of Tour Operators?," Tourism Economics, , vol. 11(4), pages 571-599, December.
    2. Auriol, Emmanuelle & Schilizzi, Steven G.M., 2003. "Quality Signaling through Certification. Theory and an Application to Agricultural Seed Market," IDEI Working Papers 165, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Frey, Nicole & George, Richard, 2010. "Responsible tourism management: The missing link between business owners' attitudes and behaviour in the Cape Town tourism industry," Tourism Management, Elsevier, vol. 31(5), pages 621-628.
    4. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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    Cited by:

    1. M. Ángeles Sanfiel-Fumero & Yaiza Armas-Cruz & Olga González-Morales, 2017. "Sustainability of the tourist supply chain and governance in an insular biosphere reserve destination: the perspective of tourist accommodation," European Planning Studies, Taylor & Francis Journals, vol. 25(7), pages 1256-1274, July.
    2. Alatawi, Ibrahim A. & Ntim, Collins G. & Zras, Anis & Elmagrhi, Mohamed H., 2023. "CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 89(C).

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