IDEAS home Printed from https://ideas.repec.org/p/aap/wpaper/081.html
   My bibliography  Save this paper

Corporate Social Responsibility, Product Differentiation Strategy and Export Performance

Author

Listed:
  • Dirk Michael Boehe

Abstract

This paper argues that corporate social responsibility (CSR) may contribute to product differentiation in export markets and thus improve export performance. We test this argument by observing a period of decreasing export competitiveness in a leading emerging economy (Brazil). Using a large-scale survey design with 252 questionnaires completed by medium and large sized Brazilian exporters, we used structural equations modeling to test our hypotheses. The results suggest that CSR product differentiation predicts export performance better than product quality differentiation and almost as well as product innovation differentiation. Multi-group analysis further revealed that the positive and significant effect of CSR product differentiation on export performance is likely to be contingent on the number and type (developing vs. developed) of countries targeted. Our study contributes to literature on export performance and CSR by introducing an important explanatory variable of firm performance.

Suggested Citation

  • Dirk Michael Boehe, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Business and Economics Working Papers 081, Unidade de Negocios e Economia, Insper.
  • Handle: RePEc:aap:wpaper:081
    as

    Download full text from publisher

    File URL: https://repositorio.insper.edu.br/handle/11224/5781
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Warren J Bilkey & George Tesar, 1977. "The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 93-98, March.
    3. Brooks, Eileen L., 2006. "Why don't firms export more? Product quality and Colombian plants," Journal of Development Economics, Elsevier, vol. 80(1), pages 160-178, June.
    4. John W Cadogan & Adamantios Diamantopoulos & Judy A Siguaw, 2002. "Export Market-oriented Activities: Their Antecedents and Performance Consequences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 615-626, September.
    5. Robert G Cooper & Elko J Kleinschmidt, 1985. "The Impact of Export Strategy on Export Sales Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 37-55, March.
    6. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988.
    7. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    8. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    9. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    10. Otto Andersen, 1993. "On the Internationalization Process of Firms: A Critical Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 209-231, June.
    11. Talaat Abdel-Malek, 1974. "Foreign Ownership and Export Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 5(2), pages 1-14, June.
    12. Luis Filipe Lages & Sandy D Jap & David A Griffith, 2008. "The role of past performance in export ventures: a short-term reactive approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 304-325, March.
    13. C Zhang & S T Cavusgil & A S Roath, 2003. "Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 550-566, November.
    14. Donald S. Siegel & Donald F. Vitaliano, 2007. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 773-792, September.
    15. Lukas, Bryan A. & Whitwell, Gregory J. & Hill, Paul, 2007. "Export planning orientation and its antecedents: Evidence from exporting IT products," Journal of Business Research, Elsevier, vol. 60(12), pages 1282-1289, December.
    16. Lance Eliot Brouthers & Kefeng Xu, 2002. "Product Stereotypes, Strategy and Performance Satisfaction: The Case of Chinese Exporters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 657-677, December.
    17. Piercy, Nigel F & Kaleka, Anna & Katsikeas, Constantine S, 1998. "Sources of competitive advantage in high performing exporting companies," Journal of World Business, Elsevier, vol. 33(4), pages 378-393, January.
    18. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    19. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    20. Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 419-445, September.
    21. Luis V Dominguez & Carlos G Sequeira, 1993. "Determinants of LDC Exporters′ Performance: A Cross-National Study*," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(1), pages 19-40, March.
    22. Carl H Christensen & Angela da Rocha & Rosane Kerbel Gertner, 1987. "An Empirical Investigation of Factors Influencing Exporting Success of Brazilian Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(3), pages 61-77, September.
    23. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    24. Seev Hirsch & Ilan Bijaoui, 1985. "R&D intensity and export performance: A micro view," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 121(2), pages 238-251, June.
    25. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    26. Lance Eliot Brouthers & Edward O'Donnell & John Hadjimarcou, 2005. "Generic Product Strategies for Emerging Market Exports into Triad Nation Markets: A Mimetic Isomorphism Approach," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 225-245, January.
    27. Janet Y Murray & Masaaki Kotabe & Joe Nan Zhou, 2005. "Strategic alliance-based sourcing and market performance: evidence from foreign firms operating in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 187-208, March.
    28. Baldauf, Artur & Cravens, David W. & Wagner, Udo, 2000. "Examining determinants of export performance in small open economies," Journal of World Business, Elsevier, vol. 35(1), pages 61-79, April.
    29. Chris Styles & Paul G Patterson & Farid Ahmed, 2008. "A relational model of export performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 880-900, July.
    30. Philip J Rosson & I David Ford, 1982. "Manufacturer-Overseas Distributor Relations and export Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(2), pages 57-72, June.
    31. Daphne W Yiu & ChungMing Lau & Garry D Bruton, 2007. "International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 519-540, July.
    32. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    Full references (including those not matched with items on IDEAS)

    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. BOEHE, Dirk Michael, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Insper Working Papers wpe_186, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    2. Dirk Boehe & Luciano Barin Cruz, 2010. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 325-346, February.
    3. Dirk Michael Boehe & Luciano Barin Cruz & Mário Henrique Ogasavara, 2010. "How can Firms from Emerging Economies Enhance their CSR-Supported Export Strategies?," Business and Economics Working Papers 097, Unidade de Negocios e Economia, Insper.
    4. Johanson, Martin & Martín Martín, Oscar, 2015. "The incremental expansion of Born Internationals: A comparison of new and old Born Internationals," International Business Review, Elsevier, vol. 24(3), pages 476-496.
    5. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    6. Boehe, Dirk Michael, 2011. "Collaborate at home to win abroad: How does access to local network resources influence export behavior?," Insper Working Papers wpe_248, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    7. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2008. "What Drives New Ventures to Internationalize from Emerging to Developed Economies?," Entrepreneurship Theory and Practice, , vol. 32(1), pages 59-82, January.
    8. Alteren, Gro & Tudoran, Ana Alina, 2016. "Enhancing export performance: Betting on customer orientation, behavioral commitment, and communication," International Business Review, Elsevier, vol. 25(1), pages 370-381.
    9. Foroudi, Pantea & Gupta, Suraksha & Patel, Parth & Batsakis, Georgios & Vaatanen, Juha & Czinkota, Michael, 2023. "The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock," International Business Review, Elsevier, vol. 32(2).
    10. Hollender, Lina & Zapkau, Florian B. & Schwens, Christian, 2017. "SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation," International Business Review, Elsevier, vol. 26(2), pages 250-263.
    11. Wilkinson, Timothy & Brouthers, Lance Eliot, 2006. "Trade promotion and SME export performance," International Business Review, Elsevier, vol. 15(3), pages 233-252, June.
    12. Sharma, Piyush & Cheng, Louis T.W. & Leung, T.Y., 2020. "Impact of political connections on Chinese export firms' performance – Lessons for other emerging markets," Journal of Business Research, Elsevier, vol. 106(C), pages 24-34.
    13. Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    14. Sousa, Carlos M.P. & Bradley, Frank, 2008. "Antecedents of international pricing adaptation and export performance," Journal of World Business, Elsevier, vol. 43(3), pages 307-320, July.
    15. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, vol. 25(4), pages 986-996.
    16. Jorge A. Arevalo & Deepa Aravind, 2017. "Strategic Outcomes in Voluntary CSR: Reporting Economic and Reputational Benefits in Principles-Based Initiatives," Journal of Business Ethics, Springer, vol. 144(1), pages 201-217, August.
    17. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    18. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Do foreign resources assist or impede internationalisation? Evidence from internationalisation of Indian multinational enterprises," International Business Review, Elsevier, vol. 25(1), pages 130-140.
    19. Ýrem Eren-Erdoðmuþ & A. Müge Yalçýn & Aichurek Bopieva, 2012. "Revisiting Relationship Marketing in Emerging Markets: The Case of Turkish Exportes," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 26(1), pages 81-101.
    20. Kahiya, Eldrede T., 2018. "Five decades of research on export barriers: Review and future directions," International Business Review, Elsevier, vol. 27(6), pages 1172-1188.

    More about this item

    Statistics

    Access and download statistics

    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:aap:wpaper:081. 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: Biblioteca Telles (email available below). General contact details of provider: https://edirc.repec.org/data/inspebr.html .

    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.