Corporate social responsibility and competitive advantage : relationships and mechanisms

Abstract

Purpose: This study is intended to gain insight into the association of Corporate Social Responsibility (CSR) implementations and the achievement of competitive advantage focusing on the mediation role of company reputation (CR) in this relationship. Design/Methodology/Approach: Semi-structured interview technique was used to confirm the validity of the research model. In addition, the purposive sampling method has been used targeting senior decision makers in different well-known 5-star hotels and resorts in Jordan. A total of three hundred (300) questionnaires were distributed. While two hundred and forty (240) questionnaires were retrieved from respondents, two hundred and eleven (211) questionnaires were valid and usable. Findings: The results elucidated the mechanism of CSR and competitive advantage relationship. Although the results confirmed the positive (direct and indirect) effect of the social, the legal, and the ethical dimensions of (CSR) on competitive advantage, data analysis did not support any significant impact for the environmental dimension on competitive advantage (CA) through the company reputation (CR) as a mediator variable. Practical Implications: This study raises awareness of (CSR) implementations in service-oriented developing economies through highlighting the mechanism and relationships of CSR and competitive advantage. It is hoped that, it will contribute to generate interest towards the concept of ``Environmental Corporate Social Responsibility`` (ECSR), as a strategic alternative at the aim of the achievement of competitive advantage. Originality/Value: The study goes beyond examining the causal relationship between (CSR) and competitive advantage. It focuses on achieving a deep understanding of this relationship by exploring the mechanisms of its work through illustrating the mediation role of reputation.