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Kim, MinChung
School of Business Administration
Research Interests
  • Marketing strategies and their impact on financial performances

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Effects of Corporate Social Responsibility on Firm Financial Performance: A Competitive-Action Perspective

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Title
Effects of Corporate Social Responsibility on Firm Financial Performance: A Competitive-Action Perspective
Author
Kim, Kwang-HoKim, MinChung Qian, Cuili
Keywords
positive CSR;  negative CSR;  competitive action;  financial performance
Issue Date
ACCEPT
Publisher
SAGE PUBLICATIONS INC
Citation
JOURNAL OF MANAGEMENT, v., no., pp. -
Abstract
We attempt to provide a more nuanced view of the relationship between corporate social responsibility (CSR) and firm financial performance using a competitive-action perspective. We argue that competitive action should be considered as an important contingency that determines the effects of CSR activities on firm financial performance. Using data for 113 publicly listed U.S. firms in the software industry between 2000 and 2005, we found that socially responsible activities (positive CSR) enhance firm financial performance when the firm’s competitive-action level is high, whereas socially irresponsible activities (negative CSR) actually improve firm financial performance when the competitive-action level is low. By introducing competitive action as an important contingency, this study contributes to the literature on CSR and strategic management.
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ISSN
0149-2063
Appears in Collections:
SBA_Journal Papers

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