Market competition and firms' social performance

Leong, Chee Kian; Yang, Yung Chiang

doi:10.1016/j.econmod.2019.12.002

Cited by 46 publications

(17 citation statements)

References 22 publications

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“…However, the results reveal that, unlike financial business performance, competitor orientation is the only dimension of market orientation insignificant to the hotels' social performance. This finding corroborates Leong and Yang (2020) idea, which confirms that competition within a market makes the entities reduce social concerns. Interestingly, the findings demonstrate significant relationships between corporate governance and social business performance through customer orientation and inter-function coordination.…”

Section: Findings and Discussionsupporting

confidence: 87%

Corporate governance and business performance of hotels in Western Australia: analysis of market orientation as a mediator

Kazemian

Djajadikerta

Trireksani

et al. 2022

BPMJ

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PurposeThis study examines whether corporate governance enhances the financial and social business performance of three-to five-star hotels in Western Australia (WA) through the three dimensions of market orientation (i.e. customer orientation, competitor orientation and inter-function coordination) as mediators.Design/methodology/approachData were collected from managers of hotels in the WA capital city of Perth and its surrounding areas using a questionnaire. Partial least squares structural equation modelling (PLS-SEM) was used to analyse the data.FindingsThe overall result shows interesting findings of market orientation’s mediating role. It is found that corporate governance may lead to better financial business performance through competitor orientation but not through customer orientation and inter-function coordination. Complementary, corporate governance may lead to better social business performance through customer orientation and inter-function coordination but not through competitor orientation.Originality/valueThis paper offers contributions to both literature and practice on what dimensions of market orientation are important to enhance the performance of hotels when corporate governance is applied.

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Section: Findings and Discussionsupporting

confidence: 87%

Corporate governance and business performance of hotels in Western Australia: analysis of market orientation as a mediator

Kazemian

Djajadikerta

Trireksani

et al. 2022

BPMJ

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“…Finally, industry competition implies a more complicated situation. On the one hand, firms operating in highly competitive industries, characterized by market shares almost evenly distributed among a large number of competitors, perceive the need to resort to differentiation strategies such as the ones provided by CSR standards (Leong and Yang, 2020). On the other, in highly competitive industries with a large number of competitors, mimetic pressures are particularly strong; firms' strategies will be aggressively matched by rivals, reducing the possibility to generate abnormal rents from the diversification (Jansen et al , 2006).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

Podrecca

Orzes

Sartor

et al. 2021

IJOPM

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PurposeIn recent years, many companies have decided to decertify from their previously adopted corporate social responsibility (CSR) standards. The aim of this paper is to explore the phenomenon by focusing on the most important auditable CSR standard: Social Accountability 8000 (SA8000).Design/methodology/approachFirst, an event study is performed on a dataset composed of 136 SA8000 decertified public listed companies to analyse the possible relationship between certification, decertification and firms’ operating performance. Second, the authors shed light on the differences between 94 SA8000 (still) certified and the abovementioned 136 decertified firms. Finally, 10 interviews are conducted with decertified firms in the dataset to deepen the outcomes of the previous analyses.FindingsThe results show that, despite an initial positive effect in terms of sales and profitability, decertified companies experienced a reduction in productivity and profitability in the years following the certification, while positive outcomes emerged after the decertification. The study also highlights that certified and decertified firms differ in terms of home country, industry and labour intensity.Originality/valueThe paper contributes to the literature by opening the debate on an important but unexplored research area: the decertification from the most popular CSR standard, i.e. SA8000, and its relationship with firms' performance. In doing this, it also highlights the main differences between decertified and certified companies.

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“…There are many factors that affect the performance of corporate social responsibility, and scholars have also analyzed them from different views. From the perspective of external environment, economists have confirmed that market competition (measured by HHI index and the number of players in each industry) is beneficial to corporate social responsibility performance (Leong and Yang 2020 ). Government policies such as environmental regulation are also important factors affecting corporate social responsibility (See 2009 ; Vallentin 2015 ).…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

Does digital finance promote corporate social responsibility of pollution-intensive industry? Evidence from Chinese listed companies

Xin

2022

Environ Sci Pollut Res

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It is crucial to achieve sustainable development using digital finance to promote the fulfillment of corporate social responsibility. In this paper, we study the impact of digital finance on corporate social responsibility performance of pollution-intensive industry. From the perspective of theoretical mechanism, digital finance could influence corporate social responsibility performance through financing effect. Then, we use the data of Chinese listed companies and the Peking University Digital Financial Inclusion Index of China (PKU_DFIIC) to empirically test the influence of digital finance on corporate social responsibility of pollution-intensive industry. The results show that digital finance is positively related to the fulfillment of corporate social responsibility of pollution-intensive industry. The mechanism test shows that by reducing the information asymmetry in the financial market and making them easier for enterprises to access the financial market, digital finance effectively alleviates the financing constraints of enterprises and then enables enterprises to invest more capital in corporate social responsibility. Furthermore, we find that there are heterogeneous influences of digital finance on the corporate social responsibility performance of different types of enterprises. Specially, enterprises with small scale, located in high informatization and marketization areas and eastern regions of China, and enterprises with high ownership concentration will enjoy more positive impact. By using different indicators to measure digital finance and changing samples for robustness checks, the research conclusions of the paper are still valid. Therefore, government should make more effort to support the development of digital finance, so as to promote corporate social responsibility of pollution-intensive industry and the green and sustainable development of the economy.

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Market competition and firms' social performance

Cited by 46 publications

References 22 publications

Corporate governance and business performance of hotels in Western Australia: analysis of market orientation as a mediator

Corporate governance and business performance of hotels in Western Australia: analysis of market orientation as a mediator

The impact of abandoning social responsibility certifications: evidence from the decertification of SA8000 standard

Does digital finance promote corporate social responsibility of pollution-intensive industry? Evidence from Chinese listed companies

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