Article2019

Corporate social responsibility: a pathway to sustainable competitive advantage?

106 citations0/0 files storedInternational Journal of Bank Marketing

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Customer Service Quality and Loyalty Corporate Social Responsibility Reporting Corporate Social Responsibility and Sustainability

Abstract

Purpose The purpose of this paper is to investigate the impact of customers’ perceptions of corporate social responsibility (CSR) on affective and continuance commitment. It analyses the moderation effect of relationship age on the CSR-commitment relationships in the banking industry of an emerging economy. Design/methodology/approach Partial least squares based structural equation modeling was used to test the proposed hypotheses in a sample of 360 respondents collected from the retail banking sector of Pakistan. Findings Customers’ CSR perceptions directly and positively influence affective and continuance commitment. The findings also confirm that relationship age is a positive moderator of the CSR-continuance commitment relationship, but does not influence the CSR-affective commitment relationship. Practical implications Marketers should use CSR activities to enhance customers’ commitment. Given the moderating role of relationship age, marketers should devise different strategies for new and long-term customers. The results clearly show that relationship age affects the CSR-continuance commitment relationship. Long-term banking customers will more likely be in a binding relationship when their banks do CSR activities and disseminate those activities to long-term customers. The study explicitly indicates that maintaining long-term customers’ base through CSR activities helps the marketers in achieving sustainable competitive advantage. Originality/value First, it is the pioneering study to empirically investigate the understudied relationship between CSR and continuance commitment. Second, it examines the moderation effect of relationship age on CSR-commitment relationships in the banking industry of an emerging economy.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1988On the Evaluation of Structural Equation Models 2011PLS-SEM: Indeed a Silver Bullet 2000An Integrative Theory of Intergroup Conflict 1991A three-component conceptualization of organizational commitment 1979A Three-Dimensional Conceptual Model of Corporate Performance 1987Developing Buyer-Seller Relationships

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