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Journal Article•DOI•

Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance

N Torugsa1, Wayne O'Donohue2, Rob Hecker1•
University of Tasmania1, Griffith University2
01 Jun 2013-Journal of Business Ethics (Springer Netherlands)-Vol. 115, Iss: 2, pp 383-402
TL;DR: In this article, the authors examined the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities (shared vision, stakeholder management and strategic proactivity) and financial performance in small and medium enterprises (SMEs).
Abstract: Proactive corporate social responsibility (CSR) involves business practices adopted voluntarily by firms that go beyond regulatory requirements in order to actively support sustainable economic, social and environmental development, and thereby contribute broadly and positively to society. This empirical study examines the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities—shared vision, stakeholder management and strategic proactivity—and financial performance in small and medium enterprises (SMEs). Using quantitative data collected from a sample of 171 Australian SMEs in the machinery and equipment manufacturing sector and employing structural equation modelling, we find that the adoption of practices in each CSR dimension by SMEs is influenced slightly differently by each capability, and affects financial performance differentially. The study also demonstrates the importance of the interaction between the three dimensions of proactive CSR in positively moderating the deployment of each individual CSR dimension to generate financial performance. Paying primary attention to the economic dimension of proactive CSR and selectively focusing on social and environmental elements of proactive CSR that drive and support the economic dimension are of key importance to sustainable long-term financial success for SMEs.

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Citations
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Posted Content•
A natural resource-based view of the firm

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Stuart L. Hart1•
University of Michigan1
01 Jan 1994
TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.
Abstract: Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.

902 citations

Journal Article•DOI•
Management of social issues in supply chains: a literature review exploring social issues, actions and performance outcomes

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Sadaat Ali Yawar1, Sadaat Ali Yawar2, Stefan Seuring1•
University of Kassel1, Aalto University2
01 Mar 2017-Journal of Business Ethics
TL;DR: In this paper, a structured literature review of social issues in supply chains is presented, analysing the research published so far in peer-reviewed publications, and the corresponding responsible supply chain actions adopted by firms to address these issues are grouped into communication, compliance and supplier development strategies.
Abstract: The social dimension of sustainable development and its impact on supply chains have so far received less attention than the environmental dimension. The aim of the research is to explore the intersection between social issues, corporate social responsibility (CSR) actions and performance outcomes. A structured literature review of social issues in supply chains is presented, analysing the research published so far in peer-reviewed publications. Linking CSR and supply chain management allows the exploration of strategies and performance outcomes with a focus on social issues. The corresponding responsible supply chain actions adopted by firms to address these issues are grouped into communication, compliance and supplier development strategies. Social and economic as well as buyer and supplier performance are identified as the key outcomes, but the interactions among these constructs would require further research. This paper contributes to the understanding of managing social issues in supply chains by linking social issues, responsible supply chain actions and performance outcomes. The paper consolidates related research by offering an overarching conceptual framework and points to future research directions and simultaneously provides insights into the management of social issues in supply chains.

380 citations

Cites background from "Proactive CSR: An Empirical Analysi..."

  • ...Some researchers have studied the interaction between CSR implementation and financial performance of companies (e.g. Jiang 2009; Klassen and Vereecke 2012; Parmigiani et al. 2011; Torugsa et al. 2013)....

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  • ...However, few papers (Mefford 2012; Torugsa et al. 2013)...

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Journal Article•DOI•
Corporate social responsibility and its effect on innovation and firm performance: An empirical research in SMEs

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Isabel Martinez-Conesa1, Pedro Soto-Acosta1, Mercedes Palacios-Manzano1•
University of Murcia1
20 Jan 2017-Journal of Cleaner Production
TL;DR: In this article, the authors assess the relationship between CSR and organizational innovation and firm performance in a single integrative model by using structural equation modelling on a data set of 552 Spanish firms.

272 citations

Journal Article•DOI•
Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective

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Venkatesh Mani1, Angappa Gunasekaran2, Catarina Delgado3•
Siddaganga Institute of Technology1, California State University, Bakersfield2, University of Porto3
01 Jan 2018-International Journal of Production Economics
TL;DR: In this article, a survey was conducted in Indian manufacturing industries and co-variance-based structural equation modeling was used to test the hypothesized model, which revealed that there are 18 validated supplier social sustainability measures underlying five social dimensions: labor rights, safety and health, societal responsibility, diversity, and product responsibility.

258 citations

Cites background from "Proactive CSR: An Empirical Analysi..."

  • ...In the supply chain literature, the use of social indicators for measuring social and financial performance was hardly done, especially with respect to supply chain context (Torugsa et al., 2013; Hutchins and Sutherland, 2008), and needs further research....

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  • ...They further argue that the repercussions of unhealthy and unsafe working conditions may create difficulty in attracting and retaining employees, which may affect the long-term performance of the organization (Torugsa et al., 2013)....

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  • ...Consistent with recent calls for social sustainability research in emerging economies (Torugsa et al., 2013; Yawar and Seuring, 2015), this study explored supplier social sustainability issues and how they can positively enhance supply chain performance in emerging countries....

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Journal Article•DOI•
Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems

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Chaminda Wijethilake1•
Macquarie University1
01 Jul 2017-Journal of Environmental Management
TL;DR: The study investigates the mediating effect of SCS on the relationship between proactive sustainability strategy and corporate sustainability performance and finds that a proactiveustainability strategy is positively associated with SCS and company sustainability performance.

167 citations

Cites methods from "Proactive CSR: An Empirical Analysi..."

  • ...Referring to Torugsa et al. (2013), this study uses the term “proactive sustainability strategy” including all three sustainability dimensions: environmental, economic, and social....

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References
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Journal Article•DOI•
The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations.

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Reuben M. Baron, David A. Kenny
01 Dec 1986-Journal of Personality and Social Psychology
TL;DR: This article seeks to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating the many ways in which moderators and mediators differ, and delineates the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena.
Abstract: In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.

80,095 citations

"Proactive CSR: An Empirical Analysi..." refers background or methods in this paper

  • ...Following the approach recommended by Baron and Kenny (1986), we created the paths of three CSR dimensions and the interaction term or product of these three variables (interaction between all CSR dimensions) that directly influenced the dependent variable of financial performance....

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  • ...To prove moderation (based on Baron and Kenny’s (1986) suggestion), the interaction of all three CSR dimensions must significantly affect financial performance; there might also be significant direct effects for each CSR dimension but these would not be directly relevant conceptually to testing the moderation hypothesis....

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  • ...Following the approach recommended by Baron and Kenny (1986), we created the paths of three CSR dimensions and the interaction term or product of these three variables (interaction between all CSR dimensions) that directly influenced the...

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Journal Article•DOI•
Common method biases in behavioral research: a critical review of the literature and recommended remedies.

[...]

Philip M. Podsakoff1, Scott B. MacKenzie1, Jeong-Yeon Lee1, Nathan P. Podsakoff2•
Indiana University1, University of Florida2
01 Oct 2003-Journal of Applied Psychology
TL;DR: The extent to which method biases influence behavioral research results is examined, potential sources of method biases are identified, the cognitive processes through which method bias influence responses to measures are discussed, the many different procedural and statistical techniques that can be used to control method biases is evaluated, and recommendations for how to select appropriate procedural and Statistical remedies are provided.
Abstract: Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.

52,531 citations

Additional excerpts

  • ...Since the data were subjective assessments of single respondents, it was acknowledged that common method bias could have augmented relationships between the variables (Podsakoff et al., 2003)....

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Book Chapter•DOI•
Firm Resources and Sustained Competitive Advantage

[...]

Jay B. Barney1•
Texas A&M University1
01 Mar 1991-Journal of Management
TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.

46,648 citations

"Proactive CSR: An Empirical Analysi..." refers background or methods in this paper

  • ...Furthermore, the structural model proposed and tested in this study draws on RBV theory (Barney 1991; Grant, 1991) and prior research (e.g. Aragon-Correa et al, 2008)....

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  • ...…a firm’s resources (or characteristics) provide the foundation for successful strategy formulation, which in turn promotes financial performance (Barney, 1991; Grant, 1991; Wernerfelt, 1984), we consider three specific capabilities – shared vision, stakeholder management and strategic…...

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  • ...…consistent with RBV theory that resources on their own are unlikely to deterministically drive competitive strategy development, and that it is the integration and coordination of multiple resources to create capability which drives strategy and performance improvement (Barney, 1991; Grant, 1991)....

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  • ...…of each capability on SME financial performance through the CSR interaction found in this study also aligns with RBV theory that suggests adoption of valuecreating strategies that make the most effective use of a firm’s capabilities is essential to financial success (Barney, 1991; Grant, 1991)....

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  • ...Drawing on RBV theory that distinctive capabilities are critical foundations for formulating strategies (Barney, 1991; Grant, 1991), we consider three specific capabilities – shared vision, stakeholder management and strategic proactivity – which when leveraged by SMEs may make more likely the…...

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Book•
Principles and Practice of Structural Equation Modeling

[...]

Rex B. Kline1•
Concordia University Wisconsin1
27 May 1998
TL;DR: The book aims to provide the skills necessary to begin to use SEM in research and to interpret and critique the use of method by others.
Abstract: Designed for students and researchers without an extensive quantitative background, this book offers an informative guide to the application, interpretation and pitfalls of structural equation modelling (SEM) in the social sciences. The book covers introductory techniques including path analysis and confirmatory factor analysis, and provides an overview of more advanced methods such as the evaluation of non-linear effects, the analysis of means in convariance structure models, and latent growth models for longitudinal data. Providing examples from various disciplines to illustrate all aspects of SEM, the book offers clear instructions on the preparation and screening of data, common mistakes to avoid and widely used software programs (Amos, EQS and LISREL). The book aims to provide the skills necessary to begin to use SEM in research and to interpret and critique the use of method by others.

42,102 citations

Journal Article•DOI•
Multivariate Data Analysis

[...]

Joseph F. Hair
01 Jan 1973
TL;DR: In this paper, a six-step framework for organizing and discussing multivariate data analysis techniques with flowcharts for each is presented, focusing on the use of each technique, rather than its mathematical derivation.
Abstract: Offers an applications-oriented approach to multivariate data analysis, focusing on the use of each technique, rather than its mathematical derivation. The text introduces a six-step framework for organizing and discussing techniques with flowcharts for each. Well-suited for the non-statistician, this applications-oriented introduction to multivariate analysis focuses on the fundamental concepts that affect the use of specific techniques rather than the mathematical derivation of the technique. Provides an overview of several techniques and approaches that are available to analysts today - e.g., data warehousing and data mining, neural networks and resampling/bootstrapping. Chapters are organized to provide a practical, logical progression of the phases of analysis and to group similar types of techniques applicable to most situations. Table of Contents 1. Introduction. I. PREPARING FOR A MULTIVARIATE ANALYSIS. 2. Examining Your Data. 3. Factor Analysis. II. DEPENDENCE TECHNIQUES. 4. Multiple Regression. 5. Multiple Discriminant Analysis and Logistic Regression. 6. Multivariate Analysis of Variance. 7. Conjoint Analysis. 8. Canonical Correlation Analysis. III. INTERDEPENDENCE TECHNIQUES. 9. Cluster Analysis. 10. Multidimensional Scaling. IV. ADVANCED AND EMERGING TECHNIQUES. 11. Structural Equation Modeling. 12. Emerging Techniques in Multivariate Analysis. Appendix A: Applications of Multivariate Data Analysis. Index.

37,124 citations

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01 Jul 1991-Business Horizons
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