HOW DOES CORPORATE SOCIAL RESPONSIBILITY INFLUENCE COMPETITIVENESS OF LUXURY HOTELS? THE MEDIATING ROLE OF ENVIRONMENTAL PERFORMANCE
PDF

Keywords

corporate social responsibility
environmental performance
competitiveness
luxury hotels

Abstract

While the impact of corporate social responsibility (CSR) initiatives has been widely discussed in the literature, the mechanism of how CSR can promote competitiveness remains largely unexplored. This study takes a closer look at environmental performance (EP) as a mediator in the causal interaction between CSR and competitiveness in the accommodation sector, specifically in luxury hotels (4-5 stars). This study is considered a trend, as CSR-oriented innovation is increasingly seen not only as an answer to environmental needs but also as a driver of sustainable growth. Data were collected from 249 managers from various high-end resorts in Khanh Hoa, Vietnam, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized to analyze the data. The findings supported all hypotheses, indicating that the implementation of CSR activities not only ensures success in enhancing competitiveness but also positively affects the hotel's EP. The results of this study also confirm the mediating role of EP in the relationship between CSR and hotel competitiveness.

https://doi.org/10.26459/hueunijed.v134i5S.7694
PDF

References

  1. Rahman, Noushi, and Corinne Post (2012), Measurement issues in environmental corporate social responsibility (ECSR): Toward a transparent, reliable, and construct valid instrument, Journal of business ethics, 105, 307–319.
  2. Post, Corinne, Noushi Rahman, and Emily Rubow (2011), Green governance: Boards of directors’ composition and environmental corporate social responsibility, Business & society, 50(1), 189–223.
  3. Chuang, Shun-Pin, and Sun-Jen Huang (2018), The effect of environmental corporate social responsibility on environmental performance and business competitiveness: The mediation of green information technology capital, Journal of business ethics, 150, 991–1009.
  4. Kim, S., Kim, M., & Lee, Y. (2019), Environmental sustainability in the hotel industry: Practices, policies, and performance, International Journal of Hospitality Management, 82, 12–24.
  5. Battaglia, Massimo, et al. (2014), Corporate social responsibility and competitiveness within SMEs of the fashion industry: Evidence from Italy and France, Sustainability, 6(2), 872–893.
  6. Turyakira, Peter, Elmarie Venter, and Elroy Smith (2014), The impact of corporate social responsibility factors on the competitiveness of small and medium-sized enterprises, South African Journal of Economic and Management Sciences, 17(2), 157–172.
  7. Chaudhary, R. (2018), Corporate social responsibility and firm performance: Evidence from the hospitality industry, Tourism Economics, 24( 2), 211–230.
  8. Kam-Sing Wong, K. (2012), Corporate social responsibility and competitiveness in the hotel industry, International Journal of Hospitality Management, 31(3), 811–818.
  9. Padilla-Lozano, Carmen Paola, and Pablo Collazzo (2022), Corporate social responsibility, green innovation and competitiveness–causality in manufacturing, Competitiveness Review: An International Business Journal, 32(7), 21–39.
  10. Chan, E. S., Okumus, F., & Chan, W. W. (2014), Sustainability in hospitality: An overview of the hotel industry, International Journal of Hospitality Management, 37, 31–41.
  11. Haldorai, Kavitha, Woo Gon Kim, and RL Fernando Garcia (2022), Top management green commitment and green intellectual capital as enablers of hotel environmental performance: The mediating role of green human resource management, Tourism Management, 88, 104431.
  12. Porter, Michael E., and Competitive Strategy (1980), Techniques for analyzing industries and competitors, Competitive Strategy, New York: Free, 1.
  13. Agazu, Biniam Getnet, and Chalchissa Amentie Kero (2024), Innovation strategy and firm competitiveness: a systematic literature review, Journal of Innovation and Entrepreneurship, 13(1), 24.
  14. Nege, Teshome Bekele, and Mekonnen Bogale Abegaz (2024), Sustainable Supply Chain Management for Business Competitiveness: A Systematic Literature Review, European Business & Management, 10(1), 53–68.
  15. Jiménez-Partearroyo, Montserrat, and Ana Medina-López (2024), Leveraging Business Intelligence Systems for Enhanced Corporate Competitiveness: Strategy and Evolution, Systems, 12(3), 94.
  16. Freeman, R. Edward (2010), Strategic management: A stakeholder approach, Cambridge university press.
  17. Weiss, Joseph W. (2021), Business ethics: A stakeholder and issues management approach, Berrett-Koehler Publishers.
  18. Karim, S., Abdul Manab, N., & Ismail, R. (2020), The interaction effect of independent boards on corporate governance-corporate social responsibility (CG-CSR) and performance nexus, Asian Academy of Management Journal, 25(1), 61–84.
  19. Úbeda-García, M., Claver-Cortés, E., Marco-Lajara, B., & Zaragoza-Sáez, P. (2021), Corporate social responsibility and firm performance in the hotel industry. The mediating role of green human resource management and environmental outcomes, Journal of Business Research, 123, 57–69.
  20. Porter, M. E., & Kramer, M. R. (2011), Creating Shared Value, Harvard Business Review, 89, 1–2, 62–77.
  21. Barney, J. (1991), Firm Resources and Sustained Competitive Advantage, Journal of Management 17(1), 99–120.
  22. Hart, S. L. (1995), A natural-resource-based view of the firm, Academy of Management Review 20(4), 986–1014.
  23. Rugman, A. M., & Verbeke, A. (1998), Corporate Strategies and Environmental Regulations: An Organizing Framework, Strategic Management Journal, 19(4), 363–375.
  24. Hart, S. L., & Dowell, G. (2011), Invited Editorial: A Natural-Resource-Based View of the Firm: Fifteen Years After, Journal of Management, 37(5), 1464–1479.
  25. Kraus, S., Lins, K. V., & Megginson, W. L. (2020), Corporate social responsibility and environmental performance: A meta-analysis, Journal of Corporate Finance, 60, 101–643.
  26. Rötzel, P. G., Stehle, A., Pedell, B., & Hummel, K. (2019), Integrating environmental management control systems to translate environmental strategy into managerial performance, Journal of Accounting & Organizational Change, 15(4), 626–653.
  27. Hernández, J. P. S. I., Yañez-Araque, B., & Moreno-García, J. (2020), Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro, small-and medium-sized enterprises, Technological Forecasting and Social Change, 151, 119774.
  28. Aguinis, H. (2011), Organizational responsibility: Doing good and doing well. In S. Zedeck (Ed.), APA handbook of industrial and organizational psychology, Washington, DC: American Psychological Association, 855–879.
  29. Rupp, D. (2011), An employee-centered model of organizational justice and social responsibility, Organizational Psychology Review, 1(1), 72–94.
  30. Aguinis, H., & Glavas, A. (2012), What we know and don’t know about corporate social responsibility: A review and research agenda, Journal of Management, 38(4), 932–968.
  31. Bekmezci, M. (2015), Companies’ profitable way of fulfilling duties towards humanity and environment by sustainable innovation, Procedia-Social and Behavioral Sciences, 181, 228–240.
  32. Caligiuri, P., Mencin, A., & Jiang, K. (2013), Win–win–win: The influence of company‐sponsored volunteerism programs on employees, NGOs, and business units, Personnel Psychology, 66(4), 825–860.
  33. Olanrewaju, I. S., Ishola, A. K., & Ibrahim Abubakar, A. (2020), Impact of board diversity on corporate social responsibility of listed oil and gas firms in Nigeria, International Journal of Accounting Research, 5(3), 107–115.
  34. Bhardwaj, B. R. (2016), Role of green policy on sustainable supply chain management: a model for implementing corporate social responsibility (CSR), Benchmarking: An International Journal, 23(2), 456–468.
  35. Rajabian Tabesh, A., Batt, P. J., & Butler, B. (2016), Modelling the impact of environmental and organizational determinants on green supply chain innovation and performance, Journal of food products marketing, 22(4), 436–454.
  36. Reverte, C. (2012), The impact of better corporate social responsibility disclosure on the cost of equity capital, Corporate Social Responsibility and Environmental Management, 19(5), 253–272.
  37. Windolph, S. E., Harms, D., & Schaltegger, S. (2014), Motivations for corporate sustainability management: Contrasting survey results and implementation, Corporate Social Responsibility and Environmental Management 21(5), 272–285.
  38. Humphrey, J. E., Lee, D. D., & Shen, Y. (2015), The independent effects of environmental, social, and governance initiatives on the performance of UK firms, Australian Journal of Management, 40(2), 1–26.
  39. Antonietti, R., & Marzucchi, A. (2014), Green tangible investment strategies and export performance: A firm-level investigation, Ecological Economics, 108, 150–161.
  40. DeMelo, J., Castel-Branco, R., & Lázaro, E. (2017), Corporate social responsibility and firm competitiveness: A bibliometric study (2001-2023), Journal of Cleaner Production, 172, 2045–2055.
  41. Kumar, R., Jha, M., & Singh, N. (2024), The influence of corporate social responsibility on business competitiveness: A 19-year bibliometric analysis, Corporate Social Responsibility and Environmental Management, in press.
  42. Lu, W., Chau, K., Wang, H., & Pan, W. (2016), A decade’s debate on the nexus between corporate social and financial performance: A critical review, Journal of Cleaner Production, 112, 4584–4594.
  43. Kang, K. H., Stein, L., Heo, C. Y., & Lee, S. (2012), Consumers’ willingness to pay for green initiatives of the hotel industry, International Journal of Hospitality Management, 31(2), 564–572.
  44. Martínez, P., Pérez, A., & del Bosque, I. R. (2020), CSR influence on hotel brand image and loyalty, Journal of Sustainable Tourism, 28(10), 1584–1601.
  45. Kasim, A., Gursoy, D., Okumus, F., & Wong, A. (2013), The importance of strategic environmental sustainability in the hospitality industry, Journal of Hospitality Marketing & Management, 22(3), 232–251.
  46. Sarwar, H., Aftab, J., Ishaq, M. I., & Atif, M. (2023), Achieving business competitiveness through corporate social responsibility and dynamic capabilities: An empirical evidence from emerging economy, Journal of Cleaner Production, 386, 135820.
  47. Helfaya, A., & Moussa, M. (2017), The impact of corporate social responsibility on firm performance: A meta-analysis, Journal of Business Ethics, 144(2), 301–328.
  48. Orazalin, N. (2020), Do board sustainability committees contribute to corporate environmental and social performance? The mediating role of corporate social responsibility strategy, Business Strategy and the Environment, 29(1), 140–153.
  49. Suganthi, L. (2019), The impact of corporate social responsibility on firm performance: A meta-analysis, International Journal of Productivity and Performance Management, 68(4), 949–967.
  50. Sidhoum, A., & Serra, T. (2017), Corporate social responsibility and firm performance: A meta-analysis, Journal of Business Ethics, 140(3), 497–518.
  51. Longoni, C., Raberto, M., & Zoia, M. G. (2018), CSR and firm performance: A meta-analysis, Journal of Business Ethics, 147(2), 347–369.
  52. Anser, M. N., Khan, M. A., & Khan, I. (2020), The impact of corporate social responsibility on environmental performance: Evidence from Pakistan, Journal of Cleaner Production, 276, 123463.
  53. Kim, J., & Thapa, B. (2018), The impact of corporate social responsibility on firm performance: A meta-analysis, International Journal of Hospitality Management, 73, 114–126.
  54. Franzoni, C., Rossi, M., & Villa, L. (2021), Corporate social responsibility and firm performance: A meta-analysis, Journal of Business Ethics, 170(1), 183–204.
  55. Mårtensson, J., & Westerberg, M. (2016), Corporate social responsibility and firm performance: A meta-analysis, Journal of Business Ethics, 136(2), 259–277.
  56. Seroka-Stolka, M. (2014), The role of corporate social responsibility in achieving sustainable development, Procedia Economics and Finance, 19, 262–269.
  57. Shaukat, A., Khan, I., & Nazir, M. S. (2016), Corporate social responsibility and firm performance: A meta-analysis, Journal of Cleaner Production 112, 2960–2976.
  58. Madueno, J. H., Jorge, M. L., Conesa, I. M., & Martínez-Martínez, D. (2016), Relationship between corporate social responsibility and competitive performance in Spanish SMEs: Empirical evidence from a stakeholders’ perspective, BRQ Business Research Quarterly, 19(1), 55–72.
  59. Morioka, Sandra Naomi, and Marly Monteiro de Carvalho (2016), A systematic literature review towards a conceptual framework for integrating sustainability performance into business, Journal of cleaner production, 136, 134–146.
  60. Tomšič, Nastja, Štefan Bojnec, and Blaž Simčič (2015), Corporate sustainability and economic performance in small and medium sized enterprises, Journal of Cleaner Production, 108, 603–612.
  61. Neuman, Delia (2014), Qualitative research in educational communications and technology: A brief introduction to principles and procedures, Journal of Computing in Higher Education, 26, 69–86.
  62. Hair Jr, Joseph F., et al. (2021), An introduction to structural equation modeling, Partial least squares structural equation modeling (PLS-SEM) using R: a workbook, 1–29.
  63. Cohen, Jacob (1992), Quantitative methods in psychology: A power primer, Psychol. Bull, 112, 1155–1159.
  64. Ringle, Christian M., Sven Wende, and Jan-Michael Becker (2015), SmartPLS 3. SmartPLS GmbH, Boenningstedt, Journal of Service Science and Management 10(3), 32–49.
  65. Hair Jr, Joe, Michael Page, and Niek Brunsveld (2019), Essentials of business research methods, Routledge.
  66. Anderson, James C., and David W. Gerbing (1988), Structural equation modeling in practice: A review and recommended two-step approach, Psychological bulletin, 103(3), 411.
  67. Henseler, Jörg, Christian M. Ringle, and Marko Sarstedt (2015), A new criterion for assessing discriminant validity in variance-based structural equation modeling, Journal of the academy of marketing science, 43, 115–135.
  68. Nunes, Sara, Cristina Estevão, and Maria Nicolau Filipe (2018), Determinant factors of competitiveness in the hotel sector: the case of Portugal, Competitiveness Review: An International Business Journal, 28(2), 122–135.
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Copyright (c) 2024 Array