Implementation of Corporate Social Responsibility Strategy to Enhance Firm Reputation and Competitive Advantage
Ngoc Khuong Mai, An Khoa Truong Nguyen, Thanh Thuy Nguyen
Keywords:
corporate social responsibility, small and medium enterprises, firm reputation, firm competitive
advantage
Abstract:
Corporate social responsibility (CSR) is an important strategy for firms to gain a positive
reputation. This study aims to identify the mediating role of firm reputation on the relationships
of CSR dimensions (economic, legal, ethical, philanthropic and environmental) and competitive
advantage, and how a firm directly gains competitive advantage through CSR implementation.
Data were collected by surveying 869 managers, as representatives of small and medium
enterprises, and large enterprises, in the trade and service, real estate and manufacturing sectors
in Vietnam. Then, SmartPLS 3.0 software and the partial least squares structural equation
modelling method were used to process the data and test the hypotheses. The empirical results
are impactful and enhance the existing literature on strategic management. The results show that
implementing environmental, ethical, philanthropic and legal CSR activities contribute positively
to increase the firm reputation and thus generating competitive advantage. The findings indicate
that the implementation of economic CSR activities does not enable firms to gain a reputation. In
contrast, active involvement in environmental CSR activities results in building firm reputation,
thereby creating a source of competitive advantage for firms. The study provides guidelines for
top-level management to adjust their CSR strategies more effectively to improve reputation and
competitive advantage.
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 Implementation of Corporate Social Responsibility Strategy to Enhance Firm Reputation and Competitive Advantage [PDF file] [Filesize: 1.24 MB]
 10.7441/joc.2021.04.06
Mai, N. K., Nguyen, A. K. T., & Nguyen, T. T. (2021). Implementation of Corporate Social Responsibility
Strategy to Enhance Firm Reputation and Competitive Advantage. Journal of Competitiveness, 13(4), 96–
114. https://doi.org/10.7441/joc.2021.04.06
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