Does Core Competence Affect Corporate Social Responsibility?
Changling Sun, Stanislav Skapa, Jinzhao Liu, Jakub Horak, Yaning Yang
core competence, corporate social responsibility, financial strength, external attention
Core competence is the key factor in the competitiveness of enterprises. This study examines
whether enterprises with stronger core competence have the ability and motivation to fulfill
more corporate social responsibilities. Taking the non-financial companies listed in the A-share
market in China from 2010 to 2019 as the research samples, this paper constructs the measurement
index of core competence by text analysis method and empirically tests the impact of core
competence on corporate social responsibility. We find that the stronger the core competence
is, the higher the corporate social responsibility will be, which means core competence can
significantly improve corporate social responsibility. This conclusion remains significant after
a series of robustness tests. The mechanism test shows that the impact of core competence on
corporate social responsibility is realized by enhancing financial strength and increasing external
attention. Further research shows that the relationship between core competence and corporate
social responsibility are affected by the nature of the enterprise and the degree of market
competition. When the enterprise is a non-state-owned enterprise or the industry competition
is more intense, the influence of core competence on corporate social responsibility is stronger.
This paper reveals the important impact of core competence on corporate social responsibility,
which not only enriches the literature on the economic consequences of core competence and the
influencing factors of corporate social responsibility but also has a certain practical significance
for how to improve corporate social responsibility.
Does Core Competence Affect Corporate Social Responsibility? [PDF file] [Filesize: 1.27 MB]
Sun, Ch., Skapa, S., Liu, J., Horak, J., & Yang. Y. (2021). Does Core Competence Affect Corporate Social
Responsibility? Journal of Competitiveness, 13(4), 132–150. https://doi.org/10.7441/joc.2021.04.08