Effects of corporate social responsibility on sustained competitive advantage: a moderated mediation model

Abstract

Purpose

This study aims more than just assess the direct relationship between corporate social responsibility (CSR) and sustained competitive advantage (SCA). It explores the subtleties of how these impacts might be amplified or altered by socially responsible leadership (SRL). The study emphasizes how important community service (CS) is mediating this complicated connection.

Design/methodology/approach

In this study, a survey instrument tailored for employees of Indian private multinational corporations (MNCs) and public sector undertakings/government organizations (PSU/Govt. Orgn.) was used. A total of 517 questionnaires were used for subsequent analysis. Confirmatory factor analysis (CFA) was then carried out on four self-reported scales to assess the discriminant validity of both samples. Subsequently, regression analysis was performed to check the effect of CSR on SCA, with CS acting as a mediator and SRL serving as a moderator.

Findings

The findings affirm that CS mediates the relationship between CSR and SCA. Simultaneously, SRL is identified as a moderator in the association between CS and SCA. The mediating role of CS in connecting CSR to SCA holds for both private and public sectors, highlighting the importance of community engagement. A notable observation is the limited prevalence of SRL among PSU/Govt. Orgn. respondents.

Research limitations/implications

This study emphasizes the pivotal role of CSR in transforming companies into socially responsible entities, thereby augmenting corporate reputation and goodwill. Furthermore, the influence of SRL is highlighted as a moderator in the CSR−SCA relationship, impacting both private and public organizations. This research presents a conceptual framework of moderated mediation, shedding light on the complex relationship between CSR and SCA.

Originality/value

This study illuminates the importance of CS and SRL as critical elements in achieving SCA by recognizing a gap in current research. This distinctive perspective enhances the study's originality, providing novel insights into the intricate interplay between CSR, CS, SRL and SCA.

Citation

Maheshwari, H., Jena, L.K., Priyadarshini, R.G. and Kumar, V.V. (2024), "Effects of corporate social responsibility on sustained competitive advantage: a moderated mediation model", Social Responsibility Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SRJ-03-2024-0138