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Article
Publication date: 28 November 2018

Wonsuk Cha, Michael Abebe and Hazel Dadanlar

The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s…

Abstract

Purpose

The purpose of this paper is to explore the relationship between a chief executive officer (CEO)’s personal engagement in broader societal causes (CEO civic engagement) and firm’s social and environmental performance.

Design/methodology/approach

A theoretical framework was developed based on upper echelons and stakeholder theories to argue that CEOs’ professional background characteristics can be closely related to firm-level social and environmental performance. Hierarchical OLS analysis was conducted using data from 178 large, publicly traded large US firms between 2010 and 2013.

Findings

Overall, the findings suggest that firms led by CEOs with active civic engagement are more likely to support various philanthropic efforts. Additionally, the findings suggest that firms led by civic-minded CEOs are more likely to support an active corporate environmental engagement by investing significant resources in various environmental causes. Contrary to the authors’ predictions, the level of CEO civic engagement was not a significant predictor of firm level community engagement activities.

Research limitations/implications

The findings extend current scholarly work on executive determinants of corporate social performance by highlighting the important role of CEOs’ personal engagement beyond studying CEOs’ demographic characteristics. Specifically, the findings that the CEO-civic engagements lead to higher degrees of corporate philanthropy and environmental performance show that CEOs’ civic engagement can go beyond what is considered symbolic executive actions.

Practical implications

The findings suggest that firms that seek to foster social and environmental performance in a meaningful way should recruit and retain CEOs that have a personal commitment to and engagement in various social and environmental issues and causes.

Originality/value

By empirically examining the effect of CEO civic engagement on corporate philanthropy, community involvement and environmental performance, this paper seeks to contribute to the scholarly conversation on the effects of CEOs in shaping the firm’s social and environmental engagement and addressing external stakeholder concerns.

Details

Social Responsibility Journal, vol. 15 no. 8
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 11 September 2020

Dongjun Rew and Wonsuk Cha

This study aims to explore the effects of consumer resilience and brand familiarity on the relationship between corporate social responsibility (CSR) and consumer attitudes toward…

Abstract

Purpose

This study aims to explore the effects of consumer resilience and brand familiarity on the relationship between corporate social responsibility (CSR) and consumer attitudes toward the company conducting CSR in places that have suffered from traumatic events such as natural or anthropogenic disasters and uncertainty of public health issue.

Design/methodology/approach

This study collected survey-based data from 194 participants who suffered from natural and anthropogenic disasters in the state of Texas. Path analysis was used to test each structural relationship among variables after verifying the reliability and validity of each variable. Analysis of variance was used to investigate the difference in resilience between the two groups.

Findings

This study verified that there is a positive relationship between CSR and consumer attitude. More importantly, the results show that both resilience and familiarity play an important role as a mediator in the relationship between CSR and attitudes. In particular, it tells us that a group with high resilience shows a higher possibility of having positive attitudes toward the company than another group having low resilience.

Originality/value

This study empirically tested the impacts of CSR, resilience and brand familiarity on building consumer attitudes. Furthermore, this study explored the effects of resilience and brand familiarity on the relationship between CSR and attitudes. Thus, this study was able to contribute to understanding the effects of CSR, resilience and familiarity on building a positive attitude in the specific settings, in terms of traumatic events, theoretically and practically.

Details

Social Responsibility Journal, vol. 17 no. 7
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 15 July 2022

Wonsuk Cha, Dongjun Rew and Joo Jung

The purpose of this study is to empirically explore the interaction between corporate philanthropy and firm performance through the mechanism of corporate strategies, such as…

Abstract

Purpose

The purpose of this study is to empirically explore the interaction between corporate philanthropy and firm performance through the mechanism of corporate strategies, such as unrelated diversification and global strategic posture (GSP).

Design/methodology/approach

A theoretical framework was developed based on institutional theory to argue that GSP can play an important mediating role in the relationship between corporate philanthropy and firm performance. PROCESS macro for SPSS and SAS to test a mediation was conducted using data from 115 publicly traded US firms between 2010 and 2017.

Findings

This study verified that GSP acts as an indirect mediator that influences the relationship between corporate philanthropy and firm performance. However, unrelated diversification was not found to be a mediator of that relationship.

Research limitations/implications

This study has extended the current understanding of institutional theory to explain the relationship between corporate philanthropy and corporate strategies.

Practical implications

This study helps to provide corporate managers with a promising notion that corporate philanthropy can help firms with market entry strategies.

Originality/value

This study helps to provide empirical evidence on the relationships among corporate philanthropy, corporate strategies and firm performance. Specifically, the finding of this study indicates strategic conditions under which the firm’s philanthropic efforts are more likely to influence firm performance.

Details

Society and Business Review, vol. 18 no. 1
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 1 February 2021

Wonsuk Cha and Dongjun Rew

This study aims to investigate the role of firm age in the relationship between CEO characteristics (measured by founder status and civic engagement) and the level of corporate…

Abstract

Purpose

This study aims to investigate the role of firm age in the relationship between CEO characteristics (measured by founder status and civic engagement) and the level of corporate philanthropy which is one of the important components of corporate social responsibility (CSR) practices (Carroll, 1991).

Design/methodology/approach

Drawing from upper echelons theory, this study argues that firm age functions as a barrier that limits the relationship between CEO characteristics and the level of corporate philanthropy. Moderated regression analysis (MRA) was used to analyze data from 146 publicly traded US firms between 2010 and 2017.

Findings

This study verified that there is a significantly positive relationship between CEO civic engagement and the level of corporate philanthropy although the relationship between CEO founder status and the level of corporate philanthropy was not found to be significant. Specifically, the relationship between CEO characteristics and the level of corporate philanthropy was weaker as firms get older. Overall, the results indicate that the organizational inertia of older firms can restrict the effect of CEO characteristics on corporate philanthropy.

Research limitations/implications

This study provides new insight into the underlying mechanisms between CEOs and firm age. This study also suggests that CEOs interpret corporate philanthropy as an important part of their civic engagement which broadly supports business legitimacy for their firm.

Practical implications

This study provides lessons for executive selection and succession decisions toward CSR strategies. Specifically, this study provides a practical foundation of how executives’ civic engagement can be related to corporate philanthropy as an important dimension of CSR practices. Furthermore, this study suggests that shareholders pay more attention to the ultimate decision-maker, the CEO, in an organization as his or her background characteristics can reflect a firm’s social responsibility initiatives, including corporate philanthropy.

Originality/value

This study contributes to on-going scholarly work in the field of strategic leadership and corporate philanthropy literature. In addition, this study provides empirical evidence to the nature of scholarly conversations regarding the role of firm age in shaping the relationship between CEO characteristics and corporate philanthropy.

Details

Society and Business Review, vol. 16 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 31 January 2018

Michael Abebe and Wonsuk Cha

This study explores corporate strategic orientations as important drivers of firms’ philanthropic engagement. Specifically, the purpose of this paper is to empirically examine the…

Abstract

Purpose

This study explores corporate strategic orientations as important drivers of firms’ philanthropic engagement. Specifically, the purpose of this paper is to empirically examine the relationship between two broad corporate strategic orientations – domain offense (DO) and domain abandonment (DA) strategies – and the level of philanthropic engagement.

Design/methodology/approach

The authors propose that firms pursuing aggressive DO strategies are more likely to invest in corporate philanthropy as part of their market expansion efforts. On the contrary, firms pursuing DA strategies are less likely to invest in corporate philanthropy because of decreased slack resources, rather conservative external stakeholder expectations as well as a firm’s conscious decision to disengage with external stakeholders. Hierarchical multiple regression analysis was conducted using data from 122 publicly traded US corporations from 2008 to 2013.

Findings

The findings provided empirical support for a significant positive relationship between DO strategies (acquisition and strategic alliance intensity) and firms’ philanthropic engagement. However, the relationship between DA strategies (divestiture and plant/facility closing) and firms’ philanthropic engagement was not found to be significant. Overall, the findings indicated that philanthropic engagements along with carefully crafted DO strategies help firms expand their market presence.

Practical implications

Organizational leaders that systematically target philanthropic causes that effectively converge with important corporate strategies do benefit in the long run by achieving better brand equity and overall enhanced corporate reputation.

Originality/value

By empirically investigating the relationship between corporate strategic orientations and philanthropic engagement, this study contributes to the on-going scholarly discussion on the link between corporate strategies and philanthropic engagements.

Details

Management Decision, vol. 56 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 8 March 2019

Wonsuk Cha

The purpose of this paper is to provide a theoretical model for the relationship between quality management (QM) practices and the health and fitness industry through two…

Abstract

Purpose

The purpose of this paper is to provide a theoretical model for the relationship between quality management (QM) practices and the health and fitness industry through two competencies, including relational competence (RC) and technical competence (TC).

Design/methodology/approach

Drawing from the resource-based view and the relational competence theory, this paper seeks a further understanding of the conceptual link between QM practices and the health and fitness industry.

Findings

This paper proposes that RC and TC will positively mediate the relationship between QM practices and customers’ behavioral intentions to use the health and fitness service.

Research limitations/implications

This paper provides an integrated perspective to the health and fitness industry. More specifically, this paper suggests that QM practices can be applicable to customers’ behavioral intentions to use the health and fitness service. This paper also provides a solid conceptual foundation through which managers in the health and fitness industry put more effort in developing the relationship with customers. An empirical investigation might be needed for future study.

Practical implications

This paper suggests that managers and employees in the health and fitness industry need to provide a sustained and consistent effort into maintaining the interaction with customers. This paper also suggests that the use of QM practices can be related to customer perception (e.g. boosting behavioral intentions toward service providers) and can provide sustainable competitive advantage in the health and fitness industry.

Originality/value

This paper extends current understanding of QM practices and the health and fitness industry by providing a conceptual framework regarding how QM practices are related to the health and fitness industry through RC and TC.

Details

International Journal of Quality and Service Sciences, vol. 11 no. 2
Type: Research Article
ISSN: 1756-669X

Keywords

Article
Publication date: 1 October 2018

Dongjun Rew, Joo Jung and Wonsuk Cha

The purpose of this paper is to verify the relationship between productivity and quality in the services sector. More specifically, this study investigates the relationship…

Abstract

Purpose

The purpose of this paper is to verify the relationship between productivity and quality in the services sector. More specifically, this study investigates the relationship between productivity and customer satisfaction and its effect on a firm’s performance. In addition, this study investigates the roles of productivity and customer satisfaction in the structural relationships among variables.

Design/methodology/approach

A theoretical model was proposed among innovation, productivity, customer satisfaction and firm performance. A sample of 127 firms from data sets of the American Customer Satisfaction Index and COMPUSTAT was collected. To test the hypotheses, this study used ordinal least squares analysis and path analysis.

Findings

The findings of this study verified that a positive relationship exists between productivity and customer satisfaction and that service productivity and customer satisfaction are positively associated with a firm’s performance. In addition, customer satisfaction was found to fully mediate the relationship between productivity and a firm’s performance.

Research limitations/implications

This study only focused on a short period for each variable due to the difficulty of matching all the data sets used for measuring each variable, which limited the observation of the different effects of service productivity among industries.

Practical implications

The findings of this study suggest that managers can improve productivity without sacrificing customer satisfaction. In addition, services firms should consider innovation, productivity and customer satisfaction in a holistic way because all of these affect a firm’s performance. Furthermore, services firms need to pay more attention to customer satisfaction, which plays an important role as a mediator in increasing a firm’s performance.

Originality/value

This study highlights the importance of the relationship between productivity and customer satisfaction in the services sector. In particular, this study extended the theory of service productivity by Rust and Huang (2012) to explore the role of service productivity and customer satisfaction in measuring a firm’s performance.

Details

International Journal of Quality & Reliability Management, vol. 35 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 4 July 2016

Wonsuk Cha and Michael A. Abebe

The purpose of this paper is to extend the current research on corporate philanthropy and organizational outcomes by empirically exploring two specific types of antecedents: board…

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Abstract

Purpose

The purpose of this paper is to extend the current research on corporate philanthropy and organizational outcomes by empirically exploring two specific types of antecedents: board of director composition and industry membership.

Design/methodology/approach

A theoretical framework was developed based on the resource dependence and stakeholder theories which suggest that the extent that firms build relationship with certain stakeholders is closely tied to the personal and social background of board members, in turn influencing the allocation of resources to corporate philanthropy. Hierarchical multiple regression analysis as well as analysis of variance with post hoc comparisons was conducted using multi-year data philanthropic data from 104 US corporations.

Findings

The results provided empirical support for a positive relationship between the number of female board directors and the level of corporate philanthropy. In addition, the results showed significant inter-industry variations in the level of corporate philanthropy. This indicated that the rather aggressive role of philanthropy in mitigating reputational challenges associated with product-market dysfunctions. Contrary to the theoretical predictions, the results did not support a positive relationship between the proportion of outside directors and level of philanthropy.

Research limitations/implications

The authors believe the empirical finding on the relationship between industry membership and corporate philanthropy is a significant contribution to the philanthropy literature. Accordingly, by empirically showing the disproportionately higher level of philanthropy by some prominent industries (such as gas and oil, financial services and chemical) than their counterparts, the authors contribute to the understanding of sector-level determinants of corporate philanthropy.

Practical implications

Since board of directors have a direct involvement in reviewing and approving major corporate initiatives, the choice of these directors is more likely to influence the amount of resources committed to philanthropic causes. Consistent with other studies in the larger corporate social responsibility research, the authors found that more women directors on the board are associated with greater philanthropic spending. Hence, a major implication of the study is that shareholders and the general corporate community need to pay close attention into who is elected to serve as director of business organizations as these directors’ background and experience could shape major social responsibility initiatives such as corporate philanthropy.

Originality/value

By empirically investigating the relationship between board composition and philanthropy, this study extends the scholarly discussion to focus on the role of the board in shaping the level of firm commitment in overall CSR. In addition, this study provides empirical evidence on the role of industry context in the level of commitment in corporate philanthropic activities.

Details

Leadership & Organization Development Journal, vol. 37 no. 5
Type: Research Article
ISSN: 0143-7739

Keywords

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