Organizations strive to satisfy salient and unmet consumer needs by providing value through their products and services. If environmentally sustainable “green” brands successfully exist by addressing environmental issues in developed countries where environmental consciousness is high, there may be a potential for the existence of newly created CSR brands that aim to deliver socio-economic benefits in developing countries. We empirically tested the potential of a brand that offers socio-economic corporate social responsibility benefits in a developing country- Uzbekistan.As Corporate Social Responsibility (CSR) in developing countries is a relatively new concept with little empirical research, this research examined the impact that brands with socio-economic CSR initiatives have on consumers’ purchase intentions. In addition, brands with socio-economic CSR initiatives were compared with brands with no CSR initiatives. Drawing on both marketing and psychological theories, we hypothesized that brands with socio-economic benefits would be received more favorably by consumers in developing countries where economic needs are more salient.To empirically test the hypotheses, 397 Uzbekistan consumers responded to an online survey. The Brand Potential Index indicators were regressed on consumers’ purchase intentions to a brand with CSR socio-economic benefits and to a brand with no CSR benefits. Regarding the brand with socio-economic benefits, consumers’ perception of brand uniqueness, potential popularity, trust, empathy, and recommendation significantly predicted buying intentions. In contrast, only trust and recommendation significantly predicted buying intention for the brand that lacked socio-economic benefits. While both were significant, the relationship between the BPI indicators was stronger for the brand with socio-economic benefits (R2 = .63 versus .49, p < .001). Consumers were more willing to pay a price premium for the brand with socio-economic benefits even though they perceived such brands were of lower quality.The results supported the potential of CSR brands in developing countries that focus on socio-economic benefits. This research adds value to our understanding of CSR in developing countries, and predictors of consumer purchase intentions using theory from both the marketing and psychological literature. Implications for brand management and future research are provided, including the need to target CSR initiatives that are salient to consumers.
Purpose Uzbekistan is one of the most prominent cotton producers since the soviet era, but it has struggled to establish a complete value chain. The country’s strategic location and industrial potential have not been harnessed accordingly. This paper aims to critically investigate the barriers in the value chain and propose solutions to the stakeholders in the sector. Design/methodology/approach The research involves both primary and secondary research methods. Value chain analysis method has been implemented to ground the theories and results. A systematic literature review was conducted to understand the current position in the world market. Official statistical data was collected from the government bodies to support the reflections of academic literature. Primary data was collected by conducting in-depth semi-structured interviews and questionnaires in 50 local textile companies. Finally, the authors have used their empirical evidences from emerging economies to provide solutions to the sector. Findings The value chain suffers a disconnect, as the emphasis has been on exporting cotton. Moreover, companies have a very limited technical know-how of supply chain management and hence no value addition to the raw material. The consumer relies on imports, as there is no significant participation from the Uzbek companies across the fashion segments. This is a major loss of earnings to the country. Originality/value Existing academic literature revolves around the cotton and silk industry, but, to the best of the authors’ knowledge, there is no study that unites the value chain and provides solutions to its stakeholders. This paper provides a socio-economic vision to the stakeholders, academia and industry so that the country can harness its potential and become one of the leading apparel producing nations in the future.
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