Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry

Uyar, Ali; Köseoğlu, Mehmet Ali; Kuzey, Cemil; Karaman, Abdullah S.

doi:10.1177/13548166221102806

Cited by 17 publications

(17 citation statements)

References 92 publications

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“…Similarly, in their recent study analysing data concerning CSR, firm strategy, and board characteristics for all companies belonging to the hospitality, tourism, and airline industries between 2013 and 2019, Uyar et al (2022) confirmed that cost leadership is significantly associated with composite CSR performance and governance performance, but not with environmental and social performance. They also reported that moderation analysis revealed that cost leadership does not moderate the association between CSR performance in all dimensions and firm value.…”

Section: Cost Leadership Strategymentioning

confidence: 84%

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Corporate social responsibility, business strategy and governance performance

Elmassri

Kuzey

Uyar

et al. 2023

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PurposeThis study aims to examine the effect of corporate social responsibility (CSR) adoption on differentiation and cost leadership strategies and how governance structure moderates this CSR–strategy relationship.Design/methodology/approachThe study data were retrieved from Thomson Reuters for non-financial firms between 2013 and 2019, and a fixed-effects panel regression analysis was executed.FindingsThe results indicate that CSR fosters cost leadership strategy but weakens differentiation strategy. This result supports the value generation school for cost leaders but also confirms the agency theory perspective for differentiators. Moreover, the governance structure does not moderate the relationship between a firm's CSR engagement and its business strategy, which implies a lack of corporate policies that concurrently consider both its CSR investment and strategies.Research limitations/implicationsThe findings of this study imply that cost leaders can integrate CSR practices into their business strategy and use their CSR engagement to increase their competitive position by stimulating cost efficiency and creating greater turnover. On the contrary, for differentiators, there is a trade-off between environmental and social engagement and business strategies. Thus, they are advised to enrich their unique product development abilities through the integration of environmental and social practices and reinforce their competitive position by addressing stakeholders' interests. The practical implication of the moderation analysis is that there is no rooted corporate policy behind the connection between CSR and firm strategy for both cost leaders and differentiators, which constitutes a missing link.Originality/valueThe findings of this study are of critical importance for firms, offering justification for the integration of two vital perspectives: social and environmental sustainability and financial sustainability. The moderating effect of governance performance tests the upper echelon's role in maintaining both sustainability perspectives concurrently and strengthening the legitimacy of the firms in society. Although maintaining a business strategy is important for shareholders' interests, pursuing a social and environmental sustainability strategy is crucial for meeting the expectations of all stakeholders.

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Section: Cost Leadership Strategymentioning

confidence: 84%

“…Despite prior studies attempting to explore the link between firm strategy and CSR engagement (Xu and Liu, 2017; Uyar et al. , 2022), whether CSR fosters firm strategy or not has yet to be explored.…”

Section: Discussionmentioning

confidence: 99%

Corporate social responsibility, business strategy and governance performance

Elmassri

Kuzey

Uyar

et al. 2023

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“…First, as CSR is increasingly becoming part of business strategy, whether cost leaders and differentiators are integrating CSR into their corporate strategy is a problem to be resolved from both shareholders' and stakeholders' perspectives. Second, the existing literature on business strategy and CSR nexus is very scarce and limited to specific sectors or countries such as tourism (Uyar et al, 2022) and the US (Peng, 2020; Yuan et al, 2020) and draws on composite CSR indicator; hence, we extend those studies drawing on an international sample and sub‐indicators of ESG pillars. Third, by relating each business strategy follower's CSR uptake to the firm value which is a missing link in Peng (2020) and Yuan et al (2020), we provide insight into shareholder reaction to the business strategy‐CSR coupling.…”

Section: Discussionmentioning

confidence: 98%

Section: Discussionmentioning

confidence: 99%

Business strategy, sustainability, and firm value: A test of financial slack and agency theories

et al. 2023

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Do cost leaders engage with sustainability practices or avoid them to save costs, and do differentiators implement those practices to attract the sympathy of the customers or not? How do shareholders of each strategy follower consider those practices? Answering these questions is the main purpose of this study. We find that while cost leadership is significantly and positively associated with environmental, social, and governance sustainability, differentiation is significantly and negatively associated with social and environmental sustainability but not with governance sustainability. While cost leaders' shareholders approve of social and governance sustainability, differentiators' shareholders disapprove of environmental, social, and governance sustainability.

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“…Finally, the study also implies that the policymakers, including local government and tourism departments, regulate environmental protection policies (Uyar et al , 2022). All stakeholders, including travel agencies, scenic sports and management of the tourist destination, should know about environmental protection policies.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

Understanding environmentally responsible behavior of tourists at coastal tourist destinations

Aziz

Niazi

2023

SRJ

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Purpose Tourists’ irresponsible behaviours (e.g. damaging flowers, writing and painting on the walls and throwing waste material in the water and around the sea site) damage the coastal environment. The irresponsible behaviour of tourists has raised concerns about the sustainability of the coastal tourism environment. The purpose of this study is to identify and explain the behavioural patterns of tourists that can influence the environmentally responsible behaviours (ERBs) of tourists, particularly in the context of coastal tourism. The study aims to provide a theoretical and practical explanation of destination image and perceived destination value (PDV) in shaping ERB with the mediating role of destination social responsibility (DSR) among tourists at the coastal touring destination. Design/methodology/approach The study used a quantitative research design and data were gathered from the five beaches in Karachi. Structured equation model was used to analyse the direct and mediating effect while stepwise regression was used to analyse the moderating effect of DSR. The results of the direct effect showed that cognitive image has a significant effect on the affective image, while the insignificant effect on conative image and ERB. While the affective image has a significant effect on conative and ERB, and finally, results showed a significant effect of conative image on ERB. Results of the study revealed that PDV significantly mediated the relationship between cognitive, affective and conative destination image and ERB. Finally, the study’s results revealed that DSR has significantly moderated the relationship between affective, conative destination image, PDV and ERB. Findings The results are divided into three categories, direct effect, mediating effect and moderating effect. The results of the direct effect showed that cognitive image has a significant effect on the affective image, while the insignificant effect on conative image and ERB. While affective image has a significant effect on conative and ERB, and finally, results showed a significant effect of conative image on ERB. It is found in the results that PDV significantly mediated the relationship between cognitive, affective and conative destination image and ERB. Finally, the study’s results revealed that DSR has significantly moderated the relationship between affective, conative destination image, PDV and ERB. Research limitations/implications First, data has been collected from a single geographic area of Pakistan. Therefore, cross-country data are required to compare the ERB of tourists. Second, only local respondents are considered in the study; future studies may include foreign tourists as well. Finally, data has been collected during one month in summer, which may have measured the experience of only summer. The respondent may have different perceived values and destination images during winter. The future study may split data collection into summer and winter to cover diverse perceptions of tourists. Social implications It is almost impossible for coastal destinations to achieve a competitive advantage without attaining sustainable coastal environments. Clean and green beaches and responsible behaviour towards marine mammals can only be achieved through tourists’ ERB. This study has major contributions towards society by reserving the natural environment of coastal areas. Originality/value This research will significantly contribute to the existing literature by extending the ERB knowledge through the theoretical lens of cognitive-affective-conative models and social expectancy theory. Moreover, PDV as a mediator and DSR as a moderator will enhance the understanding of ERB and extend the existing literature. Further research has provided a strong understanding of how cognitive, effective and conative image helps in influencing the ERB of tourists. Moreover, research will benefit destination managers and policymakers to enhance the image and perceived value of touring destinations. Finally, this study is a unique attempt to present a comprehensive model which could be applicable to diverse situations and areas.

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Does firm strategy influence corporate social responsibility and firm performance? Evidence from the tourism industry

Cited by 17 publications

References 92 publications

Corporate social responsibility, business strategy and governance performance

Corporate social responsibility, business strategy and governance performance

Business strategy, sustainability, and firm value: A test of financial slack and agency theories

Understanding environmentally responsible behavior of tourists at coastal tourist destinations

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