Abstract:“Creating shared value” (CSV) appears on contemporary business agendas. But despite empirical evidence concerning its popularity, serious questions about the logic of CSV are raised by scholars. This paper focuses on CSV in the Asian context. Using in-depth interviews with key informants from Japan, Korea, and India, we employ a strategy-as-practice approach and develop propositions related to CSV in Asia. We identify three characteristics of Asian business practices that shape CSV in Asia: a survival sense, a… Show more
“…Firstly, it is strictly economic in nature and does not consider, for example, moral and social factors (Beschorner, 2014; Tencati et al., 2020). For instance, research has found a strong ethical stance to be a determinant for CSV in Asia (Kim et al., 2019), but research on the matter is still at too early a stage to be included in a comprehensive framework.…”
Section: The Three Main Research Streams On Csvmentioning
confidence: 99%
“…Besides the aforementioned factors, some scholars suggest that CSV adoption can be motivated by a sense of survival, a strong ethical stance and a willingness to do good in society (Kim et al., 2019). However, others raise doubts as to the potential of CSV projects ‘to stimulate sustainable development processes without radically changing entrepreneurs’ cognitive frames from growth first to humanizing the business’ (Giuliani et al., 2020, p. 1).…”
Section: The Three Main Research Streams On Csvmentioning
Creating shared value (CSV) refers to a strategic process through which corporations can turn social problems into business opportunities. CSV's strategic approach in solving societal problems and its close relationship with strategic corporate social responsibility (CSR) and stakeholder theory have kept the concept in the spotlight in both the corporate and academic worlds. As a result, the literature on CSV is riddled with ambiguities, weak theoretical foundations and contradictions. To better understand and address these ambiguities, we conducted a systematic literature review of 242 articles published from 2010 to 2020. We begin with a comprehensive review of the field and develop a definition of CSV that distinguishes it from related concepts. Our review and analysis reveal, firstly, that CSV is a meaningful, incremental addition in the extant literature and not a revolutionary concept, nor a buzzword. Secondly, assuming that firms are rational, a firm's decision function when it comes to adopting a CSV strategy depends on opportunity costs and transaction costs. Thirdly, there is no single universal way to create shared value: multiple external and internal factors influence a firm's ability to pursue a CSV strategy effectively. Our discussion delineates the key differences between scholars of strategy and scholars of business ethics, and directs avenues for more constructive research. We also believe that this study will act as a guide for managers in adapting to CSV strategies, helping corporations adopt society‐friendly policies.
“…Firstly, it is strictly economic in nature and does not consider, for example, moral and social factors (Beschorner, 2014; Tencati et al., 2020). For instance, research has found a strong ethical stance to be a determinant for CSV in Asia (Kim et al., 2019), but research on the matter is still at too early a stage to be included in a comprehensive framework.…”
Section: The Three Main Research Streams On Csvmentioning
confidence: 99%
“…Besides the aforementioned factors, some scholars suggest that CSV adoption can be motivated by a sense of survival, a strong ethical stance and a willingness to do good in society (Kim et al., 2019). However, others raise doubts as to the potential of CSV projects ‘to stimulate sustainable development processes without radically changing entrepreneurs’ cognitive frames from growth first to humanizing the business’ (Giuliani et al., 2020, p. 1).…”
Section: The Three Main Research Streams On Csvmentioning
Creating shared value (CSV) refers to a strategic process through which corporations can turn social problems into business opportunities. CSV's strategic approach in solving societal problems and its close relationship with strategic corporate social responsibility (CSR) and stakeholder theory have kept the concept in the spotlight in both the corporate and academic worlds. As a result, the literature on CSV is riddled with ambiguities, weak theoretical foundations and contradictions. To better understand and address these ambiguities, we conducted a systematic literature review of 242 articles published from 2010 to 2020. We begin with a comprehensive review of the field and develop a definition of CSV that distinguishes it from related concepts. Our review and analysis reveal, firstly, that CSV is a meaningful, incremental addition in the extant literature and not a revolutionary concept, nor a buzzword. Secondly, assuming that firms are rational, a firm's decision function when it comes to adopting a CSV strategy depends on opportunity costs and transaction costs. Thirdly, there is no single universal way to create shared value: multiple external and internal factors influence a firm's ability to pursue a CSV strategy effectively. Our discussion delineates the key differences between scholars of strategy and scholars of business ethics, and directs avenues for more constructive research. We also believe that this study will act as a guide for managers in adapting to CSV strategies, helping corporations adopt society‐friendly policies.
“…Especially in the East Asian institutional environment, where the influence of Confucianism is strong, people tend to react negatively to the idea of an economic system that encourages maximization of profits, since profit for one person implies loss for someone else (Allinson, 2011). Therefore, “show me ethical stewardship” is more critical for business survival in Asia than “show me the money” (Chen et al., 2018; Kim et al., 2020; McGinn & Zoltners, 2015; Wu & Wokutch, 2015). One CSR expert in Korea opined:In the recent impeachment case of ex‐President Park Geun‐hye, you can see that it was an indictment of not only the leader’s incompetence but also of her immorality.…”
Skepticism toward CSR is increasing. Management research on CSR tends to focus on positive outcomes from the practice of CSR, such as enhanced financial performance and best practice business cases. Less attention is devoted to why CSR is under siege. This paper argues that CSR is intimately connected with the way that capitalism is practiced, and that poor CSR outcomes are often the result of five “shortcomings” of contemporary capitalism: runaway self‐interest, quarterly focus, elite orientation, volume orientation, and one‐pattern capitalism. To evidence this, I employ a two‐stage approach: a “diagnostic” stage that investigates current challenges facing capitalism and how they affect CSR, and a “clinical” stage that identifies potential solutions based on a qualitative data set collected in Asian business contexts. The proposed solutions suggest ways that researchers, practitioners, and policymakers can conceptualize, design, and implement CSR programs that better fulfill CSR’s promise to business and society. Based on these results, I conclude with ideas on how CSR research can be strengthened by exploring the under‐researched linkages among CSR, modern capitalism, and global institutional contexts.
“…According to the concept of Creating Shared Value (CSV) (Lombardo and Cabiddu, 2017; Porter and Kramer, 2019; Ranjan and Read, 2016), organizations driven by shared values promote win-win thinking, with shared values becoming a crucial factor in fostering positive outcomes related to specific investment, qualification of capability, and firm performance (Arena et al. , 2021; Bacq and Aguilera, 2022; Kim et al. , 2020; Lombardo and Cabiddu, 2017; Marcos-Cuevas et al.…”
Section: Theoretical Model and Research Hypothesesmentioning
PurposeFirms aiming to enhance firm performance require specific investment and qualification of capability. However, the relationship between these factors and firm performance is influenced by boundary conditions. This study focuses on the role of shared values as a governance mechanism in moderating the relationship between specific investment, qualification of capability, and firm performance.Design/methodology/approachDrawing on transaction cost analysis, the authors develop a theoretical model to explore how shared values moderate the relationship between specific investment, qualification of capability, and firm performance. The authors collected data from 156 firms in Cote d’Ivoire, resulting in a sample of 216 observations. The authors employed hierarchical regression analysis and the “pick-a-point approach” to examine how specific investment and qualification of capability impact firm performance at different levels of shared values.FindingsThe results indicate that specific investment and qualification of capability have a partially positive impact on firm performance. Interestingly, shared values are an important moderating variable, acting as a boundary condition that affects the relationship between specific investment, qualification of capability, and firm performance. Specifically, specific investment leads to excellent firm performance only when shared values are not sufficiently high, whereas qualification of capability leads to superior firm performance only when shared values are sufficiently high.Research limitations/implicationsThis study has three research implications. First, this study enriches TCA literature by identifying shared values as a boundary condition and examining the moderating role of shared values. Second, the study findings discover new insights into how specific investment and qualification of capability enhance or inhabit organizational performance at different levels of shared values. Third, this study extends the existing research and reveals the specific conditions for positive or negative relationships between specific investment and organizational performance and qualification of capability and organizational performance.Practical implicationsFirst, compared to specific investment, qualification of capability has greater effect on organizational performance. Second, when considering whether to increase specific investment or/and improve qualification of capability, executives are encouraged to first evaluate their firm's level of shared values and then make appropriate strategic decision accordingly. Third, six tactics are recommended for enhancing shared values.Originality/valueThis study enriches the literature on transaction cost analysis and contributes to understanding the moderating role of shared values. The findings shed light on the specific investment, qualification of capability, and firm performance relationships. Additionally, this research highlights the importance of considering shared values as a boundary condition in examining these relationships.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
