Motivating corporate social responsibility practices under customer pressure among small‐ and medium‐sized suppliers in China: The role of dynamic capabilities

Abstract

Small-and medium-sized suppliers (SMSs) have experienced customer pressure to implement corporate social responsibility (CSR) practices. However, capabilities are needed for SMSs to respond to such pressure. To explore how SMSs can be effectively motivated to make CSR efforts under customer pressure, based on the theory of dynamic capabilities (DCs), this paper identifies five factors of DCs-knowledge accessing (DC1), codevelopment (DC2), supply chain partner development (DC3), supply chain rebuilding (DC4), and flexibility (DC5). Moreover, this paper develops a conceptual model assuming that the five DCs moderate the relationship between customer pressure and CSR practices among SMSs. Using questionnaires collected from 333 Chinese SMSs in manufacturing industries, hierarchical statistical results demonstrate the moderating effect for three of four identified CSR practices. An interaction analysis further reveals that a certain level of DCs is necessary. The results provide managerial implications for large customers and SMSs to improve CSR-related DCs among SMSs.

How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?

“…Their behaviors are usually influenced by other members. Therefore, firms must adapt to shifts in their external environments (Choi, Feng, Liu, & Zhu, 2019;Delmas & Toffel, 2004).…”

“…When such market turbulence results from changes in attitudes towards green consumption, it becomes difficult for firms to satisfy market demand by providing old products and services under their original production models (Choi et al, 2019;Kammerer, 2009). As a result, firms must make changes to maintain sustainable development.…”

“…On the one hand, producing new green products can lower the consumption of raw materials, fuels, and so forth. (Dangelico, 2016 (Ayllón & Radicic, 2019;Lin, Tan, & Geng, 2013;Mu, Peng, & MacLachlan, 2009), thus facilitating financial performance (Choi et al, 2019). Accordingly, the following hypotheses are proposed:…”

Corporate social responsibility and firm value: Do firm size and age matter? Empirical evidence from European listed companies

“…However, given that SMEs have many of the same reasons for engaging in CSR that large companies have ( Although our results are important and relevant for management theory and practice, we believe that further exploration of other important potential moderators and/or mediators is also needed to explore in more detail the relationship between CSR and firm value and the mechanisms behind it. Furthermore, single-or multiple-case studies are needed to explore in greater depth why CSR could differentially impact small and large companies (Cantele & Zardini, 2019;Choi, Feng, Liu, & Zhu, 2019;Perrini & Minoja, 2008).…”

The impact of corporate social responsibility on buying tendencies from the perspective of stakeholder theory and practices

“…From the marketing and consumer perspectives, a multidimensional and deep analysis is needed to verify the benefits and identify the nexus between CSR practices and buying tendencies. In particular, empirical testing is required in manifold regions to clarify how the acceptance of CSR practices may influence BBTs in different economies(e.g., S. B. Choi, Feng, Liu, & Zhu, ; Jones III, Reilly, Cox, & Cole, ; Lerro, Vecchio, Caracciolo, Pascucci, & Cembalo, ; Ramesh, Saha, Goswami, & Dahiya, ).…”