Shaping CSR in Indonesia: The Role of Customer Concentration

Potina Histika Pawitra Mahandani and Kun Su ()
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Potina Histika Pawitra Mahandani: School of Management, Northwestern Polytechnical University, Xi’an 710072, China
Kun Su: School of Management, Northwestern Polytechnical University, Xi’an 710072, China

Sustainability, 2025, vol. 17, issue 19, 1-24

Abstract: Corporate social responsibility (CSR) plays a pivotal role in shaping sustainable and responsible supply chain practices, yet evidence of its determinants in emerging markets remains limited. Prior studies of customer concentration (CC) provide mixed findings, and the role of digital communication in shaping CSR outcomes has not been systematically investigated. This study examines how CC influences CSR adoption and how CSR affects firm performance in Indonesia, with particular attention given to the amplifying role of social media. Building on stakeholder theory and signaling theory, we analyze panel data of 654 publicly listed firms between 2018 and 2020. The results show that CC promotes CSR engagement, with stronger effects among non-state-owned enterprises that operate under greater market pressures. CSR is positively associated with firm performance, and this relationship is reinforced when firms actively communicate CSR activities through social media, enhancing visibility and credibility. This study contributes to research on CSR and supply chains by demonstrating how digital platforms amplify customer-driven CSR and offering implications for firms in emerging economies.

Keywords: customer concentration; corporate social responsibility; firm performance; socially responsible supply chain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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