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The Impact of Corporate Social Responsibility Performance on Competitive Advantage and Business Success: A Case of Vietnamese Enterprises

Khuong Ngoc Mai and An Khoa Truong Nguyen
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Khuong Ngoc Mai: School of Business, International University & Vietnam National University, Ho Chi Minh City, Vietnam
An Khoa Truong Nguyen: School of Business, International University & Vietnam National University, Ho Chi Minh City & Thu Dau Mot University, Viernam

International Journal of Asian Business and Information Management (IJABIM), 2021, vol. 12, issue 3, 1-15

Abstract: This study investigates how types of corporate social responsibility (CSR) practices (economic, legal, ethical, philanthropic, and environmental) affect competitive advantage and business success in an emerging country. Data were collected by surveying 869 respondents from manufacturing, real estate, trade, and service sectors. The data analysis applied partial least square structural equation modeling. The results showed that ethical, legal, and philanthropic CSR initiatives have a positive effect on competitive advantage. Economic CSR practice is the only factor that affected both competitive advantage and business success. The competitive advantage also directly affected business success. Environmental CSR practice did not show a significant relationship with competitive advantage or business success. The findings of this study may be beneficial in informing managers’ decisions on CSR investment to gain competitive advantage, and in turn, business success in a developing context.

Date: 2021
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