Latent Classes of Corporate Social Responsibility Within a Supply Chain

Jouni Juntunen, Mari Juntunen, Mikko Paananen and Pekka Kess
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Jouni Juntunen: University of Oulu, Finland
Mari Juntunen: University of Oulu, Finland
Mikko Paananen: University of Oulu, Finland
Pekka Kess: University of Oulu, Finland

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Abstract: The purpose of this research is to study how corporate social responsibility (CSR) guides buyers’ loyalty towards subcontractors within supply chains. A tentative model contains factors relating different dimensions of corporate social responsibility with corporate image, corporate brand equity, and customers’ loyalty. The model was tested using survey data from 173 respondents. To reveal latent classes concerning CSR and its influence within supply chains, the analysis was done with finite mixture structural equation modeling. We found that it is important to recognize with the CSR that one homogeneous behavioral model is insufficient and buyers’ attitude towards CSR and diverges remarkably. Hence we recommend that it is essential for a seller of industrial services or products to recognize that while buyers may seem to be a homogeneous group, they actually contain heterogeneous subgroups. Our study reveals that it is essential to identify buyers correctly through their actual attitude toward CSR and consequently to be capable of endure harmony of the supply chain and maximizing profitability.

Keywords: Corporate social responsibility; brand image; loyalty; brewing industry; mixture analysis; Finite Mixture Structural Equation Modeling (search for similar items in EconPapers)
Date: 2015
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