Impact of corporate social responsibility on sustainable competitive advantages: The mediating role of corporate reputation

Environ Sci Pollut Res Int. 2023 Jun 16. doi: 10.1007/s11356-023-28192-7. Online ahead of print.

Abstract

This study investigates the relationship between corporate social responsibility (CSR) and sustainable competitive advantage (SCA). Moreover, building on the stakeholder theory, this study investigates the mediating effects of corporate reputation (CR) between the relationship of corporate social responsibility and sustainable competitive advantage. We used a questionnaire survey to collect data from the employees working in the construction industry of Pakistan. Using the sample of 239 respondents, a structural equation modeling technique was used to verify the hypothesis relationship. The findings indicated that CSR directly and positively influences sustainable competitive advantages. Moreover, corporate reputation positively mediates the connection between corporate social responsibility and sustainable competitive advantage. This research fills knowledge gaps and highlights the significance of CSR in fostering sustainable competitive advantages within the construction industry.

Keywords: Construction industry; Corporate reputation; Corporate social responsibility; Stakeholder theory; Sustainable competitive advantage.