The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

2019 ◽  
Vol 50 (1) ◽  
pp. 3-25 ◽  
Author(s):  
Prema Latha Subramaniam ◽  
Mohammad Iranmanesh ◽  
Kavigtha Mohan Kumar ◽  
Behzad Foroughi
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Corporate Reputation ◽  
Social Performance ◽  
Equation Modeling ◽  
Supplier Development ◽  
Socially Responsible ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose In the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance. Design/methodology/approach Data were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling. Findings The results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance. Practical implications These results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed. Originality/value The results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

scholarly journals Corporate Reputation And Social Responsibility: An Analysis Of Large Companies In Croatia

2011 ◽  
Vol 10 (8) ◽  
pp. 85 ◽  
Author(s):  
Neda Vitezic
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Corporate Reputation ◽  
Positive Relationship ◽  
Social Performance ◽  
Theoretical Background ◽  
Socially Responsible ◽  
The Relationship ◽  
Over Time

This paper aims to explore the relationship between corporate reputation and social responsibility (CSR) in selected large Croatian companies. The research is based on the theoretical framework that supports a thesis of their positive relationship. CSR is measured through economic, environmental, and social aspects and is primarily based on testing the relationship between CSR and financial performance to determine whether the relationship is positive, neutral or negative. Many researchers have concluded that it is generally positive, depending on which measures of financial performance are used. At the same time, corporate reputation is considered as a key mediator in the relationship between a firm's CSR and financial performance. In this concept of CSR, reputation is a global perception of a group of stakeholders, its assessment of the credibility of the organization's projection. Company reputations may vary from one stakeholder to another depending of their expectations, which are dynamic and likely to change over time. It is within this context of company relationships with its stakeholders that determines the level of reputation a company will develop over time. Thus corporate reputation will be directly and significantly related to CSR. Based on this hypothesis, they are a few objectives of this research. The first is to analyze the significance of the proposed corporate attributes according to company and customer perspective. For that purpose, seven practical and theoretical background attributes are selected and ranked - quality of products and services, corporate vision and strategy, quality of management leadership, labor force, financial performance, social and environmental responsibility, and corporate governance. Second is to propose indicators for each reputation attribute and rank them according to their significance collected by surveying large companies executives. Third is to analyze the correlation between socially responsible companies and their reputation. The research results show that one of the corporate attributes CSR - is ranked very low from the point of view of company executives and employees, but very high from the perspective of consumers. Among the indicators which represent socially responsible performance, financial performance is ranked first, followed by ecological and social performance. A positive relationship between financial performance and corporate reputation has been statistically confirmed; i.e., socially responsible Croatian large companies have better financial results measured by ROA, ROE, margin profit and EPS.

Does implementing social supplier development practices pay off?

2015 ◽  
Vol 20 (4) ◽  
pp. 389-403 ◽  
Author(s):  
Cristina Sancha ◽  
Cristina Gimenez ◽  
Vicenta Sierra ◽  
Ali Kazeminia
Keyword(s):  
Economic Performance ◽  
Design Methodology ◽  
Social Performance ◽  
Operational Performance ◽  
Supplier Development ◽  
Socially Responsible ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is twofold. First is to investigate the impact of social supplier development practices on the suppliers’ social performance. Second is to analyze if the implementation of supplier development practices by Western buying firms pays off in terms of operational and economic results. Design/methodology/approach – Hypotheses are tested in a sample of 120 Spanish manufacturing firms using Path Analysis. Findings – The results suggest that while supplier development practices help to improve the suppliers’ social performance and the buying firm’s operational performance, they do not pay off in terms of economic performance. Research limitations/implications – The paper shows that supplier development practices help to improve the suppliers’ social performance while improving the operational performance of the buying firm. The study has two main limitations. First, because cross-sectional data are used, possible recursive relationships could not be accounted for. Second, the study is limited to the Spanish scope and, as such, results need to be interpreted in that context. Practical implications – The results of this study provide insights to managers with respect to the implementation of supplier development practices to make their suppliers more socially responsible. Furthermore, managers are shown the implications of implementing such practices in terms of operational and economic outcomes. Originality/value – This paper contributes to the existing literature on the effectiveness of sustainable supplier development practices by including the suppliers’ performance, which has been generally neglected. Objective measures for economic performance are also included.

The relationship among green human capital, green logistics practices, green competitiveness, social performance and financial performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaw Agyabeng-Mensah ◽  
Liang Tang
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Significant Influence ◽  
Social Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Green Logistics ◽  
Content Type ◽  
The Relationship

PurposeThe study explores the role of green human capital in the implementation of green logistics practices to build green competitiveness and achieve improved social performance and financial performance.Design/methodology/approachThis study employs structured questionnaires to gather data from 152 managers from manufacturing small and medium enterprises in Ghana. The data are analyzed and the hypotheses are tested using the partial least square structural equation modeling.FindingsThe findings reveal that green human capital does have significant influence on financial performance. However, green human capital does not have significant influence on social performance and green competitiveness. Besides, green logistics practices significantly improve social performance, financial performance and green competitiveness. Green logistics practices mediate the relationship between green human capital and green competitiveness, social performance and financial performance. Hence, green human capital influences the successful implementation of green logistics practices, which results in building stronger green competitiveness and better social and financial performances.Originality/valueThis paper is among the dearth of studies that examine the role of green human capital in the implementation of sustainable supply chain practices. This study pioneers the exploration of the role of green human capital in the implementation of green logistics practices to improve social performance, financial performance and green competitiveness among manufacturing SMEs in sub-Saharan Africa. Besides, the study's findings expand literature by providing new insights into the effect between green logistics practices, financial performance, social performance and green competitiveness from Ghanaian SMEs.

The missing link: sustainability innovation practices, non-financial performance outcomes and economic performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matjaž Maletič ◽  
Boštjan Gomišček ◽  
Damjan Maletič
Keyword(s):  
Financial Performance ◽  
Economic Performance ◽  
Large Scale ◽  
Social Performance ◽  
Performance Outcomes ◽  
Path Modeling ◽  
Content Type ◽  
Innovation Practices ◽  
The Impact ◽  
The Relationship

Purpose Innovation is the backbone of sustainability. Although many efforts have been made to conceptualize sustainability-oriented innovations, the impact of these organizational practices on performance has not been adequately explored. This paper, therefore, aims to fill an important gap in the literature by exploring the relationship between sustainability innovation practices and performance outcomes. Specifically, this study examines the relationship between sustainability innovation practices, non-financial performance and economic performance. Design/methodology/approach This paper uses partial least squares path modeling (PLS-PM) to estimate both the direct and indirect effects of sustainability practices on economic performance. The data were collected on the basis of a large-scale survey of 266 European organizations. Findings The results show that sustainability innovation practices directly and indirectly influence economic performance through non-financial performance outcomes (i.e. innovation performance, environmental performance and social performance). Originality/value The scientific value of this paper is provided by showing that sustainability innovation practices lead to certain performance improvements and by providing a model to better understand the links between non-financial performance outcomes and economic performance.

Labour reputation and financial performance: is there a causal relationship?

2018 ◽  
Vol 40 (1) ◽  
pp. 43-57 ◽  
Author(s):  
María Dolores Odriozola ◽  
Antonio Martin ◽  
Ladislao Luna
Keyword(s):  
Financial Performance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Causality Test ◽  
Content Type ◽  
Generalised Method Of Moments ◽  
Corporate Social ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyse if there is a circular relationship of causality between the labour dimension of corporate social performance (CSP) and corporate financial performance (CFP). Design/methodology/approach The sample is formed by the best companies to work for in Spain according to the labour reputation (LR) ranking developed by MERCO from 2006 to 2013. This study overcomes the limitations of previous studies using the panel data methodology (System generalised method of moments) and the Granger causality test. Findings The results suggest that the labour dimension of CSP cause CFP, but there is not causality in the opposite direction. Originality/value Studies about the relationship between dimensions of CSP and CFP demonstrated that there are divergences in the results depending on the dimension analysed. Despite managers and employees are interested in the impact of labour dimension of CSP on CFP, there are few studies about it and they have important limitations.

Revisiting the financial performance – corporate social performance link

2018 ◽  
Vol 30 (7) ◽  
pp. 2586-2602 ◽  
Author(s):  
Serin Choi ◽  
Seoki Lee
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The existing literature has focused heavily on investigating the effect of corporate social performance (CSP) on financial performance (FP) but has not paid sufficient attention to an inverse causation of the relationship. Moreover, while some of the literature argues that FP positively affects CSP, based on the slack resources theory, others have found negative effects of FP on CSP, supporting the managerial opportunism perspective. Thus, this paper aims to address the impact of FP on CSP. Further, this study examines the moderating role of franchising to better understand the relationship. Design/methodology/approach This study uses and expands the models derived from the CSP literature to confirm the effects of FP on CSP with the moderating role of franchising within the restaurant industry. Using two-way fixed effects models, it effectively addresses important problems embedded in the panel data. Findings The findings show a positive effect of FP on CSP, which is inconsistent with Park and Lee’s (2009) findings and supports the slack resources theory. Further, the interesting results show that the impact of FP on CSP diminishes as a firm franchises more, supporting the double-sided moral hazard framework of the agency theory. Originality/value This paper fills the lacuna in both the existing literature on the relationship between CSP and FP and the franchising. This study contributes to enhancing restaurant practitioners’ understanding of the double-sided moral hazard of agency theory unique to franchising context.

COVID-19 operational disruption and SMEs' performance: the moderating role of disruption orientation and government support

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Ahmad Mahmoud ◽  
Ahmed Mahmoud ◽  
Shamsu Lawan Abubakar ◽  
Abubakar Salisu Garba ◽  
Bashir Ahmad Daneji
Keyword(s):  
Financial Performance ◽  
Significant Relationship ◽  
Government Support ◽  
Equation Modeling ◽  
Content Type ◽  
Health Related ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

PurposeDespite the growing unforeseen and catastrophic events that disrupt business operations, empirical studies on the impact of operational disruption (OD) on small and medium enterprises' (SMEs) performance dimensions are limited. The study aims to investigate the moderating effect of disruption orientation (DO) and government support (GS) on the relationship between coronavirus disease (COVID-19) OD and SMEs' performance.Design/methodology/approachQuantitative survey method was used to collect data from 170 SMEs in Nigeria, through hand-delivery questionnaires. Partial least square (PLS) structural equation modeling (SEM) was employed to analyze the data.FindingsThe result shows no significant relationship between COVID-19 OD, DO and GS with SMEs' financial performance (FP). However, the relationship between COVID-19 OD and non-financial performance (NFP) is negatively significant. The relationship between DO and NFP is positively significant. DO and GS have insignificant relationship with FP. Finally, DO and GS does not moderate any of the relationships between COVID-19 OD and the dimensions of SMEs' performance.Practical implicationsThe result implies that health-related disruptions such as COVID-19 affect only the NFP of SMEs. However, supply chain managers and SMEs are encouraged to adopt DO to enhance NFP of firms.Originality/valueThe current study is the first to evaluate the impact of health-related disruptions on the two major dimensions of SMEs' performance (FP and NFP) by incorporating the moderating role of internal (DO) and external (GS) factors in to a single framework. However, the paper revealed new theoretical and practical knowledge by illuminating the absence of significant relationship between COVID-19 OD and SMEs' FP, implying that COVID-19 disruption does not significantly affect SMEs' FP.

The impact of soft TQM on financial performance

2018 ◽  
Vol 35 (7) ◽  
pp. 1360-1379 ◽  
Author(s):  
Ahmad Musbah Albuhisi ◽  
Ayman Bahjat Abdallah
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Pharmaceutical Manufacturing ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Content Type ◽  
Customer Perspective ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the effect of soft total quality management (TQM) on organizational performance in the Jordanian pharmaceutical manufacturing sector using the balanced scorecard (BSC) perspective. It also examines the indirect effect of soft TQM on financial performance through BSC non-financial perspectives. Design/methodology/approach The study is based on survey data collected from 197 employees in managerial and non-managerial positions working in Jordanian pharmaceutical manufacturing companies. Validity and reliability analyses were performed, and the study hypotheses were tested using structural equation modeling. Findings The results indicated that soft TQM positively affected all BSC perspectives. Customer perspective positively affected financial performance while innovation and learning perspective and internal business process perspective did not. In addition, only customer perspective significantly mediated the relationship between soft TQM and financial performance. Originality/value This is one of the first papers to examine the effect of soft TQM on organizational performance in terms of BSC perspective in the pharmaceutical sector. In addition, this paper is the first to examine the mediating effects of the BSC non-financial perspectives on the relationship between soft TQM and financial performance.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Antecedents of horizontal logistics collaboration in agri-food supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Badraoui ◽  
Ivo van der Lans ◽  
Youssef Boulaksil ◽  
Jack G.A.J. van der Vorst
Keyword(s):  
Supply Chains ◽  
Food Supply ◽  
Structural Equation ◽  
The Body ◽  
Equation Modeling ◽  
Content Type ◽  
Operational Conditions ◽  
Food Supply Chains ◽  
The Impact ◽  
The Relationship

PurposeThis study investigates the impact of agri-food supply chains (AFSCs) characteristics on the antecedents of horizontal logistics collaboration (HLC). Specifically, the study compares the relationship between collaboration activities and outcomes for companies in and outside AFSCs.Design/methodology/approachFirst, a survey was used to collect data from different industries. Second, confirmatory factor analysis and structural equation modeling were applied to compare the measurement and structural models from different industry categories.FindingsThe results support the premise that collaboration improves trust and commitment in the relationship, which in turn enhance satisfaction. The results also show the existence of a minor influence of AFSCs characteristics on HLC antecedents, in the form of an indirect impact of dedicated investments on commitment.Practical implicationsThe factors having a significant influence on the collaboration outcomes and their respective effects are generally similar across food and nonfood supply chains, providing opportunities for interdisciplinary and collaboration experiences.Originality/valueThis research contributes to the body of knowledge on interfirm collaboration by considering the specificities of HLC. It also highlights the importance of conducting contingency research on collaborative experiences, as firms from different industry contexts operate under distinct operational conditions.

Sign in / Sign up

Export Citation Format

Share Document