Market orientation, firm performance and the mediating effect of corporate social responsibility

• Published in: Journal of Applied Business Research
• Main Author: Arshad R.; Mansor S.M.; Othman R.
• Format: Article
• Language: English
• Published: CLUTE Institute 2012
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84865287182&doi=10.19030%2fjabr.v28i5.7228&partnerID=40&md5=685ec82d4e26937a404737027fd4e9d9

This study examines the effect of CSR disclosure and MO on firm performance as well as the mediating effect of CSR on the relationship between MO and firm performance. These relationships are examined based on content analysis of 242 Malaysian public listed companies' annual reports for 2006, 2007 and 2008. Results of this study provide evidence that CSR activities communicated in corporate annual reports are important business strategy in creating continuous superior performance for organisations. The results also indicate that MO companies are integrating CSR activities into their business strategies. However, the insignificant mediating effect of CSR on the relationship between MO and firm performance indicates that MO and CSR strategies have not been effectively integrated in creating a synergistic effect that can bolster firm performance. Overall, findings in this study indicate the strategic value of CSR in creating economic sustainability for organizations even in an environment characterised by concentrated ownership structure where the companies may be less market focused. © 2012 The Clute Institute.