Do Hofstede’s cultural dimensions moderate the CSR-firm performance relationship before and during the COVID-19 crisis?

Abstract

Purpose

This study aims to evaluate the impact of varying cultural dimensions, according to Hofstede, on corporate social responsibility (CSR) performance before and during the COVID-19 crisis.

Design/methodology/approach

This study examines the moderating impact of Hofstede’s cultural dimensions on the relationship between CSR and firm performance. The database comprises 36,295 firm-year observations from 2,135 firms operating in civil law countries.

Findings

The findings confirm that CSR investments have a positive impact on firm performance both before and after the COVID-19 crisis. Furthermore, it becomes evident that cultural dimensions play a moderating role in the CSR–firm performance relationship. The crisis has generated a shift in perspective, emphasizing the advantages of CSR in terms of reputation and financial well-being in the post-crisis environment.

Originality/value

The significance of this study lies in its examination of the relationship between CSR and firm performance within the framework of Hofstede’s cultural dimension theory, before and during the COVID-19 crisis.

Citation

Lajnef, K. and Ellouz, S. (2024), "Do Hofstede’s cultural dimensions moderate the CSR-firm performance relationship before and during the COVID-19 crisis?", Global Knowledge, Memory and Communication, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/GKMC-10-2023-0382