CSR and customer orientation: a sustainable pathway towards competitive advantage? A customer’s perspective

Abstract

Purpose

This paper aims to examine the effects of corporate social responsibility (CSR) on customer orientation and competitive advantage.

Design/methodology/approach

Data were collected from 368 retail banking customers in Pakistan and analysed using partial least squares-based structural equation modelling.

Findings

Firstly, the research findings indicate that CSR has a positive and significant effect on customer orientation. Secondly, CSR and customer orientation were found to be the antecedents of competitive advantage.

Practical implications

Managers can use CSR activities strategically to enhance the perceptions of a firm’s customer orientation in their minds. This can then lead towards achieving a competitive advantage over rivals. The trend of being socially responsible, as well as customer-orientated, can lead to a healthy ecosystem within the industry, which in turn will benefit its stakeholders.

Originality/value

Firstly, this is one of the pioneering studies that investigate the relationship between CSR and customer orientation. Secondly, it examines the under-explored roles of CSR and customer orientation as antecedents of competitive advantage.

Citation

Mahmood, S. and Khan, Z. (2023), "CSR and customer orientation: a sustainable pathway towards competitive advantage? A customer’s perspective", Social Responsibility Journal, Vol. 19 No. 4, pp. 741-755. https://doi.org/10.1108/SRJ-04-2020-0139