Abstract
In this paper I propose a model of key contingencies governing competitive response in the corporate responsibility (CR) domain. This theoretical contribution is grounded in the competitive dynamics literature, and explores under what conditions a focal firm’s social or environmental initiatives might elicit competitive response. The contingency framework shifts attention away from a prevailing emphasis on linking a firm’s socially and environmentally responsible practices to performance measures, and adds an important new dimension to existing research in both competitive dynamics and CR scholarship by using a competitive response lens to examine the relationship between CR and competitive advantage. The theoretical anchor used for considering the connection between CR and competitive advantage is Chen’s (1996) awareness-motivation-capability (AMC) perspective. This research focuses on the firm, industry, and inter-industry conditions that would likely motivate a firm’s response to a CR action of a focal firm.
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