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

Abstract

PurposeThis paper aims to examine the effects of corporate social responsibility (CSR) on customer orientation and competitive advantage.Design/methodology/approachData were collected from 368 retail banking customers in Pakistan and analysed using partial least squares-based structural equation modelling.FindingsFirstly, 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 implicationsManagers 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/valueFirstly, 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.