Examining the impetus for internal CSR Practices with digitalization strategy in the service industry during COVID‐19 pandemic

Abstract

AbstractThe year 2020 began with a glimpse into the darkness with the onset of the worldwide COVID‐19 pandemic. An invisible, threatening virus has forced many countries to practice restricted movement and impose lockdowns for the sake of their citizens’ safety and well‐being. In response, many business organizations have implemented various remote‐work arrangements. These arrangements have spurred the use of digitalization strategies and have landed many employees in the vulnerable virtual workplace. With employees facing all these uncertainties and vulnerabilities, their commitment to their workplace could come into question. At the same time, organizations facing tremendous challenges are searching for committed employees to navigate through this turbulent time. From a strategic management perspective, organizations could revisit their internal core competencies to prevail through internal corporate social responsibility (CSR) practices. Meanwhile, the rapidly growing pace of digitalization could further augment organizations’ survival and resilience. This research paper showcases the empirical outcomes of the promising match between internal CSR practices and digitalization strategy; and employees’ organizational commitment during times of crisis. The results reveal that internal CSR practices positively stimulate employees’ organizational commitment, while digitalization strategy intercedes in the nexus between internal CSR practices and affective commitment. The empirical outcomes shed light on business organizations and their ability to take a frugal approach in turbulent times.