Abstract
The purpose of this study is to investigate the effect of partner firms’ corporate social responsibility (CSR) activities on long-term relationships in business-to-business (B2B) industries. We developed a research model to capture the correlations between a partner firm’s CSR reputation (i.e., business practice, CSR reputation, and philanthropic CSR reputation), trust, information sharing, risk–reward sharing, and long-term relationships. Drawing on the stakeholder and social exchange theories, we hypothesized that a partner firm’s CSR reputation would affect long-term relationships through trust, information sharing, and risk–reward sharing. Through empirical analysis, we found that business practice CSR is positively related to long-term relationships through trust and B2B partnership. We also present some theoretical and managerial implications of this study.
Highlights
Corporate social responsibility (CSR) has consistently been discussed as a strategic element for the sustainable management of firms
The results revealed that business practice CSR reputation has a positive effect on trust, and it can serve as a cue about the partner company’s credibility with regard to transaction stability and transparency
Philanthropic CSR reputation had no significant effect on trust
Summary
Corporate social responsibility (CSR) has consistently been discussed as a strategic element for the sustainable management of firms. As stakeholder expectations for CSR have increased recently, the area of business-to-business (B2B) partnerships has been recognized as a significant strategic factor for long-term B2B relationships [1]. This is because a partner firm’s reputation due to its CSR activities is a driving force for the formation of long-term relationships, and increases business value. The positive reputation of a partner firm may increase a company’s value, but a negative reputation may undermine brand equity and customer loyalty [1,2,3,4].
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