Abstract
PurposeThis paper aims to investigate the impact of external stakeholders-related corporate social responsibility (CSR) activities (local community and suppliers) on customer value co-creation behavior. This study also aims to examine the mediating role of relationship marketing orientation (RMO) on the relationship of CSR activities and customer value co-creation behavior.Design/methodology/approachThe main problem of dichotomy between customers and the management was existing in banking sector so that’s why through purposive sampling, banking customers were selected for data collection through a self-administered questionnaire. Structural equation modeling was used to test the proposed hypotheses.FindingsThe present study found that both local community-related and supplier-related CSR activities have a positive impact on customer value co-creation behavior. Relationship marketing orientation mediates between the link of CSR activities and customer value co-creation behavior. The strength of RMO in CSR supplier and customer value co-creation behavior is found to be more dominant.Research limitations/implicationsThis study is restricted to one country under-investigation; therefore, it can be replicated with a larger and more geographically diverse sample.Practical implicationsThis study offers insights to the banking sector that local community-related CSR activities contribute to the value co-creation behavior and minimize the social problems of Pakistan.Originality/valueThe findings of this study highlight that top management of banks can enhance the customer’s participation in services by using valuable CSR activities. The results imply the importance of interactions between the recipient of services and service providers. Stakeholder theory has previously been applied to examine stakeholders’ value maximization; this study uses stakeholder theory to examine shareholders’ value co-creation.
Highlights
In rapidly changing environment, customers have transformed their traditional role and looking for customized products/services with the ease of information, awareness and technology (Wu et al, 2016; Kumar et al, 2018)
Local community-related corporate social responsibility (CSR) is a set of philanthropic activities which brings improvements for the community in term of employment, health, quality education, water, and sanitation Focusing on the labor standard of business partners and other business suppliers in compliance with legalities as well as executing procedures for them is seen as part of CSR practices within the corporations The degree in which an organization involves for the development of longlasting ties with its clients It caters responsible behavior, information seeking, personal interaction, and information sharing sub-dimensions It caters tolerance, feedback, helping and advocacy dimensions
This study aimed to check whether customized CSR activities for local community and suppliers are useful to integrate into the model to generate the value co-creation behavior within the Pakistani banking industry
Summary
Customers have transformed their traditional role and looking for customized products/services with the ease of information, awareness and technology (Wu et al, 2016; Kumar et al, 2018) In this scenario, relationship building with stakeholders such as customers remains the core activity of any company (Royle and Laing, 2014; Kumar et al, 2018), and corporations are under high stress to discover new methods of participation in defensible development and meeting ethical expectation. Reporting of CSR investment has increased up to 50% in Asia especially in Indonesia and Malaysia (KPMG, 2016; Arena et al, 2018)
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