The interplay of strategy, corporate social responsibility and customer orientation in explaining firm performance: a stakeholder view

Abstract

The link between strategy and performance is a well-established topic in the strategic management field, yet few studies have examined the role that corporate social responsibility (CSR) and customer orientation (CO) have on this relationship. Using a stakeholder theory perspective, the objective of this study is to explore these relationships in the context of a transition economy. A sample of Romanian firms was used and the data was tested using partial least square structural equation modelling. The empirical results present findings that while there is a significant relationship between strategic planning and CSR, a significant relationship was not found between strategic planning and performance, nor between strategic planning and CO. However, a partially mediated relationship was found between CSR, CO, and performance. The conclusion is that the embrace of free-market practices is still evolving in transition economies. The implication is that over time learning and accumulation of related knowledge will strengthen the interplay of these firm practices and result in improved performance.