The value in doing good: perspective from the Indian manufacturing sector

Abstract

PurposeThis study aims to identity the component of corporate social responsibility (CSR) and examine its role in industrial brand equity creation. This study examines the path via value proposition derived by industrial buyers through social performance of suppliers.Design/methodology/approachDrawing from the means-end chain paradigm, this study develops a conceptual model illustrating consequences of CSR perception. The model is empirically tested with 404 purchasing managers of manufacturing firms in India.FindingsThis study finds an empirical link between the CSR perception among industry buyers with consumption value and subsequent impact on industrial brand equity of suppliers. This study addresses the conundrum related to the role of social performance of supplier in purchase decision.Research limitations/implicationsThe brand preference decision among industrial buyers has majorly focused on price quality conundrum. The supplier groups emphasis on providing the value to customer group across the price quality continuum. However, with growing importance of social accountability, the social performance of suppliers has become integral to decision-making for decision-makers. The supplier groups are expected to create offering with amalgamation of social responsiveness.Originality/valueTo the best of the author’s knowledge, this study is the first to demonstrate the impact of CSR perception on value proposition for industrial buyers. Multiple theories have advanced the importance of value in brand equity; the empirical study is probably first in the context.