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Firm strategy and CSR: the moderating role of performance management systems

Published online by Cambridge University Press:  03 November 2020

Jeremy Galbreath Open the ORCID record for Jeremy Galbreath [Opens in a new window] ,
Lorenzo Lucianetti ,
Daniel Tisch  and
Benjamin Thomas
Jeremy Galbreath*
Affiliation:
Curtin University, Perth, Western Australia
Lorenzo Lucianetti
Affiliation:
University of Chieti and Pescara, Pescara, Italy
Daniel Tisch
Affiliation:
The University of Auckland, Auckland, New Zealand
Benjamin Thomas
Affiliation:
Curtin University, Bentley
*
Author for correspondence: E-mail: [email protected]
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Abstract

Little empirical research has explored whether or not firm strategy is linked with corporate social responsibility (CSR) and to that end we explore the impact of low-cost and differentiation strategies on CSR. Using a sample of 229 Italian firms, a low-cost strategy is negatively associated with ethical and discretionary CSR, while a differentiation strategy is positively associated with both. Given its focus on nonfinancial outcomes and stakeholders, we test if a performance management system (PM system) acts as a moderating influence. We find that a PM system positively moderates the negative association between a low-cost strategy and ethical and discretionary CSR, while also positively moderating these relationships with respect to a differentiation strategy. These findings advance the literature on strategy and CSR, while demonstrating the contingent effect of PM systems. The findings are discussed along with limitations and directions for future research.

Keywords

Corporate social responsibilityethicsMichael Porterperformance management systemstakeholdersstrategy
Type
Research Article
Information
Journal of Management & Organization , Volume 28 , Issue 1 , January 2022 , pp. 202 - 220
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2020

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