This study investigates the effect of CSV effort in B to B relationships and the mechanism of Inter-firm CSV and firm performance. The results show that firm’s efforts of inter-firm CSV really create bigger value for investing firm and the outcome can be different depending on the relationship characteristic between the investing firm and the beneficiary firm. This research contributes in academia and offers several valuable insights for managers. First, our research is the first to demonstrate empirically that how CSV generates positive outcomes in B to B relationships. Second, we investigated various forms of inter-firm CSV through the case studies and identified the type of Inter-firm CSV. Third, we explained how to derive better Inter-firm CSV outcome with the same investment. Lastly, we empirically showed that the effect of inter-firm CSV on its outcome vary depending on the relationship characteristic.

Introduction

There is consensus among many economists and corporate leaders that the ultimate goal of an enterprise is long-term survival, and it is believed that maximizing profits is the most effective mechanism for achieving this goal. Stockholders were traditionally the owners of the firm; however, in more recent years, the concept of stakeholders has been enlarged to include employees, customers, and the community in which the firm operates. Studies have shown that operating responsibly relative to the larger community and the environment improves the bottom line (Di Benedetto, 2017). A company’s awareness of responsibility towards the social and ecological environment in which it conducts business is known as Corporate Social Responsibility (CSR). Many studies have shown that a firm’s CSR can enhance marketing performance by means of improving customer attitudes and strengthening customer loyalty (Homburg, Stierl, & Bornemann, 2013). However, until recently, CSR has largely focused on “responsibility”, rather than on “benefits” (Visser, 2011).