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

Figures & data

Figure 1. Proposed research model.

Source: Authors’ own elaboration.

Table 1. Factor loadings, reliability and AVE.

Construct	Coding	Items	Loadings	CR	Cronbach’s alpha	AVE
Strategic planning	SP1	Company’s goals reflect the strategy	0.797	0.814	0.657	0.595
	SP2	All employees are aware of the strategy	0.687
	SP3	The company guides through a strategy	0.802
Corporate social responsibility	CSR1	The company favours CSR actions	0.866	0.803	0.625	0.581
	CSR2	The company develops an ethical behaviour in regard to business partners	0.793
	CSR3	The company develops an ethical behaviour in regard to employees	0.603
Customer orientation	CO1	The company performs customer satisfaction surveys	0.815	0.820	0.670	0.604
	CO2	The employees are trained to respond quickly to customer demands	0.792
	CO3	Company’s products reflect customers’ expectations	0.721
Firm performance	FP1	There is an increase in quality of the products/services	0.866	0.899	0.830	0.747
	FP2	The business results show an increase in customer satisfaction	0.866
	FP3	In comparison to other companies, our profitability is superior	0.861

Source: Authors’ own elaboration with Smart-PLS Software.

Table 2. Discriminant validity.

	CSR	CO	FP	SP
CSR	0.762	0.609	0.837	0.841
CO	0.393	0.777	0.719	0.312
FP	0.609	0.537	0.864	0.578
SP	0.535	0.202	0.427	0.771

Note: Values in italic are the square root of AVE. Values below the diagonal elements are correlations between constructs. Bolded values above diagonal elements are the HTMT ratios. CSR = Corporate social responsibility, CO = Customer orientation, FP = Firm performance, SP = Strategic planning.

Source: Authors’ own elaboration with Smart-PLS Software.

Table 3. Test of hypotheses.

Relationships	Path coefficients	T values	p values	Hypothesis
Direct effects
SP → FP	0.146	1.141	0.254	H1: Not supported
SP → CSR	0.535	6.676	0.000	H2: Supported
CSR → FP	0.391	3.264	0.001	H3: Supported
SP → CO	−0.011	0.078	0.938	H4: Not supported
CO → FP	0.353	2.739	0.006	H5: Supported
CSR → CO	0.399	3.392	0.001	H6: Supported
Specific indirect effects
CSR → CO → FP	0.141	2.102	0.036	H7: Supported (partial mediation)

Note: CSR = Corporate social responsibility, CO = Customer orientation, FP = Firm performance, SP = Strategic planning.

Source: Authors’ own elaboration with Smart-PLS Software.