CSR associations and market value: the moderating role of market competition
| Date | 03 October 2024 |
| Pages | 333-346 |
| DOI | https://doi.org/10.1108/JPBM-01-2023-4315 |
| Published date | 03 October 2024 |
| Author | David Brueninghaus,Ivan Arribas,Fernando García,Christoph Burmann |
CSR associations and market value: the
moderating role of market competition
David Brueninghaus
Markstones Institute of Marketing, Branding and Technology, University of Bremen, Bremen, Germany
Ivan Arribas
Department of Economic Analysis, Universitat de València, Valencia, Spain
Fernando García
Faculty of Business Administration and Management, Universitat Politecnica de Valencia, Valencia, Spain, and
Christoph Burmann
Markstones Institute of Marketing, Branding and Technology, University of Bremen, Bremen, Germany
Abstract
Purpose –This paper aims to study the impact of consumers’corporate social responsibility (CSR) associations on corpora te financial performance
and the moderating role of market competition.
Design/methodology/approach –The panel data set is analyzed using a random effects regression model. The analyzed data is based on the
unique RepZ Responsibility scores published by the global research agency Kantar Millward Brown and contains information about consumer CSR
associations.
Findings –This study reveals CSR associations’positive, lagged, direct impact on firms’market value. Market competition moderates this
relationship in the way that a company’s market value benefits more from consumers’CSR associations when facing high rather than low market
competition.
Practical implications –Consumers’CSR perceptions increase the market value of a company. This effect is intensified when brands are exposed
to intense competition, which allows conclusions about CSR as a differentiation strategy to be drawn: To stand out in a competitive market, brands
should prioritize improving their CSR associations among consumers to differentiate themselves and increase their market value.
Originality/value –To the best of the authors’knowledge, this study is the first to test the effect of consumers’CSR associations on forward-
looking financial performance measures. Moreover, by analyzing the moderating effect of market competition on the relationship between CSR
associations and firms’market value, this study provides information about the differentiatingpower of CSR from a brand perspective using a panel-
data analysis.
Keywords CSR associations, Financial performance, Market competition
Paper type Research paper
1. Introduction
Corporate social responsibility (CSR) has gained momentum
for brands across various sectors (Mishra and Modi, 2016).
This concept is driven by the growing awareness of consumers,
activists, employees and international regulators toward
environmentally and socially responsible consumption
(Nickerson et al., 2022;Vock, 2022;Ford and Stohl, 2019).
Brands are increasingly adopting CSR as both a strategic
marketing tool and a branding strategy to set themselves apart
from competitors; this move comes particularly in response to
rising market competition (Dupire and M’Zali, 2018;Muniz
and Guzm
an, 2021;Gilal et al.,2023;Safeer and Liu, 2023;
Childs et al.,2019;Pope and Kim, 2022). Despite the
prevalence of this trend, there remains a notable research gap
concerning the specific competitive conditions under which
CSR most effectivelydifferentiates a brand from another.
Brand differentiation can be defined as a brand’s perceived
distinctiveness and ability to stand out in the marketplace
(Bhattacharya etal., 2020). The ability to differentiate is crucial
for a brand as it helps create market entry barriers, increase
customer loyalty, and boost purchase frequency to improve
financial performance (Erdem and Swait, 2004). Therefore,
The current issue and full text archiveof this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
34/3 (2025) 333–346
Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-01-2023-4315]
© David Brueninghaus, Ivan Arribas, Fernando García and Christoph
Burmann. Published by Emerald Publishing Limited. This article is
published under the Creative Commons Attribution (CC BY 4.0) licence.
Anyone may reproduce, distribute, translate and create derivative works of
this article (for both commercial and non-commercial purposes), subject to
full attribution to the original publication and authors. The full terms of this
licence may be seen at http://creativecommons.org/licen ces/by/4.0/legalcode
Received 1 February2023
Revised 19 June 2023
17 November 2023
24 May 2024
12 September 2024
Accepted 13 September 2024
333
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