Drivers and customer satisfaction outcomes of CSR in supply chains in different institutional contexts

Purpose – While firms have widely adopted corporate social responsibility (CSR) initiatives in their supply chains, there is little work simultaneously examining the drivers and outcomes of such initiatives. Specifically, it is not clear how different institutional contexts may shape them. The purpose of this paper is to examine the drivers and performance outcomes of CSR in supply chains in two different institutional contexts: Mainland China (a transition economy) and Taiwan (a market economy). Design/methodology/approach – Data were collected from Mainland Chinese and Taiwanese manufacturing factories engaging in CSR in supply chains. Relationships are examined using “soft-modeling” partial least squares analysis. Findings – The findings suggest that CSR in supply chains positively impact on customer satisfaction in both Mainland China and Taiwan. Yet, the influence on CSR in supply chains of different drivers differs according to institutional context. In the transition economy of China, CSR initiatives are driven by regulatory and efficiency forces but not by the competitive advantage force. In contrast, in the market economy of Taiwan, CSR initiatives are driven by the competitive advantage force but not by the other two. Research limitations/implications – This paper provides some empirical evidence of the influence of different institutional contexts on CSR initiatives and their impact on customer satisfaction. The research contributes to the emerging theme of institutional theory in international marketing. Practical implications – Managers should be aware that different institutional contexts may shape firms’ CSR in supply chains. However, CSR in supply chains does matter in terms of enhancing customer satisfaction in all institutional contexts. Originality/value – The authors develop and test a framework of drivers and customer satisfaction outcomes of CSR in supply chains in both a transition and a market economy.