Title: Examining the indirect effect of corporate social responsibility on firm performance: an empirical study in Lebanon

Authors: Tamara Kasamani; Rania Mostafa

Addresses: Faculty of Business Administration, Beirut Arab University – Tarik El Jadida, Main Building, Beirut, Lebanon ' Faculty of Business Administration, Beirut Arab University – Tarik El Jadida, Main Building, Beirut, Lebanon

Abstract: The current study examines a mediated model to understand the link between corporate social responsibility (CSR) and firm performance (FP). Based on the research findings from a sample of 110 respondents from Lebanese firms, the results suggest that the CSR and FP association is an entirely mediated relationship. In particular, CSR is positively linked to firm financial performance indirectly through the enhancement of reputation, customer satisfaction, and competitive advantage. Hence, the findings reduce ambiguity around CSR's direct role, and reveal that CSR promotes firm performance indirectly through building intangible assets (reputation, customer satisfaction, and competitive advantage) that are essential to the survival of a firm.

Keywords: competitive advantage; corporate social responsibility; CSR; customer satisfaction; firm performance; Lebanon; reputation.

DOI: 10.1504/MEJM.2020.105226

Middle East Journal of Management, 2020 Vol.7 No.1, pp.75 - 92

Received: 08 Oct 2018
Accepted: 17 Oct 2018
Published online: 22 Feb 2020 *

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