Investigating the Moderating Effect of Marketing Capability on the Relationship between Corporate Social Responsibility (CSR) Practice and Corporate Reputation in Small Medium Enterprises Food Operators

Abstract

This study expanded on the existing research on corporate social responsibility (CSR) in food supply chains by investigating the moderating effect of marketing capability on the relationship between CSR practice and corporate reputation in the context of Malaysian small medium enterprises (SMEs). Data were collected from 264 SMEs operating in the Malaysian food supply chain using a questionnaire and analysed using Partial Least Square (PLS). The objectives of this study are as follows: 1) to investigate the awareness of CSR and the trends among local food SMEs, 2) to analyse the factors that motivate SMEs to implement CSR, and 3) to examine the moderating effect of marketing capability on the relationship between CSR practice and corporate reputation. This study found that supply chain partners’ pressure and government support were the antecedent factors for CSR practice. In addition, this study also highlighted that CSR practice enhances the responding firms’ corporate reputation. However, this study did not find substantial evidence to support the moderating role of marketing capability. The implication of this study implies that food operators should respond to the rising importance of CSR practice due to their powerful influence on a company's reputation. They should enter a collaborative relationship with their supply chain partners to gain access to resources needed for CSR implementation.