Can co‐creating in CSR initiatives influence loyal customers? Evidence from the banking industry

Abstract

AbstractConsumers are increasingly pressing organizations to adapt meaningful corporate social responsibility (CSR) initiatives and seek avenues for co‐creation. Study to investigate if CSR can help co‐creation significantly contributes to the competitive advantage of banks. Many previous pieces of research have recognized CSR as a strategic imperative that may help businesses to build consumer loyalty. To address gaps in the literature based on the social identity theory and theory of social exchange, this article investigates the impact of CSR on consumer loyalty while considering the mediation effect of co‐creation. The data were collected in India, and the sample contained 520 customers of banks. Partial least squares‐structural equation modeling was used to test the hypothesis. The study findings show that CSR, directly and indirectly, impacts consumer loyalty through co‐creation. The current study's findings aid banking institutions in determining how to design and implement strategies based on CSR and co‐creation that could eventually result in consumer loyalty.