Abstract

Purpose: The purpose of the study was to offer new knowledge about how valences of communications about retailers’ corporate ability (CA) and corporate social responsibility (CSR) practices influence how consumers perceive the firm’s competitive advantage using empirical research methods.

Design: The study used an experimental design in which four groups of participants reviewed CA and CSR scenarios manipulated for valence strength for fictional retailers. The scenarios described managerial performance at the hypothetical retail firms.

Findings: The findings suggested that CA and CSR influence competitive advantage. The researchers found interaction effects between CA and CSR on competitive advantage when either dimension had positive scenario valence.

Practical Implications: If a retailer has expertise in either CA or CSR, it may be able to compensate for lower expertise in the other dimension to some extent when measuring competitive advantage.

Value: Methods for evaluating consumer perceptions of managerial corporate social responsibility strategy through framing corporate communications provides an opportunity for further research.

Keywords: Sustainability; Corporate Social Responsibility; Corporate Ability; Competitive