Harnessing corporate social responsibility to drive brand performance: role of perceived innovation in product and service brands
Muhammad Sohaib, Asif Ali SafeerPurpose
Global brands are increasingly treating Corporate Social Responsibility (CSR), perceived innovation, and brand performance as main pillars of their corporate strategy. However, research on this area is scarce. Therefore, this study explores the effects of CSR on consumer-based brand performance (CBBP) via perceived innovation, including product, process, and marketing innovation for both product and service brands.
Design/methodology/approach
An online survey was conducted to collect data from 910 consumers for products (i.e. smartphones) and services (i.e. media) brands. Following data filtration, 820 responses were analyzed using partial least squares structural equation modeling.
Findings
The multigroup results indicated that CSR improved perceived innovation, such as product, process, and marketing innovation, as well as CBBP for both product and service brands. However, the difference between groups was significant, particularly from CSR to process innovation, with more pronounced effects for service brands compared to product brands. This study revealed that the direct and indirect effects of product, process, and marketing innovation increased CBBP for both product and service brands, with no significant differences across groups.
Practical implications
This study offers recommendations for managers responsible for designing and executing branding strategies. Marketing and brand managers can boost product and service brand performance by employing CSR initiatives and perceived product, process, and marketing innovation.
Originality/value
This study, using the lens of stakeholder theory and Service-Dominant (S-D) logic, provides fresh insights into CSR, perceived product, process, and marketing innovation, as well as brand performance literature, by emphasizing the role of both product and service brands.