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Does the government procurement market favor corporate social responsibility in a weak institution? Evidence from China

Datos Bibliográficos

ID19568614
AutoresRan (0000-0001-6022-5517, Chongqing University), Ran Rong, Wang Qiqi (Sun Yat-sen University), Zhiyang Liu (0000-0002-7377-3827, Shanghai University of Finance and Economics), Liu Zhiyang, Shaobo Long (0000-0003-4549-8722, Chongqing University), Long Shaobo
Año2022
Volumen10
Número1
Fecha de publicación2022-12-06
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaElementa Science of the Anthropocene (JOURNAL)
Identificadores de la revistaISSN: 2325-1026 • E-ISSN: 2325-1026
EditorialUniversity of California Press (PUBLISHER • US)
DOI10.1525/elementa.2022.00016
OpenAlexW4312458753
IdiomaEN
Referencias citadas88

This study investigates, in the context of a weak institution, the single and interactive effects of firms’ nonmarket strategies in China’s government procurement market. Based on transaction cost and signal theory, using data pertaining to Chinese government procurement contracts from 2016 to 2018, this study also provides evidence that superior corporate social responsibility (CSR) performance enables firms to obtain more government procurement contracts. However, the effect is only significant in non-state-owned enterprises. Considering the interaction effect of corporate political activity (CPA) and CSR in business to government (B2G) markets, this study finds that CPA, characterized by the political attributes of executives, enhances the signal effect of CSR in B2G markets. Further heterogeneity analysis indicates that CSR’s signal effect diminishes over time and is enhanced with high industry competition. Our findings provide new insights on nonmarket mechanisms (such as CSR), through which firms competing in China’s B2G market can compensate for the weak institution

Business · China · Corporate social responsibility · Economics · Factor market · Government procurement · Industrial organization · Institution · Market economy · Nonmarket forces · Procurement · Public relations · Corporate Finance and Governance · Corporate Social Responsibility Reporting · Public Procurement and Policy · Marketing

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