Competition, Time Horizon and Corporate Social Performance

Research output: Working paperDiscussion paperOther research output

333 Downloads (Pure)

Abstract

Abstract: This paper develops and tests a conceptual framework on the relationships between competition, time horizon and corporate social performance (CSP). We hypothesize that more intense competition discourages CSP by lowering the time horizon of companies. We test the hypothesis on a sample of 4696 of mainly small and medium-sized companies from twelve European countries. We distinguish between price competition, market position and technological competition. We find that companies with a longer time horizon have a higher CSP and that price competition and a ‘level playing field’ market position shorten the time horizon. The intensity of technological competition has a positive effect on time horizon, but also exerts a direct positive influence on CSP. Test results show that time horizon significantly mediates the influence of price competition, the market position and technological competition on CSP. The analysis implies that, from the perspective of CSP, the economic policy of the government should not focus on fostering price competition, but rather on strengthening competition in innovation.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Number of pages27
Volume2013-060
Publication statusPublished - 2013

Publication series

NameCentER Discussion Paper
Volume2013-060

Fingerprint

Time horizon
Corporate social performance
Price competition
Market position
Technological competition
Level playing field
Conceptual framework
Economic policy
Innovation
Government
European countries
Small and medium-sized companies

Keywords

  • Corporate social performance
  • time horizon
  • price competition
  • SMEs
  • technological competition

Cite this

Graafland, J. J., & Smid, H. (2013). Competition, Time Horizon and Corporate Social Performance. (CentER Discussion Paper; Vol. 2013-060). Tilburg: Economics.
Graafland, J.J. ; Smid, H. / Competition, Time Horizon and Corporate Social Performance. Tilburg : Economics, 2013. (CentER Discussion Paper).
@techreport{02c3cf679924473a8246ff9155624fd7,
title = "Competition, Time Horizon and Corporate Social Performance",
abstract = "Abstract: This paper develops and tests a conceptual framework on the relationships between competition, time horizon and corporate social performance (CSP). We hypothesize that more intense competition discourages CSP by lowering the time horizon of companies. We test the hypothesis on a sample of 4696 of mainly small and medium-sized companies from twelve European countries. We distinguish between price competition, market position and technological competition. We find that companies with a longer time horizon have a higher CSP and that price competition and a ‘level playing field’ market position shorten the time horizon. The intensity of technological competition has a positive effect on time horizon, but also exerts a direct positive influence on CSP. Test results show that time horizon significantly mediates the influence of price competition, the market position and technological competition on CSP. The analysis implies that, from the perspective of CSP, the economic policy of the government should not focus on fostering price competition, but rather on strengthening competition in innovation.",
keywords = "Corporate social performance, time horizon, price competition, SMEs, technological competition",
author = "J.J. Graafland and H. Smid",
note = "Pagination: 27",
year = "2013",
language = "English",
volume = "2013-060",
series = "CentER Discussion Paper",
publisher = "Economics",
type = "WorkingPaper",
institution = "Economics",

}

Graafland, JJ & Smid, H 2013 'Competition, Time Horizon and Corporate Social Performance' CentER Discussion Paper, vol. 2013-060, Economics, Tilburg.

Competition, Time Horizon and Corporate Social Performance. / Graafland, J.J.; Smid, H.

Tilburg : Economics, 2013. (CentER Discussion Paper; Vol. 2013-060).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Competition, Time Horizon and Corporate Social Performance

AU - Graafland, J.J.

AU - Smid, H.

N1 - Pagination: 27

PY - 2013

Y1 - 2013

N2 - Abstract: This paper develops and tests a conceptual framework on the relationships between competition, time horizon and corporate social performance (CSP). We hypothesize that more intense competition discourages CSP by lowering the time horizon of companies. We test the hypothesis on a sample of 4696 of mainly small and medium-sized companies from twelve European countries. We distinguish between price competition, market position and technological competition. We find that companies with a longer time horizon have a higher CSP and that price competition and a ‘level playing field’ market position shorten the time horizon. The intensity of technological competition has a positive effect on time horizon, but also exerts a direct positive influence on CSP. Test results show that time horizon significantly mediates the influence of price competition, the market position and technological competition on CSP. The analysis implies that, from the perspective of CSP, the economic policy of the government should not focus on fostering price competition, but rather on strengthening competition in innovation.

AB - Abstract: This paper develops and tests a conceptual framework on the relationships between competition, time horizon and corporate social performance (CSP). We hypothesize that more intense competition discourages CSP by lowering the time horizon of companies. We test the hypothesis on a sample of 4696 of mainly small and medium-sized companies from twelve European countries. We distinguish between price competition, market position and technological competition. We find that companies with a longer time horizon have a higher CSP and that price competition and a ‘level playing field’ market position shorten the time horizon. The intensity of technological competition has a positive effect on time horizon, but also exerts a direct positive influence on CSP. Test results show that time horizon significantly mediates the influence of price competition, the market position and technological competition on CSP. The analysis implies that, from the perspective of CSP, the economic policy of the government should not focus on fostering price competition, but rather on strengthening competition in innovation.

KW - Corporate social performance

KW - time horizon

KW - price competition

KW - SMEs

KW - technological competition

M3 - Discussion paper

VL - 2013-060

T3 - CentER Discussion Paper

BT - Competition, Time Horizon and Corporate Social Performance

PB - Economics

CY - Tilburg

ER -

Graafland JJ, Smid H. Competition, Time Horizon and Corporate Social Performance. Tilburg: Economics. 2013. (CentER Discussion Paper).