The Roles of Local Employment and Environmental Sustainability on Business Performance: The Mediating Role of Brand Image in The Modern Trade Business in Rural Areas in Thailand
DOI:
https://doi.org/10.14456/ndj.2023.2Keywords:
Corporate Social Responsibility (CSR), Local Employment, Environmental Responsibility, Business Performance, Brand Image, Modern Trade BusinessAbstract
The concept of Sustainable Development Goals (SDGs) has been raised and highlighted in many industries to help build society's sustainable prosperity. In particular, the modern trade business is among Thailand's sectors that have begun incorporating SDGs in business activities. However, whether the SDGs adopted by the modern trade business affect the company image and performance is still an issue that needs to be explored. In response to these research questions, this study aims to investigate the influence of modern trade businesses’ local employment and environmental sustainability practices on the brand image and business performance perceived by customers. In this research, stratified random sampling was employed for sample selection. Survey data were collected from customers of modern trade stores located in rural areas of five cities in the central region of Thailand, namely Nakorn Pathom, Samut Songkhram, Ayudhaya, Kanchanaburi, and Lopburi. The data were derived from 557 customers and 52 managers from 52 stores. Partial least squares structural equation modeling will be used in the data analysis. The PLS-SEM results showed that local employment (β=0.087; p=0.018) and environmental responsibility (β=0.132; p<0.001) could directly promote business performance. Sobel’s test results demonstrated that business performance could also be indirectly promoted by fostering brand image through both local employment (t=6.359; p<0.001) and environmental responsibility (t=6.324; p<0.001).This research contributed new and additional knowledge and expanded the concept of the Corporate social responsibility (CSR) theory to the context of the modern trade business that was still underexplored.
References
Abushaikha, I., Salhieh, L., & Towers, N. (2018). Improving distribution and business performance through lean warehousing. International Journal of Retail & Distribution Management, 46(8), 780-800.
Akintimehin, O. O., Eniola, A. A., Alabi, O. J., Eluyela, D. F., Okere, W., & Ozordi, E. (2019). Social capital and its effect on business performance in the Nigeria informal sector. Heliyon, 5(7), 1-13.
Alguacil, M., García-Fernández, J., Calabuig, F., & Gálvez-Ruiz, P. (2021). How can the management of fitness centres be improved through corporate image and brand image? Economic Research-Ekonomska Istraživanja, 1-19.
Anabila, P. (2020). Integrated marketing communications, brand equity, and business performance in micro-finance institutions: An emerging market perspective. Journal of Marketing Communications, 26(3), 229-242.
Babiak, K., & Trendafilova, S. (2011). CSR and environmental responsibility: Motives and pressures to adopt green management practices. Corporate Social Responsibility and Environmental Management, 18(1), 11-24.
Bacinello, E., Tontini, G., & Alberton, A. (2020). Influence of maturity on corporate social responsibility and sustainable innovation in business performance. Corporate Social Responsibility and Environmental Management, 27(2), 749-759.
Bakator, M., Petrović, N., Borić, S., & Đalić, N. (2019). Impact of human resource management on business performance: A review of literature. Journal of engineering management and competitiveness (JEMC), 9(1), 3-13.
Bashir, A., & Amir, A. (2019). CSR Dimensions and Customer Satisfaction: The Mediating Role of Brand Image from the Perspective of the Hotel Industry. European Online Journal of Natural and Social Sciences: Proceedings, 8(4 (s)), 184-198.
Battisti, M., & Perry, M. (2011). Walking the talk? Environmental responsibility from the perspective of small‐business owners. Corporate Social Responsibility and Environmental Management, 18(3), 172-185.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.
Chen, Y. (2021). Leveraging Labor Markets Policies to Promote Local Employment Creation. ( Doctor of Philosophy in Economics Dissertation). The University of Illinois at Chicago, Chicago.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
Chipp, C., Dewane, S., Brems, C., Johnson, M. E., Warner, T. D., & Roberts, L. W. (2011). “If only someone had told me…”: lessons from rural providers. The Journal of Rural Health, 27(1), 122-130.
Coe, N. M., & Wrigley, N. (2017). Towards new economic geographies of retail globalization. CLARK, Gordon L.; FELDMAN, MP; GERTLER, MS, WOJCIK, D, 427-447.
Currás‐Pérez, R., Dolz‐Dolz, C., Miquel‐Romero, M. J., & Sánchez‐García, I. (2018). How social, environmental, and economic CSR affects consumer‐perceived value: Does perceived consumer effectiveness make a difference? Corporate Social Responsibility and Environmental Management, 25(5), 733-747.
Dahlmann, F., Stubbs, W., Griggs, D., & Morrell, K. (2019). Corporate actors, the UN sustainable development goals and earth system governance: A research agenda. The Anthropocene Review, 6(1-2), 167-176.
DAM, S. M., & DAM, T. C. (2021). Relationships between service quality, brand image, customer satisfaction, and customer loyalty. The Journal of Asian Finance, Economics and Business, 8(3), 585-593.
De Grosbois, D. (2012). Corporate social responsibility reporting by the global hotel industry: Commitment, initiatives and performance. International Journal of Hospitality Management, 31(3), 896-905.
DesJardins, J. (1998). Corporate environmental responsibility. Journal of Business Ethics, 17(8), 825-838.
Fox, T. (2004). Corporate social responsibility and development: In quest of an agenda. Development, 47(3), 29-36.
Freeman, R. E. (2001). A stakeholder theory of the modern corporation. Perspectives in Business Ethics Sie, 3(144), 38-48.
Frynas, J. G., & Stephens, S. (2015). Political corporate social responsibility: Reviewing theories and setting new agendas. International Journal of Management Reviews, 17(4), 483-509.
Fun, F. S., Chiun, L. M., Songan, P., & Nair, V. (2014). The impact of local communities’ involvement and relationship quality on sustainable rural tourism in rural area, Sarawak. The moderating impact of self-efficacy. Procedia-Social and Behavioral Sciences, 144, 60-65.
Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1), 51-71.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced Issues in Partial Least Squares Structural Equation Modeling. California: SAGE Publications.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433.
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review, 26(2), 106-121.
Hák, T., Janoušková, S., & Moldan, B. (2016). Sustainable Development Goals: A need for relevant indicators. Ecological indicators, 60(1), 565-573.
Halme, M., Rintamäki, J., Knudsen, J. S., Lankoski, L., & Kuisma, M. (2020). When is there a sustainability case for CSR? Pathways to environmental and social performance improvements. Business & Society, 59(6), 1181-1227.
Hayes, A. F., & Preacher, K. J. (2014). Statistical mediation analysis with a multicategorical independent variable. British journal of mathematical and statistical psychology, 67(3), 451-470.
Holtbrügge, D., & Dögl, C. (2012). How international is corporate environmental responsibility? A literature review. Journal of international management, 18(2), 180-195.
Huang, J.-W., Li, Y.-H., & Yen, M.-T. (2016). The relationship between green innovation and business performance-the mediating effect of Brand image. Xing Xiao Ping Lun, 13(1), 89-118.
Huang, L.-C., Gao, M., & Hsu, P.-F. (2019). A study on the effect of brand image on perceived value and repurchase intention in ecotourism industry. Ekoloji, 28(107), 283-287.
Jonikas, D. (2014). Value created through CSR measurement possibilities. Procedia-Social and Behavioral Sciences, 156, 189-193.
Kafetzopoulos, D., Psomas, E., & Skalkos, D. (2019). Innovation dimensions and business performance under environmental uncertainty. European Journal of Innovation Management, 23(5), 856-876.
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1-10.
Kock, N. (2017). WarpPLS User Manual: Version 6.0. In: Laredo, TX: ScriptWarp Systems.
Kock, N., & Lynn, G. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations. Journal of the Association for Information Systems, 13(7), 547-580.
Konuk, F. A. (2018). The role of store image, perceived quality, trust and perceived value in predicting consumers’ purchase intentions towards organic private label food. Journal of Retailing and Consumer Services, 43(7), 304-310.
Lenzen, M., & Murray, J. (2010). Conceptualising environmental responsibility. Ecological economics, 70(2), 261-270.
Li, Z., Liao, G., & Albitar, K. (2020). Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation. Business Strategy and the Environment, 29(3), 1045-1055.
Lin, H. M., Lee, M. H., Liang, J. C., Chang, H. Y., Huang, P., & Tsai, C. C. (2020). A review of using partial least square structural equation modeling in e‐learning research. British Journal of Educational Technology, 51(4), 1354-1372.
Long, C., & Lin, J. (2018). The impact of corporate environmental responsibility strategy on brand sustainability: An empirical study based on Chinese listed companies. Nankai Business Review International, 9(3), 366-394.
Lu, J., Ren, L., Zhang, C., Rong, D., Ahmed, R. R., & Streimikis, J. (2020). Modified Carroll’s pyramid of corporate social responsibility to enhance organizational performance of SMEs industry. Journal of Cleaner Production, 271, 122456.
Lu, J., Ren, L., Zhang, C., Wang, C., Shahid, Z., & Streimikis, J. (2020). The influence of a firm’s CSR initiatives on brand loyalty and brand image. Journal of Competitiveness, 12(2), 106.
Luetkenhorst, W. (2004). Corporate social responsibility and the development agenda. Intereconomics, 39(3), 157-166.
MacGregor, S. P., Espinach, X., & Fontrodona, J. (2007). Social innovation: Using design to generate business value through corporate social responsibility. Paper presented at the 16th International Conference on Engineering Design, Paris, France.
Madrakhimova, F. (2013). History of development of corporate social responsibility. Journal of Business and Economics, 4(6), 509-520.
Marr, B., & Schiuma, G. (2003). Business performance measurement–past, present and future. Management Decision, 41(8), 680-687.
McNeish, D. (2018). Thanks coefficient alpha, we’ll take it from here. Psychological Methods, 23(3), 412.
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of management review, 26(1), 117-127.
Mohammed, A., & Rashid, B. (2018). A conceptual model of corporate social responsibility dimensions, brand image, and customer satisfaction in Malaysian hotel industry. Kasetsart Journal of social sciences, 39(2), 358-364.
Moisescu, O. I. (2015). Development and validation of a measurement scale for customers' perceptions of corporate social responsibility. Management & Marketing Journal, 13(2), 311-332.
Moyer, J. D., & Hedden, S. (2020). Are we on the right path to achieve the sustainable development goals? World Development, 127(3), 1-13.
Nabass, E. H., & Abdallah, A. B. (2018). Agile manufacturing and business performance: The indirect effects of operational performance dimensions. Business Process Management Journal, 25(4), 647-666.
Ndubisi, N. O., Zhai, X. A., & Lai, K.-h. (2021). Small and medium manufacturing enterprises and Asia's sustainable economic development. International Journal of Production Economics, 233(3), 1-5.
Negara, D. J., Mantikei, B., Christa, U. R., & Sintani, L. (2020). Psychological Effect of Brand Image and Brand Reputation on Sustainable Firm Performance in Indonesian Logistics. Contemporary Economics, 14(4), 425-441.
Ngwakwe, C. C. (2009). Environmental responsibility and firm performance: Evidence from Nigeria. International Journal of Humanities and Social Sciences, 3(2), 97-103.
Pathiranage, J. (2019). Organizational culture and business performance: an empirical study. International Journal of Economics and Management, 24(2), 264-278.
Patterson, M. (1999). Re-appraising the concept of brand image. Journal of brand management, 6(6), 409-426.
Pawaskar, U. S., Raut, R. D., & Gardas, B. B. (2018). Assessment of consumer behavior towards environmental responsibility: A structural equations modeling approach. Business Strategy and the Environment, 27(4), 560-571.
Pizzi, S., Rosati, F., & Venturelli, A. (2021). The determinants of business contribution to the 2030 Agenda: Introducing the SDG Reporting Score. Business Strategy and the Environment, 30(1), 404-421.
Prabowo, H. (2019). Perceptions about service quality, brand image, word of mouth and repurchase intention of guests staying budget hotels in airy rooms in the city of Semarang, Indonesia. IJO-International Journal of Business Management, 2(08), 01-15.
Qin, Y., Harrison, J., & Chen, L. (2019). A framework for the practice of corporate environmental responsibility in China. Journal of Cleaner Production, 235, 426-452.
Rashed, A. H., & Shah, A. (2021). The role of private sector in the implementation of sustainable development goals. Environment, development and sustainability, 23(3), 2931-2948.
Ratasuk, A. (2021). The Impact of the No-Plastic-Bag Campaign on Customer Repurchase Intentions and its mechanism in the Modern Trade Business in Bangkok. Asia Social Issues, 15(2), 1-17.
Ratasuk, A., & Buranasompob, A. (2021). Contributions of Marketing Factors on Customer Repurchase intentions in Convenience Store Coffee Shops in Bangkok and Mediating Role of Brand Image. Asian Administration and Management Review, 4(2), 11-21.
Ratasuk, A., & Gajesanand, S. (2020). Factors Influencing Brand Image and Customer Repurchase Intention: The Case of Coffee Chain Shops Located in Gas Service Stations in Bangkok. University of the Thai Chamber of Commerce Journal Humanities and Social Sciences, 40(3), 171-188.
Ribeiro-Navarrete, S., Botella-Carrubi, D., Palacios-Marqués, D., & Orero-Blat, M. (2021). The effect of digitalization on business performance: An applied study of KIBS. Journal of business research, 126, 319-326.
Rosati, F., & Faria, L. G. D. (2019). Business contribution to the Sustainable Development Agenda: Organizational factors related to early adoption of SDG reporting. Corporate Social Responsibility and Environmental Management, 26(3), 588-597.
Sachs, J. D., Schmidt-Traub, G., Mazzucato, M., Messner, D., Nakicenovic, N., & Rockström, J. (2019). Six transformations to achieve the sustainable development goals. Nature Sustainability, 2(9), 805-814.
Sarstedt, M., Hair Jr, J. F., Cheah, J.-H., Becker, J.-M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal (AMJ), 27(3), 197-211.
Senaviratna, N., & Cooray, T. (2019). Diagnosing multicollinearity of logistic regression model. Asian Journal of Probability and Statistics, 5(2), 1-9.
Shabbir, M. S., & Wisdom, O. (2020). The relationship between corporate social responsibility, environmental investments and financial performance: evidence from manufacturing companies. Environmental Science and Pollution Research, 27(32), 39946-39957.
Tackie, E. A., Chen, H., Ahakwa, I., Atingabili, S., & Ansah, K. A. (2022). Investigating the Relationship Between Local Business and Employment Creation for Poverty Reduction in Northern Ghana: The Moderating Role of Local Economic Development (LED) Policy. SAGE Open, 12(2), 1-18.
Talari, S. (2017). Effects of Modern Retail Trade on Traditional Retail Trade. Episteme: an online interdisciplinary, multidisciplinary & multi-cultural Journal Bharat College of Arts and Commerce, Badlapur, MMR, India, 5(4), 123-158.
Tang, X. (2010). Bulldozer or locomotive? The impact of Chinese enterprises on the local employment in Angola and the DRC. Journal of Asian and African Studies, 45(3), 350-368.
Torugsa, N. A., O’Donohue, W., & Hecker, R. (2013). Proactive CSR: An empirical analysis of the role of its economic, social and environmental dimensions on the association between capabilities and performance. Journal of Business Ethics, 115(2), 383-402.
Van Tulder, R. (2018). Business & the sustainable development goals: A framework for effective corporate involvement: Erasmus University Rotterdam.
van Zanten, J. A., & van Tulder, R. (2021). Analyzing companies' interactions with the Sustainable Development Goals through network analysis: Four corporate sustainability imperatives. Business Strategy and the Environment, 30(5), 2396-2420.
Wagner, T., Bicen, P., & Hall, Z. R. (2008). The dark side of retailing: towards a scale of corporate social irresponsibility. International Journal of Retail & Distribution Management.
Wang, C., Hu, R., & Zhang, T. C. (2020). Corporate social responsibility in international hotel chains and its effects on local employees: Scale development and empirical testing in China. International Journal of Hospitality Management, 90(9), 102598.
Wijaya, B. S. (2013). Dimensions of brand image: A conceptual review from the perspective of brand communication. European Journal of Business and Management, 5(31), 55-65.
Wu, W., Liang, Z., & Zhang, Q. (2020). Effects of corporate environmental responsibility strength and concern on innovation performance: The moderating role of firm visibility. Corporate Social Responsibility and Environmental Management, 27(3), 1487-1497.
Xu, Q., Lu, Y., Lin, H., & Li, B. (2021). Does corporate environmental responsibility (CER) affect corporate financial performance? Evidence from the global public construction firms. Journal of Cleaner Production, 315, 128131.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 NIDA Development Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
