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The Mediating Role of CSR on the Market Orientation and Strategic Performance Relationship: A Study of the Public Housing Companies in Sweden
University of Gävle, Faculty of Education and Business Studies, Department of Business and Economic Studies, Business administration. (Hållbara affärsrelationer (HAR))ORCID iD: 0000-0003-3258-0671
University of Gävle, Faculty of Education and Business Studies, Department of Business and Economic Studies, Business administration. (Hållbara affärsrelationer (HAR))ORCID iD: 0000-0003-0084-007x
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 6, article id 1537Article in journal (Refereed) Published
Abstract [en]

This article serves to analyze the impact of corporate social responsibility (CSR) on (1) the market orientation and strategic performance relationship related to public housing companies’ choice of construction strategies and (2) the companies’ responsiveness to gathered and disseminated customer information. The quantitative method is applied, with data analyzed by the PROCESS analysis. The result is based on a survey sent to 289 public housing companies in Sweden. Previous research suggests a positive relationship between market orientation and strategic performance, which was not confirmed by this study. When testing the mediation effects of CSR on the market orientation and construction strategies relationship, these hypotheses were confirmed related to social and environmental dimensions—not economic ones. This study was limited to public housing companies, a sector that radically differs from the situation of companies in the open market. The study increases public housing companies’ knowledge of CSR effects on the market orientation and strategic performance relationship. This result contributes useful information for companies implementing CSR in their activities. The study highlights the importance of integrating CSR into an organization’s market orientation work and shows how CSR improves the companies’ ability to meet customers’ strategic needs.

Place, publisher, year, edition, pages
MDPI, 2019. Vol. 11, no 6, article id 1537
Keywords [en]
market orientation, mediating, CSR, strategic performance, public housing companies, construction strategies
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hig:diva-27975DOI: 10.3390/su11061537OAI: oai:DiVA.org:hig-27975DiVA, id: diva2:1251055
Available from: 2018-09-26 Created: 2018-09-26 Last updated: 2019-10-11Bibliographically approved
In thesis
1. The role of market orientation in public housing companies: A study of MO’s effect on construction strategies
Open this publication in new window or tab >>The role of market orientation in public housing companies: A study of MO’s effect on construction strategies
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The development of public housing companies in Sweden is strongly influenced by legal, economic, and demographic changes. The companies long tradition of taking responsibility for customer welfare in living have recently been criticized for excessive dominance over price setting, which is claimed to give them competitive advantages in the housing market. New legislation in 2011 requires financial return on investment, implying increased competition with radical changes for the companies. Because of the law, they find themselves transitioning from the role of being responsible for living conditions in Sweden to having to work in a businesslike manner with increased competition.The purpose of this dissertation is to analyze how the public housing companies’ deal with market orientation constructs and what their impact is on construction strategy choices. Theoretically, the market orientation concept is seen as a tool for companies to create superior value for the customers and influence strategic performance, which is a relationship tested and analyzed in this dissertation.The research was conducted through data collection stages using qualitative and quantitative methods. In the first stage, a qualitative pilot study was conducted with interviews of 15 managers in 11 public housing companies in central Sweden. In the second stage, two quantitative comparative studies of public and private housing companies in declining markets in central Sweden were conducted, collecting data from 23 (22 survey respondents) public and 37 private housing companies (16 respondents). In the third and final stage, two quantitative studies were conducted, collecting data from all 289 public housing companies (165 respondents) in Sweden.Results of the five studies show, firstly, that economic condition in the municipality have a major impact on the housing companies’ construction strategies, causing them to act innovatively in order to create superior customer value. Secondly, market orientation efforts contribute to competitive advantages in growing markets, while weak economic conditions limit the companies’ construction strategy choices in declining markets. After analyzing the link between market orientation constructs and construction strategy in declining markets, results showed that the public housing companies demonstrate higher responsiveness to customer demands compared to the private sector, but these have no effects on construction strategy. Thirdly, the analysis of moderating (external) and mediating (corporate social responsibility) effects on the market orientation and construction strategy relationship confirms that economic conditions in society influence construction strategy planning and decisions. The results of the mediating effects of CSR indicate that environmental and social issues have a positive influence on the market orientation and construction strategy relationship.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. p. 72
Series
TRITA-ABE-DLT ; 1833
Keywords
Public housing companies, market orientation, construction strategies, innovation, moderating and mediating effects, strategic performance
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:hig:diva-27973 (URN)978-91-7729-930-1 (ISBN)
Public defence
2018-10-15, Kollegiesalen, KTH, Stockholm, 13:00 (Swedish)
Opponent
Supervisors
Available from: 2018-09-26 Created: 2018-09-26 Last updated: 2018-09-26Bibliographically approved

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Sundström, AgnetaAhmadi, Zahra

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