The Moderating Effect of Corporate Social Responsibility Disclosures between Family Ownership and Firm Competitiveness
DOI:
https://doi.org/10.53840/jmm.v15i2.266Keywords:
Firm Competitiveness, Family Ownership, CSR DisclosureAbstract
Ownership structure remains an important determinant of firm competitiveness, with family ownership occupying a particularly prominent role in emerging markets. Given the intricate interdependence between the business and the family, family firms exhibit unique governance features that may influence strategic outcomes. This study investigates the relationship between family ownership and firm competitiveness. It also examines the moderating role of corporate social responsibility (CSR) disclosure on this relationship. The empirical analysis is conducted using a sample of 254 publicly listed Malaysian firms over the period from 2020 to 2022. The results indicate that family ownership does not exert a significant impact on firm competitiveness. Nevertheless, CSR disclosure demonstrates a significant moderating effect, reinforcing the relationship between family ownership and firm competitiveness. These findings underscore the strategic importance of CSR disclosure in enhancing competitive positioning, particularly for family-owned firms. This study contributes to the literature by integrating agency theory, entrenchment and alignment effect theory and legitimacy theory to provide a comprehensive understanding of ownership structure, CSR practices and firm competitiveness. From a policy standpoint, the results highlight the need for enhanced CSR disclosure frameworks to promote competitiveness across the corporate sector. For practitioners and managers, the findings offer actionable insights on leveraging CSR initiatives to build stakeholder trust and strengthen legitimacy towards firm competitiveness.
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