The Effect of Corporate Social Responsibility on Competitive Advantage: Afield Study at Jordanian Airlines

Abstract

The study aimed at investigating the impact of CSR on competitive advantages: A field study on the Jordanian Airlines. The study is considered as descriptive and cause/effect study.  Data were collected from 125 out of about 300 managers and employees in current operating Airlines in Jordan (Royal Jordanian, Royal Wings, Jordan Aviation, and Solitaire). After checking the questionnaires, only 121 were accepted for further analysis. After confirming the normality, validity and reliability of the study tool, descriptive statistical analysis used to describe the variables, the correlation between independent and dependent variables were conducted, and multiple regressions used to test the hypothesis. The study results show that the researched companies implementation of CSR variables are medium, however results show poor implementation of environmental responsibility. The results also show that the competitive advantages dimensions have medium implementation, however cost and innovation show poor implementation. Moreover, results show that the relationships among corporate social responsibility sub-variables are strong to very strong, and the relationships among competitive advantages dimensions are also strong to very strong, and the relationship between corporate social responsibility and competitive advantage is very strong. Finally, results show that Corporate Social Responsibility elements (social, economic, environmental, national and international norms) affect organizations’ Competitive Advantages, at (α≤0.05), where the environmental responsibility rated the highest effect on competitive advantages of Jordanian Airlines, followed by economical responsibility, then national and international norms, and finally, social responsibility has lowest effect on competitive advantages of Jordanian Airlines,