The Effect of Corporate Social Responsibility on Competitive advantage of Brewery Firms in Ethiopia.

Fentaye Hailu


Every business enterprise operates within a given society and the relationships that a business has with the society have been discussed by several scholars in the context of corporate social responsibility. The basic idea of CSR is that business and society are interwoven rather than distinct entities; therefore, society has certain expectations for appropriate business behavior and outcomes. The main purpose of the study is to determine the effect of CSR initiatives on competitive advantage of brewery firms. The study employed explanatory research design and convenience sampling technique was applied to select 375 samples; however, statistical data was collected only from 341. Primary data were collected through survey questionnaire. The data were analyzed through descriptive and inferential statistics by using SPSS version 20. The result of the study has shown that there is a relationship between social responsibility dimensions and competitive advantage of firms. The results reveal that both CSR aspect of employees and environment have significant and positive effect on the competitive advantage of firms. However; CSR towards customers and local community have insignificant effect on the companies’ competitive advantage. The result also depicted that the aggregate result of CSR has significant and positive effect on competitive advantage of firms. It is recommended that brewery firms that want to compete effectively in an industry should be able to use their social initiatives strategically to achieve competitive advantage at least in the long- run.

Key words: Brewery, competitive advantage, CSR

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ISSN : 2251-1571