What affects the corporate social responsibility practices of Chinese international contractors considering dynamic interactions? A hybrid structural equation modeling–fuzzy cognitive map approach

Abstract

Purpose

Corporate social responsibility (CSR) practices frequently result in increased costs for Chinese international contractors (CICs), where profitability is the primary objective; therefore, internal corporate drivers and external pressures play a crucial role in encouraging them to engage in sustainable CSR practices. This study systematically examines the dynamic impact of internal and external stakeholders on the CSR practices of CICs.

Design/methodology/approach

This study adopted a structural equation model (SEM) to identify and validate a correlation between stakeholders and CSR practices. Standardized causal coefficients estimated in SEM were used to construct a fuzzy cognitive map (FCM) model to illustrate the effect of stakeholders on CSR practices with linkage direction and weights. Predictive, diagnostic, and hybrid analyses were performed to dynamically model the variation in stakeholders on the evolution of CSR practices.

Findings

The empirical results demonstrate that (1) employee participation in CSR has the greatest impact on CSR practices, followed by CSR strategies, partner and customer expectations, and finally government regulations. (2) In the early stage of CSR fulfillment, CSR strategies have the greatest influence on CSR practices; in the later stage of CSR fulfillment, employee participation in CSR has the greatest influence on CSR practices. (3) In the long run, the most effective and economical integrated interventions are those that address employee participation in CSR, partner expectations and customer expectations, and intervention in CSR strategies is needed if the level of CSR practice needs to be improved in the short term.

Originality/value

This study contributes to the research on the influence mechanisms of CSR practices of CICs and systematically analyzes their dynamic influence on CSR practices of CICs from the perspective of stakeholders.

Citation

Dang, X., Wang, M., Deng, X., Mao, H. and He, P. (2024), "What affects the corporate social responsibility practices of Chinese international contractors considering dynamic interactions? A hybrid structural equation modeling–fuzzy cognitive map approach", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-06-2023-0615