THE MODERATING EFFECT OF COMPANY’S COUNTRY-OF-ORIGIN TOWARDS CSR IN DEVELOPING COUNTRIES AND EUROPEAN PURCHASE INTENTIONS

ADITYA AHMAD RAFI, Agastya, Drs., M.B.A.; Handini Audita, S.E., M.Sc.; I Wayan Nuka Lantara, M.Si., Ph.D.

2024 | Skripsi | MANAJEMEN

Sustainability-related concerns have been increasingly becoming a popular debate in society, especially in European countries. Meanwhile in developing countries, there are still a lot of sustainability and societal-related problems that the government is currently struggling with or unable to settle. Therefore, Enterprises can utilize Corporate Social Responsibility (CSR) as an act toward sustainability beyond their economic objective, while also helping to fill the existing societal gaps. Prior studies stated that there is a relationship between CSR and purchase intention. Hence, this paper investigates the effect of CSR initiatives in developing countries on European consumers’ purchase intention and also hypothesizes whether there is a moderating effect of country-of-origin (COO) on this relationship. The study, utilizing a total of 107 respondents, reveals the direct relationship between CSR in developing countries and the purchase intention of European consumers is positively supported. On the other hand, the moderating effect is not supported. The insight of this study can be beneficial for firms that aim to obtain European customer purchase intention by maximizing and taking advantage of their CSR efforts.

Sustainability-related concerns have been increasingly becoming a popular debate in society, especially in European countries. Meanwhile in developing countries, there are still a lot of sustainability and societal-related problems that the government is currently struggling with or unable to settle. Therefore, Enterprises can utilize Corporate Social Responsibility (CSR) as an act toward sustainability beyond their economic objective, while also helping to fill the existing societal gaps. Prior studies stated that there is a relationship between CSR and purchase intention. Hence, this paper investigates the effect of CSR initiatives in developing countries on European consumers’ purchase intention and also hypothesizes whether there is a moderating effect of country-of-origin (COO) on this relationship. The study, utilizing a total of 107 respondents, reveals the direct relationship between CSR in developing countries and the purchase intention of European consumers is positively supported. On the other hand, the moderating effect is not supported. The insight of this study can be beneficial for firms that aim to obtain European customer purchase intention by maximizing and taking advantage of their CSR efforts.

Kata Kunci : CSR in Developing countries, Moderating Effect of Country-of-Origin, European Consumers’ Purchase Intention