Market orientation, corporate social responsibility, and firm performance the moderation role of relationship marketing orientation

Motivation

Being amemberofmanyprestigious andfamous organizationsin theworldaswella s agreementssuchasWTOorASEANEconomicsCommunity-

AEC,togetherwitht h e continuingmovementtoamarket- orientedeconomyhascausedVietnamesefirmsc h a n g e theirtraditionalwaysofdoingbusi ness.Inthewholepicture,Vietnamesefirmsh a v e b e e n r e q u i r e d t o d i f f e r e n t i a t e t h e i r o f f e r i n g s i n o r d e r t o s u c c e s s f u l l y competenotonlywithdom esticplayers,butalsowithinternationalcompetitorsinr i g h t theirhome market(Nguyen&

Nguyen,2011).Tosurviveanddevelopinsuchacompetitivebusinessenvironment,V ietnamesefirmshavenochoicebuthavetoe n h an c e t h e i r o p e r a t i o n s a n d g o v e r n a n c e Toa c h i e v e thes u s t a i n a b l e c o m p e t i t i v e positions,Vietnamesefirmssho uldh a v e a p p r o p r i a t e r e s o u r c e s a n d c a p a b i l i t i e s C o n s e q u e n t l y , identifyingandnurturingresources,governance,businessrelationsasw e l l ascapabilities,itis necessarycreatingcompetitiveadvantagesforVietnamesefirmsintheirbusinessenviro nment(Nguyen&Nguyen,2011;Long,2013)

In Vietnam's transitional economy, businesses face constant changes in knowledge, resource limitations, intense competition, and unpredictable risks Consequently, the roles of key personnel, including employees, CEOs, and senior managers, become crucial as their extensive experience and market knowledge are essential for enhancing or maintaining firm performance (Wiklund, 1999) Additionally, these individuals play a significant role in enriching business relationships (Nguyen & Viet, 2012) With a collectivist culture, Vietnam places a high value on relational orientation, making customer congruence particularly important (Luu, 2017) Research by Lumpkin and Dess (1996) indicates that both internal and external factors consistently influence firm performance.

Market orientation is defined as an organizational culture that effectively enhances firm performance by creating superior value for buyers (Narver & Slater, 1990) To achieve sustainable performance, managers must possess in-depth market knowledge, enabling them to respond effectively to market information Market orientation guides the processing of market information and is integral to a firm's strategies (Kohli & Jaworski, 1993; Sin et al., 2005) Market-oriented firms focus on understanding customer needs and competitor capabilities, continuously collecting information to create superior customer value This approach involves specific processes that deliver exceptional value to customers and help firms gain a sustainable competitive advantage Research has shown that market orientation positively impacts firm performance.

& Sinkula,1999;Long,2015).Similarly,Narver&Slater(1990) determinedt h a t marketorientationwill create necessarybehaviorstobuild upmaximumvaluestocustomers.

Relationshipsisseenasacentralpointinbusinessactivities.Eventually,inmodernb u s i n e s s , i t ish e i g h t e n e d f i m ’ s c o m p e t i t i o n tot h e g l o b a l m a r k e t I n e m e r g i n g markets,mostofsocieties havechangedfromtheindustryorientedt otheserviceo r i e n t e d f o r m s T h e r e f o r e , theb u s i n e s s r e l a t i o n s h i p i m p o r t a n c e h a s b e e n morecon cern ed (Gummesson,1999;JanslọttAxelss on&Blick,2016).Insuchbusinessc o n t e x t ,Dwyeretal.

Building relationships with customers provides firms with valuable insights into customer demands, which can enhance their services and products Levitt (1986) emphasizes that relationship management is crucial for preserving and enhancing the intangible asset known as 'goodwill,' despite the challenges it presents compared to managing tangible assets Consequently, strong relationships foster open dialogue, leading to increased interaction, trust, and ultimately, better business outcomes (Janslött, Axelsson & Blick, 2016).

Especially,ins e r v i c e s industry,thedistinctioninbusinessrelationshipsisexisted.Servicesa reintangibleinn a t u r e Theya r e p r o c e s s e s c o n s i s t i n g o f a c t i v i t i e s w h i c h i n t u r n a r e b u i l t u p o n interactionbetweenfirm anditscustomers(JanslọttAxelsson&Blick,2016;Sineta l , 2005).

Since1980’stheconventionalviewofmarketingturnsintorelationalmarketingast h enatureandastrategicapproachtoservicesindustry(Kilkenny&Fuller- Love,2 0 1 4 ; Cohen,2014).Afterthat,therelationshipmarketingconceptbecomesthe hott o p i c o f themarketingd i s c i p l i n e d u r i n g t h e 1 9 9 0 s (Mửller

&Halinen,2 0 0 0 ) Grửnroos(1996)defines“Relationshipmarketingistoidentifya ndestablish,maintain,a n d e n h a n c e r e l a t i o n s h i p s w i t h c u s t o m e r s a n d o t h e r s t a k e h o l d e r s , a t a profit,so that the objectivesofall parties involvedare met and that thisis donebyamutualexchangeandfulfillmentofpromises”.Theconceptofrelationshipmarketingh a s beencontinuouslyconcernedasconsiderableresearchattentionsbymarketings cholarsoverrecentyears(Nguyen&Viet,2012).Thisrelationshipusuallyhappensb e t w e e n t heorganizationanditsstakeholders.Besides,thisconceptisconsistentlye n c o u r a g e d towardseffectivebusinesstrainingprogramsinovertheworld(Marium

&Younas,2017).Ingeneralmarketingcontext,relationshipmarketingisentir elyrelationalorbuilding long- termrelationshipswithcustomers(Kilkenny&Fuller-

Love,2014).Inmarketingarea,Sheth&Parvatlyar(1995)indicatethatrelationshipmarketin gleadstogreatermarketingproductivitybymakingitmoreeffectiveand efficient.Thisinturnwouldleadtoagreaterwillingnessandabilityamongmarketerstoengageinan dmaintainlong-termrelationshipswithfirm’sstakeholders.

Thef u n d a m e n t a l o f relationshipmarketingi s t o d e v e l o p a n d maintaina s t r o n g r e l a t i o n s h i p b e t w e e n f i r m andi t s m i c r o e n v i r o n m e n t s C u s t o m e r s , a s a p r a g m a t i c eviden ce, h a v e b e e n e s p e c i a l l y p r o v i d e d bya b u n d a n t r e s e a r c h e s ( B r u h n , 2 0 1 5 ;Marium& Y o u n a s , 2 0 1 7).R e l a t i o n s h i p marketingh a s b e e n c o n c e p t u a l i z e d fromb o t h r e l a t i o n s h i p e v a l u a t i o n a s w e l l a s o r g a n i z a t i o n a l c u l t u r e p e r s p e c t i v e ( B e r r y , 1995;DeRuyter& Wetzels,2000;Yauetal.,2000;Sinetal.,2005,Nguyen&Viet,2012).Organizationalcultu reperspectiveusuallyfocusesonorganizationalvaluesw h e n puttingthebuyer- sellerrelationshipintocenterofthefirmstrategyoroperationalthinking(Sinetal.,20 05)

Relationship marketing orientation (RMO) is recognized as a vital business resource that enhances customer identification with an organization's image (Gohary & Hamzelu, 2016) It involves a company's commitment to fostering long-term relationships with customers (Tse et al., 2004) and reflects the firm's business philosophy focused on trust, empathy, bonding, and reciprocity (Sin et al., 2005; Tse et al., 2004) According to Berry (1983), organizations with a strong RMO actively build and enhance customer relationships, leading to stronger connections The pursuit of RMO is associated with improved performance outcomes, including sales growth, market share, profits, return on investment, and customer retention (Crosby et al., 1990; Morgan & Hunt, 1994; Sin et al., 2005a; Tse et al., 2004) However, in transitional economies like Vietnam, the understanding and significance of the RMO concept remain unclear and warrant further exploration (Nguyen & Viet, 2012; Luu, 2017).

Inrecentyears,corporatesocialresponsibility(CSR)concepthasbeenstillremainedmuchconcer nsnotonlytoacademicscholars,butalsotowardsbusinesspractitioners.C S R isdefinedinabroade rviewascorporatebehaviorsandcommitmentswhichaimto affecting positivelystakeholderobligations.Itgoesbeyondtheeconomicinterest( T u r k e r , 2 0 0 9 ;

In the context of Vietnam, the implementation of Corporate Social Responsibility (CSR) faces significant challenges, as local enterprises often view CSR merely as charity activities Many small and medium-sized enterprises (SMEs) lack the resources and capacity to effectively engage in CSR initiatives However, in today's business environment, CSR has become a crucial aspect of corporate strategy, reflecting a broader responsibility toward society The integration of CSR into business practices is essential for sustainable development and should align with marketing strategies Companies must focus on their surrounding environment to enhance their competitive advantage and ensure long-term sustainability.

TheimportanceofCSRconceptisincreasingandcreatinggreatercorporater e sp o n si b i l i t i e s t o t h e w h o l e F i r m s p a r t i c i p a t e i n C S R p r a c t i c e s b e c a u s e o f t h e i r shareholdervalueaddedrequirements.Moreover,CSRactivitiesofthef i r m alsob u i l d thecredibilitytotheircustomers(Smith,2003).Therefore,inbusinessresearch,therehavemanyma nagementliteraturesshowingthatCSRhasapositiverelationshipwith firmp e r f o r m a n c e ( L u o

& B h a t t a c h a r y a , 2 0 0 6 ; Q u , 2 0 0 9 ; L o n g , 2 0 1 5 ) Asmentionedabove,theC SRactivitiesoflocalfirmsarelimitedbothinunderstandinga n d p e r f o r m a n c e I n t r a n s i t i o n a l e c o n o m i e s , l i k e V i e t n a m , b u s i n e s s a c t i v i t i e s a r e alwaysaffected bythecontinuouschangeofsocialtrends,knowledge,thelimitofr e s o u r c e s , un predictablerisks,thetoughofcompetition,etc.Therefore,theroleofo t h er partiesr elatingtofirmoperationsbothinsideandoutsidebecomesevenmoreimportant.Hence,th estudyhopesto supportVietnamesefirmsmoreunderstanding abouttheimportanceofCSRpracticesaswellastheroleofmarketingrelationshiptostak eholderstoenhancetheircompetitiveadvantages.

Hill&Jones(1992)considerstakeholdertheoryasoneofthebackgroundtheoriesu s i n g toexplaintherelationshipbetweenowners,managersandvariousstakeholders.I n businessethicfi eld,stakeholdertheoryisseenasoneofthemostimportanttheory.Because,t h i s c o n c e p t h a s b e e n e v o l v e d a n d g a i n e d p r o m i n e n c e a s a methodo f integratingbusines sethic.Inturn,itconsolidatesthefirmoperationpurposesandstrategicobjective s(DelBaldo,2012).Harjoto&Jo(2011)statethatfirmsusetheirg o v e r n a n c e mechanisms alongwithCSRengagementinordertoreducetheconflictsofinterestbetweenmanagersan dnon- investingstakeholders.Inaddition,thelessc o n f l i c t thelessreducedagencyproble msamongvariousstakeholdersarepresented.

Veryf e w r e s e a r c h h a s b e e n i n v e s t i g a t e d t h e r e l a t i o n s h i p a m o n g t h e c o n c e p t o f M ar k et o r i e n t a t i o n ( M O ) , C o r p o r a t e S o c i a l R e s p o n s i b i l i t y ( C S R ) a n d firmperformance.However,itseemsthattherehasafewresea rchconductingtoexaminet h i s relationshipthatrelatingtotheRMOconcept.Especially,ther e hashadnosuchastudyconductedinVietnammarketthatisseenasanemergingmarket.There fore,i t isnecessarytoconductasystematicstudyonVietnamesefirmsinVietnammarket.T h i s studydeploysi n c o n t e x t o f V i e t n a m marketingc o m m u n i c a t i o n s i n d u s t r y , a typicalserviceindustry,inordertoexploreandexaminehowtherelationshipamongconcepts MO,CSRandfirmperformancewiththemoderationroleofRMO.Itisb e c a u s e of,

- RMOinthisstudyplaysasmoderationroleamongtherelationships.RMOshouldb e mored o m i n a n t i n t h e d e t e r m i n a t i o n o f firms’b u s i n e s s p e r f o r m a n c e i n t h e servicese ctora n d isu s u a l l y c o n d u c te d i n s e r v i c e s i n d u s t r y ( S i n e t a l , 2 0 0 5 ; G o r d o n etal,2008;Kwan&Carlson,2017;Marium&Younas,2017)

- Next,i n m a r k e t i n g a r e a ,S h e t h & P a r v a t l y a r ( 1 9 9 5 ) i n d i c a t e t h a tr e l a t i o n s h i p marketingleadstogreatermarketingproductivitybymakingitmoreeffectiveand efficient.Thisinturnleadstoagreaterwillingnessandabilityamongmarketerstoenga gein,andmaintainlong-termrelationshipswithfirm’sstakeholders.

- MostofVietnamesefirmsinVietnammarketingcommunicationsindustrya reSMEs(Long,2013).Ingeneral,localfirmshaveexistedthelackofresourcesorcapa citiesforimplementing CSR qualifications(Del Ba ld o, 2 01 2) While,th eimplementation ofCSRinrealbusinessisseenasakeystrategyfororganizationsusta inabledevelopment.

Researchobjectives

TherehavesomestudiesofscholarsabouttheCSR,MOandtheRMOconceptsino v e r t heworldandinVietnamcontextaswell.HoweverinVietnam,astheauthor’sunderstandin g,therehasnostudyinvestigatingtherelationship amongCSR, MOconceptsa n d firmp e r f o r m a n c e i n c o r p o r a t i n g w i t h themoderationr o l e o f RMO.Beside s,therealso has nosuchstudybeingdeployedtheserelationshipsinVietnammarketingcommunications firms.Therehavesomereasonssuchas,

(2)TherehavemanystudiesaboutRMOconceptbutafewofthemislinkedtothe CSRandMOconceptstogetherwithfirmperformance;and(3)Thee x a m i n a t i o n abouttherelationshipoftheseconceptsincontextofVietnammarketingco m mu n i c at i o n s fir mhasnotmuchbeenconcernedbylocalscholars.

A previous study by Long (2015) in the Vietnamese context indicates that there are positive impacts of the relationships among market orientation (MO), customer satisfaction (CSR), and firm performance This research focused on a diverse range of sectors within Vietnamese firms located in the Mekong Delta Additionally, Javali et al (2006) suggest that the relationship marketing orientation (RMO) concept is more applicable to service-oriented organizations than to product-oriented ones Service providers typically maintain direct contact with their customers, engaging in a dyadic exchange process where employees interact more directly with customers compared to those in product-oriented firms (Brown & Swartz, 1989; Sin et al., 2002; Yoganathan et al., 2015) Based on this analysis, the current study aims to explore these dynamics further.

Researchquestions

ThestudytriestoinvestigatetherelationshipamongconceptssuchCSR,MOandf i r m performancewiththemoderationroleofRMO.ThestudywillbeconductedinViet n am marketingcommunicationsfirmswhichmostlyo p e r a t e orhavetheirbr an ches in HoChiMinhCity,Vietnam.Basingonresearchobjectives,therehavet w o mainresear chquestionsasfollowing,

1) InVietnammarketingc o m m u n i c a t i o ns industry,howdoes therelatio nshipa m o n g conceptsMO,CSR,andfirmperformance?

Researchscope

This study aims to enhance Vietnamese firms' understanding of the significance of research concepts for improving their performance and competitive advantages, particularly in Corporate Social Responsibility (CSR) practices Despite the potential benefits, local enterprises still face challenges in both understanding and implementing effective CSR strategies The main survey is conducted in Ho Chi Minh City, one of the largest cities in southern Vietnam, which contributes to one-third of the national GDP, 60% of the country's Foreign Direct Investment (FDI), and houses 12% of the population, making it a key area for research.

60%o f localdomesticSMEs.Especially,H o C h i M i n h Cityi s t h e p l a c e w h e r e c o n c e n t r a t e s m o r e t h a n 7 0 % o f o p e r a t i n g c o m p a n i e s i n V i e t n a m marketingco m mu nication s industry(Long,2013)

- Researchrespondents: se ni or managersan ddirectors; business o wne rs or shareholdersofVietnammarketingcommunicationsfirms.

- Researchscope:Vietnammarketingcommunicationsfirmswith100%ownedbyVietna mesecitizensthathaveheadquartersorbranchesmainlyoperatinginHoChiMin hCity.

Researchmethods

Thes t u d y i s c o n d u c t e d intot w o p h a s e s : t h e pilotstudya n d themainsur veyincorporatingmainlywiththequantitativeas,

+Inthefirstphase,basingontheoryofthefirm,thestakeholdertheory,theRMOtheo ry,theCSRtheory,thisstudyusesqualitativemethodstoexploreandfindoutmainfactorsthatlo calfirmsapplyintheiroperationsandbusinessactivities.Thismethodisconductedthroughf ocusgroupsandin- depthinterviewswith12seniorexecutives,CEOs,ownerscomingfromVietnamesefir minmarketingc o m m u n i c a t i o n s industry.Thisstageaimstoreviewwhe therthe researchquest ionsareappropriateornotbeforeexecutingthemains urvey.Thestudyisal s o c o n d u c t e d w i t h t w o e x p e r t s ( A p p e n d i x 3 ) b a s i n g o n a v a i l a b l e t h e o r e t i c a l frameworkinordertogetopinionsforcomparisonwit hfirmactualactivities.

+Thesecondphase,thequantitativeisundertakentoexaminethescaleoffactorsb e l o n g i n g toCSR,MOandRMOconceptsthathavebeendiscoveredandfindoutinthefirs tphase.Sincethen,thestudyalsomeasureshowtheimpactofthesef a c t o r s t ofirmperformanceis.Inthequantitativepilotstep,facetofaceinterviewsa r e conductedwithseni orexecutivesandcompanyownerstorefinethemeasures.T h e n , themainsurveyisimplem entedbyusinginbothfacetofaceinterviewsandd i r e c t mailingw i t h b r o a d e r s c o p e t o s e n i o r managersa n d d i r e c t o r s ; b u s i n e s s owners or shareholders coming from Vietnamese firm in marketingco m m u n i c a ti o n s industry,inHoChiMinhCity,Vietnam.

Cronbacha l p h a r e l i a b i l i t y a n d E x p l o r a t o r y FactorA n a l y s i s ( E F A ) a r e u s e d top r e l i m i n a r i l y assessthescales.ConfirmatoryFactorAn alysis(CFA)isusedtotestt h e m e a s u r e m e n t modelsand the structural equationmodeling(SEM)isused to testt h e theoreticalmodelandhypotheses.DataanalysisisprocessedbysoftwareSPSS20.0,AMOS.

Researchcontributions

Since the 1990s, Vietnam has transitioned from a socialism-oriented economy to a predominantly service-oriented economy, experiencing one of the fastest GDP growth rates in ASEAN, particularly in the services sector This context makes Vietnam an ideal setting to test the validity of the Relationship Marketing Orientation (RMO) model However, the role of RMO in transitional economies like Vietnam remains unclear in existing studies Understanding the applicability of RMO in Vietnam will significantly enhance the effectiveness of relationship marketing strategies within the country's service sector Additionally, this study will explore the relationships among Corporate Social Responsibility (CSR), Marketing Orientation (MO), and firm performance, while examining the moderating role of RMO, based on a literature review of stakeholder theory, agency theory, CSR theory, relationship marketing theory, and relationship marketing orientation theory.

1) Ther esea rc h modelo f Q u (2 00 9) a n d L o n g ( 2 0 1 5 ) h a s bee nc o n d u c te d inChinaandVietnamcontextforfirmscomingfromdifferentindustries.This s t u d y examinesandinvestigateshowtherelationshipamongconceptsCSR,M O andfirmperformanceoffirmsintypicalindustry,suchVietnammar ketingcommunicationsis.ThishopestoenrichtheCSRandMOtheorya s well.

(2004)withfourteen(14)itemsinsteadofNguyen&Barrett(2006),andLong(2015) withsix(6)itemsinV i e t n a m m a r k e t T h e s t u d y e x p l o r e s w h e t h e r itc h a n g e s t h e r e l a t i o n s h i p amongconstructsintheresearchmodel.

4) ContributetotheCSRtheoryandRMOtheorythatarequitenewandtheiri m p l e m e n t a t i o n s h a v e s t i l l limitedi n V i e t n a m c o n t e x t , e s p e c i a l l y t owardsVietnameseservicefirms Therefore,thestudysuggestssomedir ectionsino r d e r toassistsomelimitationsofVietnammarketingcommunicationsf irms.T h e n , theyhavemoreunderstandingtheimportanceofCSR,MOaswel lasRMOconcepttoimprovetheircompetitiveadvantages.

Structureofthestudy

O,RMOconceptsinVietnamesefirminmarketingcommunicationsindustry.Inthi spart,thestudyalsoreviewthetheoryofthefirm,thestakeholdertheory,theRMOt heoryaswellasCSRtheorythathaverelatedtoVietnamesefirmsc o n t e x t Basingontheor yreviewsandconductinganinterviewwiththecase- studysometypicalVietnamesefirmsinmarketingcommunicationsindustry,somei deasw i l l alsoberaisedforthestudy.Inaddition,Chapter1introducessomemai nkeyp ar t s forthestudysuchasResearchobjectives,Researchquestions,Researchscope,R e s e a r c h m e t h o d s , R e s e a r c h c o n t r i b u t i o n s t h a t r e l a t e t o r e s e a r c h c o n c e p t s T h e r e m a i n in g oftheresearchisorganizedasfollows,

Chapter 2 presents the foundational theories and literature relevant to the study, including the theory of the firm, stakeholder theory, RMO theory, MO theory, and CSR theory This chapter delves into the research concepts and their interrelations, drawing on previous studies Additionally, it summarizes related empirical research, comparing various studies based on authors, research names, countries of experimentation, study purposes, hypotheses, methods, results, and future research directions The chapter concludes with general observations about existing studies, highlighting their limitations and the need for further research in different contexts It also proposes directions for the current study, including a proposed research model and corresponding hypotheses.

Chapter 3 outlines the research design methods and measurement techniques, including preliminary assessments, main surveys, sampling processes, and the research methodology It details the measurement scales linked to each research concept derived from the research model Additionally, the study describes the application of estimation regression models, providing a thorough explanation of both qualitative and quantitative approaches These methods facilitate empirical estimation, which is further elaborated in Chapter 4, where the research data collection process and classification criteria are presented A flowchart illustrates the research process, and all measurement scales are described in detail.

Chapter 4: Dataanalysisandresearchresults.Inthischapter,samplingof themainsu rv ey isdescribedclearly fortestingresearchfactors.Qualitativeisundertakenbyu s i n g facetofacetopreliminarilya ssessthemeasures.Cronbachalphareliabilityandex p l o r a to r y f a c t o r a n a l y s i s ( E F A ) i s u s e d int h i s s t e p T h e mains u r v e y i s a l s o u n d e r t a k e n byusingfacetofa ceinterviewwithquestionnairesanddirectmailingwith targetrespondentsthr oughconveniencesampling.Quantitativeismainlyu n d e r t a k e n inthisstage.Thepur poseofthismainsurveyistovalidatethemeasuresa n d totestthestructuremodel.Toassessth emeasures,confirmatoryfactoranalysis

(CFA)isutilized,andtotestthetheoreticalmodelandhypotheses,structureequationmodeling(SE M)isemployed.Respondentsareseniormanagers,directors,businesso w n e r s , CEOs,s hareholders,middlemanagersofVietnammarketingc o m m u n i c a t i o n s firmsth athaveheadquartersorbranchesmainlyoperatinginHoChiMinhCity.

Chapter5:D i s c u s s i o n , I m p l i c a t i o n s a n d c o n c l u s i o n I n t h i s c h a p t e r , t h e studysummarizesresearch findingsandpointsoutrelevant suggestionsforrelatedpartiesi n businessenvironment.Besides,allresearchdiscussionsan dimplicationsmentiona b o u t t h e moderationr o l e o f R M O c o n c e p t t h a t r e l a t i n g t o C S R p r a c t i c e s , MOco n c ep t andhowtheyaffecttofirmperformance.T heresultsofthisstudyofferanumbero f i m p l i c a t i o n s fort h e t h e o r y a n d p r a c t i c e s t o V i e t n a m marketingc o m m u n i c a t i o n s firmsine n h a n c i n g t h e i r o p e r a t i o n s a s w e l l a s l e v e r a g i n g t h e i r competitivea d v a n t a g e s A t t h e e n d o f t h i s c h a p t e r , t h e studya l s o s h o w s s o m e limitationsofthestudyandf iguresoutanumberofdirectionsforfutureresearch.

Conclusion

Thischapterpresentstheintroductionabout theoverviewabouttheimplementationo f CSR,MO,RMOconceptsinVietnammarke tingcommunicationsindustry.Thec h a p t e r p r o v i d e s the summaryandkeyinformationaboutthetheoryofthefirm,thestakeholdertheory,theRMO,MOtheoryaswellasCSRtheory.Inaddition,Chapter1 alsointroducesoverviewmainkeyparts forthestudysuchasResearchobjectives,R e s e a r c h questions,Researchscope,Researchm ethods,Researchcontributionsthatr e l a t e toresearchconcepts.

Overviewtheoryofthefirm

Theoryofthefirmisused forexplainingthedynamictypesoffirmfromthe past tot h e present.Therehavemanyresearchimplicationsabouttheoryofthefirmthathaveb e e n stimu latedbythepioneeringworkofCoase(1937),Penrose(1959).Afterthat,i t wasextendedby Alchian(1965),Alchian&Demsetz(1972)andotherscholars.Th e firmisviewedasas etofcontractsamongfactorsofproduction,witheachfactormotivatedbyitsself- interest(Alchian& Demsetz,1972;

According to Jensen and Meckling (1976), a firm operates as a "black box" that aims to maximize profits, operational accuracy, and the present value of shares while adhering to relevant marginal conditions Within this framework, the firm is perceived as a team where members act out of self-interest, yet they recognize that their success is intertwined with the team's survival in a competitive environment This dynamic necessitates the development of effective monitoring mechanisms to evaluate both team and individual performance (Fama, 1980) Additionally, the allocation of resources within firms may vary due to differing levels of on-the-job consumption.

Fama (1980) emphasizes that capital ownership should not be conflated with ownership of the firm, as each component of the firm is owned by different parties The firm operates as a set of contracts that dictate how inputs are combined to generate outputs, while also determining how the resulting revenues are distributed among these inputs Alchian and Demsetz (1972) describe the classical firm as a contractual structure characterized by joint input production, multiple input owners, a common party across all contracts, the ability to negotiate independently, the holder of the residual claim, and the right to sell this central contractual status Fama (1980) suggests that to grasp the concept of the modern corporation, it is essential to distinguish the manager from the agent roles outlined by Alchian and Demsetz, particularly concerning the risk bearer and residual claim aspects.

Demsetz (1983) emphasizes the separation of ownership and control in modern firm operations, a concept that remains pivotal in current economic theories of the firm This separation has led to challenges in understanding firm dynamics, as highlighted by Berle & Means (1932) The agency theory, particularly discussed by Jensen & Meckling (1976), defines an agency relationship as a contract where one or more individuals engage another to perform services on their behalf, which involves delegating decision-making authority to agents The policies and decisions a firm makes regarding its stakeholders can significantly impact its reputation Conversely, firms that cultivate relationships based on mutual trust and cooperation with stakeholders can achieve a competitive advantage (Jones, 1995).

Tob e s u s t a i n a b l e i n g r o w t h , i n d i v i d u a l p a r t i c i p a n t s int h e f i r m , p a r t i c u l a r l y i t s managers,havetofaceboththedisciplineandopportunitiesprovidedbym arketsfort h e i r s e r v i c e s i n b o t h i n s i d e a n d o u t s i d e o f t h e f i r m ( F a m a, 1 9 8 0 ) C o a s e ( 1 9 3 7 ) characterizes thefirmboundsasrangeofexchangesovertheallocatedr esourcewasa c c o m p l i s h e d i n s t e a d bya u t h o r i t y a n d d i r e c t i o n M o r e o v e r , J e n s e n & M e c k l i n g ( 1 9 7 6 ) statethatcontractualrelationsaretheessenceoft hefirm.Theyarenotonlyw i t h e m p l o y e e s b u t w i t h s u p p l i e r s , c u s t o m e r s , c r e d i t o r s , e t c J e n s e n & M e c k l i n g (1 9 7 6 ) addthatthefirmissimplyoneformoflegal fictionwhichservesasanexusforcontractingrelationships.Theserelationshipsserveforcomp lexprocessinwhich existsconflictingobjectivesamonggroupsorindividuals.Bythissense,behavioroft h e firmi ssimilarwithmarketbehavior.

The capability of a firm encompasses all actions through which resources are utilized, allowing firms to achieve their diverse objectives Each firm represents a unique combination of resources and capabilities, developed over time through interactions with stakeholders (Branco & Rodrigues, 2006) Capabilities are defined as organizational processes engaged by individuals, which must endure as personnel flow in and out of the firm (Wright et al., 2001) Variations in capability levels among firms reflect their abilities to create and leverage resources to meet their goals, influenced by both internal and external factors (Sirmon et al., 2007) While economic theory may only provide a simplified view of real firms, it still offers valuable insights into resource utilization in a decentralized economy (Demsetz, 1983).

Thestewardshiptheory

Stewardshiptheoryrepresentsanalternativemodelofmotivationsandmanagerial b e h a v i o r s Forthisstudy,stewardshiptheorypromotestheexplanationofdynam icmanagerialtypesinbusinesscontext.AccordingtoDavisetal.

(1997),instewardshiptheory,“themodelofmanisbasedonastewardwhosebehaviorisordered suchthatp r o - o r g a n i z a t i o n a l andcollectivisticbehaviorshavehigherutilitythanindividualistica n d self- servingbehaviors”.Thistheoryisbasedonpsychologicalandsociologicaltraditions.Inst ewardshiptheory,thepowerispersonalbecauseitisfoundedonthea u t h o r i t y assumed bythestewards.Stewardsarelooselycoupledinheterogeneouso r g a n i z a t i o n s withcompetingstakeholders.Thecompetingstakeholderobjectivesaremotivatedtomakedecisionstha ttheyperceiveareinthebestinterestsofthegroup( D a v i s etal.,1997).Incontrast,towardst heagencytheory,thepowerisinstitutionala n d derivesfromacovertrole(DelBaldo,2012)

Stewardship theory, as outlined by Del Baldo (2012), emphasizes cooperation and non-conflictual governance, rooted in trust and long-term firm orientation This theory is particularly suited for small, socially-oriented businesses, aligning the motivational and relational aspects of governance with the core mission of the firm Davis et al (1997) argue that there is a strong connection between organizational success and principal satisfaction, suggesting that effective executive behavior should align with the interests of the principals Thus, stewardship theory highlights the importance of human nature in addressing corporate governance issues.

Theagencytheory

The agencyproblem

B e r l e & M e a n s , 1 9 3 2 ;S h l e i f e r & Vishny,1 9 9 7).I t i s c l e a r t h a t w h e n c o n c e n t r a t e d o w n e r s h i p a n d v o t i n g r i g h t s a r e a l i g n e d w i t h o w n e r s h i p r i g h t s , t h e m i n o r i t y firmownersanditsmanagersareinweakerpositions.Theref ore,majorityo w n e r s orbigshareholderswillretaintheirresidualcontroloverthefirm.Accor dingt o Maher&Andersson(2000),therehavethreemechanismtypesthatcanbeappliedtoover cometheproblemsassociatedwiththeseparationofownershipandcontrol:

- Thef i r s t ,d i r e c t a l i g n m e n t o f m a n a g e r s i n t e r e s t s w i t h s h a r e h o l d e r s.F o r example,executivecompensationplans,stockoption rights,anddirectm o n i t o r i n g bytheboard;

- Thesecond,companymanagerexpropriationsinlegalprotection.Fore xample,theprotectionandenforcement ab ou t shareholderrights, the p r o h i b i t i o n s againstinsidedealings,and

According to Maher and Andersson (2000), various mechanisms exist in different countries to address agency problems that arise from the separation of ownership and control in companies Some systems feature widely dispersed ownership, known as outsider systems, where the primary conflict of interest occurs between powerful managers and weak shareholders In contrast, insider systems are characterized by concentrated ownership, leading to conflicts among controlling shareholders, block shareholders, and weak minority shareholders.

Jensen and Meckling (1976) identify the agency problem as arising from discrepancies between property rights and management authority, highlighting conflicts among stakeholders like managers, shareholders, and creditors in joint-stock companies, primarily driven by their individual interests Shareholders typically expect managers to make decisions that enhance company value, yet managers often pursue personal objectives, such as increasing their salaries, expanding market share, or committing to specific investment projects, which may not align with shareholder priorities.

(Maher&Andersson,2000).Therefore,ownerso f companyalwaystrytomonitorandcontr olcompanymanagers’activitiesandthesea c t i o n s r e s u l t t o agencycosts.Inaddition,Cremers etal.(2008)definethat firmsin competitivei n d u s t r i e s c o u l d h a v e t h e h i g h e s t a g e n c y c o s t s w i t h m a n a g e r s entrenchingthemselvesmost.

Agencytheory

Agencytheoryisatheoryofthefirmthatanalyzesthemanagerialincentiveproblems.T h e s e probl emsareinducedbytheseparationofcorporateownershipandcorporatedecisionmaking(K osnik,1987).TheagencytheorybasingonBerle&Means(1932)i s consideredastheclassical theoryofcorporategovernancewhereitseparatestheo w n e r sh i p andcontrolincor porate.Agencytheoryperspectivesuggeststhatshareholdersultimatelyc e d e contr olofthed a y - t o - d a y m a n a g e m e n t o f firmo p e r a t i o n s t o p r o f e s s i o n a l managers( B e r l e

& M e a n s , 1 9 3 2 ) R e g a r d i n g tot h e r e p r e s e n t a t i v e theory,oneofthemos twidelycitedresearchesistheagencytheoryofJ e n s e n &Meckling(1976) According tothistheory,itshowsthatthe separationbetw een o wnersa n d managersc a n l e a d t o managers’a c t i o n s m a y n o t a i m tom a x i m i z i n g owners’values,butformanagers’ownsake.Therepresent ativeproblema r i s e s from theasymmetricinformationtheory thathappensbetweentheownerandt h e manager.Forthisstudy,agnecytheoryisseenas thepremisetheoryofstakeholdertheory.

Agency theory focuses on optimal incentive contracting and monitoring structures, providing a framework for understanding managerial behavior and the necessity of oversight (Hambrick et al., 2008) It is a dominant perspective in corporate governance research, drawing from various theoretical viewpoints (Daily et al., 2003) This theory is based on assumptions of opportunism and information asymmetry (Bosse et al., 2009), simplifying the description of business governance by presuming a single type of fiduciary relationship characterized by divergent interests between the principal and agent In this dynamic, the principal delegates tasks to the agent, who acts on behalf of the principal Effective control structures and economic incentive plans are essential to align these interests (Del Baldo, 2012), ultimately aiming to minimize potential losses for both parties involved (Davis et al., 1997).

The stakeholder approach, as explained by agency theory, outlines the implicit and explicit contractual relationships among a firm's stakeholders Governance structures refer to the mechanisms that oversee these contracts between principals and agents (Hill & Jones, 1992) While agency control does not guarantee that all managerial decisions will enhance wealth for the principals, it suggests that managers will aim for outcomes favorable to them (Buchanan et al., 2018) Furthermore, agency theory can inform the design of incentives by identifying the interests that motivate agents, necessitating the removal of incentives that promote undesirable behavior and the establishment of rules to mitigate moral hazard Understanding these mechanisms aids businesses in formulating improved corporate policies The limitations of agency theory are shaped by its model of individuals, which assumes self-serving motivations among executives Additionally, agency theory emphasizes extrinsic rewards, focusing on tangible and exchangeable commodities with measurable market value (Sheikh, 2018).

Regardingtocompanymanagerialcontext,therehavesomedifferencesbetweenthea g e n c y theoryandthestewardshiptheoryintermoftheircharacteristics.Thisservest o d i f f e r e n t i a t i n g morec l e a r t h e r o l e a s w e l l a s t h e o w n e r s h i p a m o n g companymember s.Inordertocomparethedifferencesbetweenagencytheoryandstewardshiptheory,Davisetal.

EconomicmanSelf-serving Self- actualizingmanCollective serving

Lowerorder/ economicneeds(physiological ,security,economic)E x tr in si c

Higherorderneeds(growth, achievement,self- actualization) Intrinsic

Othermanagers LowvaluecommitmentIn stitutional(legitimate,c oercive,reward)

Principle HighvaluecommitmentPers onal(expert,referent)

ControlorientedControl mechanismsShortterm CostcontrolIn dividualism Highpowerdistance

Thestakeholdertheory

Stakeholders approach

Inbusinessenvironment,firmshavetofacebothinternalandexternalconstraintsthatm ay limittheirm anagerialdiscretionstowardsinvestmentdecisions.Theconstraintsc o u l d begreateriffirmseng ageinactivitiesthatgobeyondthosedirectlyrelatingtot h e i r b u s i n e s s o p e r a t i o n s ( H a m b r i c k & F i n k e l s t e i n , 1 9 8 7 ;Wang& Q i a n , 2 0 1 1).Freeman&Velamuri(2

008) statethatstakeholder approachto businessemergedint h e mid- 1980s.Itisseenthatonefocalpointinthismovementwasthepublicationof

4 ThisresearchisbuiltontheprocessworkofscholarsRussellAckoff,EricTrist,I anMitroff,Richar dMason,andJamesEmshoff.Actually,theterm“stakeholder”w a s grownoutoft hepioneeringworkatStanfordResearchInstitute(SRI),inthe1 9 6 0 ’ s Howev er,SRI’sworkwasheavilyinfluencedbyconceptsthatwered e v e l o p e d i n t h e p l a n n i n g d e p a r t m e n t o f L o c k h e e d A f t e r t h a t , t h e s e i d e a s w e r e furtherdevelopedthroughtheworksofIgorAnsoffandRobertStewart(Freeman&Velamuri ,2008).TheWhartonSchool,in1977initsAppliedResearchCenter,beganw i t h a“stakeholder” project.Theobjectivesofthisprojectweretoputtogetheranumberofstrandsoft houghtanddevelopedatheoryofmanagement.

Thistheorye n a b l e d t h e f i r m e x e c u t i v e s t o f o r m u l a t e a n d i m p l e m e n t c o r p o r a t e str ategy inturbulentenvironments(Freeman&Reed,198

3).Inparticularly,b e g i n n i n g withanobscurereferenceinIgorAnsoffsbookon corporatestrategyin1 9 6 5 , F r e e m a n ( 1 9 8 4 ) g r o w s t h e s t a k e h o l d e r i d e a h a s b e c o m e a m a i n s t r e a m i n m a n a g e m e n t theory.Intraditionalstakeholder model,corporationisresponsibletoaw i d e c o n s t i t u e n c y of s t a k e h o l d e r s r a t h e r t h a n onlyi t s s h a r e h o l d e r s S t a k e h o l d e r s i m p l y t o suchascontractualpartner s,companys t a f f oremployees,suppliers,customers,creditors,environmentalac tivists,localandnationalgovernments,ands o c i e t y at largein which the firmlocated(Maher& Andersson,2000;

Papasolomoue t al.,2005;Hambricketal.,2008;Bosseetal.,2009;Wang&Qian,2011).Freeman (1984)definesstakeholdersas“anygrouporindividualwhoisaffectedbyorcan affect theachievementofanorganization’sobjectives”(p.5).LaiCheng&Ahmad( 2 0

1 0 ) expressthatstakeholderofafirmisanindividualoragroupofpeoplewhichei t he r isharm edby,orbenefitsfromthefirm;orwhoserightscanbeviolated,ormustberespectedbythefirm.

However,therealsohavesomecontroversialexplanationsregardingtostakeholdersinnegati veaspect.Suchas,undersomeinterpretations,stakeholdersalsoincludetheenvironment, t e r r o r i s t s , b l a c k m a i l e r s , a n d t h i e v e s ( J e n s e n , 2 0 1 0 ) E v e n , F r e e m a n (198 4)inhisbookalsomentionsthat“…

Some corporations must consider "terrorist groups" as stakeholders, highlighting the complex nature of stakeholder relationships (p 53) Stakeholder behavior is often influenced by their perceptions of a firm's actions, which are shaped through a feedback process involving multiple stakeholders (Bosse et al., 2009) According to the stakeholder approach, effective company management requires balancing the interests of various stakeholders over time This involves clearly articulating how the company's core business proposition benefits its stakeholders (Freeman & Velamuri, 2008) By meeting stakeholder demands, firms can foster trust and loyalty among them Consequently, company management must actively explore relationships with all stakeholders to inform business strategies and objectives (Jensen & Meckling, 1976).

Scholars have identified two key aspects of stakeholder groups and their responsibilities, distinguishing between internal stakeholders, such as employees and company representatives like dealers and salespersons, and external stakeholders, including customers, vendors, shareholders, and the surrounding community (Freeman & Reed, 1983; Jones, 1995; Yoon & Chung, 2018) The stakeholder approach emphasizes the importance of long-term firm performance and enhances contributions from stakeholders while positioning firms as socially responsible entities (Abor & Adjasi, 2007) Additionally, commentators have differentiated between primary stakeholders, who have formal or contractual relationships with the firm, and secondary stakeholders, who, despite lacking formal ties, can significantly influence the firm's effectiveness (Carroll, 1993; Gibson, 2000).

 Normativetheory:positsthatmanagersoughttotakeintoconsiderationthei nterestsofallstakeholders.Thismeans,theapproachisbasedonthepremiseo f unive rsalrightsandsustainabledevelopment.Italsoincludestheapproachofthecommongo odofsocietyandalsothecivileconomy.

 Descriptivetheory:describeshowmanagersinfacttreatstakeholders.This a p p r o a c h isfocusedontheroleofbusiness, ofthe r i g h t s , theneeds w hich connectt h e m , a n d o n t h e r e s p o n s i b l e u s e ofp o w e r i n politicala n d s o c i a l arenas.

 Instrumentaltheory:t a k e s t h e p o s i t i o n t h a t m a n a g e r s w h o t a k e i n t o c o n s i d e r a t i o n stakeholders’interestswillenjoyb e t t e r firmperformanc e;Friedman(1962)foundedontheprincipleoftheinstrumentality oftheb u s i n e s s withrespecttothecreationofwealthandbusinessgoals.Thistheoryap p r o a ch issynthesizedasthefirm’sonlyresponsibilitysuchasmaximizationo fsharehol dervalue,orreachingthecompetitiveadvantage.

 Managerialtheory:aguidetomanagerialactions.Thedutyofmanagementist o actu alizeabalanceofinterestsamongallstakeholdersinwhichtheappro ach es ofis suesmanagement,publicresponsibility,stakeholderm a n a g e m e n t andcor poratesocialperformancecoexist.

In the realm of business, a significant information asymmetry exists between managers and stakeholders, as managers often have the ability to filter or distort the information they share (Bosse et al., 2009; Buchanan et al., 2018) This disparity complicates agency problems, as no single entity can finance the extensive information gathering and analysis required to mitigate these issues effectively Consequently, managers wield greater discretionary control over how the firm's resources are utilized (Hill & Jones, 1992) Implementing good governance principles can help alleviate the challenges associated with information asymmetry, making investments in SMEs less risky (Abor & Adjasi, 2007).

Stakeholder awareness is influenced by the level of market development in which firms operate (Wang & Qian, 2011) Companies often establish strong relationships with stakeholders such as customers and suppliers, built on high levels of trust and cooperation (Jones, 1995; Sheikh, 2018) Effective stakeholder management is essential for achieving successful economic performance However, this concept alone is insufficient to fully support stakeholder theory (Donaldson & Preston, 1995) The OECD (2016) highlights that recognizing stakeholder contributions is vital for building competitive and profitable firms, emphasizing the long-term benefits of fostering wealth-creating cooperation among stakeholders In this context, stakeholder groups can be categorized based on their roles and characteristics, as summarized in previous studies.

Firmmanagers,dire ctors,topexecutiv es

- Topfirmmanagerscanbeconside redasthecontractingagentsforth efirmbecausetheycontractwitha llotherstakeholderseitherdirectly orindirectlythroughtheiragents.

- Managersortopexecutiveshaveo b jec t iv e s suchasmaximizingtheirs alaries,growthinmarketshare,ora nattachmenttop a r t i c u l a r invest mentprojects…

Freeman&Gilbert,1987; Harrison&St.John,1996; Herman,

1981;Jones,1995;DelBal do,2012;Maher&Ander son(2000);Eisenhardt

&Zbaracki(1992);McD onald&Westphal(2003);Y oon

- Thepresenceofasolidethicalframe workispromotedandsharedbyfirm managerswhoguidethebusinessin carryingoutsociallyresponsiblepract icesandtowardsadoptingmethodsc ommu ni cati ng them(suchasach arterofvalues,acodeofethics,soc ialreport,etc.)

- Directorscomefromvariousgroup includingcurrentexecutivesofoth erfirms,retiredexecutives,represent ativesofmajorshareholders,represe ntativesoflabor,andacademics.

Firmemployees - Undertheguidelinesofcorpora tegovernancemechanisms,em ployeesaresteeredtoworkproacti velyintheorganization

- Employees’effortsarenormallyn o t fullyspecifiedinemploymentcont ract.Therefore,theircontributionsto thefirmvarydependingontheirperc eptionsoffairness

Jensen,2010;Hill&Jone s,1992;Bosseetal , 2009;Trong,2014;Yoo n&Chung,2018 capitalcommitments.Inexchange,t heyexpectfairincomeandadequate workingconditions

- Basically,employeeswanthighwa ges,high- qualityworkingconditionsandfringe benefits.Benefitsmayincludevaca tions,mealsconditions,medicalb en efi ts, retirementandpensions

- Theeffectiveofstakeholderman agementcanhelpfirmmanagers resolvevarytypesofethical dile mmas.

- InSMEscontext,theownermana gerisboththedriverandi mp le m en ter ofvalues.

Normally,managersexhibittheirper sonalvaluesthroughtheex er ci se ofmanagerialdiscretiona n d SMEs

Hemingway&Maclagan, 2004;DelBaldo,2012;Y oon&Chung,2018

Firminvestors,cre ditors,owners,fina nciers,stockhold ers,shareholders

- Creditorsandinvestorsprovidethe firmwithfinance,andinex chan g e,theyexpecttheirloanstoberepai donschedule.

Hill&Jones,1992;Bo sseetal.,2009;Jensen

- Shareholdersusuallyexpectcom p an ymanagersmakingbusiness de cisionsthatgainingbenefittocomp anyshareholders

- Ownersofcompanyalwaystryto monitorandcontrolcompanymana gers’activitiesandtheseactionsre sulttoagencycosts

Customers - Customerssupplythefirmwithrev en ues andexpectvalueformone yinexchange.

- Customersoftendefectinrespons etorudecustomerserviceandcanwi delybroadcasttheirdispleasurewit hafirm’senvironmental record.

Hill&Jones,1992;Bosse etal.,2009;Jensen,2010;Y oon&Chung,2018

- Withspecialsuppliers,suchassuppl iersofcapital,wantlowrisk,highr eturnsandreasonableco mp ensati on s.

- Thegovernmentplaysanimportant roleincreatingsocialjusticesaswell asutilizingfullofsocialobligations Inordertocreatesustainabledevelo pment,thegovernmentalwaysplay sanactive roleduringthefirmimp lem enting itsCSRactivities.

- Localgovernmentcanrewardthefir mthatmakesuchcontributions withtaxbenefits,accesstobankloan s,easierprojectapproval,andhighe rrecognitionandstatustothefirm owners.

- Governmentimposecostlyregula tionssuchaslaborandconsumerpr otection,andthushelp firmgainitsfa vorablepol ici es andothersupport sfromgovernment.

&Parish,2006;Wang&Q ian,2011;Yoon&Chung,2018

Localcommunities - Communitieswanthighcharitable contributionsandsocialexpenditure sbythefirms.Thesecontributionsc ouldbenefitthecommunityatlarge andincreaselocalinvestment,a n d createstableemployment.

- Thegeneralpublic,astaxpayers,pr ovidesthefirmwithlocations,aloc alinfrastructure,an dperhapsfavo rabletaxtreatment.Inexchange,th eyexpectcorporatecitizenswhoe nhanceand/ ordonotdamagethequalityoflifea nddonotviolatetherulesofthega meestablishedbythepublicthroug htheirlegislativeagents.

- Mediaandacademiccommenta torsareimportantstakeholderstow ardsthefirm.Moreover,theyalsop laysanimportantroleininformatio nsharingduringbusinessprocess an d inbusinessenvironment.

Hill&Jones,1992;Boss eetal.,2009;LaiCheng

Thes t a k e h o l d e r t h e o r y a r g u e s a b o u t t h e i m p o r t a n c e o f a fi r m p a y i n g i t s s p e c i a l attentionstov a r i o u s s t a k e h o l d e r g r o u p s ( F r e e m a n , 1 9 8 4 ; G i b s o n , 2 0 0 0 ;A b o r & A d j a s i , 2 0 0 7).A l s o ,L a i C h e n g & A h m a d ( 2 0 1 0 ) s t a t e t h a ts t a k e h o l d e r theorytypicallyfocusesontheattributesofactorsinr elationshipbetweenthefirmanditsr elat ed stakeholdergroups.Whilst,Hill&Jones(1 992)considerstakeholdertheorya s oneofthebackgroundtheoriesusingtoexplainthere lationshipbetweenownersandmanagers.C r i t i c a l i s s u e i n s t a k e h o l d e r theoryis w h e t h e r firmmanagersc a n successfullybalancethecompetingdemandsofvariousstak eholdergroups(Harrison

&Freeman,1999;Jensen,2010).AccordingtoFreeman&Velamuri(2008),stakeholde rtheoryisaboutvaluecreationandtrade.Regardingtothisstudy,stakeholdertheorymainlys upportstoCSRtheoryandrelationshipmarketingtheory.

Stakeholdert h e o r y i s s e e n asa m a n a g e r i a l t h e o r y a b o u t h o w b u s i n e s s w o r k s Th er efor e, i n t h e c o n t e x t o f s t a k e h o l d e r m a n a g e m e n t , thereh a s t h e d i s t i n c t i o n betweenn o r m a t i v e s t a k e h o l d e r s a n d d e r i v a t i v e s t a k e h o l d e r s (DelB a l d o , 2 0 1 2 ).T oward s thenorm ativestakeholders,thefirmhasamoralobligationtotreatequitably.Thismeans,thenor mativestakeholdertheorydescribesphilosophically b a s i n g moralobligatio nstowardsfirmstakeholders.Moreover,itfocusesonethicalr e q u i r e m e n t s thatreinf orcestherelationshipbetweenthefirmandsociety(Jamali,2008).Ontheotherhand ,withthederivativestakeholders,thereisnoobligationtot r e a t equitablyandisdonebase donthefundamentalprincipleofequity.Thismeans,i n c o o p e r a t i v e e n v i r o n m e n t , e a c h p a r t i c i p a n t w o u l d r e c e i v e b e n e fi t s e q u a l t o t h e sacrificestheymaking.

Stakeholdertheoryconcentratestotheimportanceofrelationshipsamongcompanystake holderssuchascustomers,staff,andmasscommunitythataffectstobusinessperforman ce.Thistheoryexpressesthatcompanysurvivalanditssuccesscorrelatess t r o n g l y withit sabilityincombiningallstrategicobjectivestowardsvariousstakeholders.Therefore,s takeholdertheoryisseenasanintegratingthemenotonly

Stakeholders theory

&Preston,1995;Harrison&Freeman,1999).Harrison&Freeman(1999)consist thatstakeholdertheoryfocusesonabroadsetofstakeholderrelationshipsratherthana narrowseto fpurelyeconomicrelationships Therefore,i n business ethic,stakeholdert h e o r y h a s alsobecomeo n e ofthemostimportantt h e o r y f o r o r g a n i z a t i o n a l b e h a v i o r T h i s c o n c e p t h a s e v o l v e d a n d g a i n e d p r o m i n e n c e a s a me thodofintegratingethicsintostrategicobjectivesofthefirm(DelBaldo,2012;S h e i k h , 2 0 1 8 ; B u c h a n a n e t a l , 2 0 1 8 ) M o r e o v e r , bys a t i s f y i n g t h e s t a k e h o l d e r demands,thefirmdevelopsitstrustandloyaltyamongthosestakeholders.

Jones(1995)identifiesproponentsofstakeholdertheorystrivestodescribingwhat f i r m managersactuallydowiththeirrespectstostakeholderrelationships.Heals oq u e s t i o n e d whatwouldhappenifthesemanagersadheredtostakeholdermanagementp r i n c i p l e s , andwhattheyshoulddodealingwithfirmstakeholdersaswell.Hence,stakeho ldert h e o r y o f f e r s a newwaytoorganizethinkingaboutorganizationalr e s p o n s i b i l i t i e s (Jamali,2 0 0 8 ).H o w e v e r ,A b o r & A d j a s i ( 2 0 0 7 ) p r o v i d e t h a t thest akeholdertheoryalsoemphasizestheroleofnon- marketmechanisms.Thesefactorssometimesn e e d t o d e t e r m i n e t h e o p t i m a l b o a r d s i z e s , o r t o d e s i g n committeestructuresthatm a y a l l o w f o r settingupspe cializedcommittees.B e s i d e s , J e n s e n ( 2 0 1 0 ) mentionstostakeholderstheorythatsta keholdertheoryshouldnotbeviewedasa legitimatec o n t e n d e r t o v a l u e maximizatio n.I t f a i l s t o p r o v i d e a c o m p l e t e s p e c i f i c a t i o n offirmpurposesorobjectivefun ctions.Inordertomaximizefirmvalue,managersshouldsatisfyandsupporttoallfirmstakeholdergr oups.

Relationship marketingtheory

Businessrelationship

Relationshipisseenasacentralpointtowardsbusinessactivities.Eventually,itis heightenedc o m p a n y c o m p e t i t i o n tot h e g l o b a l market.T h e r e h a v e manyso cietyformstransitioningfromindustryorientedtoserviceorientedforms,therefor e,the importanceofrelationshiphasbeengrownup(Gummesson,1999;JanslọttAxelsson

&Blick,2016).Besides,therehavemanydefinitionsaboutrelationshipbyscholars.In general,a lmostthesedefinitionsrelatetoalongtermduration,mutualbenefits,aninterest,other partiesneeds andfeatures, etc.(Dwyer et.al.1987;Perrien&Ricard,1 9 9 5 ; Gummesson,1999;JanslọttAxelsson&Blick,2016).Insuc hbusinesscontext,Dwyeretal.

(1987)statethatoneofthecorewithinarelationshipiscustomerloyalty.A l s o , Sheth&Parvatiyar( 1995)expressthatbuildingrelationshipswithcustomerscontributestofirmwithvalu ableknowledgeaboutitscustomers’demands.Then,thesecanbeusedtoimprovef irm’sservicesorproducts.

Regardingtobusinessenvironment,arelationshipisviewedasaprocessthatconsistso fdifferentph ases.Forexample,Scanzoni(1979)identifiedfivemainphasesofar e l a t i o n s h i p asfollowingawareness,exploration,expansion,commitmentanddissolut ion.Goodrelationshipsleadtoanopendialoguewhichinturncreatesmoreinteraction,m oretrustandultimately(JanslọttAxelsson&Blick,2016).Inaddition,D a f t & L e n g e l ( 1 9

8 6 ) p r o p o s e t h a t t h e c r e d i b i l i t y a n d c o m p r e h e n s i b i l i t y o f anyi n f o r m a t i o n isdependentonthechannelofcom mu ni ca ti ons used.Besides, Levi tt(1986)d e f i n e s " R e l a t i o n s h i p m a n a g e m e n t isa s p e c i a l f i e l d a l l i t s o w n I t i s a s importantinpreservingandenhancingtheintangibleassetc o m m o n l y knownas' g o o d w i l l ' asthemanagementof hardassets.Thefactthatitisprobablyhardertodoi s thatmuchmorereasonthathardeff ortbeexpendedtodoit"(p.126).Macneil( 1 9 8 1 )s t a t e s t h a t marketr e l a t i o n s h i p s a r e i n c r e a s i n g l y b e i n g d i s p l a c e d n o t onlyc l o s e r , buttheyarealsolon g-termrelationshipsbetweenbuyersandsellers.

Holmlund(1997) emphasizesthatbusiness relationshipsaredependento f individuals.Therefore,businessrelationshipsarehandledan denactedbypeoplethath o l d differentperceptionswithinfirms.AccordingtoAustin(2010,p. 14),therehast h r e e phasesorstagesthroughwhichthesepartnershipsprogress:philanthropicstage(

S t a g eI),transactionalstage(StageII),andintegrativestage(StageIII)(Barroso-Méndezetal.,2014),suchfollowing:

 Inthephilanthropicstage:thedonor– recipientrelationshipgeneratesjustamodeststrategicvalue.Thisstagei scharacterized byalowlevelofp a r t i c i p a t i o n , p e r i p h e r a l i m p o r t a n c e o f themissionfor bothpartners,aminorinvestmentinresources,anarrowfocusonactivities,infr equentinteraction,a n d simplicity.

 Int h e t r a n s a c t i o n a l s t a g e:t h e r e l a t i o n s h i p movesb e y o n d p u r e c o r p o r a t e p h i l a n t h r o p y toinvolvethedevelopmentofprojectswiths pecificobjectivesandd e a d l i n e s ( s u c h asc a u s e - r e l a t e d m a r k e t i n g p r o g r a m s , s p o n s o r s h i p o f e v en t s , s p e c i a l p r o j e c t s , a n d c o r p o r a t e v o l u n t e e r s e r v i c e s ) , w i t h m o d e r a t e levelsofinvestmentinresources,interaction,context,andstrategicvalue.

 Intheintegrativestage:thereisconjointvaluecreationbetweenthepartnersa n d a highlevelofparticipation,andtheimportanceoftherelationshiptotheor ganizati o n ’smissionc h a n g e s fromp e r i p h e r a l t o s t r a t e g i c T h e s c o p e o f activ itiesw i d e n s , t h e c o m p l e x i t y o f m a n a g e m e n t g r o w s , a n d multiplea n d d i s t i n c t resourcesareexchanged.

 Buyerp a r t n e r s h i p s:i n t e r m e d i a t e c u s t o m e r s a n d u l t i m a t e c u s t o m e r s Theyh av e long- termexchangesbetweenthebusinessandendcustomers,orr el a t i o n al excha ngesofworkingalliances.

 Internalpartnerships:businessunits,employees,andfunctionaldepartment.F orthesepartnerships, allexchangesare establishedwithinfunctiona ldepartmentsbetweenthefirmanditsemployees.Moreover,itcouldbewithint h e firma nditsbusinessunits.

 Lateralpartnerships:competitors,non- profitorganizations,andgovernment.T h es e strategicalliancesincludefirm’s NGOs,orwithnational,state,localg ov ernm en t s, evencompetitors.

Normally,f i r m s u s u a l l y d i r e c t t h e i r m a r k e t i n g d e p a r t m e n t s f o c u s i n g o n e s s e n t i a l customersandsuppliersinordertobuildlong- termbusinessrelationships.Therefore,t h e i r ownsurvivalandgrowthareensured(Marium&Yo unas,2017).Therearetwodistinctcategoriesofcustomerrelations:businesstoconsu mer(B2C)relationshipsa n d businesstobusiness(B2B)relationships(JanslọttAxelsson& Blick,2016).Oneo f themajordifferencesbetweenB2BandB2Cinrelationshipisthe basicformoftherelationship,as

- Aconsumerrelation refers tother e l a t i o n betweenani nd iv id ua l anda c o rp o r a t i o n.T h e a g r e e m e n t i n a B 2 C c o n t e x t u s u a l l y c o n c u r w i t h t h e a c t u a l p ur ch a s e Therefore,consumerrelationapproacheshavebeendomin atedbythemanagerial,e c o n o m i c a n d p s y c h o l o g i c a l v i e w o f e x c h a n g e a n d r e l a t i o n s h i p s ( M ử l l e r &Halinen,2000)

&Jobber,2012).Itistypicallydyadictoahigherextentthanaconsumerrelationi ntermofinte nsityandamountsofbonds,aswellasthemutualinterdependency.Moreover,abusinessrel ationisgenerallymorecomprehensivebecauseitinvolvesalargernumberofactors,such asemployeesatdifferentpositionswithind i f f e r e n t divisions.Therefore,busi nessrelationapproacheshaveputmoreemphasisonresources,onsocialandint er- functionalexchangewithinandbetweenrelationships (Mửller&Halinen, 2

000) Intheotherhand,Holmlund ( 19 96 )arguesthataB2Brelationshipatthebotto mlineismanagedandorganizedbyindividuals.Theseindividualsareemployeesandte amswithincorporations.C o n s e q u e n t l y , theseindividualsbecomethebest providersofinformationco ncer ni ng therelationship.Besides,theirperceptionsa ndinterpretationsdecide theoutcomeandcontentoftherelationship.Ingenerally,aformalcontractoftenisneededi naB2Bcontext.

S e r v i c e s a r e intangibleinnature.Theyareprocessesconsistingofactivitieswhichinturnare builtu po ninteractionbetweenfirmanditscustomers(JanslọttAxelsson&Blick,2016).

S o , whenconsumingaservice,thecustomeralwayshastointeractwiththeservicepro videreitherdirectorindirect.Thus,aserviceisnaturallyrelationship- oriented( G r ử n r o o s , 2000;Tseetal.,2004;Sinetal.,2005)

Relationshipmarketing

Bilgihan and Bujisic (2015) define relationship marketing as all marketing activities aimed at establishing, developing, and maintaining successful relationships, primarily between organizations and their stakeholders This approach not only enhances the effectiveness of business training programs in a globalized context (Marium & Younas, 2017) but also fosters a deeper understanding of intangible value Relationship marketing contributes to intermediary efficiencies that connect producers and consumers, ultimately supporting the sustainability of the value chain (Musa et al., 2014) Since the 1980s, the conventional view of marketing has shifted towards relational marketing, which serves as a strategic approach within the services industry (Kilkenny & Fuller).

L o v e , 2 0 1 4 ; C o h e n , 2 0 1 4 ) T h e t e r m “ r e l a t i o n s h i p marketing”firsta ppearedinabookbyBerrythreedecadesago,publishedin1983.I n t h i s b o o k , B e r r y ( 1 9 8 3 , p 2 5 ) d e fi n e d r e l a t i o n s h i p marketinga s “ a t t r a c t i n g , m a i n t a i n i n g , andenhancingcustomerrelationships”(Barroso-

Therelationshipmarketingdefinitioncomesfromareasandclosetoservicesmarketing orindustrialmarketing(Berry&Parasuraman, 1991;Gr¨onroos,1999;Jackson,1985;Barroso-Méndezetal.,2014).Suchas,intheservicesmarketingarea,

Berry&Parasuraman(1991,p.133)proposethat"relationshipmarketingconcernsattr acting,developing,andretainingcustomerrelationships".Inindustrialmarketing,Jackson(1985,p. 2)r e f e r s relationshipmarketingas"marketingorientedtowardstrong,lastingrelationship swithindividualaccounts".Besides,Paul(1988)adoptsJ a c k s o n ' s viewinthehealthcar emarketingarea(Morgan&Hunt,1994).Afterthat,therelationshipmarketingconceptbeco mesthehottopicofthemarketingdisciplined u r i n g the1990s(Mửller&Halinen,2000).Sinet al.

(2005)consistthattheservicesmarketingl i t e r a t u r e w a s o n e o f t h e f i r s t a r e a s i n w h i c h r e l a t i o n s h i p marketingr e s e a r c h h a d i t s s t a r t T h e r e f o r e , s e r v i c e o r g a n i z a t i o n s s h o u l d d e v e l o p l o n g - t e r m r el a t i o n s h i p s witht he ir customers inordertoacq ui re an d m a i n t a i n a competitive edge.Theconceptofrelationshipmarketinghascontinuouslyreceivedcon siderabler e s e a r c h attentionfrommarketingscholarsoverthelasttwodecades(Nguyen&Viet,2 0

Relationship marketing is defined by Grönroos (1996) as the process of identifying, establishing, maintaining, and enhancing relationships with customers and stakeholders for mutual benefit This approach emphasizes the importance of fulfilling promises and engaging in mutual exchanges to meet the objectives of all parties involved Most research in this field has concentrated on how relationship marketing efforts can enhance customer relationships, particularly in terms of customer loyalty (Palmatier et al., 2006; Nguyen & Viet, 2012; Luu, 2017) Fundamentally, relationship marketing aims to develop and sustain strong connections between a firm and its microenvironments, with a focus on customers, as supported by extensive research evidence.

Zhuang and Zhang (2011) highlight that relationship marketing originates from services marketing, personal selling, marketing channels, and business-to-business marketing According to Sheth and Parvatiyar (1995), relationship marketing programs encompass frequent user incentives, customer referral benefits, preferred customer programs, aftermarket support, the use of relational databases, and mass customization Consequently, relationship marketing significantly influences behavioral loyalty, which is crucial for customer retention (Bruhn, 2015; Luu, 2017; Marium & Younas, 2017) The theory of relationship marketing emphasizes that partner selection is increasingly vital in competitive business strategies, indicating that a firm's procurement strategy may be the key factor in delivering superior value to its customers (Morgan & Hunt, 1994).

Developedfrom theprevious study(Mửller& Halinen, 1999), Mử l l e r &Halin en( 2 0 0 0 )proposetherelationshipmarketingisprimarilyderivedfromthefoursourcesindic ated:BusinessMarketinginteractionandnetworks;Marketingchannels;S e r vi c es marketing;Databasemarketinganddirectmarketing.Theyalsosuggesttod i s t i n g u i s h betweentworelationshipmarketingtheories,thatis:Market- basedrelationshipmarketinga n d N e t w o r k - b a s e d r e l a t i o n s h i p m a r k e t i n g.A c c o r d i n g t oM ử l l e r &Halinen(2000),

Therefore,themajorchallengeofthisdimensionistotreatlargenumbersofcustomersi ndividuallyandstill profitably.While,Network- basedrelationshipmarketingcanbedescribedasthemanagemento f interdependen ciesbetweenbusinessplayers.Withthisdimension,thetasksandc h a l l e n g e s of managementinvolvetobroaderanddeeperinteractionwithexternalp ar t n e r s , b othcustomersandotherstakeholders.Forthisstudy,theauthorfocustot h e Vietnam marketingcommunicationsindustryaswellasproposeandanalyzether e s e a r c h model basingontheNetwork-basedrelationshipmarketingdimension.

Numerousresearchershaveobservedthatthescopeofrelationshipmarketingshouldn o t berest rictedtomaintenanceof relationshipsbetweenthefirmanditscustomers.Moreover,itshouldalsoincludethefirm’sr elationshipswithvariousother stakeholders(Barroso-

Méndezetal.,2014).Similarly,Frow&Payne(2011)statet h a t r e l a t i o n s h i p m a r k e t i n g l i t e r a t u r e h a s d i f f e r e n t a p p r o a c h e s t o d e s c r i b i n g a n d cl assifyingstakeholders.However,theaspectoflong- termrelationshipswithcustomersa n d o t h e r s t a k e h o l d e r g r o u p s w a s n e g l e c t e d i n m a i n s t r e a m marketingm a n a g e m e n t literaturebyseveralscholar ssuchasChristopheretal.

( 2 0 0 2 ) , G r u e n (1997),Gronroos(1989),thephilosophyofmodernbusinesshasshiftedfro ma productionorientationtoasellingorientation,andthentoa marketingorientation.Finally,thistrendleadstoarelationshipmarketingorientation.

Relationshipmarketingorientation -RMO

According to Hollensen and Opresnik (2015), relationship marketing is a strategy that organizations use to cultivate mutually beneficial, long-term relationships with stakeholders This concept has been examined from various perspectives, including relationship evaluations and organizational culture (Winklhofer et al., 2006; Sin et al., 2005; Nguyen & Viet, 2012) The relationship evaluation perspective specifically focuses on the fundamental building blocks of relationship development, which encompass trust, bonding, empathy, and reciprocity (De Ruyter and Wetzels).

Johnstonintheirstudyw i t h r e l a t i o n s h i p m a r k e t i n g theorys u g g e s t sixr e l a t e d c o n s t r u c t s a srelationshipdependence,trust,commitment,communications ,cooperation,andequity.Besides,i n theKeyMediatingVariable-

KMVmodelofrelationshipmarketing,Morgan&H u n t ( 1 9 9 4 ) conclude thatcommitmentandtrustarethetwo centralvariablesin ther el a t i o n sh i p marketingprocess.

Gohary&Hamzelu(2016)consistthatrelationshipmarketingorientation(RMO)asa mech anism thatreflects th e consideration ofcustomersas anim po rt an t operant res ou rce Moreover,itcanfurtherenhancecustomers’identificationwiththeorgan izatio n Similarly,Tseetal.

(2004)definerelationshipmarketingorientationas‘‘th e extenttowhichacompanyengagesinde velopingalong-termrelationshipwith itscustomers’’.AccordingtoSinetal.

(2005),RMOshouldbemoredominantinb u s i n e s s performanceintheservicesse ctorthaninthemanufacturingsector.Theys ai d thatbecauseofrelationshipmarket ingrelingoncloseinteractionbetweenthef i r m and itscustomers.Itis a dominantfeature ofa servicefirm.Besides,Yauetal.

( 2 0 0 0 ) expressthatrelationshipmarketingorientationisforeveryindustry.Infact,t h e originofrelationshipmarketingorientationhasmostlybeenstudiedacrossarangeo f serviceindust ry(Gummesson,1999;Sinetal.,2005;Gordonetal.,2008;Kwan

&Carlson, 2017).Therefore, the adoption of RMO cansupportserviceproviders tod e s ig n aswellasofferaservices- mix.Thiscouldbeperceivedbycorecustomersassuperiorvalue.Italsoassitsthefirminmakin ggoodprofitsandshapingcompetitiveadvantages(Sinetal.,2002)

0 0 0 ) U n l i k e t he marketo ri en ta ti on t h a t fo cuse so n g e n e r a t i n g, d isse mi na ti ng an d r es p o n d in g tomarketintelligence(Kohli&Jaworski,1993;Narver

&Slater,1990),R M O reflectsthefirms’philosophyofdoingbusiness(Nguyen&Viet,2012).Infa ct,b a s e d onpastrelatedliteratureofscholarssuchasCallaghanetal.

(1995),Morgan&Hunt(1994),Wilson(1995),Yauetal.(2000)andothers,Sinetal. (2002)suggesttheRMOconceptasamulti- dimensionalconstructwhichconsistsofsixcomponents.Thisconcepthasbeenprovenassoc iating withserviceorientedeconomy,suchasHo n g Kong.Sincethen,accordingtoSin etal.

(2005),RMOconsistssixcomponents:trust, bonding,communications,sharedvalue,empathy,and reciprocity.Tomeasurethisconstruct,Sinetal.(2005)developeitsassessmentviaa22- itemscale.

Itcouldbeseenthat,theroleofRMOintransitionaleconomies,suchasVietnam,isstillnotclarif iedandbroadlyexamined(Nguyen&Viet,2012;Luu,2017).Besides,thereh a v e s o m e r e c e n t s t u d i e s r e l a t i n g t o t h e r o l e o f R M O i n e m e r g i n g a n d i n transitional economies,especiallyinservicesector.Forexample,W on gsan su kchar oen e tal.

AccordingtoMorgan&Hunt(1994),trustisthewillingnesstorelyonanexchangepar tner i nwhomonehasconfidenceandreliability.Theysaidthat“trustexistswheno n e partyhassecu rityinthereliabilityandintegrityofitspartnerintheexchange”( p 2 3 ) Whenp a r t n e r s p e r c e i v e t h a t t h e i r c o u n t e r p a r t h a s c h o se n t h e a p p r o p r i a t e a ct i o n s , th eywillbewillingtoincreasetheirleveloftrustandcommitment(Dwyer,Schurr,&Oh,1987; Morgan&Hunt,1994;MacMillanetal.,2005;Barroso-

Méndezetal.,2014).Inbusinesscontext,theexistenceoftrustwillfostertheexcha ngeofideas,informationandpromotea climateofproblemsolving and conflictresolution(Mellat-Parast&Digman,2008;Ybarra&Turk,2009)

Customersusuallyrelyontheirperceptionsoftheexchangepartnercharacteristicss u c h a s i n t e g r i t y a n d b e n e v o l e n c e Witht h i s motion,c u s t o m e r s w a n t t o d e v e l o p expectationsa b o u t t h e e x c h a n g e p a r t n e r ’ s f u tureb e h a v i o r s ( D u n n &

Trust in exchange partners can lead to favorable outcomes, as highlighted by Palmatier et al (2006) A crucial aspect of trust involves customers believing that vendors have intentions and motives that benefit them, as proposed by Ganesan (1994) Additionally, trust is linked to creating positive customer outcomes In service relationships, customers must feel secure in their interactions with the firm, ensuring confidentiality and ultimately fostering trust (Parasuraman et al., 1985; Rauyruen & Miller, 2007; Luu, 2017).

Bondingreferstothedevelopmentofanemotionalrelationshipbetweentwopartnersactinginaunifiedmannertowardadesiredgoal(Sinetal.2005).Moreover,Sheth

According to Parvatlyar (1995), bonding within a firm extends beyond single-level relationships to multiple levels A long-term buyer-seller relationship necessitates the development of bonds between the firm and its customers (Sinetal, 2005b) Bonding is crucial for successful buyer-seller relationships as it lays the groundwork for buyer-seller norms (Palmatier, 2008) Furthermore, strong bonds between sellers and buyers help mitigate potential conflicts (Palmatier et al., 2007) Customers with stronger relationships through bonding experience greater satisfaction compared to those without (Nguyen & Viet, 2012; Luu, 2017) This relational bonding personalizes the connections among all partners, providing a stabilizing buffer against unforeseen challenges (Barroso-Méndez et al., 2014).

However,i n manyr es e a r c h, s c h o l a r s u s e “commitment”c o n c e p t i n s t e a d o f “b onding”c o n c e p t F o r example,r e g a r d i n g toc o m m i t m e n t , D w y e r e t a l

In their research, Morgan and Hunt (1994) define commitment in a relationship as the belief that an ongoing partnership is so valuable that both parties will make every effort to maintain it This commitment is crucial, as it directly enhances the success of business-to-business processes, leading to stronger collaboration and mutual effort from both partners to ensure the partnership thrives.

Méndezetal.,2014).Rauyruen&Miller(2007)suggestt h a t commitmentcanleadt oseveralbenefitreapingopportunitiesforafirm,suchasw o r d ofmouthcommunicationsan dhigherpurchasingpatterns.Forthisstudy,itisadoptedthe“bonding”conceptasfollowi ngSinetal.(2005).

Communicationsi s s e e n a s t h e g l u e t h a t h o l d s t o g e t h e r a c h a n n e l o f d i s t r i b u t i o n (M oh r&Nevin,1990).Inaddition,communicationsreferstoformalandinfo rmale x c h a n g i n g andsharingofmeaningfulandtimelyinformationbetweenbuye rsandsellers(Sinetal.,2005).Besides,c o m m u n i c a t i o n s plays animportantrole i n theformationof cooperationand trust(Anderson &Narus, 1990).Itisalsoaneffectiver e l a t i o n s h i p buildingstrategythathelpsresolvedisp utes,aligngoals,anduncovern e w v a l u e c r e a t i n g o p p o r t u n i t i e s ( M o r g a n

G e n e r a l l y , i n t o u g h c o m p e t i t i o n c o n t e x t , t h e a c c u m u l a t i o n o f t r u s t l e a d s t o i n c r e a s e d s h a r i n g o f i n f o r m a t i o n andb e t t e r co m mu n i cat io n s insubsequentexchangebetweenpartners(Lewin&Johnston,1997)

Shared value refers to the common beliefs partners hold regarding the importance and appropriateness of behaviors, goals, and policies (Morgan & Hunt, 1994; Sinetal., 2005) It encompasses the degree to which partners agree on the significance, correctness, and magnitude of these elements (Morgan & Hunt, 1994; Luu, 2017) According to Mukherjee & Nath (2007), high levels of shared values enhance feelings of association and foster long-term relationships, significantly impacting relationship commitment The stronger the relationship enhancement through shared values, the more satisfied customers are likely to be (Nguyen & Viet, 2012) Morgan & Hunt (1994) conceptualize shared values as the extent to which partners share beliefs about the importance, appropriateness, and rightness of behaviors, goals, and policies.

Empathyisdefinedasseekingtounderstanddesiresandgoalsofsomebodyelse(Sine t al.,2005b).Withoutempathytounderstandandadapttobuyerneeds,thereciprocal favorsmaynotbechosenappropriately(Geddieetal.,2005).Therefore,empath yf a c i l i t a t e thecommunicationsbetweenthebuyerandtheseller,consequentl yincreasingbuyers’understandingofhowtheindustryoperates(Coulter&Coulter,2 0 0 3

; Nguyen&Viet,2012).Empathyenablesapartnertolookatthesituationfromt h e o t h e r p a r t n e r ’ ss t a n c e (Wang2 0 0 7 ; Luu,2 0 1 7 ) I n R M O c o n c e p t , e m p a t h y d i f f e r e n t i a t e s theorganizationfromtheothers intheeyesof customers.Thismeans,w he n theorganizationempathizeswithitscustomers’situationfromtheirstanc e,theyw i l l begratefultotheorganization(Wang2007).Moreover,itwillfindevenworthiert o affil iatewithandreciprocate(Luu,2017).

(2005)indicatesreciprocitya s ‘‘theprocessesthatenablecustomerstointeractandshare informationwiththefirmandthatenablethefirmtor e s p o n d tocustomers’’(p.178).Reci procityisrequiredinRMO.Thereciprocatinge f f e ct s ontrustandcommunications. Thisleadstoincreasingsatisfactionwithther e l a t i o n s h i p , inturn,leadstolo ng- termcommitmentintherelationship(Lewin&Johnston,1997).Reciprocitycau seseitherpartytoprovidefavorsfortheotherinr e t u r n forsimilarfavors tobereceived(Callaghan etal.,1995;Sinetal.,2005;Yaue t al.,2000;Nguyen&Viet,2012).

RMOi n c r e a s e s t h e p e r c e i v e d m e m b e r s h i p i n c u s t o m e r s a n d a c t i v a t e s r e c i p r o c a l co nt ri bu ti on s from customers(Morgan & Hunt,19 94 ; Gruen,

19 95 ; Gruen e tal., 2 0 0 0 ) R e c i p r o c i t y ofr e l a t i o n s h i p m a r k e t i n g a c t i v i t i e s c a n f u r t h e r e n h a n c e customers’s e l f -concepta n d s e l f - e s t e e m I n s o c i a l i d e n t i fi c a t i o n p r o c e s s , ‘ ‘ r e c i p r o c i t y ’ ’ componentrend erstheorganizationopenandresponsivetocustomers’interactionandfeedback(Tseetal.,2004;Jayac handranetal.2005;Luu,2017).R e c i p r o c i t y o c c u r s whenactionstakenbyoneexchangepartnerarematchedbytheo t h e r (DeWulf etal.,2001).

Marketorientation

Kohli and Jaworski (1990) define market orientation as the organization-wide generation of market intelligence related to current and future customer needs, alongside the dissemination of this intelligence across departments and the organization's responsiveness to it This approach establishes a systematic process for organizational marketing information, often utilized in firm strategy Market-oriented firms prioritize understanding their customers and competitors, actively seeking and reacting to feedback from both parties (Nguyen & Nguyen, 2011; Long, 2013) For example, these firms consistently gather information about their target customers to enhance their market strategies.

’needsandtheircompetitors’capabilities.Then,theyu t i l i z e thisinformatio ntocontinuouslycreatesuperiorcustomer value( N a r v e r &S l a t e r , 1990). Therefore,marketorientation relatestospecificandroutineprocessest h a t createsuperiorvaluestofirmstakeholders.Italsosu pportsfirmsingainingtheirsustainablecompetitiveadvantages.

Narver and Slater (1990) define market orientation as the organizational culture that effectively and efficiently fosters behaviors necessary for creating superior value for buyers, leading to continuous superior performance for the business Their definition encompasses three key behavioral components: customer orientation, competitor orientation, and inter-functional coordination To achieve this, managers must possess in-depth market knowledge and be prepared to leverage this information to enhance firm performance (Narver & Slater, 1994) Competitors often struggle to imitate market orientation due to the unique firm-specific information management and strategic management practices involved.

Clark& Wheelwright( 1 9 9 3 ) a r g u e t h a t e f f e c t i v e t e c h n i c a l s o l u t i o n s i n b u s i n e s s alwaysrequireusinginsightaswellas deepunderstandingaboutcus tomer.

Customer orientation is a philosophy focused on identifying and satisfying customers' wants and needs (Kohli & Jaworski, 1990) Market orientation involves ongoing processes that create superior value for customers while maintaining a leadership position through monitoring customer needs and investing in research and development for new products and services (Tse et al., 2004) This approach enables market-oriented firms to achieve sustainable competitive advantages (Baker & Sinkula, 1999; Slater & Narver, 1995; Cavusgil et al., 2005) Consequently, these firms are adept at retaining current customers and capturing a fair share of new ones (Tse et al., 2004).

Market orientation significantly impacts how firms process market information and prioritize resource allocation in their strategic planning (Baker & Sinkula, 1999) This process occurs within the internal environment of each company and is essential for formulating distinct strategies to achieve competitive advantages (Nguyen & Nguyen, 2011; Long, 2013) Firms can adopt varying degrees of market orientation based on their competitive environment and the roles they aim to fulfill in the marketplace Consequently, market orientation serves as an offensive strategy to capture market share and enhance a firm's position (Tse et al., 2004) Previous studies in strategic management and marketing have established that firms must consider environmental characteristics when choosing, developing, and implementing their strategies (Slater & Narver, 1995; Sin et al., 2005).

Market- o r i e n t e d f i r m s r e g u l a r l y c o l l e c t i n f o r m a t i o n fromt h e marketc o n d i t i o n s , t a r g e t customerneedsandcompetitorinformation.Then,theyusetheseinformationt o c o n t i n u a l l y c r e a t e b e t t e r c u s t o m e r v a l u e ( N a r v e r & S l a t e r , 1 9

(2004)expressthatmarketorientationembraces activities,c o o r d i n a t i o n ofvariousfunctionalareasinanorganizationtosatisfycustomers’needsan d monitorcompetitivemoves.Allthesewillgearatcapturingmarketshareandp romotea fi r m ’ s l e v e l o f p e r f o r m a n c e A c c o r d i n g t o K o h l i & J a w o r s k i ( 1 9 9 0 ) , towardsthemarketingconcept,marketorientationiscommonlydefinedasap h i l o s o p h y o r wayo f t h i n k i n g t h a t g u i d e s t h e a l l o c a t i o n o f r e s o u r c e s a n d t h e f o r mu l at i on o f s t r a t e g i e s f o r a n o r g a n i z a t i o n ( S i n e t a l ,

2 0 0 5 ) B e s i d e s , K o h l i & Jaworski(1990)alsostatethatintegratedmarketingorganiza tionshouldconductstheintegrationofallfunctionalareasof t he or gan iza ti on to att aincorporategoals bysatisfyingcustomerneedsandwants.

&Jaworski,1993;Baker&Sinkula,1999;Sinkulaetal.,1997).Similarly,Narver&Slater(199 0)determinedthatmarketorientationwillcreatenecessarybehaviorstob u i l d upma ximumvaluestocustomers.Resultsofpreviousstudiesshowthatmarketorientationcontribu tesinbothdirectandindirecttofirmperformance(Nguyen&Nguyen,2008;Ngu yen&Barrett,2006).From anempiricalevidence,

Long(2013)s h o w s t h e s t u d y o f Vietnamesem a r k e t i n g c o m m u n i c a t i o n s c o m p a n i e s h a v i n g a p o s i t i v e relationshipbetweenmarketorientationandfi rmperformance.Also,Long( 2 0 1 5 ) expresses a surveywas undertakeninthe Mekong

Delta, Vietnamwith localcompanies,marketorientationhaspositiveimpactonfirmperformance.Whileatlowl e v e l o f markett u r b u l e n c e , G r e e n l e y ( 1 9 9 5 ) , c o n d u c t e d inUK,f o u n d a p o s i t i v e r e l a t i o n s h i p betweenmarketorientationandfirmperformanceaswell.

Therealsohaveasteady streamofresearchhas focusedontheimpactof marke to r ie n t a t i o n o n firmpe r f o r m a n c e , i n V i e t n a m c o n t e x t s u c h a s N g u y e n & N guyen

(2008,2 0 1 1 ) , N g u y e n & B a r r e t t ( 2 0 0 6 ) , L o n g ( 2 0 1 5 ) B e s i d e s , S i n e t a l ( 2 0 0 2 ) providea s u m m a r y o f p r i o r e m p i r i c a l s t u d i e s o n t h e a s s o c i a t i o n b e t w e e n marketo r i e n t a t i o n andfirmperformance.Theyreportthatnearlyallstudies findthesupportf o r positiveassociationbetweenmarketorientationandfirmperformance.According t o them,firmperformancemeasuresusedinthesestudiesrangefromhardmeasuress u c h a s r e t u r n o n i n v e s t m e n t , s a l e s g r o w t h , a n d markets h a r e , t o s o f t measu resincludingorganizationalcommitmentandespritdecorps(Sinetal.,2005).Therefore,inthisstud y,itisproposedthat

CorporateSocialResponsibility-CSR

The concept of corporate social responsibility (CSR) began to take shape in the 1950s, marking the modern era of CSR During this time, discussions around CSR were limited, but key figures like Frank Abrams, a former executive at Standard Oil Company, emphasized the need for management to recognize their broader responsibilities beyond profits, considering employees, customers, and the public Frederick (2006) identified three core ideas about CSR that emerged in the 1950s: the manager as a public trustee, the balancing of competing claims to corporate resources, and the importance of corporate philanthropy in supporting good causes.

(Marium&Y o u n a s , 2017;Buchananetal.,2018).Still,thisdefinitionhadbeenexpandedduringt he1960sandproliferatedduringthe1970s.

In the 1960s, companies largely overlooked the social environment as we understand it today However, the 1970s marked a pivotal shift, as corporate social responsibility (CSR), responsiveness, and performance became central topics of discussion (Carroll & Shabana, 2010) Notably, the Harvard Business School initiated a project on CSR in the early 1970s, resulting in extensive findings This project was crucial in developing the "corporate social responsiveness model," which emphasized responsiveness over responsibility, allowing researchers to connect social issue analysis with traditional strategy and organization frameworks (Freeman & Reed, 1983).

S R1e highlights the importance of companies adopting a socially responsible stance, while CSR2 emphasizes the need for a responsive approach to societal issues (Carroll & Shabana, 2010) In the 1980s, the concept of CSR evolved rapidly, driven by changing social environments and emerging pressures, leading to more empirical research and new definitions (Carroll, 1991) This period marked the beginning of the "corporate/business ethics" stage, focusing on fostering ethical corporate cultures (Frederick, 2008) By the 1990s and 2000s, global corporate citizenship gained prominence, and the early 2000s saw a growing interest in sustainability, which became a central theme in CSR discussions and analyses (Carroll & Shabana, 2010; Frederick, 2008).

Inrecentyears,CSRconcepthascontinuouslybeenreceivedanincreasingamounto f a ttentionsinmanywaysfromacademicscholars.Generally,CSRreferstoafirm’sactivities,ororga nizationalprocesses.Itsstatusassociateswithrelationtoperceivedsocialandstakeholderobliga tions(Galbreath,2009).AccordingtoFreeman&Reed(1983),stakeholdertheoryisseen asthemostpopularandinfluentialtheorytotheCSRfield.Therefore,theapproachofCSRc onceptisbasedonstakeholderapproacha n d discussionofthedebateonbusinessandsociety relationships(Yoon&Chung,

In their study on multinational corporations (MNCs) in Penang, Lai Cheng and Ahmad (2010) categorize stakeholders in corporate social responsibility (CSR) into two groups: primary stakeholders—such as employees, customers, the local community, suppliers, business partners, the natural environment, future generations, and non-human species—and secondary stakeholders, which include government regulators, civic institutions, social pressure groups, media, academic commentators, trade bodies, environmental interest groups, and animal welfare organizations Turker (2009) defines CSR as corporate behaviors aimed at positively impacting stakeholders while going beyond mere economic interests Furthermore, CSR activities often focus on the positive contributions companies can make, and there is nothing wrong with enhancing these good works (Freeman & Velamuri, 2008).

Corporate Social Responsibility (CSR) is defined as a company's commitment to sustainable economic development by engaging with employees, their families, the local community, and society to enhance the quality of life (2002) Kotler and Lee (2005) emphasize that CSR involves improving community well-being through voluntary business practices and corporate resource contributions By participating in social activities, firms can cultivate a positive image among consumers, investors, distributors, shareholders, media, and even governmental bodies, which can motivate employees and garner managerial support Sethi (1995) describes CSR as corporate activities impacting various social groups, while Freeman and Velamuri (2008) highlight that the primary goal of CSR practices is to create value for key stakeholders and meet responsibilities toward them Additionally, related concepts such as corporate social responsiveness, corporate social performance, corporate citizenship, and stakeholder management have been widely discussed in the context of CSR (Qu, 2009).

TherehavenumerousstudiesattemptingtodefineCSRfromvariousperspectiveind e t a i l withdescriptionsrangingfrom“philanthropy”to“businessethics”.Kotlerand

Regular exercise and physical activities significantly improve overall health, enhancing mood, efficiency, and longevity, as highlighted by Lee (2005) Similarly, businesses engaging in social activities experience tangible benefits, reinforcing their commitment to corporate social responsibility (CSR) CSR not only strengthens relationships with stakeholders but also builds greater trust and confidence among them By fostering a positive image, companies can attract new customers while retaining the loyalty of existing ones, ultimately optimizing positive outcomes and minimizing negative impacts (Lai Cheng & Ahmad, 2010).

Smith(1994)mentionsthechanginginpatternsofsocialcontributionactivitiesfromenterprise s,b a s i c a l l y , i t i s s t i l l n o t e n o u g h I n o t h e r w o r d s , s o c i a l c o n t r i b u t i o n activitiesarenotonlysupportingandsolvingsocialproblems,buttheyalsoimprovet h e q u a l i t y o f l i f e andt h e r e f o r e improvep o s i t i v e i m a g e i n o r d e r t o r a i s e firmperformance.S u c h a s , f i r m c o u l d s u p p o r t p h y s i c a l i t e m s , r a i s i n g f u n d s , o r e v e n r e l a t i n g tomentalissues.Althoughtherehavemany point- of- viewtoCSRresearchi n thefieldofmanagementandbusinessethics,Carroll’s(1979)concept ualizationoftheresponsibilitiesoffirmshasremainedaconsistentlyandwideacceptedappr oach( G a l b r e a t h , 2009).Thisreviewofliterature hasbeensuggestedasa classificationCSRframework.Moreover,thisconceptualizationsuggeststha talthoughallfirmsh a v e thesameresponsibilities,notallfirmsdemonstrateCSRequally(Bir ch,2002).

AccordingtoCarroll(1979),CSRisamulti- dimensionalconstruct,consistingoffourtypesofresponsibilities:economic,legal,ethicalanddiscretionary

Carroll (1991) presents a comprehensive view of Corporate Social Responsibility (CSR), identifying four key dimensions: economic, legal, ethical, and philanthropic These dimensions are interrelated and help managers understand the various obligations that can often conflict with one another Furthermore, Schwartz and Carroll (2003) expand on this framework by integrating a social approach, combining the original dimensions with stakeholder considerations and introducing additional aspects such as social and environmental responsibilities This study continues to uphold and apply Carroll's four dimensions of CSR.

Economicdimensionof CSRconcernstothefirm’seconomicresponsibilitiest o itsstakeh olders(forexample,firmoperationefficiency,businessstrategies,firmc o m p e t i t i v e n e s s , firmvalue,etc.).Maher&Andersson(2000)claimthatownersoffirmalwaystr ytomonitorandcontrolfirmmanagers’activitiesandtheseactionsr e s u l t t o agen cyc o s t s I n a d d i t i o n , C r e m e r s e t a l

In competitive industries, firms often face high agency costs due to managers entrenching themselves, as defined in 2008 Agency theory highlights that principals hire agents to perform tasks, and this relationship can be managed through control structures and economic incentives (DelBaldo, 2012) Additionally, by meeting stakeholder demands, firms can foster trust and loyalty among stakeholders Therefore, management must actively engage with all stakeholders to shape business strategies and achieve objectives Donaldson and Preston (1995) assert that managers who consider stakeholder interests tend to enhance firm performance Moreover, Jensen (2010) emphasizes that to maximize value, firm managers must not only satisfy but also secure the support of all stakeholder groups.

Legaldimensionrelates tofirm’sobligationintermofrulesandregulationswhi chisestablishedbylawmakers.Maher&Andersson(2000)arguethatthelegalp r o tect i o nfromexpropriationbymanagerssuchastheprotectionandenforcementofshareholderrights,a ndprohibitionsagainstinsider- dealing.Firmmanagershavetot r e a t stakeholdersinfactbasingontheroleofbusiness ,therights,theneedswhichco n n e c t t h e m , a n d ont h e r e s p o n s i b l e u s e o f p o w e r i n p o l i t i c a l a n d s o c i a l a r e n a s (Donaldson&Preston,1995;DelBaldo,2012).In addition,toporganizationm a n a g e m en t shouldrecognizethecompanylegitimacy gapandcarryoutnecessarysocialp r a c t i c e s ino r d e r t o s t r e n g t h e n s t a k e h o l d e r s ’a c c o u n t a b i l i t y ( K h a n eta l , 2 0 1 3 )

The ethical dimension of a firm's responsibility extends beyond legal obligations, highlighting the importance of decision-making that considers the interests of all stakeholders According to Jensen and Meckling (1976), the separation between owners and managers can result in actions that prioritize managers' interests over maximizing owners' value This issue is compounded by asymmetric information between owners and managers, which grants managers greater control over the firm's resources (Hill & Jones, 1992) To address this, firm managers should focus on the interests of all stakeholders, grounded in the principles of universal rights and sustainable development (Donaldson & Preston, 1995; Del Baldo, 2012) Jones (1995) emphasizes that proponents of stakeholder theory seek to clarify the actions of managers regarding stakeholder relationships Effective corporate governance fosters relationships among stakeholders, enabling them to collaborate on corporate strategies that enhance overall organizational performance (Trong, 2014).

Philanthropicdimensionrefers tofirm’sresponsibilityengaginginactivitiest h a t pro motehumanwelfareorgoodwill.Philanthropycanhelpfirmsgaintheirsociall e g i t i m a cy orapproval fromthepublic,includingtheirkeystakeholders.Lindblom( 1 9 9 3 ) consiststhatthe organizationwillreceivesupportsfromstakeholdergroupsa n d continueinexiste nceinsofarifitsactivitiesgivebenefits,oratleastarenotharmful tosociety.Phil anthropypromotesfirmtakingits cooperationsandsupportsf r o m theirstakeholders(includingemployees,supplier s,customers,anditslocatedcommunity)

( 2 0 0 6 ) s u g g es t firmmanagersmayusefirms'resourcesforphilanthropyasasignalofthei rproductsandt h e i r commitmenttocustomers.Theyfindthatcorporatephilanthropyandprofits arepositivelyr e l a t e d i n t h e i n d u s t r i e s withh i g h c o m p e t i t i o n a n d h i g h a d v e r t i s i n g ex p en s e s Ingeneral,stakeholderswillnotonlyreacttot hecharitablebehaviorbyprovidinggreatercooperationandsupports,butalsotend ingtoimprovefirmperformance(Wang&Qian,2011).

Firmp e r f o r m a n c e iss e e n a s t h e d e g r e e o f e n t e r p r i s e ’ s achievement.F i r m performanceisexpressedasprofitsandmarketsharegrowth,achievementinsales a n d strategicobjectivesofenterprise(Cyer&March,1992;Kehetal.,2007;Wu&C a v u s g i l , 2006).TherelationshipbetweenCSRandfirmperformancehasattractedmuchinte reststowardsscholars.Accordingtosocialresponsibilitytheorists,firmss h o u l d enga geintheiractivitiesthatbringbenefitstostaff,suppliers,customersands o c i e t y (Mackeyet al.,2007).Besides,whenafirmconductingitsCSRengagements,i t willpositiveinfluenceopera tingperformanceaswellasitsvalue(Harjoto&Jo,2011).

Therehavemanystudiesaswellasmanagementliteraturestestifyingtheposit iveimpactsofCSRonfirmperformance(Qu,2009;Luo&Homburg,2007;Long,2015;M a r i u m

& Younas,2017;Kaoetal.,2018;Yoon&Chung,2018).Ingeneral,CSRactivitiesmention tomakingbusinessdecisions.CSRactivitiesassociatewithethicalv a l u e s , compliancewithlo callegalrequirements,respectpeople,communitiesandcompany’se n v i r o n m e n t F o r e x a m p l e , S h e i k h ( 2 0 1 8 ) s t a t e s t h a t C S R a c t i v i t i e s e n h a n c e thefirmv a l u e byb a l a n c i n g t h e i n t e r e s t s o f a l l s t a k e h o l d e r s K a o e t a l ( 20 18 ), int h e i r studyw i t h n o n - s t a t e o w n e d e n t e r p r i s e s i n C h i n a , f i n d t h a t C S R engagementaffectstofir m performancepositivelyincontextoflessofgovernmentintervention.Similarity,Yoon&C hung(2018)conductthestudyintheUSrestauranti n d u s t r y withresultthatinternalCSRincr easesafirm’soperationalprofitability.

However,therehavesomestudiesexpressingthenegativeornorelationbetwe enCSR andfirmperformance.Forexample,findingsregardingtothelinkbetweenCSRandfirmpe rformancehavereportedanegativerelationshipsuchasVance(1975),Ullman(1985),Lee&Faff(2009);ornorelationshipsuchasAlexander&Buchholz( 1 9 7 8 ) , Abbott&Mons en(1979),Aupperleetal.(1985);orCSRhasnoimpactonafirm’sprofitability such asKangetal.(2010)andLeeetal.(2013).This study tries toc o n t r i b u t i n g thee x i s t i n g bodyo f k n o w l e d g e byp o s i t i n g t h a t C S

Firmperformance

Firm performance is defined as the achievement of a company's objectives, typically measured through profits, market share growth, sales achievements, and strategic goals (Cyer & March, 1992; Keh et al., 2007; Wu & Cavusgil, 2006) It is a multidimensional construct that can be assessed in various ways Wang et al (2016) suggest that firm performance encompasses both market expansion and financial returns, evaluating a firm's sales growth, market share, and return on investment in comparison to major competitors Venkatraman and Ramanujan (1987) categorize firm performance into two dimensions: market performance and financial performance Traditionally, firm performance has been gauged through financial metrics like turnover and profit; however, since the 1980s, additional measures such as market development and customer satisfaction have been incorporated to provide a more comprehensive view of overall performance (Franco & Santos, 2007).

Delaney&Huselid(1996)statethattomeasuretheperformance,itisnecessarybasedo n t h e assessme ntofp e r c e p t i o n s o f organizationalp e r f o r m a n c e a n d marketperformance.I n p a r t i c u l a r , o r g a n i z a t i o n a l p e r f o r m a n c e isc o n s i d e r e d t h r o u g h t h e a w a r e n e s s ofsuchfactorsasproductquality,servicequality,theabilitytodevelopp r o d u c t s , t h e a b i l i t y toa t t r a c t a n d r e t a i n e m p l o y e e s , c u s t o m e r s a t i s f a c t i o n , t h e relationshipbetweenmanagementandstaff,relationshipamongemp loyees.And,themarketperformanceincludemarketingactivities,revenuegrowth,profitsandmark et share(Wu&Cavusgil,2006).Ontheotherhand,Lietal.

In 2009, firm performance was measured through three dimensions: efficiency, growth, and profit Efficiency was assessed using return on investment, return on equity, and return on assets over the past three years Growth was evaluated based on sales growth, employee growth, and market share growth Profit was measured by return on sales, net profit margin, and gross profit margin Additionally, Hughes & Morgan (2007) proposed two trends for evaluating firm performance: customer performance and product performance Customer performance focuses on a firm's ability to attract, retain, and establish sustainable relationships with customers In contrast, product performance is determined by the success of a firm's sales and the market share of its products or services.

Iti s r e c o g n i z e d t h a t d i f f e r e n t o r g a n i z a t i o n a l s t r a t e g i e s a n d a c t i v i t i e s m a y h a v e d i f f e r e n t effectsonthedimensionsoffirm performance(Rayetal.,2004;Lumpkin

The Balanced Scorecard (BSC), introduced by Kaplan and Norton in 1992, has significantly advanced firm performance measurement, proving effective in both research and practical business environments This tool quantifies key business activities across various aspects, including finance, sales and marketing, internal operations, and personnel administration However, its application in Vietnamese firms has been limited (Long, 2015) Consequently, this study focuses primarily on market performance, which is assessed through perceptions of market share growth and customer satisfaction related to the firm's products and services Additionally, the performance scale in this study is based on the framework established by Keh et al.

MarketorientationandCSR

Marketo orientation encompasses three key behavioral components: customer orientation, competitor orientation, and inter-functional coordination, all of which are closely linked to the external environment of customers and competitors Market-oriented firms actively gather information about their target customers' needs and competitors' capabilities to enhance their reputation, which is considered a vital strategic asset for maintaining competitive advantages Companies can choose to be reactive, meeting only the minimum stakeholder standards for social responsibility, while different stakeholder groups may have varying preferences for socially responsible activities they wish to see the firm invest in Consequently, Marketo orientation involves specific and routine processes that create superior value for customers and help firms achieve sustainable competitive advantage.

According to CSR theorists, Corporate Social Responsibility (CSR) focuses on the environmental and community impacts of a firm's operations Research by Fombrun and Shanley (1990) highlights that investing in CSR activities is essential for product differentiation and reputation building Studies by Brown and Dacin (1997), Sen and Bhattacharya (2001), and Ellen et al (2006) found that CSR significantly influences consumers' purchase intentions and perceptions of firm products Previous research indicates that CSR provides a competitive advantage for enterprises, making it crucial to effectively manage a company's image through CSR initiatives (Kang et al., 2010).

In today's business landscape, customers have elevated expectations regarding a firm's corporate social responsibility (CSR) activities Market-oriented companies are quick to recognize the significance of CSR and its role in enhancing overall firm performance The critical question is how CSR initiatives can specifically benefit market-oriented firms operating within transitional economies Both market orientation and CSR are acknowledged as vital factors influencing firm performance; however, there is a lack of research exploring their combined effects This study aims to contribute to the existing literature by demonstrating the relationship between market orientation and CSR, highlighting their impact on improving firm performance.

Moreover,insuchemergingeconomycontextlikeVietnam,thisstudypositsthatMOimpactson CSRasfollowingQu(2009)andLong(2015).Hence,

RMOasmoderatorforMOandFirmperformance

Helm(2007)suggestthatMOandRMOareasstrategicorientationsb ei n g employedintan dem,superiorcustomervalue.TheyalsostatethatMOcouldb eobtainedtheresultinorganiza tionalperformancethroughRMO.Moreover,Tseetal(2004)statethatitisdeemednecessaryf oraleaderinamarketplacetocultivatet r u s t , b e e m p a t h e t i c w i t h c u s t o m e r s ’ r e q u i r e m e n t s , a n d s t r e n g t h e n i t s b o n d s w i t h customers.T h e s e m a y maintain a s t r o n g r e l a t i o n s h i p a m o n g them.Withmulticontexts,i t i s i m p o r t a n t t o n o t e t h a t t h e R M O f o c u s e s o n t h e b u y e r a n d s e l l e r r e l at i o n sh ip be nefits(Sinetal.,2005;Van&Mathur-

Helm,2007).Inaddition,RMOmeasurestheextenttowhichafirmengagesindevelopingal ongtermrelationshipw i t h itscustomers(Sinetal.,2005).Inservicesector,therelationshipm arketinghasr ep l a ce d th e t r a n s ac t i o n a l marketingp a r a d i g m w h i c h m o s t l y foc usedo n t h e 4 P ’ s a p p r o a c h (Gronroos,1999;Van&Mathur-

Helm,2007).Apositiverelationshipwitht h e h i g h l e v e l s o f i n n o v a t i o n a n d c u s t o m e r o r i e n t a t i o n , c o m p e t i t o r o r i e n t a t i o n isexpectedtoaffectpositivelybusi nessperformance.RMOpurportstothecreationofstrongercustomerrelationshipsthate n h a n c e s p e r f o r m a n c e o u t c o m e s ( N g u y e n & Viet,2012)

A substantial body of literature supports the positive relationship between market orientation (MO), relational market orientation (RMO), and firm performance, particularly within the service industry (Smith, 1991; Tse et al., 2004; Sin et al., 2005) Market orientation involves coordinating various functional areas within an organization to meet customer needs and monitor competitive actions In contrast, relational market orientation focuses on building relationships through trust, empathy, bonding, and reciprocity between a firm and its customers Both MO and RMO are essential for capturing market share and enhancing a firm's performance (Tse et al., 2004).

MOandRMOarestrategicorientations(Sinetal.,2005),afirmcanadoptinvariousdegr ees dep endingontheconditionsofcompetitiveenvironmentinwhichthefirmo p e r at e s T h e r e f o r e , S i n e t a l

( 2 0 0 5 ) a l s o s u g g e s t t h a t d e p e n d i n g o n t h e ch ar a ct e r i s t i c s ofcompetiti veenvironment,afirmmayexperiencedifferentlevelsofi t s performance.Theseareconting entonitschoicebasingontheappropriateblendo f MOandRMO.However,thelevelofMOinf luenceonfirmperformancemayvaryw h e n themoderatingeffectsofRMOisconsideredrespectiv ely(Tseetal.,2004;Sine t al.,2005;Luu,2017).Thisstudyaimstoprovidingeither evidencetogrowingbodyofliterature themoderationroleofRMOwhich impa ctsontherelationshipbe t w e en MOandfirmperformance.Since,

RMOasmoderatorforCSRandFirmperformance

Thetransactionalcosttheoryisusedtoexplaintheimportance ofpersonal r e lat io nships, orguanxi,inimperfectcompetitiveeconomies.Thisusually hap penandhas b e e n c h a r a c t e r i z e d byweakmarket- institutionalsupportinareassuchastransparentlawsandregulations(Tseetal.,2004;Sinetal ,2005).Withoutastrongmarket- institutionalframework,firmswillattempttominimizebusinessuncertaintiesbyengagingin buildingpersonalrelationships.Mostly,alltheserelationshipsrelatet o g o v e r n m e n t a l b o d i e s , majorr e s o u r c e s u p p l i e r s a n d keyc u s t o m e r s ( S i n e t a l , 2 0 0 5 ) Besides,theserelationshipscouldeventuallypermeateinimprovedbusinessperformanc e(Van&Mathur-

Helm,2007).Even,Wong(1998),inhisstudiesthee f f e c t ofguanxiandrelationship performanceonindustrialbuyinginChina,suggestst hatfirmsshouldadaptrelationshipmarketi ngplanstothechangingenvironmentofC h i n e s e market(Sinetal.,2005)

According to Oliver et al.(2000),the concept of relationshipmarketingmentionstof o s t e r i n g along- termrelationshipandtherebycreaterepeatpurchases.RMOcreates thelinkallrelatedpartieswithhighlevelsofcooperationandinterdependence.Then,i t e s t a b l i s h e s h i g h e r l e v e l s o f s t a k e h o l d e r s a t i s f a c t i o n s a s w e l l a s e f f e c t i v e f i r m performance(Oliveretal.,2000).Firmobtainsitsbenefitsfromformingsustainabler e l a t i o n s h i p s withrelevantstakeholdersthatcouldbestrengthenedbyRMO(Van&Math ur-

Helm,2007).Forthisreason,RMOreflectsthefirms’philosophyofdoingb u s i n e s s RMOconcernstotherelationshipestablishingbycultivatingthroughtrust,empathy,bondin g,andreciprocitybetweenafirmandallitsstakeholdergroups(Sine t al.,2005;Tseetal.,2004;Ngu yen&Viet,2012).SixcomponentsofRMOincreasecustomers’positiveevaluationsintermofasociall yresponsibleorganization’sstatusa n d values(Luu,2017).Thisstudytriestoprovidingeithereviden cetogrowingbodyo f literaturethemoderationroleofRMOwhichimpactsontherelationshi pbetweenC S R andfirmperformance.Therefore,

RMOasmoderatorforMO&CSR

RMOconsistsofmarketingactivitiesorientedtoward customerintereststoincreasep e r c e i v e d membershipincustomers.Consequently,RMOactivities bringCSRvaluesc l o s e r t o c u s t o m e r s a n d f u r t h e r i n c r e a s e r e c i p r o c i t y fro mt h e m ( L u u , 2 0 1 7 ) Asanalyzedabove,MOalsorelatestospecificandroutineprocessesth atcreatesuperiorvaluestocustomersandreflectsanorganization’sorientationtowarditsstakeholders T h e r e fo r e , therehasthegrowingscholarlyattentionontheattitudesandbehaviorsofo r g an i z at i o n al s t a k e h o l d e r s t h r o u g h R M O ( H e & L i , 2011;

Luu,2017).R M O en gend er s customers’embedded relationshipsandmaydr ivecustomerstofurtheridentifywithorganizationsandtheirCSRvalues.Itmakesthemfurther perceivetheirm e m b e r s h i p thatCSRshaping(Raoetal.,2000).

The relationship between Corporate Social Responsibility (CSR) and Marketing Orientation (MO) can be enhanced through a firm's activities aimed at deepening customer connections (Long, 2015) Relationship Marketing Orientation (RMO) plays a pivotal role in this enhancement by encouraging customers to align with the organization's CSR values (Luu, 2017) and actively participate in the market orientation process RMO reflects the trust and care a firm has for its customers, fostering a stronger bond (Tse et al., 2004) Additionally, a socially responsible firm benefits from RMO by improving customers' perceptions of its status and image (Luu, 2017) Overall, a relationship marketing strategy enables socially responsible organizations to invest in building robust relationships with stakeholders, who, in turn, recognize the value of these connections and commit to sustaining them (Lagace et al., 1991; Luu, 2017) This study aims to provide evidence of RMO's moderating role in the relationship between MO and CSR.

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Marketorient ationandcom panyperform ance:empiric alevidencefro mUK companies

UK Theoverallaimo f study reported tobuild on thislimitedempi ricalevidencea b o u t a relationshipby achieving new insights from anothernation albusinesscultu re,namelytheU

UKcompanies Survey Ther e s u l t s f r o m t h i s studysu g ge s t t h a t t h e influe nceofmarketorientat ion on performance is moderated byenv ir on men tal va riables.

Theys u g g e s t t h a t marketo r i e n t a t i o n maynotbe advantageous inhighly turbulentmarkets,a n d i high technologicalchange Long,2013 TheRelationsh ipamongLear ningOrientatio n,MarketOrie ntation,Entre preneurialOri entation,and

Vietnam Thisp a p e r e x aminestherelat ionship amonglearnin gorientation,m arket orientationande n t r e p r e ne uria lorientationandh owtheseaffect firmperformanc eina transitioneco nomylikeinViet nam.

Amodelincorporat ingthekeydetermi nantswastested wi thasampleof642o wners,seniorman agersandCEOsin Vietnammarketin gcommunicatio nsfirms.

Structuralequatio nmodeling(SE M)wasusedtoanal yze thecollecteddata.

Theresultsshowedthat e n t r e p r e n e u r i a l o r ientationandmarket orientationh a v e a p ositiveimpactonfir mp e r f o r m a n c e

Amajorlimitation ofthisstudyisthee xaminationofonl ythreeconceptst hatimpactonViet nammarketingco mmunic a tions firmperformance :entrepreneurialo rientation,marke torientat io n a n d learningorient ation.

Severalotherconc eptsofdynamicca pabilitiesmaybein stigatedinotherin dustriesapartfro mmarketingco m m u ni c a ti o n s fi rms.

005 et al, Ananalysisofth erelationshi pbetweenma rketorientati onand businessperfor mancein the hotelindustry

Thepurposeo f thisstudywas toc o n d u c t a n investigationi nto the linkbetweenma rketorientatio n andbusinessper formancei n the

Data weregeneratedf rom63hotelsinHo ngKong.

Thefindingsindicatedt hatmarketorientationis positively andsignif icantly ass ociated with themarketingperforman ce andfinancialp e r f o r m a n c e ofahotel.

TheWTO, marketingandi nnovativeness capabilities ofVietnamese firms

Vietnam This studyaimstoex ploretheimpact ofVietnamesefi rms'expectatio nsofopportuniti esprovided bythe expectedWTO opportunitieso n their marketingandi nnovativenessc apabilities,ands ubsequently,

WTOopportuniti es,marketing andinnovativenes scapabilities,and businessperforma nce bymeans of structuralequatio nmodeling wastested.

WTOopportunities hadpositive impacts onboth marketing andinnovativenesscap abilities.Further,mark eting andinnovativenesscap abilities underliebusinessperfo rmanceofVietnamesef irms

WTOononlytwo firmcapabilities: marketing andinnovativene ss. on businessperfor mance

Long,2015 Theimpactof marketorient ationandc o r p o r a t e soci alresponsibi lityon firm performance:e videncefrom Vietnam

Vietnam The researchexamine s the impact ofmarketorient ation andcorporateso cialresponsibilit y(CSR)onf i r m performance andh o w f i r m performanceisa ffected bythesefactor sina

A model incorporatingt h e key d e t e r m i n a n t s wastested withasampleo f 2

Vietnameseenterp risesi n t he Mekon gDelta.

Fourc o n c e p t s o f CSRa r e u s e d i n study:econom ic,legal ,ethical andphilanthropi c.

Marketorientati oncomprises threebe h a v i o r a l components:cust omerorientation, competitoro rien t a t io n , andinter- functionalcoo rd in atio n.

A major limitationofthisst udy is theexaminatio n oftwoconceptsthati mpact onVietnamesefir ms’performance

Structuralequatio nmodeling(SEM) w as used toanalyzethedata collected

Corporategov ernanceand firm value: The impact ofcorporateso cialresponsi bility

TheUS Thisstudyinvest igatestheeffects of internal andexternalcor porategovernan ceandmonitorin gmechanismso nthe choice ofcorporate

Corporategoverna nce andfirm value aremeasured byindustry- adjustedTobin’sq

Theresultsshowthat Needsa broader CSRengagementpositi velyinfluencesfirmval uemeasuredbyindustry -adjustedTobin’sq.

Theyfindthattheimpact ofanalystfollowingforf irmsthatengageinCSR on external socialenhanceme nts uc h as communityrelat ion andenvironmenta lconcerns social firmvalueisstrongly responsibility(

CSR) engagementand thevalueof firms engaging inCSRactivities positive.

Long,2015 Theimpactof marketorient ationandc o r p o r a t e soci alresponsibi lityon firm performance:e videncefrom Vietnam

Vietnam The researchexamine s the impact ofmarketorient ation andcorporateso cialresponsibilit y(CSR)onf i r m performance

A model incorporatingt h e key d e t e r m i n a n t s wastested withasampleo f 2

Structuralequatio nmodeling(SEM) w as used toanalyzethedata collected

L ) almosthasnosigni ficant.OnlyP L 1 varia ble( w i t h λ .664)h a s s i g n i f i c a n t andnearlycompat iblewith ethical component.

A significant limitation of this study is the examination of two concepts that influence the performance of Vietnamese firms, particularly those in the Mekong Delta, within a transition economy It is crucial for senior managers, CEOs, and business owners to enhance their understanding of the importance of Corporate Social Responsibility (CSR) Research by Qu (2009) highlights the impact of market orientation and CSR on firm performance, providing evidence from China.

China Thepurposeoft hispaperistoinv estigatethejoint effectsofmarke torientation(M O) andcorporateso cialresponsibili ty(CSR)onfirm performance

Data werecollected via aquestionnairesur vey of star‐rated hotels inChinaandatotal of 143 validresponses

The hypotheseswere tested byemployingstru cturalequationmo dellingwithamaxi mumlikelihoodes timationoption.

It was found thatalthough both MOand CSR couldenhanceperform ance, oncetheeffectsofCSRa reaccounted for, thedirecteffectsofMO on performancediminishc

It nonethelessprov idesstrongeviden ce thatMO'simpact onorganizational performance ismediated byCSR

S R andperfor mance:Evide nce inChina

China Thestudyaimst o investigatewhe therownershipt ypeaffectstothe relationshipbet ween

Randomselected state- ownedenterprises andnon- stateownedenterp rises inChina

Simultaneousreg ression;Firmperf ormance ismeasured byTobin’sQ(Qit)

Variationsinmarketres ponsetoCSRengagem entbyfirmownershipty pe.CSRengagementaf fectsfirmperformance positively.

Mackey al,2007 et Corporatesoci alresponsibi lityand firmperforman ce:investor

Proposingatheore ticalmodelinwhi chthesupplyofan ddemand forso cially

Managers in publicly traded firms may engage in socially responsible activities that do not necessarily align with profit maximization The effectiveness of these activities in enhancing, diminishing, or having no effect on a firm's market value depends on how responsible behavior and investment opportunities are perceived Ultimately, these decisions can still lead to the maximization of the firm's market value by influencing the present value of future cash flows.

TheUS This study develops andtests a conceptualfram ework,w hi ch p r e d i c t s that

The results showsupport for thisframework.

Notably,t h e authorsfin dthatinfirms with lowinnovativenesscapa bility, partiallymediate s therel ationshi pbetween

(2)corporateabil itiesmoderate thefinanci al r eturnstoCSR;

(3) thesemoderated r elat io nships aremediatedby customersati sf levelsand,throughthelo weredsatisfaction,har msmarketvalue.

Impacts ofpositive andnegative corporatesocia lresponsibili tyactivities onco mp an y performancei n the hospitalityind ustry

TheUS Researchmeasu ring theseparateimpa cts of positive andnegative CSRactivities oncompanies’f i n an cia l perfo rmancesrema ins

Firmsc o m i n g from hotel,casino,res taurantand airlinecompanies

Study examinesdifferent impacts ofp osit iv e andnegati veCSR activities onfinancialp e r f o r m a n c e of hotel, casino,restaurantand airlinecompanies,theo reticallybasedonpositi vity

Differentindustri es andwillcontribut etocompanies’ap propriatestrategic decision- makingfor CSR activities onfi n an cia l per formance

Australia This paper seeks to explore howcorporates ocialresponsibi lity

Bydrawinguponc lassicworkinthe field, thepaperfirstoffe rsconceptualdisc ussion and

Commonapproachest oCSR,suchasPRcamp aigns,codesofethicsan dtriplebottomlinerepo rtsarefartooremoved

CSRasanissueth atisstrategic,rath erthanonethat is problematicorpo tentiallya

(CSR)canbeeff ectivelybuiltint ofirmstrategy thensystematicall ydevelops a means of incorporatingCS

R into strategy fromstrategy.Tocount ercommonandgenerall y non‐ strategicapproaches,a frame workisoffered whichdemonstratesth atCSRcanbelinkedinte grally with strategy, and highlights anapproachtoconsider CSRacrosssixdimensi onsoffirmstrategy threat.Bydoings o, firms areofferedamea nstotakeamuchm ore proactiveapproac h toCSR thanpreviouslydi scussed

1BBuilding CorporateAss ociations:Cons umer

TheUS Thisr e s e a r c h examinedt h e i nfluence o f c onsumers’

Attributionsfo rCorporateSo ciallyRespo nsibleProgra ms attributions oncorporateoutc omes in response toCSR strategic whilerespondingn e g a t i v e l y toefforts perceivedasstakehold erdrivenoregoistic.

Qu,2009 Theimpactof marketorient ationandc o r p o r a t e soci alresponsibi lityon firm performance:e videncefrom China

China Thepurposeoft hispaperistoinv estigatethejoint effectsofmarke torientation(M O) andcorporateso cialresponsibili ty(CSR)onfirm performance

Data werecollected via aquestionnairesur vey of star‐rated hotels inChinaandatotal of 143 validresponses

The hypotheseswere tested byemployingstru cturalequationmo dellingwithamaxi mumlikelihoodes timationoption.

It was found thatalthough both MOand CSR couldenhanceperform ance, oncetheeffectsofCSRa reaccounted for, thedirecteffectsofMO on performancediminishc

It nonethelessprov idesstrongeviden ce thatMO'simpact onorganizational performance ismediated byCSR

Co- creationBeh avior:TheMod erationMecha nismsof

Vietnam Thepurposeo ftheresearchis toa s s e s s h o w CSR contributestocu stomerv a l u e c o-creation Ther e s e a r c h also seeksevidenceo nthemoderation m e ch an i sm s o f servantleade rship andrelationsh ipmarketingori entation for

Thed a t a w e r e collectedfrom873 employees and 873 customersinso ft ware industryi n

Twow a v e s o f d atac o l l e c t i o n wereconducteds oa s tomitigateth epotentialcom monmethodvaria nce( C M V ) bia s(Podsakoffetal.20 03).

Int h e first- wavesurvey(T1 ),demographic dataandrespons eso nCSRa n d s e r v a n t leadershi pwerecollectedf romsalesemploye es

Thedataanalysissupp ortedthe positiveeffec tofCSRoncustomerv a l u e c o - cr eatio nbehavior.

Servantleadershipandre lationshipmarketing or ient atio nwereals ofoundt o p l a y moder atingr o l e s f o r theC

The researchmodelsh ouldbereteste di n o t h e r man ufacturingindustr ies andserviceindust ries. the effect ofCSR on customerv a l u e co- cr eationbehav ior of softwarecompani es.Inthesecond- wavesurve y

MarketOrient ation,Relatio nshipMarketin gOrientation ,andBusinessP erformance:

This studyexamines howeconomici deology and industry type moderate the impacts ofmarketorient ationa n d rela tionshipmarketi

1,200companies fromthe Beijing YellowPagesCo mmercial/

Ther e l i a b i l i t y o f constructsscale u si n g C r o n b a c h ' s coefficient alpha.

Theauthorsfindsupport forthemoderatingeffect ofeconomicideologyan dindustrytypeonthelin kamongmarketorient ation,relationshipma rketingor ient at ion, andbusinessperformance.

Testingofrelation shipsamongMO,RMOandperfor manceinalongitu dinalframeworkc ouldp ro v i d e mo reinsightintoprob ablecausation.

IdeologyandIn dustrytype businessperfor mance administrator ineachcompany Van &

Exploringaco nceptualmode l,basedonthec ombinedeffe ct sofentrepr eneurialleade rship,marketor ientationan drelationship marketingo ri ent at io nonS outhAfrica'ss malltourism

This articleexplores therelationships betweenentrep reneurialleaders hip,marketorie ntation andrelationship marketingor ie nt ati on an dSouth Africa'sSmall tourismb usin e ssperformance.

Itisadescriptive andt h e o r e t i c a l article,andthu ssecondarydataf ro m p r e v i o u s studiesare us e d a scomparativean alysis forex am in a t io n a n d discussion.

Thisarticlefirstlye x plores the relationship ofentrepreneuri alleadershipasana ntecedentt o t h e blendofmarketor ientation andrelationshipm arketingorientat ion onsmall tourismperforman ce.

Theexactnaturea ndextentoftheser elationshipsne edtobefurtherinv estigated. businessperfor mance entrepreneurialle adership,marketo rientation andrelationshipm arketingorientat ion onsmall tourismbusiness performance Alaneta l , 20

Afirm’srolein the marketplacea nd the relativeimport anceofmarket orientationa nd

A study wasconducted todetermine therel atio nsh ip between afirm’s role inthecompetit

Thed a t a f o r t h e study were collectedfrom646 companieslocate dinBeijingwerer andomlyselected fromtheBeijin gY e l l o w Page s

Toverifyifthese lf-reportedmarket positioncorr esp ondsw i t h thea ctualmarketposi tion,theyuseAN OVAtocheckift h e f o u r types

Market-oriented andr elat ion sh ip marketing- orientedstrategies are bothimportantformark etleaders.

RMOsubscalesob tainedinthisstu dy are onlymarginally acceptable.

This study Thedataarefrom Theresultsgenerally examines the anationalsurvey indicatethatthe influence of oftheAmerican religiousnessofa religiousness Marketing marketercanpartially on different Associations' explainhisorher componentsof professional perceptionofan marketing members ethicalproblemand

Rao et al,2000 relationship marketingo r ien t atio n

Towardanund erstandingofr eligiousnessa ndmarketinge t hics: An

Telephonecallsw eremadetotheto pa d m i n i s t r a t o r ofe a c h c o m pa n y toexplaint hepurposeo f t h e study of firms differsignificantly

Survey while relationshipmarketin g- orientedstrategiesser vemarketfollowersa ndmarketnichers best. scales is necessary professionals’e behavioralintentions. thicaldecision Resultsalsosuggest empiricalstudy making: thatthereligiousness personalmoralp hilosophies,per ceivedethicalpr oblem, andethicalinten tions significantlyinfluence sthepersonalmoralphil osophiesofmarketers.

Generalcommentsaboutthepreviousstudies

ThepreviousstudieshavementionedtherelationshipamongconceptsofCSR,MO,R M O a ndfirmperformance.Themaincommonbackgroundtheorieswereusedint hese s t u d i e s w i t h a g e n c y theory,s t a k e h o l d e r t h e o r y a n d s t e w a r d s h i p theory.

I n g e n e r a l , allthesetheoriesarethemainthemeforanalyzingaswellasconductingther e l at e d researchconcepts(CSR,RMO,MO).Mostofstudiesgostraightforwardtothe relationshipamong

MO,CSRandfirmperformance;or,relationshipRMO,MOandfirmperformance;or,R MOwithotherconceptssuchascustomersatisfaction,servantleadership,entrepreneu rialleadership,etc.;oreventheroleofRMOscale.Mostly,RMOconceptissuggestedbestitssign ificanceinservicesector(Gro¨nroos,1 9 9 1 ; Winklhoferetal.,2006;Yauetal.,2000;Sine tal.,2005).Besides,RMOisco n d u cted asmoderatortowardsrelationsrelatingtoCSR,firmp erformanceconcepts( L u u , 2017;Tseetal.,2004;Yauetal.,2000).

Theresultsofmostthesestudiesshowthattherehaveapositiverelationshipamongc o n c e p t s CSR,MO,RMOandfirmperformance(Long,2015;Tseetal.,2004;Sine t al.,2005;Q u,2009).Especially,regardingtoresearchofQu(2009),conductedinChinamarket,andLo ng(2015),conductedinVietnammarket,therehaveamodelwiththreecomponents: MO,CSRandfirmperformance.B o t h studiesfoundthatt h r e e componentshavep ositiverelations.Inaddition,bothresearchwereconductedwithvariousindustries.Ho wever,bothresearchmodelsdon’thavethemoderators u c h asRMOcomponentrel atingtotherelationsofMO,CSRandfirmperformanceaswell.

Intermofresearchmethods,mostofpreviousstudieshasuseddataanalysistogetherwith surve ybyq u e s t i o n n a i r e s S t r u c t u r a l e q u a t i o n m o d e l i n g ( S E M ) w a s u s e d t o analyzet h e d a t a c o l l e c t e d I n a d d i t i o n , t h e r e l i a b i l i t y o f c o n s t r u c t s s c a l e u s i n g C r o n b a c h ' s coefficientalpha.Inordertoverifythemarketposition correspondswiththea c t u a l m a r k e t p o s i t i o n , mosto f s c h o l a r s h a v e u s e d A

N O V A toc h e c k d i f f e r significantly.Besides,thedataformostofstudieswerecollectedrandomlyfromthemassindu stryorvarioussources.Somehaveused thetelephonecallstoexplain thep u r p o s e ofthestudy.However,somestudiesalsohaveuseditstypicalmethodssucha s th egoodness-of-fit(GoF)indexusingtheformulasuggestedbyTenenhausetal.

M O andfirmperformanceconcepts.Somescholarsrecommendinvestigatingtheser el at i o n s in

SMEsoreven insmallfirmenvironment.Inaddition,previous scholarsrecommendt h e f u t u r e r e s e a r c h e s s h o u l d b e c o n t i n u i n g e x p l o i t e d i n d e v e l o p i n g c o u n t r i e s oremergingeconomies.Moreover, prev iousstudiesalsoadvisetoexpandingmoresectorsorindustriesinordertoexp lorewhethertheaboverelationshipindifferentcontexts.Finally,intermofagency theoryandstakeholdertheory,scholarsmentiontostakeholdersincorporatingwiththeCSR,MOandRMOthatneedtobecontinuouslyconductedinfutureresearch.

Proposingdirectionforthestudy

Accordingtogeneral commentsabout relatedprevious studies,theauthor finds thatth ere have m a n y studiesbeenco n d u c t e d fori n v e s t i ga t i n g t h e r e l a t i o n sh i p amongc o n c e p t s asCSR,MO,RMOandfirmperformance.Thesestudiesalsow ereco nd ucted insomedevelopingcountriesaswellasemergingandtransitionalecon omiesinthe pastsuchas HongKong -

China, Vietnam, South Af ri ca, Latin America.Inaddition,previousstudies seemtotestingtherelationshipofbig- sizefirmsinvariousindustries,somehaveintourism.However,therehasalimitationorn o st udyinvestigatingclearlytherelationshipamongconceptsCSR,MOandfirmperfo rmanceintypicalindustry.Especially,itseemstherehasnostudyconductingt h e relati onshipamongCSR,MOandfirmperformancewiththeroleofRMOasmoderat orfactoraffectingtoamongtheserelations.

Bonding Shared value Firm performance

Customer orientation Competitor orientation Inter-functional coordination

This study aims to investigate the relationship between Corporate Social Responsibility (CSR), Marketing Orientation (MO), and firm performance, while considering the moderating role of Relationship Marketing Orientation (RMO) Conducted within the typical service industry of Vietnam, a transitional economy, this research addresses the unclear role of RMO in such contexts, as highlighted by Nguyen & Viet (2012) Based on a comprehensive literature review and empirical research, the study proposes a research model illustrated in Figure 1.1.

Conclusion

Stakeholder theory and agency theory highlight the relationships between a firm's management, its strategies, and related stakeholders, providing a framework for setting the firm's objectives Companies aim to achieve their business goals while monitoring performance through effective strategies To facilitate this, managers should adopt corporate governance mechanisms that create value through situation-specific guidelines that align with stakeholder interests and foster functional relationships The survival and success of an organization are strongly linked to its ability to integrate strategic objectives with various stakeholders To effectively address stakeholder needs, firms often promote socially responsible actions and related policies Consequently, firms with more effective governance are more likely to engage in corporate social responsibility (CSR) practices.

M O a n d f i r m performance.Thesestudieshavealsoprovidedmoreconsistentem piricalevidenceo f p o s i t i v e t h es e r e l a t i o n s h i p H o we v e r , t h e r e s e a r c h e r h a s n o t f o u n d anystudiesinvestigatingtherelationshipamong concepts CSR, MOandfirmperformancewithR M O a s t h e m o d e r a t o r amongt h e s e r e l a t i o n s E s p e c i a l l y , t h i s p r o p o s e d r e s e a r c h model( F i g u r e 1 1 ) i s c o n d u c t e d i n V i e t n a m marketingc o m m u n i c a t i o n s firms,a typicals e r v i c e sectorina n emerging e c o n o m y T h e r e f o r e , t h i s studyish o p e d toe n r i c h theliteratureofstakeholder,the businessrelationship,theagencyasproposedresearchmodelabove.

Introduction

Chapter2presentsthetheoreticalbackgroundandproposearesearchmodelwith6h y p o t h e s es Chapter3willintroducethemethodfortestingresearchscalesaswellast h e researchmo delwithproposedhypotheses.Thischapterconsistsoftwomainparts

Researchdesign

Preliminaryassessment

The preliminary assessment is refined through qualitative methods and expert discussions, focusing on adjusting research scales relevant to both global and Vietnamese contexts Conducted on weekends in Ho Chi Minh City at various locations, this stage involves small group discussions and personal interviews with a structure that includes one secretary, one coordinator, and the respondents The participants are primarily managers, senior managers, and founders of enterprises in Vietnam, particularly from the marketing communications industry, who are concerned about the relationships among market orientation, corporate social responsibility (CSR), and relationship marketing orientation (RMO) and their effects on firm performance.

Duringthediscussion,authornotesallopinionsandcommentsaboutallresear chf acto rs thataffecttofirmperformance.Thisstageisproceededthroughbrainstorminga n d Q & A

N e x t , a u t h o r s y s t e m i z e s a l l i n f o r m a t i o n a s w e l l a s s u g g e s t i o n s fr omrespondentsinordertore- organizecollectingdata.Allcollectingdataareunifiedbyrespondentsfromtheinterview. Thesedataarerecordedanddeployedprimarily oni n f o r m a t i o n andobservationvariablesfrompreviousstudies.

Mainsurvey

Alld a t a f r o m q u a l i t a t i v e a r e u s e d tor e v i s e t h e q u a n t i t a t i v e q u e s t i o n n a i r e T h i s r e v i s e d q u e s t i o n n a i r e i s s e r v e d f o r p r e l i m i n a r y i n t e r v i e w b e f o r e c o n d u c t i n g t h e officialquestionnaire.Officialsurveyi sconductedthroughquantitativemethodbyu si n g questionnairessentdirectlytorespon dentsofthestudy.TheserespondentsareC E O , businessowners,seniormanagerswhoarecol lectedbasingonthedatasourcefromtheVietnamMarketingAssociation (VMA). MostoffirmsinthisstudyareVietnamesef i r m s a n d h a v e t h e i r h e a d o f f i c e s o r b r a n c h e s mainlyo p e r a t i n g i n marketingcommunicationsindustryinHoChi MinhCity,Vietnam.

Allitemsweremeasured byusing7- pointLikertscalesanchoredby1=strongly d i s a g r e e and7=stronglyagree.T hisscalehelpsmoreconvenienttorespondents.T hea n a l y t i c a l m e t h o d s a r e u s e d t o e v a l u a t e r e s e a r c h f a c t o r s i n c l u d i n g C r o n b a c h a l p h a reliabilityandt heexploratoryfactoranalysis-

EFA.TheresultsfromtestingC r o n b a c h alphaandEFAarere- evaluatedbytheconfirmatoryfactoranalysis-CFA.Finally,thestructuralequationmodel–

Sampling

ThesamplesizeofthemainsurveyisconductedfollowingHairetal. (2010).Thep i l o t surveyisconductedwithin- depthinterviewsto12seniorexecutives,CEOsand ownersfromVietnammarketingcommunicationsfirms.TheyareVietnameser e s i d e n t s andtheirfirmsarepossessed100%byVietnamesepeople.Thisphaseaimsto examinewheth erthesurveyquestionsareappropriateornotbeforeimplementingt h e m a i n survey.Int h e q u a n t i t a t i v e p i l o t s t e p , t h e a u t h o r u n d e r t o o k f a c e t o f a c e interviewsw i t h seni orexecutivesandCEOstorefinethemeasures.S a m p l i n g isc o n d u c t e d withdatafromt heVietnamMarketingAssociation–VMA.

ThequestionnaireisinitiallypreparedinVietnameseandthentranslatedintoEnglishbyanacademice xpertwhoisfluentinbothlanguages.Backtranslationisundertakentoensuretheequivalenceofmeanin gs.AccordingtoTabachnick&Fidell(1996),thesamplesizeshouldfollowformulan≥8m+50(m:n umberofindependentvariables).I n thisstudy,m.So,thesampleshouldben≥154for suitable.Besides,HarrisR J Aprimer(2001)suggeststheformulaforsamplingwithn≥m+104. Inthisstudy,m So,itshouldben≥117.Whilst,Hairetal.

(2010)expressthesamplesizesh o u l d ben>100,andtheratioofobserved/ measuredvariablesis5/1.Inthisstudy,theratioiscountedwith70/13=5.38.Finally,thisstudy followsHairetal.(2010).

Samplesaredistributedapproximately360questionnairesfromVMAdatasourceint w o way s:(i)sendingdirectly totargetrespondents,and(ii)sendingquestionnairestoselectedrespondentsviae- mail.Themainsurveyisimplementedbyusinginbothf a c e tofaceinterviewsanddire ctmailingwithbroaderscopetobusinessowners,C E O s andseniorexecutives comingfromVietnamesemarketingcommunications firms.

Researchprocess

Testing scales by CFA through AMOS

Draft questionnaires Focus group Literature review

Quantitative (main survey) N = 360 Official questionnaires and measures Questionnaire revision

Unaccepted to the variable with correlation < 0.4 Testing with Cronbach alpha reliability; unaccepted variables with Cronbach alpha < 0.6

Unaccepted variables with EFA< 0.5 and loading factor of variables must has weight > 0.3

Adjust items in research model

Testing the CFA satisfactory weight (CMIN/df ≤ 3; RMSEA ≤ 0.08; CFI, GFI, TLI ≥ 0.9) Testing the suitable of model

Calculating the total extracted variance Testing the single-direction, convergence value, and distinctions

Measurement

Marketorientationscale

Market orientation focuses on external factors, primarily directing attention to customers and competitors It evaluates how firms respond to customer needs and feedback (Jaworski & Kohli, 1993) This approach emphasizes the extent to which companies gather and react to insights from their target audience and market rivals Market-oriented firms consistently collect information about customer needs and competitor capabilities, using this data to create superior customer value Consequently, market orientation involves specific processes that enhance customer value and helps firms achieve sustainable competitive advantage.

InKohli&Jaworski(1993),Marketorientationincludesthreecomponentsandsixitems Besides,Tseetal(2004)expressthatmarketorientationembracesactivities,c o o r d i n a t i o n ofvariousfunctionalareasinanorganizationtosatisfycustomers’needsa n d monitorcompeti tivemoves.Allthesewillgearatcapturingmarketshareandpromotea firm’sl e v e l o f performance.S e r v i c e performancei s u s u a l l y eva lua te d throughcorecustom ersassuperiorvalue.Then,italsoassiststhefirminmakingg o o d profitsandshapingco mpetitiveadvatages(Sinetal.,2002).Therefore,t h i s s t u d y isadoptedtheMOs caleofTseetal.

(2004)consistingofthreecomponentsa n d fourteenitemsonneedsassessmentand market- orientedbehaviorofreciprocalmarketinformation,withcustomerorientation(6vari ables),competitororientation( 4 variables),inter- functionalcoordination(4variables),asfollowing

Customerorientationis seenascustomerphilosophythatneedtoidentifyingan dsatisfyingcu st ome rs ’w an ts andneeds Mo r e o v e r , itmusta lso trytomaintaini ts leadershippositionbynoto n l y monitoringcustomerneeds,buta l s o investinginr e s e a r c h anddevelopmentfornewproductsandservicesthatsatisfytheseneeds(Tsee t al.,2004).

Competitororientationis basicallyanoffensivestrategythatcanbe usedtocapturemarketshareandexpandafirm’spositioninamarketplace(Tseetal.,2004 ).Firms h o u l d considerenvironmentalcharacteristicsinthechoice,developm entandi m p l e m en t a ti o n ofstrategy(Slater&Narver,1994;Sinetal.,2005).

Inter- functionalcoordinationmeans variousfunctionalareasinanorganizationtos a t i s f y c u s t o m e r s ’ n e e d s a n d m o n i t o r c o m p e t i t i v e moves.A l l t h e s e w i l l g e a r atc a p t u r i n g marketshareandpromoteafirm’slevelofperformance(Tseetal.,2004).F ir m shouldregularlycollectinformationfromthemarketconditions,targetcustomern e e d s andcompe titorinformation.Then,theyusetheseinformationtocontinuallyc r e a t e bettercust omervalue(Narver&Slater,1990;Nguyen&Nguyen,2011;Long,2 0 13 )

CSR scale

CSRreferstoafirm’sactivities,organizationalprocesses,andstatusinrelationtoitsperceived socialorstakeholderobligations(Galbreath,2009).CSRisdefinedinabr oade rviewascorporatebehaviorsandcommitmentswhichaimtoaffectpositivelystakeholderobligati ons,andgobeyonditseconomicinterest(Turker,2009;Kotler&L e e , 2005;Galbreath,2009

;Carroll,1991).AccordingtoCarroll(1991),Schwatz&Carroll(2003),CSRisamulti- dimensionalconstructandconsistsoffourtypesofr es p o n s ib i l i t i e s :e c o n o m i c , l e g a l , e t h i c a l , a n d p h i l a n t h r o p i c.T h e C S R c o n c e p t ismeasuredby2 9 o b s e r v a t i o n v a r i a b l e s t h r o u g h f o u r i t s a t t r i b u t e s o f Economic( 7 v a r i a b l e s ) , Legal(7variables),Ethical(7variations),andPhilanthropic(8variables).Particularly,theconten tofspecificscaleismeasuredasfollows:

Economicresponsibility :ismeasuredthroughthegrowthofbusinessprofits,e f f e c t i v e inexpensecontrolling,workingproductivity,providingproductsthatmeetcustomerde mands.Theobservedvariablesaremeasuredasfollowing:

1 Ourb usi ness ha s a p r o ce d u r e i n p l a c e t o r e s p o n d t oev ery customercomplaint 1 2 3 4 5 6 7

5 Iti s importantt o maintaina h i g h l e v e l o f o p e r a t i n g e f f eci e n cy 1 2 3 4 5 6 7

Legalresponsibility :ismeasuredthroughmanagementmethods,updatedlawinf ormation thatrelatingtoenterpriseoperations,productorientationtomeetmarketr e q u i r e m e n t s , labormarket,alltargetstakeholdersandnon- discriminationwiththes t a f f Theobservedvariablesmeasurelegalresponsibilityasfollo wing:

9 Itis i m p o r t a n t top ro vi de goodsandservices th at a t lea st meetminimallegalrequirements 1 2 3 4 5 6 7

Ethicalresponsibility :ismeasuredthroughorganizationalandethicalregulationsino p e r a t i o n , workingrequirements,surveillancesystemduringworkingtime,in- timei n f o r m a t i o n p r o v i d i n g t o c u s t o m e r s T h e o b s e r v e d v a r i a b l e s m e a s u r e e t h i c a l responsibility asfollowing:

19 Itis importanttoperformin amanner consistentwithexpectationsofsocietalmoresandethicalnor ms

20 Itisimportanttorecognizeand respect ne w orevolvi ngethicalmoralnormsadoptedbysociety 1 2 3 4 5 6 7

Philanthropicr e s p o n s i b i l i t y :i s m e a s u r e d byt h e e f f o r t s i n improving p r o d u c t s / s e r v i c e s image,theawarenessinbusinessbehaviors.Philanthropicfactorisal s o measuredt h r o u g h c h a r i t y a c t i v i t i e s a n d meetingr e q u i r e m e n t s o f non- g o v e r n m e n t a l organizations.

Iti s i m p o r t a n t t h a t managersa n d e m p l o y e e s part icipateinvoluntaryandcharitableactivitieswithintheirlocalc ommunities

Relationshipmarketingorientation scale

Relationshipmarketingorientationconsistsofmarketingactivitiesorientedtowardt hecustomerinterests(Morgan&Hunt1994;Gruen1995;Gruenetal.2000).Unliket h e marketori entationthatfocusesongenerating,disseminatingandrespondingtomarketintelli gence,RMOreflectsthefirms’philosophyofdoingbusiness(Nguyen

(2005),RMOconsistssixcomponents:trust,b o n d i n g , communications,sharedvalu e,empathy,andreciprocity.Tomeasurethisconstruct,Sinetal.

Trust:i s measuredw h e n p a r t n e r s p e r c e i v e t h a t t h e i r c o u n t e r p a r t h a s c h o s e n t h e appropriateactions,theywillbewillingtoincreasetheirleveloftrusta ndc o m m i t m e n t (Dwyer,Schurr,&Oh,1987;Morgan&Hunt,1994;MacMillanetal.,20 05;Barroso-

Bonding :i s m e a s u r e d o f paramounti m p o r t a n c e f o r s u c c e s s f u l b u y e r - s e l l e r r e l a t i o n s h i p b e c a u s e b o n d s f o r m t h e s e e d s o f l o n g - t e r m b u y e r - s e l l e r n o r m s (Palmatier,2009).Parvatlyar(1995)statesthatbonding inthef irmwouldextendbeyondsinglelevelsoftherelationshiptomultiplelevelsoftherelationshi p.

Communications :ismeasuresaneffectiverelationshipbuildingstrategythathelpsr e so l v e disputes,aligngoals,anduncovernewvaluecreatingopportunities(Morgan

&Hunt,1994;Palmatieretal.,2006;Nguyen&Viet,2012).Theaccumulationoftru stl e a d s t o i n c r e a s e t h e s h a r i n g ofi n f o r m a t i o n a n d b e t t e r c o m m u n i c a t i o n s insubsequentexchangebetweenpartners(Lewin&Johnston,1997).

Sharedvalue :ismeasuredthedegreetowhichpartnershavebeliefsincommonaboutt h e a p p r o p r i a t e n e s s , r i g h t n e s s , a n d m a g n i t u d e o f p o l i c i e s , g o a l s , a n d b e h a v i o r s (Mo rg an &Hunt,1994;Luu,2017).

Empathy :ismeasuredasseekingtounderstanddesiresandgoalsofsomebodyelse( S i n e tal.,2005b).Without empathytounderstandandadapttobuyerneeds,ther e c i p r o c a l favorsmaynotbechosenappropriately(Geddieetal.,2005).Whentheo r g a nizationempathizeswith itscustomers’situationfromtheirstance,theywillbeg r ate f u l totheorganization(Wang2007).

Reciprocity :ismeasuredincreasingsatisfactionwiththerelationship,inturn,leadst o lon g- termcommitmentintherelationship(Lewin&Johnston,1997).Reciprocityc a u s e s eitherp artytoprovidefavorsfortheotherinreturnforsimilarfavorstobereceived(Callagh anetal.,1995;Sinet al.,2005b;Yauetal.,2000;Nguyen&Viet,2012).

3 Ifou r customersgave a ss i s t a nc e w h e n mycompany h ad difficulties,thenIwouldrepaytheirkindness 1 2 3 4 5 6 7

Firmperformancescale

Performanceoutcomeisastatementofaresult.Firmperformanceistheachievementl e v e l s t hatafirmachievebyitsbusinessactivities.Itcouldbeexpressedinprofits,t h e markets haregrowth,revenuesandstrategicobjectivesoftheenterprise(Cyer&M a r c h , 1992).Itis amanagementtoolusedtoclarifygoals,documentthec o n t r i b u t i o n towardachie vingthosegoals,anddocumentthebenefitsofproductsandservicestocustomers.Performancemea sureisthemethodusedtomeasurebusiness

(2007),Wu&Cavusgil(2006)andLong(2015).Ithas5observedvariablesmeasuri ngthelevelofachievementinbusinesso b j e c t i v e s , asfollowing

Source:Kehetal.(2007);Wu&Cavusgil(2006);Long(2015)

Conclusion

This chapter focuses on research methods, emphasizing the collection and analysis of research data, particularly in the context of Vietnam's marketing communications firms It outlines the research design, preliminary assessments, main surveys, sampling techniques, and the research process, along with the measurement scales for each research concept derived from the research model Additionally, the study details methods that utilize proxies for relevant theories and estimation regression models, incorporating both qualitative and quantitative approaches These methodologies facilitate empirical estimation, as discussed in Chapter 4, which details the data collection process and classification criteria A flowchart illustrating the research process is also provided, with comprehensive descriptions of all measurement scales The subsequent chapter will present research results, including Cronbach's alpha reliability, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM) for testing research models and hypotheses.

Introduction

This chapter outlines the methods and results of both qualitative and quantitative research Qualitative research is conducted through face-to-face interviews to preliminarily assess the measures, while the main survey employs face-to-face interviews with questionnaires and direct mailing to target respondents using convenience sampling The quantitative phase primarily focuses on validating the measures and testing the structural model Reliability is assessed using Cronbach's alpha, and exploratory factor analysis (EFA) is performed at this stage Confirmatory factor analysis (CFA) is utilized to evaluate the measures, and structural equation modeling (SEM) is employed to test the theoretical model and hypotheses.

Overviewandresearchsampledescription

Qualitative researchquestions

Ino r d e r t o i d e n t i f y r e s e a r c h o b j e c t i v e s , i n t h e firstp h a s e , t h e a u t h o r c o n d u c t e d e x p l o r a t o r y researchforanalyzing,assessingresearchproblems,rese archgap,explore conceptsas wel l asthe scale s through sometoolsinqualitati veresearch B a s ed ontheoryofthefirm,thestakeholdertheory,theRMOtheory,theCSRtheor y,t h i s studyusesqualitativemethodstoexploreandfindoutmainfactorsthatlo calfirmsa p p l y in t h e i r o p e r a t i o n s a n d b u s i n e s s a c t i v i t i e s T h i s m e t h o d i s c o n d u c t e d t h r o u g h focusgroupandin- depthinterviewsbyfacetoface.Therehasonefocusg r o u p w i t h 4 repondents andtherestonesare personaldiscussions

(detailinA ppen di x3).Thisphaseaimstoexaminewhetherthesurveyquestions areappropriateornotbeforeimplementingthemainsurvey.

Qualitativeresearchsample andimplementationmethod

 Execution time :inAprilandMay2018.Thetimeforeachdiscussionsectionisa r o u n d onehourormore.

 Main participants :including12seniorexecutives,CEOs,ownerscomingfr omVietnamesefirmsinmarketingcommunicationsindustry.Becauseoftheauthor h a s beenworkinginadvertisingandmarketingcommunicationsindustryformoret h a n 10ye ars,therefore,itismoreconvenientforinvitingtheowners,foundersa s wellasseni orexecutivesparticipatingindiscussionsections.

The implementation method involves a focus group and eight personal interviews, which include one secretary, one coordinator, and various respondents, as detailed in Appendix 3 During these meetings, the author meticulously records all opinions and comments from respondents regarding the research factors Additionally, the study consults two experts (Expert 1 and Expert 2) based on an existing theoretical framework to gather insights for comparison with actual firm activities The findings indicate that all research questions are appropriate and align with previous studies, showing little change in content concerning the research concept from the respondents.

 Place f o r i m p l e m e n t a t i o n :mosto f p e r s o n a l interviewsa r e c o n d u c t e d i n t h e respondent’soffice,thefocusgroupisconductedinmeeting- roomofSmentorCorporation (122/24BuiDinhTuystreet,ward12,BinhThanhd istrict,HoChiM i n h City).AlldiscussionandinterviewsareimplementedonSatur dayandSundayinHo Chi MinhCity,Vietnam.

Quantitative research

ThequantitativeresearchisundertakentoexaminethescaleoffactorsbelongingstoCSR,MO,Fi rmperformanceandRMOconceptsthathavebeendiscoveredandfind outinthefirstphase.Therehasnorevisionofallresearchconceptsaswellastheirscalesf romthequalitativeresearch.Thismeans,alltheresearchconceptsandtheirco mp o n en ts aswellastheirscalesare keptfollowingprevious studies.Besides,thisp h a s e aimstomeasureshowtheimpactofRMO,asthemoderatorvari able,tootherr e l a t i o n s h i p s intheresearchmodel.Themainsurveyisimplementedthro ughq u e st i o n n a ir e s.

Quantitativeresearchsampleandimplementationmethod

 Respondents :includingseniormanagers,directors,managers,businessownersorshareholde rscomingfromVietnamesefirmsinmarketingcommunicationsindustry,inHo ChiMinhCity,Vietnam.BecauseofauthorismemberofVietnamMarketingAssociation– VMA,therefore,itisalittlebitconvenientforusingthee - m ail listoftargetrespondentsforconductingthesurvey.VMAhasmorethan1 0 0 m embersand70%ofthemareinHoChiMinhCity.

 Place for implementation :thequestionnairesaredistributedtoseniormanagers,d i r e c t o r s , managers,businessownersorshareholderscomingfromVietnamese firm inthemarketingcommunicationsindustry,inHoChiMinhCity,Vietnam.

+Thepreliminarysurvey:thisstageisconductedbyprovidingquestionnairesd i r e c t torespondents.Thenumberofquestionnairesis100.Participating com paniesa r e m e m b e r s o f V M A A f t e r c o l l e c t e d a n d a s s e s s e d , t h e r e h a s

7 2 appropriatesamplesusingforanalyzing,theratioforappropriationis72%.Ther e s u l t , alltheresearchconceptscalesaresuitableaswellasconsistenttopreviousstudiesandt hesealsocontributetotheconsistanceoffinalresearchmodel.

T h e numbero f q u e s t i o n n a i r e s isdistributedover360.Theparticipatingand e- maillistofrespondentsaretakenfromVMA.Aftercollectedandassesseddata,therehas242a ppropriatesamplesusingforanalyzing,theratioforappropriationis68%.

TheTable4.1showsthat33.9%oftherespondentsarejoint- stockcompanies,62.8%o fwhicharelimitedcompaniesorprivatecompanies.Ther eonlyhas3.3%state- o w n e d enterprisesinthemainsurvey.Thetimeofcompanyoperationisquitesimilarw i t h thegr oupof10-15years(26%)andover15years(26.4%).Therestoneswith3-

10yearsa c c o u n t f o r 3 1 8 % T h e p e r c e n t a g e o f companiesp a r t i c i p a t i n g in t h e s u r v e y withtimeofoperationlessthan3yearsis15.7%.

Intermso f t he numberof st af f, companieswi th official workforce morethan50 a c c o u n t forahighproportion(48.3%).Meanwhile,thenumberofcompanieswith30

30employees is26.4%.The restoneswithlessthan15employees are1 4.9%.

5 % n u m b e r o f companiesw i t h t o p l e a d e r s h o l d i n g t h e p o s t g r a d u a t e d e g r e e Thenumberofcompanytopleaderswithbachelordegreeis42.1%.Theresto n e s , number company topleadersholdingundergraduate, could becollege levelorvocationalschoolgraduates,is3.3%.

Nationalityofcompanytopleaders,thesurveyshowsthattheyareVietnamesewithm a i n l y rateof85.5%.However,thenumberofVietnamesecompaniesemployingf o r e i g n e r s intopleaderpositionsishigh(accountingfor14.5%).Thisalsoshowstheo p e n n e s s o f hiringforeignw o r k e r s a s w e l l as thewillingnessofinternationalintegrationofVietnameseenterprisesisquitegood.

A recent survey reveals that the majority of top leaders in Vietnam's marketing communications companies are male, with a staggering 78.5% representation, while female leaders account for only 21.5% The findings indicate a lack of diversity in leadership roles, as there is no significant representation of other genders in top positions This suggests that Vietnamese marketing communications firms may be hesitant to hire leaders from different genders or that respondents may not have provided complete information Interestingly, foreign and joint venture companies in this sector show a more balanced representation of diverse genders in leadership roles.

Regardingtheageofcompanytopleaders,inthesurvey,theaverageagefrom35to4 5 account sforhighestproportion(47.9%).Theageover45yearsoldissignificanta t 3 8 % T h i s c a n b e d e d u c e d t h a t m a j o r i t y o f topl e a d e r s inV i e t n a m m a r k e t i n g c o m m u n i cat i o n s c o m p a n i e s w i t h w o r k i n g e x p e r i e n c e s moret h a n 10yearsi n t h e ind ustry,theyeitheropentheirownbusinessesorgetadvancetothetopmanagementl e v e l T h i s i n f o r m a t i o n i s t o t a l l y s u i t a b l e t o t h e r e a l situation.T h e c o m p a n y t o p leade rsintheageof25-35hasrateof12%.Therestoneswiththeageunder25hasr at e of2.1%.

Intermsofworkingexperienceofcompanytopleaders,thepercentageofcompanieswith toplead ersover15yearsofworkingexperienceis50%.Thenumberofcompanyto p leaderswithworkinge xperiencefrom10–

15yearsaccountsfor26%.Again,t h i s i n f o r m a t i o n p e r f e c t l y f i t s t o t h e r e a l s i t u a t i o n a s w e l l a s i t r e i n f o r c e s t o t h e variable"ageofcompanytopleaders".The percentageofseniorexecutiveswhohaveworkingexperiencefrom5-

Only 13.2% of surveyed companies specialize in consulting or planning marketing and communications strategies for other businesses, highlighting the limited professional competence within Vietnam's domestic marketing communications industry In fact, many Vietnamese companies in this sector often receive contracts from foreign players to implement media programs and events, accounting for 38% of the market Additionally, 48.8% of Vietnamese companies operate as third-party contractors or subcontractors within the industry.

MeasuringscalesbeforeanalyzingEFA

To effectively evaluate the relationships among observable variables in research scales, it is essential to implement measuring research scales prior to conducting Exploratory Factor Analysis (EFA) This approach helps eliminate weak variables that may lead to the creation of dummy factors during EFA (Churchill, 1979) Any observable variables with total correlation coefficients below 0.3 should be excluded The criterion for selecting scales is that Cronbach's Alpha should be 0.60 or higher (Nunnally & Bernstein, 1994) Many researchers consider a Cronbach's Alpha of 0.80 or closer to 1 to be indicative of a good measurement scale, while a range of 0.70 to 0.80 is deemed suitable Additionally, some researchers argue that a Cronbach's Alpha of 0.60 or higher can be acceptable, particularly when the research concept is new to respondents within the same research context (Trong & Ngoc, 2008).

Basingonaboveassumptions,authorestablishesthecriteriafortestingCronbach's alphaasf ol lo ws: Va ri ab lesw it h C o r r e c t e d It em To ta l C o r r e l a t i o n < 0 3 0 wi ll b e rejected.ThecriteriaforCronbach'sAlphareliabilityscaleshouldbe0.6orh igher( N u n n a l l y &Burnstein,1994).

Cronbach's alphaforCSRcomponents

Scale Corrected Varianceif Item-Total

ECscalehasCronbach'salphaof0.902(>0.6).Inaddition,thetotalvariancecoeff icientofcomponentvariablesaregreaterthantheacceptedstandardof0.3.Inthissca le,thecomponentvariableswithminimumvalueoftotalcorrelationis0.630.Thus,allvar iablesinthisscalearesuitableforexplainingtheEconomicfactor-EC.

LGscalehasCronbach'salphaof0.855(>0.6).Inaddition,theto tal v a r i a n c e c o e f f i c i e n t o f componentv a r i a b l e s a r e g r e a t e r t h a n t h e a c c e p t e d standardof0.3.Inthisscale,thecomponentvariableswithminimumvalueoftotalcorrelatio nis0.304.Therefore,allvariablesinthisscalearesuitableforexplainingtheLegalfactor- LG.

ETscalehasCronbach'salphaof0.908(>0.6).Inaddition,thetotalv a r i a n c e c o e f f i c i e n t o f componentv a r i a b l e s a r e g r e a t e r t h a n t h e a c c e p t e d stan dardof0.3.Inthisscale,thecomponentvariableswithminimumvalueoftotalcorrelationis0 605.Thus,allvariablesinthisscalearesuitableforexplainingtheE t h i c a l factor -ET.

PHscalehasCronbach'salphaof0.917(>0.6).Inaddition,t h e totalvariancecoefficientof componentvariablesaregreaterthantheacceptedstandardof0.3.Inthisscale,theco mponentvariableswithminimumvalueoftotalcorrelationis0.636.Therefore,allvaria blesinthisscalearesuitableforexplainingthePhilanthropicfactor-PH.

Cronbach’salphaforMOcomponents

Cronbach'sAl phaif ItemD eleted

C U s c a l e h a s C r o n b a c h ' s a l p h a o f 0 8 6 4 ( > 0 6 ) I n addition,thetotalvaria ncecoefficientofcomponentvariablesaregreaterthanthea c c e p t e d standardof0.3.Inthisscale,thecomponentvariableswithminimumvalue

BO48 12.260 17.727 0.530 0.864 oftotalcorrelationis0.534.Thus,allvariablesinthisscalearesuitableforexplainingtheCustomerorie ntationfactor-CU.

COscalehasCronbach's alphaof0.833(>0.6).Inaddition,thetotalvariancec oefficientofcomponentvariablesaregreaterthanthea c c e p t e d standardof0.3.In thisscale,thecomponentvariableswithminimumvalueo f totalcorrelationis0.583.Thus,allvari ablesinthisscalearesuitableforexplainingthefactorCompetitororientation–CO.

INscalehasCronbach'salphaof0.797(>0.6).I n addition,thetotalvariancecoefficientofc omponentvariablesaregreaterthanthea c c e p t e d standardof0.3.Inthisscale,thecompon entvariableswithminimumvalueo f totalcorrelationis0.486.Thus,allvariablesinthisscalearesuita bleforexplainingt h e factorInter-functionalcoordination–IN.

Cronbach’salphaforRMOcomponents

Scale Corrected Varianceif Item-Total

Cronbach'sAl phaif ItemD eleted

TRscalehasCronbach'salphaof0.821(>0.6).Inaddition,thetotalvariancec oefficientofcomponentvariablesaregreaterthantheacceptedstandardof

BOscalehasCronbach'salphaof0.845(>0.6).Inaddition,thetotalvariance coefficientofco mponentvariablesaregreaterthantheacceptedstandardof

0.530.Thus,all variablesinthis scalearesuitableforexplainingthe factorBonding

CMscalehasCronbach'salphaof0.878(>0.6).Inaddition,th e totalvariancecoefficient ofcomponentvariablesaregreaterthantheacceptedstandardof0.3.Inthisscale,thec omponentvariableswithminimumvalueoftotalcorrelationis0.720.Thus,allvariables inthisscalearesuitableforexplainingthef a c t o r Communcation-CM.

SVscalehasCronbach'salphaof0.861(>0.6).Inaddition,thetotalv a r i a n c e c o e f f i c i e n t o f componentv a r i a b l e s a r e g r e a t e r t h a n t h e a c c e p t e d standa rdof0.3.Inthisscale,thecomponentvariableswithminimumvalueoftotalcorrelationi s0.656.Thus,allvariablesinthisscalearesuitableforexplainingthef a c t o r Share dvalue-SV.

EMscalehasCronbach'salphaof0.855(>0.6).Inaddition,thetotalv ar i a n c e coefficientofcom ponentvariablesaregreaterthantheacceptedstandardof

REscalehasCronbach'salphaof0.899(>0.6).Inaddition,thet ot al v a r i a n c e c o e f f i c i e n t o f componentv a r i a b l e s a r e g r e a t e r t h a n t h e a c c e p t e d st andardof0.3.Inthisscale,thecomponentvariableswithminimumvalueoftotalcorrelatio nis0.667.Thus,allvariablesinthisscalearesuitableforexplainingthef a c t o r Reci procity-RE.

Cronbach’salphaforFPcomponents

FPscalehasCronbach'salphaof0.889(>0.6).Inaddition,thetotalvariancecoefficiento fcomponentvariablesaregreaterthantheaccepted standardof0.3.Inthisscale,thecomponentvariableswithminimumvalueoftotalcorrel ationis0.695.Thus,allvariablesinthisscalearesuitableforexplainingthef a c t o rFirmperformance-FP.

ExploratoryFactorAnalysis-EFA

(i) Condition1:T h e K M O c o e f f i c i e n t i s a n i n d e x f o r c o n s i d e r i n g t h e appropriatenessofEFA.Thismeans,EFAshouldbeas0.5≤KMO≤1(Trong

(ii) Condition2:TheBartlettestingwillconsider allhypothesisrelating tot hecorrelationamongobservationvariables.Ifthistesthasstatisticallysignificant( s i g ≤0.05) ,observationvariableswillhavethecorrelation,ingeneral(Trong

(iv) Criteria2:T he Ei ge nv al uec oef fi ci en t mustb e > 1( Ge rb in g& An de rs o n, 1998).T h e n u m b e r o f f a c t o r s i s determinedbyE i g e n v a l u e i n d e x w h i c h r e p r e s e n t s thevarianceexplainingbyeachfactor;

≥0.3inordertoc r e a t e differentvalueamongfactors(Jabnoun&Al-Tamimi,2 0 0 3 ).

EmplementingEFAstepswillbeconductedforbothmulti-dimensionalandsingle- dimesionalc o n s t r u c t I n p a r t i c u l a r , t h e E F A m u l t i - d i m e n s i o n a l c o n s t r u c t w i l l bei m p l e m e n t e d foreachcomponentofCSRco ncept(Economic,Legal,Ethical,Philanthropic),forMarketOrientationconcept(Customerorientation,Competitor orientation,Inter- functionalcoordination),forRelationshipMarketingOrientationc o n c e p t (Tru st,B o n d i n g , C o m m u n i c a t i o n s , S h a r e d v a l u e , E m p a t h y , R e c i p r o c i t y) B e s i d e s , theEFAsingle- dimensionalconstructwillbeconductedforeachcomponentofFirmperformanceconcept.

ThisshowstheEFAresultsafterrejectingsomeobservationvariablesthatcannot meettherequirements(suchasLG8,LG14,PH24,LG13,PH23,PH22,ET19,EC4).F a c t o r anal ysismodelhasresultsasfollowing,

Theexplanatoryvarianceofmodeltakes63.501%oftotalvarianceofthesample.Its a t i s f i e s followingGerbing&Anderson(1988).TheKMOandBarlett'stestprovideveryhighvalue,s uchKMOis0.936andtheSigvalueis0.000.Theseindexessatisfyfo rthehighlyrelevantinfactora nalysismodel.

Factorloadingofallfactorshaveminimumvalueofover0.5.Thissatisfiesallthecon ditionst o w a r d s t h e s t u d y g a i n i n g p r a c t i c a l s i g n i f i c a n c e ( H a i r e t a l , 2 0 1 0 ) Similarity,thedifferenceoffactorloadingamongvariablesreachesmin imumvalueo f nearly0.3.Thisalsosatisfiestheconditiontoeachobservationvariableexistinginm odelthatexplainsasinglefactor(Jabnoun&Al-

Tamimi,2003).Therefore,itcouldb e concludedthatthefactoranalysismodelcompletely gainspracticalsignificancea n d hashighrealityexplanation.Besides,itformulizesoffours ignificantfactors:

Factor1,isnamedasEconomic(EC)consistsof6observationvariablesEC1,EC2,E C3,EC

Factor2,isnamedasEthical(ET)consistsof6observationvariablesET15,E16,E

Factor3,isnamedas Philanthropic(PH)consistsof

5observationvariables:PH25,P H 2 6 , PH27,PH28,PH29.

Factor4,isnamedasLegal(LG)consistsof4observationvariablesLG9,LG10,L

ThisshowstheEFAresultsafterrejectingsomeobservationvariablesthatcannot meettherequirements(suchasIN43,CU30).Factoranalysismodelhasresultsas fo llowin g ,

Theexplanatoryvarianceofmodeltakes58.579%oftotalvarianceofthesample.Its a t i s f i e s followingGerbing&Anderson(1988).TheKMOandBarlett'stestprovideveryhighvalue,s uchKMOis0.892andtheSigvalueis0.000.Theseindexessatisfyfo rthehighlyrelevantinfactora nalysismodel.

Factorloadingofallfactorshaveminimumvalueofover0.5.Thissatisfiesallthecon ditionstowardst h e s t u d y g a i n i n g p r a c t i c a l s i g n i f i c a n c e (Haire t a l , 2 0 1 0 ) Similarity,thedifferenceoffactorloadingamongvariablesreachminimumvalu eofn e a r l y 0.3.Thisalsosatisfiestheconditiontoeachobservationvariableexistin ginmodelthatexplainsasinglefactor(Jabnoun&Al-

Tamimi,2003).Therefore,itcouldb e concludedthatthefactoranalysismodelcompletely gainspracticalsignificancea n d hashighrealityexplanation.Besides,itformulizesofthree significantfactors:

Factor1,isnamedasCustomerOrientation(CU)consistsof5observationvariablesC U 3 1 , C

(CO)c o n s i s t s of4o b s e r v a t i o n v ar iab l esCO36,CO37,CO38,CO39.

FunctionalCoordination(IN)consistsof3observationvar i ab l es IN40,IN41,IN42.

ThisshowstheEFAresultsafterrejectingsomeobservationvariablesthatcannot meettherequirements(suchasTR47,BO48).Factoranalysismodelhasresultsasf o ll owin g ,

Theexplanatoryvarianceofmodeltakes69.059%oftotalvarianceofthesample.Its a t i s f i e s followingGerbing&Anderson(1988).TheKMOandBarlett'stestprovideveryhighvalue,s uchKMOis0.846andtheSigvalueis0.000.Theseindexessatisfyfo rthehighlyrelevantinfactora nalysismodel.

Factorloadingofallfactorshaveminimumvalueofover0.5.Thissatisfiesallthecon ditionst o w a r d s t h e s t u d y g a i n i n g p r a c t i c a l s i g n i f i c a n c e ( H a i r e t a l , 2 0 1 0 ) Similarity,thedifferenceoffactorloadingamongvariablesreachesmin imumvalueo f nearly0.3.Thisalsosatisfiestheconditiontoeachobservationvariableexistinginm odelthatexplainsasinglefactor(Jabnoun&Al-

Tamimi,2003).Therefore,itcouldb e concludedthatthefactoranalysismodelcompletely gainspracticalsignificancea n d hashighrealityexplanation.Besides,itformulizesofsixsig nificantfactors:

Factor1,isnamedasSharedvalue(SV)consistsof4observablevariablesSV55,S

Factor2,isnamedasEmpathy(EM)consistsof4observablevariablesEM59,EM60,E M 6 1 , EM62.

Factor3,isnamedasReciprocity(RE)consistsof3observationvariablesRE6

Factor4,i s nameda s Communications( C M ) c o n s is t s o f 3 o b s e r v a t i o n v a r i a b l e s CM52,CM53,CM54.

Factor5,isnamedasBonding(BO)consistsof3observationvariablesBO49,BO50,BO51.

Factor6,isnamedasTrust(TR)consistsof3observationvariablesT R 4 4 , TR45,

Theexplanatoryvarianceofmodeltakes61.715%oftotalvarianceofthesample.Its a t i s f i e s followingGerbing&Anderson(1988).TheKMOandBarlett'stestprovideveryhighvalue,s uchKMOis0.854andtheSigvalueis0.000.Theseindexessatisfyfo rt h e h i g h l y r e l e v a n t i n f a c t o r analysism o d e l T h e f a c t o r i s nameda s F i r m performance(FP) consistsof5observationvariablesFP66,FP67,FP68,FP69,FP70.

The statistical resultsofthereliabilityanalysisto eachfactorafterEFAanalysisarep r e s e n t e d infollowingtable:

Cronbach'sAl phaif ItemD eleted

Cronbach'sAl phaif ItemD eleted

Cronbach'sAl phaif ItemD eleted

Cronbach'sAl phaif ItemD eleted

Ther e s u l t s s h o w t h a t a l l r e s e a r c h s c a l e s m e e t t h e r e q u i r e m e n t s T h e r e f o r e , a f t e r rej ect ing unacceptable variablesallreearchdatahavereliability,distinctivenessandcon verg ence.

ConfirmatoryFactorAnalysis-CFA

Discriminantvalidity

Thecorrelationcoefficientstestingamongfactorsshowsthatallfactorcorrelat ionco ef fi cien t s aresignificant,lessthan1(thesignificancelevelis10%).Thus,allaboveconce ptsachievethedistinctvalues(Steenkamp&Vantrijp,1991).

Convergentvalidity

TheresultsfromCFAareanalyzedbyAMOSsoftwareandtheCFAweighttableofob servat i on variablesshowsthatallvaluesaregreaterthan0.5.Thisconfirmsthec o n v e r g e n t valueofallscales(Gerbring&Anderson,1988).

Theconstruct reliabilityandvarianceextracted

Thiscontentrelatestotheverificationofconstructreliabilityandvarianceextractedt o each factor.Thereliabilitycoefficientscandvcarecalculatedinthef o l l o w i n g tabl e.ThisbasesontheweightoffactorsthatareestimatedinCFAmodel.Theresultsshowthatmostofcon ceptsachievethesingle- dimensionalandmeetther e q u i r e m e n t ofconstructreliability(>50%)aswellasach ievingthevariancee x t r a c t e d ofeachfactor(>50%).

Table4.12:Theconstructreliabilityandvarianceextractedofresearchconcep ts Lamda lamda^2 1- Construct Variance

Lamda 1- Construct Variance (se) lamda^2 reliability extracted

Lamda 1- Construct Variance (se) lamda^2 lamda^2 reliability extracted

StructualEquationModeling–SEManalysis

S E M a n a l y s i s isu s e d t o t e s t h y p o t h e s e s i n researchmodel.Similartothet estingscalemodel(CFA),themaximumlikelihood(M L)methodisusedto estimate par am ete rs inresearchmo de l Estimatedresultsshowthatthetheoreticalmodel isquitesuitabletothemarketdata.Itexpressessucha s Chi- square78,491,thedfe5,p=0.000,CFI=0.902,TLI=0.894,IFI0.902,andRMSEA=0.063.Thus,itcanbeconcludedthatthetheoreticalmodelissuitable andcanbeusedtotesttheexpectedrelationshipsinhypothesismodel.

Inaddition,basingonthetheoreticalbackgroundpresentedabove,theresearchmodelin thisstudyalso has th e participationofthemoderationvariable - RMO.Inthis

Conclusion Moderating AcceptH4 study,theeffectofmoderationvariableisexpressedthroughitsspecificroleintheinter actionamonglatentconceptualpairssuchasCSRandFP,MOandCSR,MOa n d F P R M

O i s a m u l t i - d i m e n s i o n a l c o n s t r u c t i n q u a n t i t a t i v e form.I n o r d e r t o si mpl ify thepr oblem,previousstudieshavedividedthequantitativeRMOvariablei n to twoparts,lo wandhighgroups(Luu,2017),orbasingonthemean,orthemedian(Nguyen& N g u y e n , 2 0

0 8 ) Bya n a l y z i n g o n A M O S s o f t w a r e , t h e m u l t i g r o u p analysiste chniqueisoftenusedtoavoiderrors,thehyperbolicphenomena,andtheevaluationwillb eclearly.

Table4.14:ResultsoftestingthemoderationroleofRMOMo d e ra t i o n roleofRMO Chi-square df

C o n s t r a i n e d model,e s t i m a t e d p a r a m e t e r s i n e a c h modelarenotconstrained.Inconstrast,intheConstrainedmodel,themeasurementc o m p o n e n t s arenotlimited.However,therelationshipsamongconceptsin researchmodelarelimitedandhaveequalvalidbetweenthelowandthehighgrou p.Chi-squaretestisusedinordertocomparebothmodels.IfChi- squaretestshowsthatbothConstrai ned modelandUn-

Constrainedmodelhavenodifferences(P- value>0.05),t h e n theConstrainedmodelwillbechosen(withhigher degreesoffreedom- df).Incontrast, ifthedifferenceof Chi-squarehassignificancebetween models(P- valueCSR,CSR->FP,andMO-

CSR ->FP MO >CSR MO >FP

Moderationrole: RMO Moderate Moderate Moderate

Moderatingroleof CM Notmoderating Moderate Moderate componentvariables: SV Moderate Moderate Notmoderating

Themarketanalysisresultsaswellastestinghypothesesinresearchmodelprovidesomein terestingthings.Relatingtotherelationshipofconceptsinresearchmodel,the MOc oncepthasanimpactontheCSRconcept.Similarly,CSRhasanimpactont h e firmperformanc e(FP).And,MOhasanimpactonFP.Thissuggeststhatdatafromthemarketsurveya lsosupportingtotherelationshipofallconceptsfromthep r o p o s e d researchmodel.

InV i e t n a m marketinga n d c o m m u n i c a t i o n s industry,d o m e s t i c c o m p a n i e s al waysh a v e highlyawarenessofmarketorientation(MO)intheirbusinesswiththeexpe ctationingeneratingstablerevenueaswellasgrowth.Inthisstudy,theresultofr e l a t i o n s h i p betweenmarketorientation(MO)andfirmperformance(FP)showstherelevanceoftheor eticalrelationshipinpreviousstudies(suchasJaworski&Kohli,1 9 9 3 ; N g u y e n

& Nguyen,2008;Qu, 2009; Long, 2015).Similarly, Narver& Slater( 1 9 9 0 ) d e t e r m i n e t h a t marketo r i e n t a t i o n c r e a t e s t h e b e h a v i o r n e c e s s a r y t o b u i l d superiorvalueforcustomers.Actually,theVietnammarketingandco mmunicationsindustry,t h e f i r m s e n i o r managementb o a r d s alwaysh a v e g o o d a w a r e n e s s a n d p r a c t i c e infocusingontheirtargetcustomers.Inaddition,theplanningf orrespondingto co m p et i t o r a c t i v it i es inner theindustryisalwaysfocusedon(Nguyen&

Nguyen,2 0 0 8 ) T h e r e s e a r c h r e s u l t s c o n f i r m r e l a t i o n s h i p , s u c h t h e h i g h e r firm'smarket orientationthehigherfirmperformance.Thisisalsothegoodsignalforcompaniestosho wtheireffectivenessthroughtheirbusinessoperationsprocess.

Today,inVietnammarket,theCSRactivitiesoflocalenterpriseshavebeenspreada n d w i d e l y i m p l e m e n t e d More andmorelocalfirmsareawareofaswellasdeployi t inprofessionalway.Inmordenbusine ssenvironment,customersalwaysputtheirh ig h e x p e c t a t i o n s o n f i r m C S R a c t i v i t i e s ( G a l b r e a t h , 2 0 0 9 ; L u u , 2 0 1 7 ) Market- o r i e n t e d firmswillbecomethepioneerswhorecognizetheimportanceofCSRandc ar r y outtheiractivitiesonaroadmaptoachievebetterbusinessoutcomes(Qu,2009,L o n g , 2 0 1 5 )

B a s i n g onr e s e a r c h r e s u l t s , marketo r i e n t a t i o n ( M O ) h a s impacto n c o r p o r a t e socialresponsibility(CSR).Thisresultisconsistentwithpreviousstudies,e s p e c i a l l y inV ietnamcontext.AlthoughtheconceptofMOinthisstudyhasbeenadjustedadoptin gtoTseetal.

(2004),withfourteen(14)itemsinsteadofQu(2009)a n d Long(2015)withsix(6)items,t heprovidedmarketdataalsosupportstothisr e l a t i o n s h i p

TheimpactofCorporateSocialResponsibility(CSR)onfirmperformance(FP)int h i s studyshowsthatthemoreresponsibilityofthefirmforsocietyis,thebetterfirmperformance. Especially,whenitisappliedinresearchconditiontowardsenterprisesi n Vietnammarketin gandcommunicationsindustry.Thisresultisconsistentwithprevious studies byLuo&Bhattacharya(2006),Qu(2009).Thisresultalsonegatet h e previousresear chresultsofVance(1975),Ullman(1985),Lee&Faff(2009)r e l a t i n g tothenegat iverelationshipbetweenCSRandfirmperformance.Besides,theotherstudiessuchAlexander

RegardingtotheroleofRelationshipmarketingorientation(RMO)asamoderator,t h e st udyresultsshowthatitmoderatesallrelationshipintheresearchmodelsuchasMO-

> C S R Witht h i s r e s u l t , t h e r o l e o f R M O a s moderatorvariableinresearchmo delisquiteconsistenttotheVietnammarketing andc o m m u n i c a t i o n s i n d u s t r y D u r i n g c o n d u c t i n g t h e q u a l i t a t i v e r e s e a r c h , a u t h o r e x t r a c t e d informationfromrespondentswhethertheexistence ofRMOasamoderatorofallrelations.

(CSR).Apositivereputationisanimportantstrategicassetthathelpst h e firmcanbuil dandmaintaintheircompetitiveadvantages.Consequently,firmsc a n respondandi mplementtoatleastorevenmeetingthestakeholderrequirementst o achieveCSRstandar ds(Galbreath,2009;Sheikh,2018;Bachananetal.,2018).Moreandmorelocalfirm sareawareofaswellasdeployitinprofessionalway.Inmordenbusinessenvironment,custo mersalwaysputtheirhighexpectationsonfirmCSR activities(Luu,2017;Kao etal., 2018).Therefore,themoderationroleofRMOtotherelationshipbetweenMOandCSRmay hassignificance.

According to CSR theory, firms should consistently engage with employee benefits, suppliers, customers, and society at large, as these activities can enhance the present value of cash flows generated by firm operations Research indicates a positive correlation between CSR and firm performance in achieving strategic business goals Today's CSR activities are integral to business decision-making, influencing ethical values, compliance with local legal requirements, and respect for people, communities, and the environment Numerous studies confirm the positive relationship between CSR and firm performance, suggesting that incorporating RMO as a moderating variable may further strengthen this connection.

Marketorientation hasbeen demonstrated ha vi ng animpactonfirmperforma nce( N a r v e r &Slater,1990;Jaworski&Kohli,1993;Baker&Sinkula,1999;Nguyen&Bar rett, 2006;Nguyen&Nguyen,2008).Market- orientedenterpriseswillregularlyc o l l e c t i n f o r m a t i o n onmarketc o n d i t i o n s , t a r g e t c u s t o m e r n e e d s , c o m p e t i t o r i n f o rm at i o n andusethisinformationto generatecustomervalue(Slater&Narver,

&Nguyen,2008).Thisprocessalwaysbetakenplaceandinfluencest o t h e i n t e r n a l e n v i r o n m e n t o f e a c h e n t e r p r i s e Whilei t a l s o c r e a t e s d i s t i n c t i v e co nditionsofeachotherstogaincompetitiveadvantageaswellasdesiredbusinessr e s u l t s (Nguyen&Nguyen,2008;Long,2013,2015).Again,thejoiningofRMOasmoderatorvaria ble forMO andFPrelationshipmaycreatesignificance towardsther e l a t i o n s h i p betweenMOandFP.

*The moderating role of component variables in RMO :

TheanalysisresultshowsthatTRdoesnotmoderatetorelationshipofCSRandFP,MO and CSRinresearchmodel.Trust-

TRisdefinedasbeingwillingtorelyonane x ch an g e inwhichpartnershavecertainbeliefsandce rtaintiestoeachother(Morgan

In the marketing communications industry, particularly in Vietnam, trust is essential for successful trading transactions, as it is built over time through collaborative working experiences (Hunt, 1994; Luu, 2017; Palmatier et al., 2009) While some local firms overlook the significance of trust in their dealings, it remains a crucial factor that influences the relationship between marketing orientation (MO) and firm performance (FP) Ultimately, trust impacts all firm activities aimed at effectively reaching target markets and enhancing business operations.

Bondingr e f e r s t o t h e d e v e l o p m e n t o f r e l a t i o n s h i p be t w e e n t w o o r morep a r t n e r s wo rkin g togethertoreachthedesiredgoals(Sinetal.,2005).Bondingfrompersonalr e l at i o n sh i p s willleadtothelinkageamongallpartnerships.Thisprovidesastablebuff ertoprovideforpreventingofunforeseenevents(Barroso-

Méndezetal.,2014).I nmanystudies,especiallyintransitioneconomies,therelationshipoftw oconcepts marketorientation(MO)andCSRisrecognizedasanimportantdeterminantinallc o m p a n y operations(Qu,2009).Inaddition,inmarketingcommunicationsindustry,t h e l i n k a g e i s alwaysc o n s i d e r e d a s i m p o r t a n t c o m p o n e n t a m o n g p a r t n e r s T h e moderatingcomponentvariable-

M O a n d C S R c o n c e p t s a s w e l l asC S R a n d F P relationship.Bythisrole,theMOa ndCSR,theCSRandFPrelationshipswillsupportto increasingthecompanycompetitivenes s,asanalyzedabove,twoconceptsCSRa n d M O h a v e p o s i t i v e impacto n F P (

Inbusinessenvironment,communicationsisseenasaformalandinformalexchangeprocessth athappenbetweenbuyersandsellers(Sinetal.,2005;Luu,2017).Intoughc o m p e t i t i o n context ,theaccumulationofbeliefleadstobetterinformationsharingand communicati nginsubsequentexchangesamongpartners(Lewin&Johnston,1 9 9 7 ; Nguyen

&Nguyen,2008;Luu,2017).Towardsthemarketingcommunicationsindustry,communicatio nsintradingtransactionaimstoconveyinformation,evenb u s i n e s s informati ontradingisextremelyimportant.Therefore,communicationsisc o n s i d e r e d a s a n a t u r a l o c c u r r e n c e i n anytransaction.Inq u a l i t a t i v e i n t e r v i e w s , r esp on dent sagreethatcommunications amongpartners,orbetweencompanyan dcustomersis s e e n as mandatory.T he re fo re, th e c o m p o n e n t var ia bl e -

Shared value reflects the degree to which partners align their beliefs, policies, and behaviors (Morgan & Hunt, 1994; Sin et al., 2005) It fosters a sense of connection, strengthens long-term relationships, and significantly enhances commitment to the partnership (Morgan & Hunt, 1994; Mukherjee & Nath, 2007) Qualitative research reveals that many respondents view "shared value" with skepticism, believing it primarily exists among industry partners with deep friendships or long-standing relationships Consequently, the findings of this study indicate that shared value is often perceived as an internal phenomenon within firms rather than a universal concept.

Empathy is the ability to understand and share the feelings of others, which enhances communication between buyers and sellers, leading to a better understanding of industry dynamics (Wang, 2007; Luu, 2017; Coulter & Coulter, 2003; Nguyen & Viet, 2012) Market orientation focuses on creating superior value for customers through specific processes (Jaworski & Kohli, 1993; Narver & Slater, 1995) Companies engaged in Corporate Social Responsibility (CSR) activities gain competitive advantages and effectively manage their brand image (Luu, 2017; Kang et al., 2010) This study highlights that empathy plays a moderating role in the relationship between market orientation (MO) and CSR, as well as between CSR and firm performance (FP) When industry partners share empathy, it enhances the effectiveness of their market-oriented and CSR initiatives However, in certain marketing communications contexts, empathy may not significantly impact the relationship between MO and FP.

Thereciprocityinrelationshipmarketingactivitiescanhelpincreasetheself- esteemt o e a c h p a r t n e r s o r c u s t o m e r s I n s o c i a l i d e n t i f i c a t i o n p r o c e s s , t h e “ r e c i p r o c i t y ” componenthelpscompaniesexpressandrespondtocust omerinteractionandf e e d b a c k aswell(Tseetal.,2004;Jayachandranetal.,2005;Luu,2017).Market- orientedfirmswillbethepioneerswhorecognizetheimportanceofCSRandcarryo u t the iractivitiesonaroadmaptoachievebetterfirmperformance(Qu,2009;Long,2 0 1 5 ) Inthisstudy ,thecomponentvariable-

REdemonstratesaroleinmoderatingth e linkingrelationshipbetweenMOandCSR.Thism eans,withthereciprocity,theinteractionamongpartiessuchascompanies,customersandpart ners,therelationshipb e t w e e n MOandCSRhasmoresignificant.Inaddition,theplanningf ormeaningfulmarketorientationaswellasCSRprogramsusuallytakesplaceinside ofthefirm.Particularly,inVietnammarketingcommunicationsindustry,theseactivitiesalw aysa s k forconfidentialinformationandhighsensitivity(Long,2013).Thus,themo deratingcomponentvariable-

Conclusion

This chapter presents the data analysis and research results of the study, which employs a mixed-methods approach Qualitative assessments were conducted through face-to-face interviews to preliminarily evaluate the measures The main survey utilized face-to-face interviews combined with questionnaires and direct mailing to target respondents via convenience sampling, with a primary focus on quantitative analysis The chapter includes Cronbach's alpha reliability and exploratory factor analysis (EFA) To evaluate the measures, confirmatory factor analysis (CFA) was employed, and structural equation modeling (SEM) was used to test the theoretical model and hypotheses The research methodology outlined in Chapters 3 and 4 guided the study Additionally, the results indicate that the moderating role of Relationship Marketing Orientation (RMO) influences all relationships within the research model, contributing valuable insights to the study.

Introduction

Thischapterpresentsthesummaryofresearchresultsthroughtheconceptsscalesandresearch model teststhathavebeenconductedinChapter4.Basingontheresearchr esult s, a u t h o r w i l l d i s c u s s , p r o p o s e m a n a g e m e n t i m p l i c a t i o n s a s w e l l a s s u g g e s t solutions forbettercognitivedevelopment ofrese ar chc onc ep ts tot h e enterprises c om mu ni ty inVietnammarketingcommunicationsindustry.Therelationshipamongr e s e a r c h f a c t o r s a r e MarketO r i e n t a t i o n ( M O ) , C o r p o r a t e S o c i a l R e s p o n s i b i l i t y ( CS R) ,Firmperformance(FP),andthemoderationroleofRelat ionshipMarketingOrientation (RMO)inVietnammarketingcommunicationsindustry.

Researchresultssummary

TheresearchobjectivesinthisstudyistotesttherelationshipamongconceptsCSR,MOa n d f i r m p e r f o r m a n c e i n V i e t n a m m a r k e t i n g c o m m u n i c a t i o n s industry.Inaddition,studyalsoaimtoexaminehowRMO conceptplayingasthemoderatortowardstheserelationsinsuchtypicalindustry,Vietn amcontext.Thestudyhassomemainresults,

Firstly,thequalitativeresearchresultsisconductedthroughfacetofaceanddirectg r o u p discussionswith12respondents.Theyareowners,seniormanagers,expertsco mingfromVietnameseenterprises.Inthis phase,theresearchresultsdetermi nef a c t o r s t h a t s h a p e t h e r e s e a r c h m o d e l s u c h M a r k e t O r i e n t a t i o n (

M O ) , C o r p o r a t e SocialResponsibility(CSR),RelationshipMarketingOrientatio n(RMO),andFirmperformance(FP).Inparticular,theRMOconceptisformedasamoderatingv ariablef o r pairsofrelationshipincludingMOandCSR,CSRandFP,MOandFP.Especially,ther e s e a r c h m o d e l i s formedi n t h e t y p i c a l c o n t e x t s u c h t h e V i e t n a m marketingc o m m u n i c a t i o n s industry.

The preliminary quantitative research results were gathered through questionnaires and direct interviews with a sample size of respondents, including business owners, shareholders, and senior managers from Vietnamese companies operating primarily in Ho Chi Minh City within the marketing communications sector These findings validate the scales of research concepts established in previous studies (Tse et al., 2004; Sine et al., 2005; Carroll, 1991) and demonstrate that the values of these scales meet the requirements of the real context without necessitating adjustments to the original concepts Furthermore, the results confirm the existence of the proposed research model.

The official quantitative research conducted on local firms in Ho Chi Minh City involved a sample size of n=2, focusing on business owners, senior managers, and shareholders within the Vietnamese communications industry The research model utilized various analytical methods, including Cronbach’s Alpha reliability, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling (SEM) to test hypotheses Results indicated that the Cronbach's Alpha reliability of the research concept scales was satisfactory, and the evaluation through EFA confirmed that the concept scales are acceptable.

Fourth,theCFAtestresultsshowthatallresearchconceptscalesmeetrequirementsf o r c o n s i s t e n c y ( s u c h a s s i n g l e - d i m e n s i o n a l , m u l t i - d i m e n s i o n a l , c o n v e r g e n t , a n d d i s c r i m i n a n t validity).TheSEMtestingshow sthatthetheoreticalmodelisconsistentw i t h marketdata.Allhypothesisofthetheoreticalmo delareconsistentandsatisfytowardsrequirements.

The analysis of the relationships among Market Orientation (MO), Corporate Social Responsibility (CSR), and Firm Performance (FP) in this study aligns with previous research conducted by Qu (2009) in China and Long (2015) in the Mekong Delta, Vietnam, providing substantial evidence for these interconnections Notably, this study introduces the concept of Relationship Marketing Orientation (RMO) as a moderating factor influencing the relationships between MO, CSR, and FP Currently, there are no similar studies in the context of Vietnam or abroad that utilize this model Specifically, in the Vietnamese marketing communications industry, the findings indicate that RMO moderates all relationships among MO, CSR, and FP.

Researchcontributions

Theoretical contributions

ThetheoreticalmodelinthisstudyisverifiedinChapter4.Theanalysisresultsareconsist entwithmarketdatainVietnameseenterprises operatingonthemarketingc o m m u n i c a t i o n s indusrty.Thus,regardingtothetheory aspect,thisstudyhassomef o l l o w i n g contributions:

Firstly,thetheoryofCorporateSocialResponsibility(CSR)byCarroll(1979,1991)i s consider edquitenewinVietnammarket.Especially,itspracticalapplicationintheV i e t n a m marketingco mmunicationssectorhasstilllimited.Thus,researchresultsint h i s s t u d y c o n t i n u e toc o n t r i b u t i n g t o t h e C S R t h e o r y ina typicalindustry,i n a transitionalmarketlikeVietna m.

Second,int h i s s t u d y , t h e M a r k e t O r i e n t a t i o n ( M O ) s c a l e i s m o d i f i e d w i t h 14o b serv at io n v a r i a b l e s f o l l o w i n g T s e e t a l

( 2 0 0 4 ) i n s t e a d o f 6 v a r i a b l e s t h a t w a s describedinpreviousstudiessuchas Nguyen&Barett(2006),Nguyen&Nguyen( 2 0 0 8 ) , Q u ( 2 0 0 9 ) R e s e a r c h r e s u l t s s h o w t h a t i t i s t o t a l l y r e l e v a n c e i n V i e t n a m market.Withthisresult,thestu dycontributestotheMOtheoryaswellasenrichestheMOscale(Tseetal.,2004)applyingi nVietnammarket.

Third,thetheoryofRelationshipMarketingOrientation (RMO)bySin et al.

(2005)is newtowardssomeresearchersinVietnamcontext.Atpresent,thereonlyhasafewstudies inVietnammarketrelatingtothisconcept,suchasNguyen&Viet(2012),

Luu(2017).Inparticular,studyofLuu(2017)conductsRMOasamoderatorvariabletowardstherelat ionshipofCSRandcustomervalueco- creation.Theresultofthiss t u d y showsthatRMOcontinuestoshowasmoderating variableinsomeconceptr e l a t i o n s h i p s Therefore, theresultsoft hi s study continuetocontribute theRMOtheoryinatypicalindustry,inatransitionalmarketlike Vietnam.

Fourth,t h e r e l a t i o n s h i p modela m o n g c o n c e p t s M O , C S R a n d F P i n t h i s studycontinuestoshowitsexistence.Intheotherword,thestudycontinuestoconfirmthee x i s t e n c e ofthis relationshipmodelintheVietnammarket(Long,2015).Thestudyo f Long(2015)conducte dintheMekongDelta,VietnamthatshowedthelegalfactorbelongstoCSRconceptalmosthas nosignificant.However,thisstudyconductsinH o ChiMinhCity,Vietnamincorporat ingmarketingcommunicationsindustry,allC S R componentshavesignificant.

V i e t n a m marketingc o m m u n i c a t i o n s T h e r e s e a r c h r e s u l t s h a v e a l s o v a l i d a t e d themoderationroleofRMO.Thus,thisresearchislikelytocontributingsu chatheoreticalmodelthatopensdoorforfurtherresearchdirections.

Practicalcontributions

T h e rel atio nshi p b e t w e e n M O a n d F P h a s b e e n s h o w n a s p o s i t i v e e f f e c t (Nguyen& Nguyen,2008;Qu2009;Long,2015).Therefore,theresearchresultssuggestthat ino r d e r tohavegoodbusinessperformance,enterprisesshouldmaintaintheiractivitiesf o l l o w i n g market-oriented.

ResearchresultsalsoshowthecorrelationinrelationshipwhenMOconceptisthei mportantpremisetowardsCSRactivities.Then,theyultimatelyaffecttothefirmperform ance.This isalsoconsistentwithprevious studiessuchas Maignan etal.

(1999)whenconductingtheexperimentstudyinUSfirms,orQu(2009)inChinam arket,andLong(2015)intheMekongDelta,Vietnam.Thus,itcanbesaidthatente rpriseswhichhaveclearlymarketorientation,itwouldhaspositiveimpactonC S

R activities.Sincethen,CSRhaspositiveimpactonfirmperformance(Luo&B h a t t a c h a r y a , 2006;Qu,2009;Luu,2017).

MO, CSR,FPconceptsisdemonstratedinthisstudy.Therefore,besidefirmhasgoodm a r k e t - o r i e n t e d andeffectiveCSRactivitiestoachievethedesiredperformances,thei m p l e m en t at i o n oftherelationshipmarketingactivitiesarealsonecessary.Regardingt o sixcomponentvariabl esofRMO,theresearchresultsshowthatmostofcomponentsparticipates insuc ham o d e r a t i o n roletoallrelationships inresearchmodel.Again,inpractice,lo calfirmsshouldpaymuchattentiontoallofthesesixc o m p o n e n t s

Managerialimplications

MarketOrientationdimension

Themarketorientationprocessalwayslinkstotheidentificationofbusinessgoals,tomarketneed s,andto firmsoperatingin thesameindustry(Kohli &Jaworski, 1993;N a v e r & S l a t e r , 1 9 9 0 ; T s e e t a l , 2 0 0 4 ; N g u y e n & N g u y e n , 2 0 0 8 ) I n o r d e r t o strengthenthemarketorientation,firmsneedtofocusonfollowingsuggestions:

- Determineclearly thep u r p o s e ofbusiness: combiningthe m a x i m u m p rofitg o a l s withservingthehighestcustomerneedsgoals.

- Continouslyconductingmarketresearch,exploringmarketdemands,p r o a c t i n g i n a p p r o a c h i n g t a r g e t m a r k e t s i n o r d e r t o o r i e n t o p e r a t i o n s inaccor d an ce withcustomers'needs.

- Collecta n d u p d a t e i n f o r m a t i o n o f e n t e r p r i s e s i n t h e s a m e i n d u s t r y , d i r e c t competitors,s u p p l i e r s , r a w m a t e r i a l s , t e c h n o l o g y , p r o d u c t i o n p r o c e s s , operationpolicies,salespolicies,after- salesservices,etc.Then,firmshouldselectthemostappropriatemarketsforimpl ementing.

- Studyingthechangingtrendsinboth international anddomesticmarkets, thec h a n g e s intechnologythataffecttotheoperationoffirm.Then,theyshould c o n s i d e r andselectthebestsolutionsfortimelyapplications.

- Builduptheprofessionaloperationsysteminnerthefirmandestablisht heco o r d i n at i o n mechanism.Thisaimstoincreasingtheefficiencyinproduction,u p d a t e d informationandmeetthe needsofcustomers.Customerinformationalwaysneedtobeupdatedandtransferedtim elytothefunctionaldepartments.

Corporate Social Responsibility–CSR

Corporate Social Responsibility (CSR) encompasses a firm's activities and processes in relation to its perceived obligations to stakeholders (Galbreath, 2009) It has the potential to enhance stakeholder relationships and build greater trust by maximizing positive impacts and minimizing negative effects (Lai Cheng & Ahmad, 2010) This study focuses on marketing communications firms in Vietnam, which typically advise other industries on CSR practices but often neglect to implement these norms within their own operations To effectively engage in CSR activities, local firms must prioritize the following recommendations.

- Conductmarketresearch about the trends offluctuationsaswell as customerp re f e r en c e s r e l a t i n g t o p r o d u c t d e s i g n, i m p r o v i n g f i r m qu al it y ofp r o d u ct s / s e r v i c e s

- Improvecontinuouslythequalityofproducts/ servicestotargetcustomersino rd er tomaximizeprofitsandsaveoperatingcosts.

- Enterprisesshouldestablish,issueasetofbusinessactivitiesstandardsa ndpublishwidelytoallstaffintheenterprise.Inparticular,thecodeofethi csmustfollowthecodeofethicsinsocietyaswellasfollowingnon- governmento r g a n i z a t i o n s standardsinovertheworld.

- Developafair m ec h a n i s m withallcol lea gu es Moreover, companys houldh av eaconfidentialityprocessforemployeeswhenreportingmiscond uctsintheworkplace.

- Aimitsacivitiesinhelpingthepoors,thedisadvantagepeopleandimprovingcommu nityinfrastructureInaddition,firmshouldmeetrequirementsofnon- governmentorganizationsandgovernmentrequirementsinsuchitsindustry.

- Trytoimproveitsimage,productsandservicesstandard,andhasresponsiblef o r buildi ngreliablereputationtowardsthemarket.

- Alwaysu p d a t e a n d c o m p l y witht h e l e ga l i n f o r m a t i o n relatingt o b u s i n e s s activitiesofcompany.

IncreasingtheRelationshipMarketingOrientation(RMO)

(2004)statethatrelationshipmarketingorientationisviewedas‘‘theextentt o whichacompanyen gagesindevelopingalong- termrelationshipwithitsc u s t o m e r s ’ ’ AccordingtoSinetal.

(2005),RMOshouldbemoredominantinthedeterminationo f f i r m s ' b u s i n e s s p e r f o r m a n c e i n t h e s e r v i c e s s e c t o r t h a n i n t h e manu fact ur in g sec tor.Therefore,theadoptionofRMOcanhelpaserviceprovidertodesignandofferaservicemix Thisisperceivedbycorecustomersassuperiorandh e l p s thefirmmakingprofitsandbuil dingcompetitiveadvantages(Sinetal.,2002).

Asanalyzedabove,Vietnam isanidealplacetotestthevalidityoftheRMOmodeli n aservicecontextbecauseofitstra nsformationfromasocialismmarket-orientedeconomytoapredominantlyservice- orientedeconomy.Inthisstudy,itissuggestedsomed i r e c t i o n s i n o r d e r t o a s s i s t s t h e l i m i t a t i o n s o f

V i e t n a m m a r k e t i n g communicationsf i r m s i n u n d e r s t a n d i n g t h e i mportanceo f C S R , M O a n d R M O co n c e p t s toimprovetheircompetitiveadvantages.Ina ddition,inthisstudy,theRMOconceptplaysasmoderatortowardsCSR,MOandFirmperfor mancerelationships.T her efo r e, inordertoincreasetheRMOroleinmarketingcommunica tionsindustry,localfirmsneedtofocusonfollowingsuggestions:

- Strengthenmutualtrustinalltransactions.Themorestrongbeliefshas,the morecompanylimitsitspotentialcostsis.Inthisindustry,thismakespartnerstrusttoeach othertoallspecifictransactions.

- Whenc o m p a n i e s h a v e t h e i r m u t u a l t r u s t , t h e c r e d i b i l i t y o f b u s i n e s s transactionswillincrease.Thisisr e a l l y significantint h e marketingc o m m u n i c a t i o n s industry.

- Keepintouchregularlytoeachothereventherearenobusinesscontract s.Thishelps companies notonlygaining information, but it also supportsthemtoupdatethebusinessenvironment.

- Consider“long- termrelationship”termasthemainkeypointinestablishinga n d maintainingthest ateofartinbusinessoperation.

- Maintainrelationshipswithformercustomersaswellaspartnersintheindustry.Whe ncompaniesworkcloselytogether,itwillhelptomaintaintheirc o n t i n u o u s l y co- operationandcohesiveness.

- Trytoexploreandestablisheffectiverelationshipswithnewcustomersan dpa r t n er s notonlyinternalindustry,butalsoithastoexpandtotheothers.

- Alwaysconsidertheimportanceandcontinuityintrainingcommunicati onss k i l l s to managersand staffinmodernandprofessionalway(bycontracts,ornorms,regulations,etc.)

- Improveco nt in uo us ly co m m u n i c a t i o n s s k i l l s t o w a r d s i n t e r n a l s t a f f s i n internationalizationcontext.

- Theanalysisresultsinthisstudyshowthatthe"empathy"factormoderatestoal l relation sofresearchconcepts.ThisshowsthatlocalcompaniesinVietnammarketingc o m m u n i c a t i o n s i n d u s t r y h a v e e x c u t e d veryg o o d C o m p a n i e s shou ldcontinuetoholdonit.

- Inbusinessenvironment,companiesintheindustryshouldsupporttoeac ho t h e r inbigprojectsorcontractsthatbeyondtheircapacities.Itcouldenhancepartner s’mutualunderstanding.

- Implementregularlygratitudeprogramsandsupportcompany’scustomersini t s cap acity.Insomecases,customersgivetheirassistanceswhencompanyh as d ifficulties,thencompanyshouldrepaytheirkindness.

Researchlimitationsandfurtherresearch directions

First,t h e r e s e a r c h modelw a s t e s t e d w i t h r e s p o n d e n t s c o m i n g f r o m V i e t n a m e s e companiesthathaveheadquartersorbranchesmainyoperatinginHoChiMinhCity,Vi etnam.Theresearchmodelshouldbetestedwithotherrespondentscomingfromo t h e r bigcities andprovinces inVietnam(suchasHanoi, Danang, C a n Tho,HaiP hong,etc.)toenhancethegeneralizabilityoftheresults.

V i e t n a m marketingcommunicationsfirms.Thisisatypicalserviceindustry.AccordingtoSine t a l ( 2 0 0 5 ) , RMOismoredominantinthe determinationoffirms'businessperformanceintheservicessector.Therefore,RMOconcep tshouldbeconductedino t h e r servicesinVietnammarket(suchasreal- estate,hospitality,education,healthc a r e , entertainment,etc.)toenlargeitsapplications.

Third,asmentionedabove,theresearchresultshavealsovalidatedthemoderationr o l e ofRMO.Especially,itisappropriatetosuchatypicalserviceindustry,marketingc o m m u n i c a t i o n s Thus,thisresearchislikelytocontributingsuchatheoreticalmodelt hat opensdoorf orfurtherresearch.Intheotherword,theresearchmodelinthiss t u d y mightbete stedinotherserviceindustryinVietnamcontext.

Finally,t h e r e s e a r c h modele x a m i n e d t h e moderationr o l e o f o n l y RM Oconcept incorporatingtootherconceptsrelationssuchasMO,CSRandFP.Furtherresearchesc o u l d replacetheRMOmoderationrolebyotherconceptssuchasservantleadership( L u u , 2017), entrepreneurshiporientation(Nguyen&Nguyen,2008;Long,2013) i n t o t h e researchmodel.T h i s mightp r o v i d e f u r t h e r i n s i g h t s i n t o t h e V i e t n a m marketingcommunicationsindustry.

Conclusion

Int h i s c h a p t e r , t h e studys u m m a r i z e s r e s e a r c h f i n d i n g s a n d p o i n t s o u t r e l e v a n t suggestionsforcompaniesoperatinginbusinessenvironment.Besides,a llresearchd i s c u s s i o n s andimplicationsmentionaboutthemoderationroleofRMOconc eptthatr e l a t i n g toCSRpractices,MOconceptandhowtheyaffecttofirmperformance.Ther e s u l t s ofthisstudyofferanumberofimplicationsforthetheoryandpracticestoVie tnammarketingcommunicationsfirmsinenhancingtheiroperationsaswellasleve ragingtheircompetitiveadvantages.Attheendofthischapter,thestudyalsos h o w s somelimitationsofthestudyandfiguresoutanumberofdirectionsforfurtherr e s e a r c h directi ons.

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Hello,weareHoangCuuLongandcolleagues.WearePh.Dstudentandresearchte am comefromtheUniversityofEconomicsHoChiMinhCity–UEH.

Todaywearehonoredtowelcomeyoutojoinustodiscusstheresearchwhichnames “ C o r p o r a t e SocialResponsibility,MarketorientationandFirmperformance:them o d e r a t i o n roleofRelationshipMarketingOrientation”.We hopetoreceiveyouracti ve partici pation.Pleasenotethatthereisnorightorwrongopinions Allyourh on est com mentswillcontributetothesuccessofthisresearch.Now,pleaseintroduceyourselftoeach othersandweconductourdiscussion.

Pleaseexpressyourpointofviewsrelatingtothesocialresponsibilitiesofcorporatein modernsociety.Wehavealsosomeinitial suggestionsasbelow.Pleasenote thatyourpersonalopinionswillberecordedandsummarized.Inaddition,therewillhavenorighto rwrongopinions.Allinformationisservedtotheresearch.

(iii) Incaseit ismore de p t h evaluating o nC S R , whatshouldbe a d de d or reduced?

2 Itisimportant thata su ccess fu l firm bedefined a s onethatis consiste ntlyp r o f i t a b l e

2 Itis importantthatgoodcorporatecitizenship be de fi ne d as do in g w h a t ise x p e c t e d morallyorethically

- In termofmarketview, theexpectationon achievingin businessresults,youw i l l thinkaboutthefirmperformance.So, whatfeatureswillyourfirmgain?W h y doyouthinkof?

UEH.Weareconductingtheresearchwhichnames“Corporate SocialResponsibility,Ma rketorientationa n d F i r m p e r f o r m a n c e : t h e m o d e r a t i o n r o l e o f R e l a t i o n s h i p M a r k e t i n g Orientation” T h er e s e a r c h p u r p o s e i s t o s e r v e

Pleasetakeyourvaluetimetoanswerthefollowingquestionnaire.Pleasenotethatth ere isnorightorwrongopinions.Allyourhonestopinionswillcontributetothisresearch.In addition,allinformationaboutyourcompanywillbecombinedwitho t h er c o m p a n i e s f o r a n a l y z i n g s t a t i s t i c s T h e r e f o r e , p e r s o n a l a n d c o m p a n y informationwillnot appearintheresearch report.Wewill send toyoutheresearchresultsifrequested.Wehopetoreceiveyouractiveparticipation.

Part I: Please giveyouropinionswiththefollowingstatementsonascalefrom1t o 7,withcr iteria:

( Pleasecircle/tickonly one boxfor eachstatement )

11 Itis importanttocomplywith various federal,state,andlocalregulations 1 2 3 4 5 6 7

Itisimportanttorecognizethatcorporateintegrit ya n d e t h i c a l b e h a v i o r g o b e y o n d merec o m p l i a n c e w it h lawsandregulations

16 Iti s importantt h a t g o o d c o r p o r a t e c i t i z e n s h i p b e 1 2 3 4 5 6 7 defineda s d o i n g whati s e x p e c t e d m o r a l l y o r e thically

Itisimportanttoperforminamannerconsistentwiththe phila nthropicand c h a r i t a b le ex pec ta ti ons of so ci e t y

Itisimportantthatmanagersandemployeesparticipa teinvoluntaryandcharitable activities within theirlocalcommunities

49 Webothtryveryhardtoestablishalong- termr el ati on ship 1 2 3 4 5 6 7

1.Undergraduate 2.Bachelor 3.Post- graduateQ u e s t i o n 76:Nationalityofthetopleader

1.Under5years 2.From5–10 3.From10–154 Over15years

No Code Name Position Company Address Note

10/29Trần NhậtD uật,phườngTânĐị nh,quận1

&Tr av el Co.,ltd

SmentorCorp 122/24BùiĐìnhTu ý,phường12,Bình Thạnh

CEO SmentorCorp 122/24BùiĐìnhTu ý,phường12,Bình Thạnh

EventsDirector SQUAREgroup 55TrươngQuốcD ung,phường8,Phú Nhuận

10/29Trần NhậtD uật,phườngTânĐị nh,quận1

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