Name: Mitchell van Schaik Student Number: 10469893 Supervisor: Dr. R.M. Singh Amsterdam Business School University of Amsterdam
Faculty of Economics and Business Master Business Studies
Specialization Strategy
Corporate Social Responsibility in Relation
With Competitive Advantages
Linkages Between CSR, Consumer Preferences and Product Quality
Abstract
The aim of this study is to investigate the relationship between consumer preferences for sustainable
products and a firm’s competitive advantage, in the fruit and clothing industry. Prior research has
investigated that consumers not only look at their personal interest in their purchase decision for a
product. Instead, they also look at the interests of the society as a whole and the environment. For
them, it is important that future generations are not harmed by products and services that are
developed in the present. Moreover, recent studies have found that firms can obtain competitive
advantages by acting in a social responsible way, and by offering consumers sustainable products.
Related to these two main aspects, the research question of this study is drawn. The research
question focuses on finding out how consumer preferences for sustainable products influence the
competitive advantages of a firm, in the fruit and clothing industry. Thereby, the product’s effect on
the consumer is proposed as a moderator on this relationship. The main findings of this study
showed that in both industries, consumer preferences for sustainable products are a good predictor
of a firm’s competitive advantage. Moreover data analysis showed that no support is found for the
proposed moderating effect. The study concludes with providing important implications for future
Table of Contents
I. Introduction 3
II. Theoretical Framework 6
1. Corporate Social Responsibility 6
2. Sustainability 8
3. Sustainability as a Competitive Advantage 9
4. Consumer Preferences 10
5. Sectors 11
6. Direct Links between Consumer Preferences and Competitive 12
Advantages Across Sectors
7. Effect of Products on Consumers as Moderator 14
III. Methodology 17
1. Research Design 17
2. Sample and Data Collection 18
3. Variable and Measures 18
IV. Results 22
1. Reliability Analysis 22
2. Correlation Analysis 22
3. Normal Distribution Analysis 25
4. Regression Analysis 25
4.1 Testing Direct Relationships 26
5. Moderation via Process 27
V. Discussion and Conclusion 31
1. Summary of Main Findings 31
2. Implications for Research 33
3. Implications for Practice 34
4. Limitations and Recommendations for Future Research 35
5. Conclusion 36
VI. References 37
Appendix A: Questionnaire 46
I. Introduction
Companies feel the urge to behave in a socially responsible way nowadays. Consumers,
governments, action groups and the (social) media play an important role in this corporate behavior
(Porter & Kramer, 2006). Thereby, consumers and stakeholders happen to influence the way
managers think (Enquist et al. 2006). Corporate Social Responsibility (CSR) can be defined as the
“actions that appear to further some social goods, beyond the interest of the firm and that which is
required by law” (McWilliams & Siegel, 2001). Although there has been extensive research on the
topic of CSR, the response of consumers towards CSR has not been studied a lot. Studies that have
been conducted on the responses of consumers to CSR, show different outcomes (Feldman &
Vasquez-Parraga, 2013).
As consumers see how human behavior affects the eco-system, they become more
concerned about their environment. Therefore, the industry for 'sustainable products' – products that
are less harmful for the environment than regular products, as they meet the needs of the present
without compromising the ability of future generations to meet their own needs (Glavic & Lucman,
2006) – has been growing rapidly in the past decade.
Several studies found that there is a positive relationship between CSR actions carried out
by companies and consumers´ reaction to those companies and their products (Bhattacharya & Sen,
2004; Brown & Dacin, 1997; Carvalho et al. 2010; Ellen et al. 2006; Smith & Langford). However,
other studies showed that CSR does not always lead to a positive effect on consumer preferences
(Carrigan & Attalla, 2001; Ellen et al. 2000; Valor, 2008). Thereby, it is stated that the effect of CSR
on consumer behavior depends on several factors, such as the quality of the product or service that
is being offered (Bhattacharya & Sen, 2004).
This study will take a look on how sustainability might contribute to the competitive
advantage of a firm , by looking at consumer preferences for sustainable products. Moreover, a
comparison between two different product sectors – the clothing industry and fruit industry – will
investigate whether sustainability can be a driver of competitive advantage. Here, consumer
preferences will be studied in order to see whether sustainability is a driver of competitive
advantage, and how this varies across sectors. The aim of this study is to give an answer to the
following research question:
`How do consumer preferences for sustainable products influence the competitive advantages of a firm?’
This study will thereby focus on the moderating effect of the product’s effect on the consumer on
the relationship between consumer preferences for sustainable products, and a firm’s competitive
advantage in the fruit and clothing industry. Here, it is proposes that this moderating effect is more
positive in the fruit industry than in the clothing industry, as fruit have a direct effect on consumer’s
health, while clothing does not directly affect the well-being of consumers (Hughner et al., 2007).
The research model of this study is displayed in figure 1.
In terms of the latter, a contribution to the existing literature concerning CSR and its
relationship with a firms competitive advantage will be made. Thereby, a factor that is of influence
on this relationship is being offered, namely the effect a sustainable product has on the consumer.
Subsequently, implications for practice will be provided.
Figure 1 – Research Model
Consumer Preferences for Sustainable Fruit
& Clothing Competitive Advantage of a Firm Effect on Consumer
II. Theoretical Framework
The following paragraphs will discuss the existing literature on the topics in this study. A definition
of each construct will be given, and main insights will be provided subsequently. Relationships
between the constructs will be described and hypotheses will be proposed afterwards. Furthermore,
a distinction will be made between the fruit and clothing industries, in order to be able to give an
answer to the research question.
1. Corporate Social Responsibility
Corporate social responsibility has been studied since the 1930s. Although CSR has been
conceptualized by many studies since then, it is useful to discuss the more recent and so called
'modern' developments concerning the topic. According to Carroll (1999), the modern era of social
responsibility began since the 1950s. Carroll categorizes the concept on a decade-to-decade basis.
CSR was first defined as “the obligations of business men to pursue those policies, to make those
decisions, or to follow those lines which are desirable in terms of the objectives and values of our
society”(Bowen in Carroll, 1999: 270). In the 1960s, Davis attempted to add something to the
definition that was set by Bowen, also known as 'The Father of CSR Designation'. He did this by
setting forth the 'Iron Law of Responsibility'. This law states that “social responsibilities of business
men need to be commensurate with their social power” (Davis in Carroll, 1999: 271). Several other
authors made important contributions to the definition of CSR from this moment on. McGuire
(1963) gave a more precise definition of CSR, by adding that besides the economic and legal
obligations, a firm also has responsibilities towards society. These responsibilities go beyond the
other obligations. Until the 1980s, several studies have been conducted in order to contribute to the
conceptualization of CSR. However, no groundbreaking additions have been made to the
conceptualization in this period.
Throughout the 1980s and 1990s, no significant contributions were made to the definition of
on the theme. Thereby – especially during the 1990s – the concept of CSR was expanded by
relating new theories to it, such as business ethics and stakeholder theory. Carroll (1979) concludes
his article with the statement that in the new millennium, it is expected that attention will be given
to measurement initiatives as well as theoretical developments. Sustainability is one of those
measurement initiatives which has been given extensive attention in the last decade. The next
section will elaborate on this topic.
Studies not only found positive outcomes associated with CSR In his study Friedman
(1970) states that firms' main reason to behave socially responsible is to gain benefits and enhance
reputation, instead of mainly focusing on contributing to society at large. So, here it was already
discovered that CSR can be used as a tool to “look” better than other companies, which can lead to
an advantage over other companies (Delmas & Burbano, 2011). A lot of firms have engaged in this
so called greenwashing, where organizations mislead their consumers concerning the environmental
benefit of their products or services, or about their environmental performance. In other words,
firms use greenwashing in order to lift their corporate image (Parguel et al., 2011). This in turn has
led to difficulties for consumers to distinguish between companies that offer truly sustainable
products, and companies who take an opportunistic advantage of the trend of sustainable
development (Fukukawa, 2007; Bernstein, 2009). However, CSR communication has gained great
attention, and therefore several independent institutions have been set up in order to provide
consumers with the right information concerning the corporate benefit of products and services
(Van de Ven, 2008; Sjovall & Talk, 2004).
What can be concluded is that all definitions of CSR state that for an organization to be
sustainable, it needs to take into account economic, environmental and social aspects. To better
understand the definitions, a broad definition of CSR is being provided ; “Corporate Social
Responsibility is an umbrella term for a variety of theories and practices, all of which recognize the
following: (a) that companies have a responsibility for their impact on society and the natural
companies have a responsibility for the behavior of others with whom they do business (e.g. within
supply chains); and (c) that business needs to manage its relationship with wider society, whether
for reasons of commercial viability or to add value to society” (Blowfield & Frienas, 2005).
2. Sustainability
The awareness on the topic of sustainability has been growing rapidly. Therefore, researchers have
attempted to define the concept of sustainability. Various definitions exist, where terms as pollution
prevention and green/clean production processes are discussed extensively. In their research
concerning the terms and definitions that have been used for sustainability, Glavic & Lucman
(2006) give a summary of the definitions that exist. They come to the conclusion that the definition
of sustainability, and especially sustainable development has not been changed significantly since
1987. It was in this year that the World Commission on Environment and Development defined
sustainability as “a development that meets the needs of the present without compromising the
ability of future generations to meet their own needs” (Glavic & Lucman, 2006). An important
aspect of this definition is the last part, concerning the future generations.
Corporate social responsibility can be seen as a practice of companies on their way towards
sustainability (Burchell & Cook, 2013). Recent years have witnessed an increase in the recognition
that organizations have a responsibility that goes far beyond the traditional focus on customers and
shareholders. Instead, organizations are expected to behave in a socially responsible way where a
far broader range of stakeholders is taken into account when doing business, whit a focus on the
future (Friedman & Myles, 2002; Frooman, 1999). So CSR and sustainability are two dimensions
that cannot be separated in this sense.
In order to become sustainable, organizations should investigate each link in their value
chain and make changes. Once these changes are being implemented throughout the activities in the
value chain, other areas are often analyzed and changed. Operations, workplaces and product
has been associated with the development of products. As Rusinko (2007) stated, sustainability
seems to be an attractive proposition because of its meeting points among environmental concerns,
manufacturing designs and moreover, products design activities. Thereby, it is argued that
sustainability is bonded to the ‘triple bottom line balance’(Ghadimi et al., 2012). What is meant
here is the balance in achieving economic success, environment cleanness and social responsibility,
which together form the central concept of sustainable development (Fairley et al., 2011; Hacking
& Guthrie, 2008). According to these statements, it is likely that sustainability is related to an
organization’s competitive advantage. The next section discusses this association.
3. Sustainability as a Competitive Advantage
In his study, Porter (1998) states that a competitive advantage initially comes from the value that a
firm is capable of creating for its customers, which is higher than the cost of creating it. Thereby, a
competitive advantage can be derived on either cost leadership or differentiation (Barney, 1991). In
other words, the source of a competitive advantage is a firm’s ability to integrate, build and
reconfigure internal and external competences (Teece et al., 1997).
When a competitive advantage is derived from cost leadership, a firm is able to produce its
products or to provide its services in a more efficient way than its competitors. Sin other words,
their internal processes are superior (Teece et al., 1997). Therefore, the profit margin of such a firm
is higher than the profit margin of competitors. This results in a competitive advantage, and
moreover puts the firm in a position to outcompete its competitors. If a competitive advantage is
derived from differentiation, consumers are willing to pay a premium price for the product or
service of a firm. In this sense, their external competences are superior (Teece et al., 1997). This is
because consumers value the product or service more, as the firm is able to create new products and
processes and to respond to the changing circumstances in the market(Teece & Pisano, 1994).
However, a competitive advantage does not last forever. Organizations might have a
nowadays, an organization’s competitive advantage may erode (Li & Liu, 2012). Consumers are an
important determinant of this changing business environment, as their needs change rapidly.
Moreover, consumers decide whether a firm has a competitive advantage, as they have to buy the
product/service that firms are offering. Organizations constantly have to satisfy the needs of the
consumer, as competitors try to level the playing field by developing new products and ideas to
satisfy the consumers more (Christensen, 2001; Porter & Stern, 1999). Therefore, consumers’
preferences is an important topic to study, and will be discussed in the next section.
Husted & Allen (2001) also state that when firms implement a CSR strategy in a proper way,
they will not only generate normal benefits but it can also help to create competitive advantages for
firms. In the literature, it is said that the reason for a competitive advantage by CSR is related to the
Resource Based View (RBV). Resources are originally classified as tangible, intangible and
personnel based (Grant, 1991). A resource can deliver the firm a sustainable competitive advantage
when it is “valuable, rare, inimitable and non-substitutable” (VRIN) (Barney, 1991). CSR related
resources can have different dimensions. Examples are the corporate values, corporate reputation
and its relationship with stakeholders. Consequently, these resources will lead to differential value
creation (Barney, 1991), enabling firms to have a competitive advantage over their competitors.
4. Consumer Preferences
As Bhattacharya & Sen (2004) state, an important stakeholder group that appears to be an important
determinant for a company's CSR initiatives are its consumers. As the term consumer preferences is
broad, a more precise definition is given. Consumer preferences are about the consumers' attitude
towards a firms' product/service and a consumers' purchase intention of a firms' product/service
(Hartman & Apaolaza-Ibáñez, 2012; Laroche et al., 1996; Salleh et al., 2010). Consumer
preferences are determined by a lot of factors, differing per product type and consumer. Examples
are the price of a product, but also the presentation, it’s image and more and more by the
product, which is characterized by the product’s attributes, the more factors play a role in consumer
preferences (Scholz et al., 2010).
Prior research has indicated that little is known about how sustainable products and/or
services are associated with consumer preferences (Luchs et al., 2010). They state that CSR affects
consumer preferences, depending on the type of benefit that consumers most value for the product
category in question. In their research, Luchs et al. (2010) have found that the positive effect
sustainable products can have on consumer preferences diminishes when strength-related attributes
are being valued. Additionally, they found that this can even result in preferences for
less-sustainable products. Furthermore, market place polls suggest that there is a positive relationship
between a company's CSR actions and consumer's reactions to that company and its products
(Bhattacharya & Sen, 2004). A gap can be identified here, as there are controversies in studies that
have been conducted on the relationship between CSR activities by an organization and consumer
preferences.
5. Sectors
Previously it was argued that products or services that are characterized by a comparatively large
amount of attributes that are relevant in a consumer’s purchase decision, are complex (Scholz et al.,
2010). Therefore, products and services such as cars, computers and vacations require a
comprehensive decision-making process. Conversely, less complex products and services, such as
food and clothing require a less difficult decision making process. In their study concerning
consumer preferences, Jaffry et al. (2004) focus on the British seafood products. By using labels,
products were differentiated from one another. The purpose of this labeling was to promote
sustainable fisheries. Results have shown that these labels indeed influence the preferences of
consumers, as they were more willing to buy the sustainable products. This suggests that
supply-side management concerning the promotion of sustainable products have an effect on consumer
can stimulate consumers to buy their products. In other words, suppliers that label their products
gain a competitive advantage.
However, this relationship was only tested in the British seafood industry. As Bhattacharya
& Sen (2004) found in their research, the relationship between CSR and consumer purchases is not
as straightforward as market polls suggest. There are several factors that influence this relationship.
Therefore, in this study an attempt is made to see how CSR is related to consumer's purchase
intentions across two sectors: the clothing industry and the fruit industry. Numerous studies found
that consumers put too much weight on attributes that are not relevant to the purchase decision
(King et al., 2004), and this unwanted property is likely to increase with the number of attributes
that are taken into consideration (Pullman et al., 1999). So, for complex products and services,
consumers tend to look at attributes that are not important. Conversely, when the products or service
is less complex, consumers take important attributes into consideration in their purchase decision
(Scholz et al., 2010).
6. Direct Links between Consumer Preferences and Competitive Advantages Across
Sectors
Because of the quest for sustainability nowadays, the nature of competition has changed.
Companies that are aware of this, and set up a corporate social strategy accordingly, will benefit as
they enjoy first mover advantages (Nidumolu et al. 2009). As globalization is rising and information
is quickly available due to new technologies, firms need to acquire critical knowledge and
information in order to be able to survive and gain a competitive advantage, both domestically and
internationally (Guo 2007). Moreover, firms need to adopt a long term proactive environmentally
approach, so that they can gain a sustainable competitive advantage (Aragón-Correa & Sharma,
2003). So, the task for managers is to set up a strategy that aligns both the core business and
environmental challenges. Only in this way, a firm is able to make the products or deliver the
practice sustainability, they develop social resources which in turn helps them to create a
sustainable competitive advantage (Rodriguez et al. 2002).
Previously it was argued that a positive relationship between sustainability and competitive
advantages exists (Husted & Allen, 2001). Moreover, this competitive advantage is determined by
the values in the market, i.e. the preferences of consumers (Bhattacharya & Sen, 2004).
Furthermore, it was stated that the more attributes the product or service possesses, the more
difficult the decision making process for the purchase of a product or a service (Scholz et al., 2010).
In their research, Laroche et al. (2005) found that as opposed to services, goods have a low
generality. Generality is defined as the consumer’s difficulty in precisely defining or describing the
product (Lee & Park, 2009). This low generality of goods makes them specific, i.e. goods have
observable attributes which generates numerous clear cut definitions (Verhagen et al., 2010). In this
sense, sustainability (as an attribute of fruit/clothing) is observable and therefore seen as an attribute
that consumers value, which in turn leads to a preference and a competitive advantage of a firm.
Moreover, prior research has found that consumers positively view sustainable products and
services (Luchs et al., 2010). Consumers are even willing to pay a premium price for products and
services that are sustainable (Trudel & Cotte, 2008). So, sustainability is seen as a positive attribute
of a product, which in turn leads to preferences of consumers for a sustainable product
(Callado-Muñoz & Utrero-Gonzélez, 2010). Thereby, consumer boycotts for products that are unethical (for
example because of carbon emission), are forcing organizations to acknowledge their responsibility
for the environments in which they are operating (Callado-Muñoz & Utrero-Gonzélez, 2010). So,
consumers are willing to look for sustainable products nowadays, which makes organizations aware
to behave in a social responsible way in order to achieve a competitive advantage (Jones, 1995;
Fernandez-Kranz & Santaló, 2007).
Taking this into consideration, it is likely that in the fruit and clothing industry, a positive
relationship exists between consumer preferences for sustainable products and a competitive
Hypothesis 1: Consumer preferences for sustainable products are positively related to a firm’s
competitive advantage in the fruit and clothing industry
7. Effect of Products on Consumers as Moderator
In this study, it is argued that the direct or indirect effect a product has on the consumer, acts as a
moderation on the relationship between consumer preferences for sustainable products and a firm’s
competitive advantage. Moreover, this moderation effect is likely to differ between the fruit and
clothing industry, for several reasons.
Firstly, consumers are aware of the long-term effect food can have on their well-being
(Hughner et al. 2007). Food has a direct effect on consumers’ s well-being, as it goes directly into
their body. Moreover, because consumers have more knowledge about how their food (and thus
fruit) is being processed, consumers become less suspicious about the attributes of the food they
buy and eat (DeCarlo et al.2013). The more knowledge consumers have, the less suspicious they
are about what they buy. Consequently this leads to a positive effect on the consumer’s purchase
intention for sustainable products (2005).
As was previously stated , consumer preferences for clothes that were made in a sustainable
way, depend on several factors. Consumers tend to buy clothes for social acceptance, so fashion is
important (Niinimäki, 2010). Thereby, in his research, Meyer (2001) found that consumers do not
have a preference for 'green' clothes, as they often see them as 'shapeless' and 'colorless'. Consumers
are only willing to buy green clothing when they are superior to competitors' offerings (Meyer,
2001). In this sense, sustainability has an indirect effect on consumer well-being. Therefore, the
relationship between consumer preferences and a competitive advantage for such products is not as
straight-forward as for products/services that have a direct effect on consumers.
Moreover, the knowledge of consumers about how their clothing is made is not as good as
et al., 2012). When consumers do not have enough information about the product, they start seeking
for more information because they are suspicious (DeCarlo, 2005; Merchand & Vonk, 2005). This
has a negative effect on consumer’s purchase intention, as consumers often find things they dislike
and switch to another product or brand (Kramer, 1999). However, more and more clothing marks
start to offer consumers information about specific suppliers that manufacture their products
(Goworek et al., 2012), as consumers also care about how their clothing is being produced, although
this does not directly affects their well-being (Shaw et al, 2006). This phenomenon is also known as
ethical consumption, which has been growing extensively in the recent years. In this type of
consumption, consumers do not only take purchase decisions based on personal interests (direct
effects), but also based on interests of society and environment (Jobber, 2006). However, several
studies in the clothing industry have shown that consumers who intent to hold ethical and
sustainable views, do not always transfer their ethical intentions into purchase intentions (Markkula
& Moisander, 2012; Carrington et al., 2010; Eckhardt et al., 2010). In the clothing industry, the key
social and sustainable issues are employee wages and working conditions, disposal of used clothing
and use of pesticide (Birtwistle & Moore, 2007; Park & Stoel, 2005; Pretious & Love, 2006). These
factors all indirectly affect consumers. So, as consumer do not only take into account their personal
interest, the indirect effect clothing has on consumer well-being is likely to influence the
relationship between consumer preferences for sustainable products and a firm’s competitive
advantage in the clothing industry.
Taken this together, it is proposed that the direct effect that fruit has on consumers, and the
more indirect effect clothing has on consumers, both act as a moderator between the relationship of
consumer preferences and a firm’s competitive advantage. However, because consumers know more
about the direct effect fruit has on their health, the proposed moderating effect is more positive in
the fruit industry than in the clothing industry.
Hypothesis 2a: The direct effect that fruit has on consumer well-being, acts as a moderator on the
relationship between consumer preferences for sustainable products and a firm’s competitive
advantage
Hypothesis 2b: The indirect effect that clothing has on consumer well-being, acts as a moderator on
the relationship between consumer preferences for sustainable products and a firm’s competitive
III.
Methodology
In this chapter the approach of the research, as well as its design will be explained. The
questionnaire that is used for this study will be presented, and a description of the sample will be
described. Furthermore, the data collection method is provided. Lastly, the variables and a
description of its measurements are given.
1. Research Design
The aim of this thesis is to determine and quantify the relationship between consumer preferences
on sustainable products with a firm’s competitive advantage. Thereby, the effect the product has on
the consumer is being looked at to see whether it has a moderating role on the relationship between
the two variables. Since the prediction of a dependent variable (competitive advantage of a firm) is
tested from an independent variable (consumer preferences), and the influence of the effect of the
product on the consumer is tested, the model is a moderation model (see figure 1).
This thesis has a non-experimental research design which is based on reported data without
any form of intervention or variable manipulation. The temporal orientation of the data is cross
sectional; the data set is one dimensional based on the operationalization of individual behavior
variables at one point in time. A quantitative study is chosen because this leads to more objective,
replicable and generalizable results. Moreover, it is the most appropriate research approach in order
to determine predictions (Michael, 2011), which is the main objective of this study. So, the
hypotheses that are proposed in this study will be tested with use of primary data, comprising
consumer reactions to products in the Netherlands. The choice for using a cross sectional data set is
appropriate for this study because in this way, the research question can be answered in the short
time frame that is available for this study (Cooper & Schindler, 2008). Therefore measuring
variables over time is beyond the scope of this thesis.
In line with the requirements of a quantitative study, a questionnaire was used for primary
as consumer preferences were collected with the survey questionnaire. An advantage of the survey
questionnaire research method is that it allows to collect a large amount of data in a flexible way.
Moreover, this data can be analyzed and interpreted easily (Saunders et al., 2009). To do so,
probability testing is used to test the proposed statistical hypotheses corresponding with the research
question.
2. Sample & Data Collection
Instead of doing research on the whole population, a sample from this population was chosen which
makes it possible to collect data from a sub-group of this population (Saunders et al., 2009). The
primary data was collected using a questionnaire (see Appendix A). The questionnaire has been
spread over the internet in order to reach a large amount of respondents in a short time. The
respondents were therefore able to fill in the questionnaire at any point in time they wanted to at any
place. So, no control of the setting was in place during the data collection (Saunders et al., 2009). It
is for this reason that the variety of respondents is assured, as no selection of respondents was
possible. Information was provided about the general aim of the study. Participation in the
questionnaire was voluntarily, where participants were informed about the anonymous process of
their answers. An indication was given about the time that the questionnaire would take, whereby it
was stated that it would not take more than five minutes of the respondent’s time.
The sample consists of 208 Dutch speaking respondents. Of these respondents, 39 per cent
were male (81) and 61 per cent were female (127). The average age of the respondents is 32.4,
ranging from 16-64 (SD = 12.7).
3. Variables and Measures
In order to measure the variables in this study, a questionnaire was made to measure consumer
preferences (Appendix A). The questions are produced in such a way that adequate sampling of the
of the construct are being asked, so that different answers are ensured (Churchill, 1979). The
questionnaire only consists of eight questions. In this way respondents will not have a high
resistance to fill it in and a high response rate is ensured.
It was ensured that wording of each statement was precise and statements that are
double-barreled are avoided, as well as statements including “or” or “and”. The questions are randomly
placed and implications that provide preferred responses are being avoided as well. Therefore, the
common method variance is minimized (Slater & Gima, 2004). In order to enhance the scale
reliability and internal consistency and to minimize response bias. The measures are kept short
(Hinkin, 1998). The scale that is being used in the measures is a Likert-type scale, which is
commonly used in management research and is considered as the most reliable scale (Slater &
Gima, 2004).
To measure the independent variable consumer preferences, two items are used. A 5-point
Likert scale (1 = Strongly Disagree to 5 = Strongly Agree) is used for both questions. To be able to
measure this in the fruit industry and the clothing industry, two scales for consumer preferences are
used. See table 1 for the items in the two measures.
Table 1 – Items Measuring Consumer Preferences
Variable Items
Consumer Preferences Fruit 1) I have a positive attitude towards products from companies that are known for their corporate social behavior.
2) I have a positive attitude towards fruit which are offered by companies that are known for their corporate social behavior
Consumer Preferences Clothes 1) I have a positive attitude towards products from companies that are known for their corporate social behavior.
2) I have a positive attitude towards clothes which are offered by companies that are known for their corporate social behavior
To measure the dependent variable competitive advantage, respondents were asked to
scales were used in order to be able to see the difference between the fruit industry against the
clothing industry. Again, a 5-point Likert scale (1 = Strongly Disagree to 5 = Strongly Agree) was
used for all the questions. Table 2 displays the items in the two scales measuring competitive
advantage.
Table 2 - Items Measuring Competitive Advantage Derived From Consumer Preferences
Variable Items
Competitive Advantage Fruit Industry 1) When I buy products, I always buy products that are known for their corporate social behavior.
2) When I buy fruit, I always pick fruit from companies that are known for their corporate social behavior. 3) When I buy clothes, I always pick clothes from companies that are known for their corporate social behavior.
The moderating variable of the direct/indirect effect on the consumer is measured by the
quality of the product. Respondents were asked whether they would still buy products from
companies that are known for their corporate social behavior, although the quality of the product is
worse. Additionally, this question was asked for the fruit industry and clothing industry separately.
So for this measure, two scales were used again to be able to see the difference between the fruit
and clothing industry. Respondents were asked to answer the questions on a 5-point Likert scale (1
= Strongly Disagree to 5 = Strongly Agree).
Once the questionnaire was finalized, a pre-test was carried out with a few respondents that
were approached. This helped in the assessment of the content validity and the clarification of the
Table 3 – Items Measuring Effect on Consumer
Variable Items Reference
Effect on Consumer Fruit Industry 1) When I buy products, I always choose products from companies that are known for their social behavior, although the quality of this
product is worse.
2) When I buy fruit, I always pick fruit from companies that are known for their corporate social behavior, even when the quality of the fruit is worse.
Effect on Consumer Clothing Industry
1) When I buy products, I always choose products from companies that are known for their social behavior, although the quality of this
product is worse.
2) When I buy clothes, I always pick clothes from companies that are known for their corporate social behavior, even when the
quality of these clothes is worse.
This study controls for respondents’ personal characteristics, as respondents were asked to fill in
their age and gender. Age is being included as a control variable as previous research has indicated
that consumers age plays a role in their consuming behavior, especially concerning products that are
produced in a sustainable way. Thereby, other studies have argued that social value orientation
varies with age systematically (Van Lange et al., 1997). Self-interested behavior is more common
among younger people, whilst evidence shows that individuals tend to as reciprocators with
increasing age (Bekkers, 2004). Moreover, it has been argued that women are more
socially-oriented then men, which indicates that women might respond differently to products from
companies who are known for their corporate social behavior then men, who in their turn are more
IV.
Results
This chapter will report the results of this study. To start, the normal distribution and reliability of
the variables that are measured will be analyzed. Reliability is a prerequisite for validity;
“Coefficient alpha should be the first measure one calculates to assess the quality of the instrument”
(Churchill, 1979). Therefore, scale purification was carried out by calculating the cronbach’s
alpha’s for the variables that are measured in the questionnaire. After testing reliability, a correlation
analysis is carried out. The most significant correlations among the different variables will be
discussed. This correlation analysis was also useful to determine the control variable. Finally, linear
and multiple regressions are performed in order to test the proposed hypotheses. Here, Process is
used to estimate both the direct and moderating effect in the proposed model.
1. Reliability Analysis
As was already mentioned before, this research had a quantitative approach and therefore a
questionnaire was used in order to measure the variables. To test the reliability of these
measurements, the internal consistency is being analyzed by calculating cronbach’s alpha.
According to Pallant (2007), an internal consistency of 0.7 is good and acceptable.
The independent variable consumer preferences in the fruit industry has a cronbach’s alpha
of .751. This shows that 75.1% of the variability in the composite score of consumer preferences in
the fruit industry can be considered as the true score variance of reliable variance. As cronbach’s
alpha is higher than .7, internal consistency of this measure is assured (Pallant, 2007). Thereby, no
negative values were found in the inter-item correlations. It can be concluded that the two items
were always measuring the same underlying characteristic.
The cronbach’s alpha for the independent variable consumer preferences in the clothing
industry is .775. Therefore, 77.5% of the variability in the composite score of consumer preferences
in the clothing industry is considered as the true score variance of reliable variance. Internal
inter-item correlation matrix shoed no negative values, so the two inter-items were always measuring the same
underlying characteristic.
The dependent variable competitive advantage was measured across two sectors. Three
questions were used to measure this variable. The cronbach’s alpha for the dependent variable in the
was .748. So, 74.8% of the variability in the composite score of competitive advantage in the can be
considered as the true score variance of reliable variance. This indicates that the internal
consistency of this variable is sufficient, as the alpha’s is higher than .7. So, reliability in this
measures is good (Pallant, 2007). No negative items were found in the inter-item correlation
matrices, so the items were always measuring the same underlying characteristics.
The moderating variable effect on consumer was measured using two items for each
industry. Cronbach’s alpha for the moderating variable in the fruit industry is .697. This alpha
shows that 69.7% of the variability in the composite score of consumer effect in the fruit industry
can be considered as the true score variance of reliable variance. Cronbach’s alpha for the
moderating variable in the clothing industry is .779, showing that 77.9% of the variability in the
composite score of effect on consumer in the clothing industry can be considered as the true score
variance of reliable variance. Internal consistency is good as it is equal to or higher than 0.7
(Pallant, 2007). Again, no negative values were found in the inter-item correlation matrix,
indicating that the items always measured the same underlying characteristics.
2. Correlation Analysis
In table 4, the correlations between the constructs are displayed. A bivariate correlation analysis is
carried out on the variables, by using the Pearson correlation coefficient. In this section, the most
important significant correlations at or below the 0.05 level will be discussed. The value of this
Pearson correlation coefficient is always between -1 and 1. A value of 1 is indicating a perfect
positive correlation, whereas a value of -1 suggest a perfect negative correlation. When the value is
Table 4. Mean, Standard Deviation and Correlation. Variable Mean SD 1 2 3 4 5 6 7 1. Gender 1.61 .49 (-) 2. Age 32.39 12.70 -.110 (-) 3. Consumer Preference Fruit 3.76 .84 -.125 .003 (-) 4. Consumer Preference Clothing 3.64 .84 -.077 .014 .811** (-) 5. Competitive Advantage 3.13 1.01 -.076 .026 .626** .521** (-) 6. Effect on Consumer Fruit 2.16 .95 .131 -.060 .155* .185** .475** (-) 7. Effect on consumer Clothing 2.05 .97 .124 -.039 .080 .159* .447** .878** (-) N = 208
** = significant at 0.01 level (two-tailed) * = significant at 0.05 level (two-tailed)
To start, there is a strong positive correlation between consumer preferences in the fruit
industry and consumer preferences in the clothing industry (β = .811 , p = .000). Between
consumer preference in the fruit industry and the dependent variable competitive advantage, a
strong positive correlation is found as well (β = .626 , p = .000) . A weak positive correlation between consumer preferences in the fruit industry and the moderator effect on consumer in the
fruit industry is found (β = .155 , p = .026). A strong statistical correlation is found between consumer preferences in the clothing industry and a competitive advantage is found (β = .521 , p = .000). A small statistical correlation between consumer preferences in the clothing industry and the
moderator effect on consumer in the clothing industry is found as well (β = .159 , p = .022). No statistical significant correlations were found between the control variables and the dependent
variables were found. Furthermore, no correlations between the control variables and the
moderating variables were found to be statistically significant. Lastly, a strong positive correlation
was found between both moderating variables: effect on consumer in the fruit industry and effect on
3. Normal Distribution Analysis
In order to see whether the variables in this study are normally distributed, a normal distribution test
was conducted. All variables are included, and the results of this testsare displayed in table 5.
Table 5 – Normal Distribution Analysis – Kolmogorov-Smirnov Analysis
Variable Kolmogorov-Smirnov Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Consumer Preference Fruit .178 208 .000 .939 208 .000 Consumer Preference Clothing .175 208 .000 .947 208 .000 Competitive Advantage .129 208 .000 .959 208 .000 Effect on Consumer Fruit .180 208 .000 .913 208 .000 Effect on Consumer Clothing .204 208 .000 .882 208 .000
The table shows that for all six variables are significant at the 0.000 level. This suggests a
violation of the assumption of normal distribution (Pallant, 2007). But when looking at the plots for
normal distribution (see Appendix B, graph 1, 2, 3, 4, 5) of all the variables, a reasonable straight
line is plotted. Looking at the skewness and kurtosis analysis (Appendix B, table 9), all values for
the variables fall within the range of -1.96 to 1.96, suggesting a normal distribution of the variables
(Cooper & Schindler, 2008).
4. Linear Regression
To test the hypotheses that are proposed in this study, linear and multiple regression analyses were
used. To test the hypotheses that propose a direct relationship between the independent variables
with the dependent variables and the moderating variables, linear regression analyses were
performed. Consequently, to test the moderating hypotheses that are proposed in the theoretical
predetermined order. A few assumptions are being made when doing linear regressions. First, both
the dependent and independent variable are interval or ratio. Moreover, the relationship between the
dependent and independent variable is linear. For each value of the independent variable, the
dependent variable is normally distributed and the variance of the dependent variable has to be the
same for each value of the independent variable (constant variance). Furthermore, the residuals,
which are the differences between the observed and predicted values of the dependent variable,
should not be correlated (Huizing, 2007). For this reason, the first step was was to look at the
correlations among the variables with the Pearson correlation, which are displayed in table 4. In this
way, a first impression of the strength of the relationships can already be seen.
4.1 Testing Direct Relationships
Table 6 displays the results of the simple linear regression analyses. Linear regression showed that
there is no statistical significant relationship between the control variables gender and age with the
dependent variable competitive advantage. No statistical significant relationship was found between
gender and competitive advantage (β= -.076, t= -1.092, P= .276 > 0.05). The same accounts for the relationship between age and competitive advantage (β= .026, t= .367, P= .714 < 0.05).
A strong positive relationship between the independent variable consumer preference in the
fruit industry and the dependent variable competitive advantage was found (β= .626, t= 1.302, P= .000 < 0.05). R square of .389 shows that 38.9 per cent of the variability in competitive advantage
in the fruit industry can be accounted for by consumer preferences in the fruit industry. Secondly,
linear regression revealed that there is a positive relationship between the independent variable consumer preference in the clothing industry and the dependent variable competitive advantage (β= .521, t= 3.228, P= .000 < 0.05). R square of .268 indicates that 26.8 per cent of the variability in
competitive advantage in the clothing industry can be accounted for by consumer preferences in the
clothing industry. Hypothesis 1, which proposed that consumer preferences for sustainable products
therefore being supported.
What stands out from these two regression analyses is the small difference between the
relationships of consumer preferences and competitive advantages across the fruit industry versus
the clothing industry. In the fruit industry, the relationship between consumer preferences for
sustainable products is more positive with a firm’s competitive advantage, than in the clothing
industry.
Table 6 – Linear Regression Analysis Hypothesis 1
Variable β t Sig. R Gender (Control1) -.076 -1.092 .276 .001 Age (Control 2) .026 .367 .714 -.004 Consumer Preferences Fruit industry .626** 1.302 .000 .389 Consumer Preferences Clothing industry .521** 3.276 .000 .268
Dependent Variable: Competitive Advantage
*Significant at the <.05 level **Significant at the <.01 level
5. Moderation via Process
A moderator is a qualitative or quantitative variable that affects the direction and/or strength of the
relationship between an independent or predictor variable and a dependent or criterion variable
(Baron & Kenny, 1986). So, a moderation analysis can be used to test whether the magnitude of a
variable’s effect on some an outcome variable depends on a third variable, or set of variables
(Hayes, 2012).See figure 2 for a simple moderation model. In this form, variable X has a causal
influence on variable Y.
This direct relationship is presented with the unidirectional arrow pointing from variable X to
variable Y. In a moderation model, this direct effect is proposed to be influenced or moderated by
variable M. Therefore, in the figure an arrow is pointing from variable M to the arrow pointing
from variable X to variable Y. However, this conceptual model does not depict the statistical model.
The statistical model is taking the form of a linear regression (figure 3) (Jaccard & Turrisi. 2003),
where variable Y is estimated as a weighted function of variable X, variable M, and moreover, the
product of variable X and variable M;
Y =
i
+c1
X +c2
M +c3
XM +ey
Figure 3 displays this model in the form of a path diagram. The arrows directing from variables X,
M and XM to Y suggest that these variables are a predictor of variable Y.
Figure 3 – Statistical Model Moderation
5.1 Testing for Moderation
For testing the moderating effect of the effect on consumer on the relationship between consumer
preferences and competitive advantages in the fruit and clothing industry, two hypotheses were
industry. In this case, the moderating effect is the multiplication between the direct effect of fruit on
the consumer and consumer preference in the fruit industry. To test for the moderating effect
proposed in hypothesis 2a, Process is used. Table 7 displays the outcome of the moderation analysis
in Process, model 1. The results show that no variance in the competitive advantage of a firm in the
fruit industry is being caused by the control variables gender and age; gender (β= .-.097, t= -1.050, P= .295 > 0.05), age (β= .004, t= 1.022, P= .308 > 0.05). When the moderating variable effect on consumer in the fruit industry was added to the model R square increased with 0.4 per cent (table
7). However, this contribution was not statistically significant (F Change = 1.817, Sig. F Change =
0.179 > 0.05). Moreover, the confidence interval of the interaction variable includes zero, which
also indicates that no moderation effect is present in the population. Because the interaction variable
is not significant, no support is found for the moderation which is proposed in hypothesis 2a (β= .-.03, t= -.61,P= .541 > 0.05).
Table 7 – Regression Analysis for the Moderating Effect of Effect on Consumer on the Relationship Between Consumer Preferences and a Firm’s Competitive Advantage in the Fruit Industry
Variable β SE b t Sig. LLCI ULCI
(Constant) -.774 .531 -1.457 .147 -1.821 .273
Effect on Consumer Fruit .630 .185 3.399 .001 .265 .996
Consumer Preferences Fruit .774 .128 6.055 .000 .522 1.026
Interaction* -.066 .049 -1.348 .179 -.163 .031 Gender -.097 .093 -1.050 .295 -.279 .085 Age .004 .004 1.022 .308 -.003 .011 R Square .740 F 48.843 R Square Change 0.0041 F Change 1.817 Sig. F Change 0.179 N 208
* Interaction = Consumer Preferences x Effect on Consumer
Subsequently, hypothesis 2b suggests that the effect of a product on the consumer has a
moderating effect on the relationship between consumer preferences and competitive advantage in
clothing on the consumer and consumer preferences in the clothing industry. This hypothesis is
tested by using model 1 in Process again. The descriptive statistics of this analysis are displayed in
table 8. Again, no variance in the competitive advantage of a firm in the clothing industry is being caused by the control variables gender and age; gender (β= -.167, t= -1.601, P= .111> 0.05), age (β= .001, t= .362, P= .718 > 0.05). When the moderating variable effect of consumer in the clothing industry was added, R square increased with 0.2 per cent (table 8). However, this contribution of the
moderating variable was not statistically significant (F Change = 0.593, Sig. F Change = 0.442 >
0.05). Thereby, the confidence interval of the interaction variable also indicates that no moderation
effect occurs in the population, as it includes zero (table 8).
Table 8 - Regression Analysis for the Moderating Effect of Effect on Consumer on the Relationship Between Consumer Preferences and a Firm’s Competitive Advantage in the Clothing Industry
Variable β SE b t Sig. LLCI ULCI
(Constant) .868 .542 1.601 .111 -.201 1.937
Effect on Consumer Clothing .213 .209 1.022 .308 -.198 .625
Consumer Preferences Clothing .412 .131 3.149 .002 .154 .671
Interaction* .043 .056 .770 .442 -.067 .153 Gender -.167 .104 -1.601 .111 -.372 .039 Age .001 .004 .362 .718 -.006 .009 R Square .417 F 28.937 R Square Change 0.0017 F Change 0.593 Sig. F Change 0.442 N 208
V.
Discussion and Conclusion
The findings of this study that resulted from the data analysis showed that consumer preferences for
sustainable products are good predictors of a firm’s competitive advantage in the fruit and clothing
industry. Although it was expected that this relationship between consumer preferences for
sustainable products and a competitive advantage of a firm would be moderated by the effect a
product has on the consumer, the findings of the statistical analysis of the data did not confirm this
expectation.
1. Summary of Main Findings
As was stated, sustainability can provide competitive advantages for firms (Husted & Allen,
2001). Organizations invest in sustainability and therefore corporate social responsibility programs
are being set up (Blowfield & Frienas, 2005). Moreover, sustainability is being implemented
throughout all the activities in a firm’s supply chain (Nidomolu et al., 2009). Consumer preferences
vary across sectors, which can be explained by the complexity of the products (Scholz et al., 2001).
The more complex the product, the more attributes a consumer has to take into account in the
purchase decision process. Therefore, consumer preferences for sustainable products might differ
across sectors. Because clothing, and even more so fruit, have a low complexity, it was expected
that in these sectors there is a positive relationship between consumer preferences for sustainability
and the competitive advantage of a firm.
In other words, it was expected that consumers have different attributes they consider as
important in their purchase decision for different products. When products or services are
observable and have clear cut definitions (Verhagen et al., 2010), they have low generality and
consumers value the most important attributes (Lee & Park, 2009). Clothing and especially fruit are
examples of products that have low generality. Therefore, as sustainability is an important attribute
for products and services nowadays, hypothesis 1 proposed that consumer preferences for
industry. Results of the study found support for this hypothesis.
Significant statistical relationships were found between consumer preferences for
sustainable products and a competitive advantage of a firm in both the fruit and clothing industry,
whereby this relationship was more positive in the fruit industry. In this sense, this study contributes
to the literature concerning corporate social responsibility and its relationship with competitive
advantages. Continuing on this path, the data analysis showed that the direct relationship that is
being proposed in hypothesis 1is more positive in the fruit industry than in the clothing industry.
This brings a new perspective into discussion. Although studies have been focusing on the direct
relationship between consumer preferences for sustainable products and a firm’s competitive
advantage before, differences between sectors have not been studied extensively. The differences in
this direct relationships can impose important challenges for firms in different sectors concerning
their corporate social behavior.
The second important contribution to the current literature on corporate social responsibility
and its relation with a firm’s competitive advantage is that this thesis found no support for the
proposed moderation of a product’s effect on consumers. It was argued that because consumers
know more about how their food is being processed, and thus know how their food directly
influences their well-being, this direct effect acts as a moderator on the direct relationship proposed
in hypothesis 1, in the fruit industry. Moreover, next to personal interests, consumers take into
account the interests of society and the environment in their purchase behavior for clothes.
Therefore, it was proposed that this indirect effect acts as a moderator on the direct relationship
between consumer preferences for sustainable products and a firm’s competitive advantage, in the
clothing industry. No statistical significant support was found for this moderating effects. So,
instead of taking the effect the product has on consumers as a factor that influences the direct
2. Implications for Research
The purpose of this study was to conduct an explanatory study in order to be able to contribute new
theoretical insights to the current literature on the relationship between corporate social
responsibility and a firm’s competitive advantage. Because of the new approach to this relationship
that is proposed in this study, where differences across two sectors are being studied, the findings of
this study need to be tested in more sectors. Moreover, other factors that can influence the
relationship between consumer preferences for sustainable products and a firm’s competitive
advantage should be explored more deeply.
To start, the first aspect that could be a good subject for future research is to include more
sectors in the study. In this way, it is possible to find differences across sectors in the relationship
between consumer preferences and a firm’s competitive advantage. The current study showed that
in both the fruit and clothing industry, consumer preferences for sustainable products indeed lead to
a firm’s competitive advantage. Moreover, this relationship was more positive in the fruit industry
than in the clothing industry. Therefore, it is necessary to study other industries as well, to see if in
all industries a positive relation can be detected. Moreover, due to the subjective character of the
data collection method where only consumers are being studied, other studies could also look at the
firm side to discover what other factors might influence their competitive advantage. In this study it
was argued that consumers decide whether an organization enjoys a competitive advantage or not.
Although consumers indeed decide whether the products and services that organizations are
offering meet their needs and are worth the price, other factors are of influence as well for a firm to
enjoy a competitive advantage. Particularly in this study concerning sustainability, other
stakeholders are of importance as well, such as the government. Governments and other public
institutions often subsidize organizations that participate in corporate social behavior and
sustainability (Marens, 2013), which also benefits the organization.
Another subject for future research could be to determine which factors influence the
advantage. In this study, no support was found for the moderation of the product’s direct or indirect
effect on the consumer. For example, price might be the first product attribute consumers look at in
their purchase decision for fruit and clothing. Moreover, in the clothing industry several other
factors are of importance in the purchase decision of consumers. Because more consumers shop
online for clothing, product attributes are more accessible and general (DeCarlo, 2005). According
to this, future studies should look at factors that influence the purchase decisions of consumers
across sectors.
3. Implications for Practice
As mentioned before, hypothesis 1 proposed that consumer preferences for sustainable products are
positively related to a firm’s competitive advantage in the fruit and clothing industry. Regression
analysis found evidence for a significant positive relationship between these two concepts. This is
in line with the expectations that sustainability is seen as an important product attribute for fruit by
consumers, which can lead to a competitive advantage of a firm in this industry. Therefore, firms in
the fruit and clothing industry should pursue corporate social responsibility programs so that their
products have a sustainable attribute. This in turn attracts consumers attention and they will buy
these products, which can lead to a competitive advantage of a firm.
Moreover, because it was found that the relationship between consumer preferences and a
firm’s competitive advantage is more positive in the fruit industry than in the clothing industry,
organizations in the fruit industry might gain more from sustainable product attributes than firms in
the clothing industry. However, firms in the clothing industry can make the definitions of their
products more general, and provide more information to their consumers, leading to less suspicion
of consumers in their purchase decisions (Laroche et al. 2005). This will make the clothing less
complex (Scholz et al., 2001) which in turn leads to consumer preferences, resulting in competitive
advantage of a firm.
moderator on the relationship between consumer preferences for sustainable products and a firm’s
competitive advantage, did not find support. Hypothesis 2b which proposed that the indirect effect
that clothing has on consumer well-being, acts as a moderator on the relationship between consumer
preferences for sustainable products and a firm’s competitive advantage, was not supported either.
An explanation for this can be that although the effect that the direct effect fruit has on a consumer’s
health is not an important factor in the purchase decision of a consumer. It was found that an
important factor in the purchase decision of a consumer for sustainable products is the price of it
(Dekhili & Achabou, 2012). So, instead of focusing on the direct or indirect effects of products on
consumers, firms should look at other factors that can influence consumer preferences for
sustainable products, and thus their competitive advantage.
4. Limitations & Recommendations for Future Research
The first major limitation of this study is related to the sample size. The amount of respondents ( n =
208) is relatively small. This small sample size might limit the generalizability of the result findings
(Saunder et al., 2009). Secondly, there is a limitation which is concerned with the reliability of the
questionnaire items. Respondents might interpret an item in the questionnaire in a way that does not
correspond with what the research meant (Saunders et al., 2009). For example, this could be the
case concerning the definitions of sustainability and social corporate behavior. Respondents might
have another view on what this means compared to how the researcher defines these concepts. This
limitation can be overcome by giving a short definition of the used constructs. This ensures the
appropriate interpretation of the items for both the respondents and the researcher.
Another limitation is related to the research method of this study. In this study a mono
method was used, which means that a single data collection technique was used, with a
corresponding data analysis procedure (Saunders et al., 2009). Instead, a mixed method approach
could be used. In this way, both qualitative and quantitative data collection techniques are used,
quantitative research techniques can be compared, which will lead to more reliable results of the
study. Moreover, the results of this study are based on cross-sectional data. Thus, the relationship
between variables is only measured at one particular point in time. Additionally, a longitudinal
study could be used. This will enable the researcher to study the variables and their relationships
over an extended period of time, which will increase the reliability of the research results.
5 Conclusion
The aim of this study was to answer the research question ‘How do consumer preferences for
sustainable products influence the competitive advantages of a firm?’ in the fruit and clothing
industry. This study found a significant relationship between consumer preferences for sustainable
products in the fruit and clothing industry and a firm’s competitive advantage. Thereby, this
relationship was found to be more positive in the fruit industry than in the clothing industry.
Therefore, organizations in these industries should focus on sustainable product attributes, because
this can help in achieving a competitive advantage. Especially in the fruit industry a positive
relationship was found between consumer preferences and a firm’s competitive advantage. No
statistical significant moderation effect of a product’s effect on consumer was found in this study.
Other factors might be more of influence on the relationship between consumer preferences and a
firm’s competitive advantage, such as the price of a sustainable product.
The above mentioned findings lead to important implications for organizations.
Organizations in the fruit and clothing industry should focus on sustainability, for example by
providing information about the sustainable attributes of their products. In this way, consumers will
have preferences for these sustainable products, leading to a competitive advantage of a firm more
