Stable networks, responsible firms? The differential effects of supplier and customer network stability on CSR performance

Purpose Integrating social network literature with resource dependence theory, our study seeks to investigate how the stability of firms’ ego-network compositions influences corporate social responsibility (CSR) performance within a supply chain setting and how firm brokerage and media coverage moderate these relationships. Design/methodology/approach Using a sample of 848 Chinese listed firms and information on their primary suppliers and customers between 2010 and 2019, this study employs a two-stage least squares method and a Heckman two-stage model to address endogeneity concerns. Findings Supplier network stability is positively associated with CSR performance, whereas customer network stability does not exhibit a significant linear relationship with CSR performance. The positive link between supplier network stability and CSR performance is strengthened when a firm occupies many brokerage positions. However, post-hoc analyses reveal a U-shaped impact of customer network stability on CSR performance, and this U-shaped effect steepens when the firm receives substantial media coverage. Originality/value By examining the influence of supplier and customer network stability on firms' CSR performance, this research provides insights into the network-based antecedents of CSR performance, particularly the previously overlooked role of customer network stability. Furthermore, this study extends network stability research by shifting from dyadic to network-level analysis and by uncovering the contingent effects of firm brokerage and media coverage.