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The Effect of CSR on Venture Companies' Managerial Performance: Considering Corporate Growth Stage  

Chun, Dongphil (Pukyong National University)
Woo, Chungwon (Science and Technology Policy Institute)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.15, no.1, 2020 , pp. 225-235 More about this Journal
Abstract
The Korean government is attempting to promote technology-based start-ups and venture firms that can lead to new national growth engines being developed. Although government support policies focus on improving survival rates, strategic tools for sustainability management based on a continuing company's assumption are also relevant. Previous studies indicate corporate social responsibility (CSR) as an important strategic tool for the management of corporate sustainability. This research is an exploratory study that seeks to empirically analyze the applicability of such CSR to venture firms. Existing previous studies have been carried out by large companies and surveys, and there are limitations that do not reflect the characteristics of companies. To complement the shortcomings of previous studies and propose practical consequences, this study conducted an empirical analysis using raw data from government approval statistics to identify the growth stages of venture firms. Using the 2018 Survey of Korea Venture Firms, we identified the growth stages of domestic venture firms and used the data envelopment analysis (DEA) to investigate the effect of CSR activities on managerial efficiency. The analysis found that CSR during start-up and early growth cycles did not affect managerial performance. The organization that conducted enthusiastic CSR activities performed better than those that did not perform CSR activities since the rapid growth era. Ultimately, the scale efficiency of venture business was the highest from the rapid growth era when the CSR was not done. This study is a pioneering study that found that after the period of high growth, venture firms' CSR activities can affect managerial performance. Therefore, it is important to advise applicable policies and business decision-makers that CSR practices can be a tactical resource for improving performance of management.
Keywords
Venture business; Managerial performance; Corporate growth stage; Data envelopment analysis(DEA); Ethical CSR; Philanthropic CSR;
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Times Cited By KSCI : 4  (Citation Analysis)
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