The Impact of Perceived Corporate Social Responsibility Efforts on Financial Performance: Empirical Evidence From Vietnamese Firms

This research examines the relationship between perceived corporate social responsibility (CSR) efforts and financial performance in Vietnamese firms, with particular attention to the mediating roles of corporate reputation and stakeholder support. Drawing on stakeholder theory, legitimacy theory, and the resource-based view, the study employs a mixed-method approach combining structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Data were collected from 387 respondents across 71 Vietnamese firms listed on the Ho Chi Minh and Hanoi Stock Exchanges, representing multiple stakeholder groups and industry sectors. The SEM results demonstrate that perceived CSR efforts significantly influence financial performance through both direct and indirect pathways, with corporate reputation and stakeholder support serving as crucial mediating mechanisms. The fsQCA findings complement these results by identifying three distinct configurations of conditions leading to superior financial performance, highlighting the importance of perceived CSR efforts and corporate reputation across successful configurations. Firm characteristics such as size and age show positive but modest effects, while financial leverage demonstrates small negative impacts on both mediating variables. This study makes several important contributions to the literature. First, it extends stakeholder theory by demonstrating the importance of perceived rather than objective CSR efforts in driving organizational outcomes. Second, it provides empirical evidence for the specific mechanisms through which CSR perceptions influence financial performance in an emerging market context. Third, it offers practical insights for managers in developing economies seeking to leverage CSR initiatives for competitive advantage. The findings have significant implications for both theory and practice in the evolving landscape of CSR research and implementation in emerging markets.