From Social Responsibility to Market Leadership: The Role of Targeted Poverty Alleviation in Enhancing Firm Competitiveness

ABSTRACT This study examines the impact of corporate participation in targeted poverty alleviation on product market competitiveness, using a research timeframe of 2011 to 2020 and focusing on Chinese publicly listed firms. Applying a difference‐in‐differences model, we find that engagement in targeted poverty alleviation significantly enhances product market competitiveness, especially for firms pioneering industrial poverty alleviation and those in highly competitive markets. Additionally, participation in these initiatives drives corporate innovation, mitigates financial constraints, boosts employee productivity, and strengthens trade credit. These results demonstrate positive stakeholder responses—including governments, employees, suppliers, and customers—toward corporate sustainability endeavors.