Structural Equation Model of Corporate Social Responsibility Innovation Adoption among Generation Y: A Case Study of PTT Public Company Limited

Abstract

This research on Structural Equation Model of Corporate Social Responsibility Innovation Adoption among Generation Y: A Case Study of PTT Public Company Limited aims to test the structural equation model of CSR innovation, corporate image and corporate reputation towards CSR innovation adoption among Generation Y, generated by the researcher, with the existing empirical literatures and principles. The quantitative research: a cross sectional survey methodology was applied to conduct the research. Then, 340 sets of questionnaire are distributed to collect data from Generation Y, who are 18 to 34 in age, living, studying or working in Bangkok and Vicinity. The respondents are composed of 152 male (44.7%), 184 female (54.1) and four unidentified gender (1.2%).
Results show that the model fit with empirical data (Chi-square = 131.348, df = 109, p = 0.71, Chi-square/df = 1.205, GFI = 0.961, AGFI = 0.932, CFI = 0.995, IFI = 0.995, NFI = 0.971, RMSEA = 0.025, RMR = 0.028). Corporate image has a positive direct effect towards corporate reputation at 0.05 significant level. The value of effect is 0.95. Likewise, attributes of CSR innovation has a positive direct effect towards CSR innovation adoption. The value of effect is 0.02. Besides, corporate image has a positive direct effect towards CSR innovation adoption. The value of effect is 0.01. Also, corporate reputation has a positive direct effect towards CSR innovation adoption. The value of effect is 0.67. Moreover, corporate image has a positive indirect effect towards CSR innovation adoption, through corporate reputation. The value of effect is 0.64.
The findings indicate that attributes of the CSR innovations of PTT Public Company Limited has no effects on CSR innovation adoption among Generation Y consumers. This is probably because Generation Y consumers believe that even though CSR innovation demonstrates all seven attributes of innovation that lead to acceptance, it is of little importance compared to good corporate image and reputation. In other words, no matter when the attributes of CSR innovation are, they are less important compared to the reliability and trustworthiness perceived by Generation Y consumers, through good corporate image and corporate reputation. In fact, there may be other factors that lead Generation Y consumers into CSR innovation adoption such as personal innovativeness and the concept of classifications of people who accept innovation. Since, corporate image happens before corporate reputation, as people’s first impression towards the organization, they evaluate the organization through its execution over a course of time and create its corporate reputation; therefore, corporate image is a variable that has a direct effect to corporate reputation. In summary, if an organization has a good corporate image, its corporate reputation will be, accordingly, good.