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Altruistic by Association, Altruistic for Advantage? Buying Groups and Small Firm Community Involvement

¹ University of Manitoba
² Indian School of Business

^* To whom correspondence should be addressed. E-mail: rlitz{at}cc.umanitoba.ca.

	Abstract

Does buying group membership affect small firm community involvement, and if it does, is there a further effect, in particular as it concerns small firm performance? This article addresses this intersection of issues. After advancing a set of hypotheses linking categorical and continuous dimensions of buying group activity to community involvement, this article also tests hypotheses of enlightened self-interest concerning the relationship between community involvement and firm performance. The article then describes a study of more than 300 small retail hardware stores. The findings show buying group membership being positively related to both scale and scope of community involvement. The authors also report a complex set of findings concerning the interaction of community involvement and buying group membership with small firm performance. The article concludes by reflecting on what these findings suggest for further work in small firm philanthropy.

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