The free riding in hospitality corporate giving: Theoretical explanation and implications

Previous research has demonstrated the positive influence of corporate giving (CG) on hospitality firm performance through the lens of value enhancement theory. Interestingly, empirical evidence indicates that this influence extends to all sampled hospitality firms, irrespective of their direct engagement in charitable giving. This phenomenon, termed the 'free rider problem' or 'free riding' in hospitality CG, highlights a scenario where firms refraining from CG benefit from the contributions of others. This study aims to provide a theoretical framework to elucidate the existence of this intriguing phenomenon and its critical implications for the hospitality industry. By addressing the free rider problem in hospitality CG, this research makes a significant contribution to the theoretical development in the hospitality CG literature and offers valuable insights for both scholars and practitioners in understanding and managing CG practices in the hospitality sector.