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The Effects of Corporate Social Responsibility on Service Innovation Performance: The Role of Dynamic Capability for Sustainability

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  • Lan Li

    (School of Business Administration, Research Centre of Henan Economy, Henan University of Economics and Law, 180 Jinshuidong Road, Zhengzhou 450046, China)

  • Gang Li

    (School of Management and Economics, North China University of Water Resources and Electric Power, 136 Jinshuidong Road, Zhengzhou 450046, China)

  • Fu-Sheng Tsai

    (Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan
    Center for Environmental Toxin and Emerging-Contaminant Research, Cheng Shiu University, Kaohsiung 83347, Taiwan
    Super Micro Mass Research and Technology Center, Cheng Shiu University; Kaohsiung 83347, Taiwan)

  • Hsiu-Yu Lee

    (Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan)

  • Chien-Hsing Lee

    (Department of Business Administration, Cheng Shiu University, Kaohsiung 833, Taiwan)

Abstract

The effects of corporate social responsibility (CSR) on product and technological innovation have been thoroughly examined. However, the relationship between CSR and service innovation remains largely unexplored. We examined the relationship between community and environmental CSR and service innovation performance, with further exploration of the mediating mechanism between them. Based on social capital and dynamic capability theory, we developed a model revealing that CSR improves the performance of service innovation through an advanced dynamic capability to address rapidly changing environments. Through the use of structural equation modeling and hierarchical regression analyses, we tested the conceptual model with a data set of 298 small- and medium-sized enterprises in China. The results demonstrate that the positive influence of community CSR on service innovation performance is partially mediated by dynamic capability, whereas this effect of environmental CSR is fully mediated by dynamic capability. These findings have important implications for both CSR and service innovation practice and theory.

Suggested Citation

  • Lan Li & Gang Li & Fu-Sheng Tsai & Hsiu-Yu Lee & Chien-Hsing Lee, 2019. "The Effects of Corporate Social Responsibility on Service Innovation Performance: The Role of Dynamic Capability for Sustainability," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2739-:d:230886
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    3. Banji Rildwan Olaleye & Joseph Nembo Lekunze & Tsediso Joseph Sekhampu & Ntseliseng Khumalo & Adebanji Adejuwon William Ayeni, 2024. "Leveraging Innovation Capability and Organizational Resilience for Business Sustainability Among Small and Medium Enterprises: A PLS-SEM Approach," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    4. Ana Beatriz Hernández-Lara & Juan Pablo Gonzales-Bustos & Amado Alarcón-Alarcón, 2021. "Social Sustainability on Corporate Boards: The Effects of Female Family Members on R&D," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    5. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    6. Xiaotang Zhang & Haili Zhang & Michael Song, 2019. "Does Social Capital Increase Innovation Speed? Empirical Evidence from China," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    7. Nadeem Bari & Ranga Chimhundu & Ka Ching Chan, 2024. "Interrelation between Sustainable Dynamic Capabilities, Corporate Sustainability, and Sustained Competitive Advantage," Sustainability, MDPI, vol. 16(7), pages 1-31, March.
    8. Shingo Yoshida & Hironori Yagi, 2023. "Effects of Sustainability Practices on Farm Continuity in Urban Agriculture: From the Creating Shared Value Perspective," Sustainability, MDPI, vol. 15(21), pages 1-20, October.
    9. Imran Shafique & Masood Nawaz Kalyar & Nadia Mehwish, 2021. "Organizational ambidexterity, green entrepreneurial orientation, and environmental performance in SMEs context: Examining the moderating role of perceived CSR," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 446-456, January.

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