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How Quasi-Internal Resources Enhance Firm Performance During Large-Scale Emergencies: The Role of Trade-Off Between CSR and Business Innovations

Author

Listed:
  • Xilin He

    (Business School, University Institute of Lisbon, 1649-026 Lisbon, Portugal)

  • Renato Lopes da Costa

    (Business School, University Institute of Lisbon, 1649-026 Lisbon, Portugal)

  • Debing Ni

    (School of Economics and Management, University of Electronic Science and Technology of China, Chengdu 610054, China)

  • Wucheng Han

    (School of Economics and Management, University of Electronic Science and Technology of China, Chengdu 610054, China)

Abstract

Although quasi-internal resources—such as strategic alliances, long-term partnerships, and collaborative networks—typically enhance a firm’s adaptability, their effectiveness can be compromised in crisis situations due to supply chain disruptions, strained partnerships, and volatile market conditions. This research explores how quasi-internal resources influence firm performance through the trade-off between corporate social responsibility (CSR) and business innovation, with a particular focus on the moderating role of market environmental uncertainty. We developed a theoretical model grounded in resource dependence theory and tested our hypotheses using PLS-SEM analysis on data from 397 valid questionnaires collected from various companies. The findings reveal that quasi-internal resources do not directly enhance firm performance during large-scale emergencies. However, they play a critical role in strengthening the trade-off between CSR and business innovation, particularly through strategic adjustments and decision-making processes, which mediate their impact on performance. Conversely, the trade-off in incentive mechanisms does not significantly mediate this relationship. Additionally, market environmental uncertainty positively moderates the relationship between quasi-internal resources and the trade-offs in incentive mechanisms and decision-making processes, but it does not significantly affect strategic adjustments. These insights underscore the importance of strategic resource management in sustaining firm performance amidst uncertainty.

Suggested Citation

  • Xilin He & Renato Lopes da Costa & Debing Ni & Wucheng Han, 2024. "How Quasi-Internal Resources Enhance Firm Performance During Large-Scale Emergencies: The Role of Trade-Off Between CSR and Business Innovations," Sustainability, MDPI, vol. 16(21), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:21:p:9485-:d:1511494
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