Factors Influencing CSR in the Practice of “Zero-Waste City†and Its Impact on Eco-Innovation and Environmental Performance

The development of zero-waste cities requires a comprehensive examination of the role of social responsibility within the solid waste management (SWM) sector and its influence on eco-innovation (EI), as well as the impact of eco-innovation on environmental performance. Despite the existence of various economic theoretical frameworks for understanding eco-innovation, a detailed examination of innovation within SWM remains absent in the current literature. Therefore, this study examines the influencing factors of corporate social responsibility (CSR) and the relationship between CSR, EI, and environmental performance (EP) to address challenges encountered in the progression towards zero waste cities. Utilizing a Partial Least Squares Structural Equation Modeling (PLS-SEM) multiple regression framework, this paper analyzed responses from 408 individuals through a structured survey. SmartPLS4 facilitated the data analysis process. Findings indicate that among the two internal factors affecting CSR, the green human resource management (GHRM) was more significant than green culture (GC). With regard to the two external factors, it can be seen that green relational capital (GRC) has a significant effect on CSR, whereas green environmental regulatory policies (GERP) do not. Further, there is a positive correlation between CSR and EI, CSR and EP, and between EI and EP. Moreover, EI emerges as a mediating factor between CSR and EP. The paper contends that companies should leverage their CSR in Zero Waste City initiatives to foster EI, thereby propelling sustainable development and bolstering EP by introducing environmentally friendly products and services, paving the way for sustainable corporate growth.