Linking social and economic responsibilities and financial performance: The assisting role of innovation for an oil engineering and development company

Social and economic responsibilities of companies lead to positive and successful financial performance of companies, and they lead to improve the company ratings and evaluations among consumers. In addition, innovation in products and the process of management make it competitive, and they considerably contribute to the growth of the company's performance. Therefore, the present research aims to study the relationship between the social and economic responsibilities with the financial performance through relying on the facilitating role of innovation. To accomplish this, 278 data samples were collected from the staff working for an oil engineering and development company (in the period of December 2017 to March 2018) based on a Likert scale questionnaire. Then the results were analysed using structural equation models together with Amos24 and SPSS22 software. The results of this study showed that the impact of economic responsibility on innovation is only positive and significant and the social responsibility cannot affect innovation changes. Also, innovation is ineffective in the financial performance of the oil engineering and development company. Hence, it is essential to use effective polices related to the companies' economic responsibility necessary for obtaining better long‐term innovations. Moreover, it is suggested that the managers provide insights for improving the role of social responsibility in achieving future benefits and higher financial performances.