Profit-CSR Goal Conflict and Sustainable Innovation: Evidence from Firms

This study examines how profit-CSR goal conflict influences sustainable innovation, with strategic CSR integration as a mediating mechanism and organizational ambidexterity as a moderating condition. Drawing on Stakeholder Theory, Paradox Theory, and Organizational Ambidexterity Theory, the study develops and tests a model explaining how perceived tension between financial objectives and corporate social responsibility affects firms' sustainability-oriented innovation outcomes. Data was collected from 400 respondents in firms operating across manufacturing, services, trade, logistics, tourism, food processing, agriculture, technology, and related sectors. The data were analyzed using partial least squares structural equation modeling. The results show that profit-CSR goal conflict negatively affects both sustainable innovation and strategic CSR integration. Strategic CSR integration positively influences sustainable innovation and partially mediates the relationship between profit-CSR goal conflict and sustainable innovation. In addition, organizational ambidexterity significantly moderates the relationship between profit-CSR goal conflict and strategic CSR integration. These findings indicate that perceived conflict between profitability and CSR can constrain sustainable innovation, but firms can reduce this negative effect by embedding CSR into strategy, operations, stakeholder engagement, and innovation processes. The study contributes to CSR and sustainable innovation literature by identifying strategic CSR integration and organizational ambidexterity as key mechanisms for managing profit-responsibility tensions.