The Interaction Effect of CSR and Innovation on Firm’s Performance
Keywords:Environmental, Social and Governance (ESG), Corporate Social Responsibility (CSR), Innovation, Innovation Investment, Firm’s Performance
AbstractOur CSR (corporate social responsibility) activities and innovation initiatives complementary? From a resource-based perspective, managers would develop CSR and Innovation's business strategy to create heterogeneity and build sustainable competitive advantage. Based on instrumental theories, CSR is a means for firms to accomplish economic output; therefore, CSR may lead or utilize Innovation for this purpose. As CSR is getting more attention, and Innovation is important for a firm's growth, to find the interaction effect of CSR and Innovation is getting more important. However, to our limited knowledge, there are fewer studies and discussions about the topic. Thus, the research would develop a new analysis model to study the topic. Regarding the methodology, four questions are designed to be answered, and two categories of the dataset are collected. These questions are: (1) Does CSR have an impact on firms' performance? (2) Does long-term investment have an impact on the firm's performance? (3) Does R&D have an impact on a firm's performance? (4) How does the interaction of CSR and Innovation investment impact on firm's performance? The datasets include finical data and ESG (Environmental, Social, and Governance) ratings of firms. We would start the research from a typical industry in a country and look forward to a future extension to multiple industries across countries. We select Taiwan's electronics industry due to its important role in the global market, its leading position in Innovation, and its great efforts on CSR. So far, the research is still in progress. We would share the results, finding, and conclusion of the preliminary analysis. I look forward to your valuable comments for us to improve the analysis model and to find opportunities for further studies in other industries or other countries.
Branco, M.C., Rodrigues, L. (2006). Corporate social responsibility and resource-sased perspectives, Journal of Business Ethics, 69(2) 111-132.
Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34: 39–48.
Chiu, Y.C., Chiu, S.K., Liaw, Y.C., Lee, T.Y. (2010). The Antecedents corporate venturing investment, Intelligence Property Review, 8(1),117-144.
Eccles, R.G., Klimenko, S. (2019). The Investor Revolution, 108-116.
Gils, M., (2012). Analyzing the effect of corporate venture capital investments on a corporation’s innovative performance, Tilburg School of Economics and Management.
Kim, Y., Brodhag, C., Mebratu, D, (2014). Corporate social responsibility drove Innovation, Innovation: The European Journal of Social Science Research, 27(2) 175-196.
Lerner, D.L., Fryxell, E.G. (1988). An empirical study of the predictors of corporate social performance: a multi-dimensional analysis. Journal of Business Ethics 7: 951–959.
Little, A. (2006). The Innovation high ground: Winning tomorrow's customers using sustainability-driven Innovation. Strategic Direction, 22(1), 35-37.
Mortreu, V. (2019). The complementarity of corporate sustainability and Innovation: evidence from the Pharmaceutical Industry, Digital access to Libraries, Louvain School of Management.
Rexhepia, G., Kurtishib, S., Bexheti, G. (2013). Corporate social responsibility (CSR) and Innovation -The drivers of business growth? Procedia - Social and Behavioral Sciences, 75 (2013) 532 – 541.
Wang, HW., Wang, T., Wu, MC.,(2008). Business types and R&D activities performance, Journal of Management, 25(2), 173-193.
1. Author and Manuscript
- The author whose name appear in the above statement is declaring that he/she is the author of the stated manuscript
- All of the authors, if any, has already aware of this agreement and give consent for the mentioned name to act on their behalf
- The author stated that the manuscript is original and has never been published elsewhere.
- The author has obtained permissions from other contributors, if any
- The author has specifically mentioned and cited all external materials properly
- Note: External materials refers to any material, writings, figures, tables, illustrations, or any other materials which is not being produced, made, or patented by the author
- The author holds the sole responsible should there are any mistyping; unclear citation and holds responsible should there are any inappropriate manners such as unlawful, breaches, obscene, or any other reasons which are not aligned with the law and norm.
3. Deliverable of Manuscript and Other Materials
- The Contributor/Author shall deliver their manuscript using the provided and acceptable format (doc. Or docx) in the assigned date as well as author copyright document signed.
- Inability delivering the manuscript in the stated date and format will affecting the publication process thus, The Publisher have the rights to reject the manuscript and terminate the letter of acceptance or letter of offerings
- Author is responsible to deliver the manuscript using the provided format. Note: All of the figures, tables, illustrations, or any other materials that will be inserted in the manuscript need to be in high quality
- Should the author decided to alter the manuscript format, the fee will be charged and bore by authors
The Author give “Yayasan Sinergi Riset dan Edukasi” (here forth known as RSF Press) the unlimited right to publish the contribution identified above, without any restraints, in any form, at any time, directly or through others, to reproduce, transmit, archive, lease/lend, sell and distribute the contribution or parts thereof individually or together with other works in any language, revision and version (digital and hard), including reprints, translations, photographic reproductions, microform, audiograms, videograms, electronic form (offline, online), or any other reproductions of similar nature, including publication in the aforementioned book or any other book, as well as, the usage for advertising purposes. RSF Press will ensure that the Author’s name(s) is/are always clearly associated with the manuscript, and the publishers will not make any substantial change to the manuscript without consulting the author and ask for their consent. RSF Press is also entitled to carry out editorial changes in the contribution with the sole purpose of enhancing the overall organization and form of the contribution.
The Author retains the rights to publish the contribution in his/her own web site and thesis, in his/her employer’s web site and to publish a similar or revised version elsewhere, as long as it is clearly stated that the contribution was presented first RSF Press and the corresponding DOI is associated with the contribution.