CSR, Innovation, and Firm Performance in a Sluggish Growth Context: A Firm-Level Empirical Analysis
Electronic Working Paper Series ESDES-Recherche n° 2014-05
21 Pages Posted: 10 Jun 2015
Date Written: June 9, 2014
The few studies that analyze the impact of a combined strategy of innovation and corporate social responsibility (CSR) on firm performance mostly focus on financial performance. In contrast, the current study considers the simultaneous impact of technological innovations (product and process) and CSR on firm growth, which provides a measure of medium-term economic performance. With a sample of 213 firms and a two-step procedure, this study reveals the differentiated effects of strategic versus responsive CSR behavior on the two technological innovation types, as well as the effect of the two innovation types on growth. The findings thus indicate that firms with strategic CSR achieve growth through both their product and process innovations.
Keywords: CSR, Economic performance, Growth, Innovation
JEL Classification: O47, O14, M14
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