Do corporate social responsibility practices contribute to green innovation? The mediating role of green dynamic capability

Abstract

Green innovation is a key aspect for organizations to realize sustainable development strategy in emerging markets. Based on the stakeholder theory, resource-based view, and dynamic capabilities theory, this study introduces corporate social responsibility (CSR) and green dynamic capability to investigate the mechanisms driving corporate green innovation. The green innovation is classified into two different aspects such as green product innovation and green process innovation. By surveying 424 manufacturing companies in China and analyzing with linear regression, we find that: (1) CSR practice significantly promotes green product innovation and green process innovation. (2) Green dynamic capability significantly promotes green product innovation and green process innovation. (3) Green dynamic capability function as a mediator between CSR and green innovation. Based on dynamic capabilities, this study reveals the impact mechanism of CSR on green innovation, expands the dynamic capabilities theory, and provides new guidance to improve green innovation for Chinese manufacturing companies.