Does corporate engagement in social responsibility affect firm innovation? The mediating role of digital transformation

Abstract

The literature is divided on whether corporate social responsibility (CSR) has an impact on firm innovation. For the first time in the Vietnamese context, using a quantile technique with panel data, this study investigates the types of corporate social responsibility (CSR) and their effects on business innovation. In this article, external and internal forms of CSR are found to be interconnected, and their adoption results in supercharged innovative performance. This research also adds to our knowledge of how digital transformation affects CSR and corporate innovation, implying a favorable relationship between CSR, digital transformation, and firm innovation. This means that even if effective institutions are lacking, firms can still be innovative by adopting CSR practices and adapting to changes in the digital world.