Abstract
An increasing number of studies have proposed that corporate social responsibility (CSR) performance depends on how firms apply their resources and capabilities to implement CSR. A firm’s ability to integrate, build, and reconfigure internal and external competencies to respond to environmental changes is its dynamic capability. Implementation of CSR at the strategic level, i.e., strategic CSR (SCSR) that requires alignment between activities and organizational configuration and structure will contribute to a firm’s sustainability. However, the research on how dynamic capabilities contribute to such alignment and SCSR adoption is incipient. This study investigates how dynamic capability influences the performance of SCSR in China. By analyzing 134 Chinese listed firms in the period 2017–2019, in this study, we found that firms with dynamic capabilities at a non-average-industrial level, i.e., higher or lower level than the average industrial level, were less likely to adopt SCSR practices, and had a low SCSR adoption performance. These results can help firms better understand dynamic capabilities and how dynamic capabilities contribute to SCSR adoption and firms’ sustainable development and operations. The policy implications of the study are also discussed.
Highlights
This result indicates that firms with a high level of dynamic capabilities (DCs) were less likely to adopt strategic CSR (SCSR) practices, and they had a low SCSR adoption performance
We found that the common DCs were positively and significantly related to SCSR
The purpose of the current study was to examine the relationship between DCs on the adoption and performance of SCSR in China
Summary
Firms have a responsibility to react and respond dynamically to changes in the economy, environment, and society To respond to these changes, a firm requires aligning the design of its activities with every aspect of its organizational structure, including processes, metrics, and incentives, through effective organizational resource reconfigurations [1]. Such alignment contributes to sustainable operation and development at the firm level by “doing well by doing good”; in other words, firms can profit and benefit society at the same time [2]. To achieve this win-win situation, firms use corporate social responsibility (CSR) practices as a tool and tend to perform this CSR with a strategic concern, i.e., adopt strategic CSR (SCSR) [3]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
