Impact of innovation on Corporate Social Responsibility: Evidence from China

Abstract

Corporate Social Responsibility (CSR) may lead to many innovations being implemented simultaneously. However, studies on how concurrent innovation techniques affect performance is scarce. To study the complementarity/substitutability in the effectiveness of various forms of innovation, this study examines the combined usage of six different types of innovation. Data from a sample of 1200 Chinese manufacturing Small and medium-sized enterprises (SMEs) were used for the empirical investigation. We find that digital platforms have a positive effect on the capacity reconfiguration of SMEs and business model innovation. This study examines the relationship between stakeholder interactions, reverse knowledge sharing, open innovation (OI) initiatives, and SMEs’ performance in several Chinese industries. The results show that OI initiatives are statistically negligible compared with SMEs’ total performance. We also discover that the link between platforms and CSR business model innovation is mediated by the reorganization of developmental capacity and reconfiguration of substitutional capabilities. In addition to having significant managerial ramifications for policymakers and CSR, to assist businesses in executing technological solutions, these results provide a theoretical contribution to the study of digital platforms and SMEs.