Modeling the significance of corporate social responsibility on green capabilities and sustainability performance

Abstract

This study examines the complex interplay among corporate social responsibility (CSR), green dynamic capabilities, green innovation capabilities, and organizations' economic, environmental, and social performance in the current era of innovation and sustainability. The proposed framework was tested using data from 634 medium- and large-sized Chinese manufacturing firms. Partial least squares structural equation modeling was employed to analyze the data. The findings demonstrate that CSR to external and internal stakeholders positively influences green dynamic capabilities. Meanwhile, CSR to external stakeholders and green dynamic capabilities are positively associated with green innovation capabilities, subsequently influencing the economic, environmental, and social performance of manufacturing firms. Moreover, the results reveal the mediating effect of green dynamic capabilities on the association between CSR and green innovation capabilities. Green innovation capabilities also mediate the association between CSR to external stakeholders and green dynamic capabilities on manufacturing organizations’ economic, environmental, and social performance. This study offers a novel exploration of the intricate interplay among CSR, green dynamic capabilities, green innovation capabilities, and organizational performance within manufacturing organizations. These findings provide valuable insights for managers and offer opportunities for further research that will ultimately contribute to a deeper understanding of the roles of sustainability and innovation in modern corporations.