The Influence of CSR Orientation on Innovative Performance: Is the Effect Conditioned to the Implementation of Organizational Practices?

Abstract

Previous research has examined the relationship between CSR and innovation and has suggested that the former might positively affect the latter; however, the impact of CSR on innovation success needs further attention. This study aims to develop a deeper understanding of how environmental and social CSR are related to innovation performance and whether the implementation of organizational practices might moderate this relationship. The results are based on an unbalanced panel of 14,313 observations of 3713 firms covering 2011–2015. Using random-effects probit models and the estimation of average marginal effects (AMEs), this paper contributes to the literature on CSR by explaining how CSR dimensions affect innovation success differently and by addressing how this effect is influenced by organizational innovation. The results show that while environmental CSR orientation proves beneficial for the generation of process innovation, social CSR orientation contributes to the generation of both kinds of technological innovations only when internal organizational practices are implemented. This study provides valuable insights for managers aiming to implement a CSR perspective in their strategies to support the pursuit of innovation.