Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance

David C. Broadstock; Roman Matousek; Martin Meyer; Nickolaos G. Tzeremes

doi:10.1016/j.jbusres.2019.07.014

Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance

David C. Broadstock, Roman Matousek, Martin Meyer, Nickolaos G. Tzeremes

Business Management

Research output: Contribution to journal › Article › peer-review

174 Citations (Scopus)

Abstract

Firms' choices on corporate social responsibility (CSR) and on environmental, social and governance (ESG) implementation strategies can arguably have a positive impact on their value and performance. This ?doing well by doing good? view remains debated in the literature. Our study contributes to this debate by investigating the impact of firms? engagement on ESG policies on their innovation capacity levels. More specifically, we apply a nonparametric frontier analysis framework to a sample of 320 Japanese firms over the period 2008-2016. Our study provides evidence of a nonlinear relationship between ESG policy adoption and firms? innovation capacity. In other words, our findings are consistent with a process of ?indirect value-creation? under which firms? CSR/ESG policy adoption initially enhances their ability to pursue innovation activities and, then, eventually affects positively their value creation and financial/operational performance.

Original language	English
Pages (from-to)	99-110
Number of pages	12
Journal	Journal of Business Research
Volume	119
Early online date	26 Jul 2019
DOIs	https://doi.org/10.1016/j.jbusres.2019.07.014
Publication status	Published - Oct 2020

Bibliographical note

Acknowledgments
The authors wish to thank three anonymous referees for their helpful and stimulating feedback. Any remaining errors and inaccuracies are solely the responsibility of the authors.

Keywords

Corporate social responsibility (CSR)
Environmental, social and governance (ESG)
Corporate social performance (CSP)
Innovation capacity
Efficiency and productivity
Nonparametric analysis

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.jbusres.2019.07.014Licence: Unspecified

Cite this

@article{9202b74d0ba343088382bbaad5b63544,

title = "Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance",

abstract = "Firms' choices on corporate social responsibility (CSR) and on environmental, social and governance (ESG) implementation strategies can arguably have a positive impact on their value and performance. This ?doing well by doing good? view remains debated in the literature. Our study contributes to this debate by investigating the impact of firms? engagement on ESG policies on their innovation capacity levels. More specifically, we apply a nonparametric frontier analysis framework to a sample of 320 Japanese firms over the period 2008-2016. Our study provides evidence of a nonlinear relationship between ESG policy adoption and firms? innovation capacity. In other words, our findings are consistent with a process of ?indirect value-creation? under which firms? CSR/ESG policy adoption initially enhances their ability to pursue innovation activities and, then, eventually affects positively their value creation and financial/operational performance.",

keywords = "Corporate social responsibility (CSR), Environmental, social and governance (ESG), Corporate social performance (CSP), Innovation capacity, Efficiency and productivity, Nonparametric analysis",

author = "Broadstock, {David C.} and Roman Matousek and Martin Meyer and Tzeremes, {Nickolaos G.}",

note = "Acknowledgments The authors wish to thank three anonymous referees for their helpful and stimulating feedback. Any remaining errors and inaccuracies are solely the responsibility of the authors.",

year = "2020",

month = oct,

doi = "10.1016/j.jbusres.2019.07.014",

language = "English",

volume = "119",

pages = "99--110",

journal = "Journal of Business Research",

issn = "0148-2963",

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T1 - Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance

AU - Broadstock, David C.

AU - Matousek, Roman

AU - Meyer, Martin

AU - Tzeremes, Nickolaos G.

N1 - Acknowledgments The authors wish to thank three anonymous referees for their helpful and stimulating feedback. Any remaining errors and inaccuracies are solely the responsibility of the authors.

PY - 2020/10

Y1 - 2020/10

N2 - Firms' choices on corporate social responsibility (CSR) and on environmental, social and governance (ESG) implementation strategies can arguably have a positive impact on their value and performance. This ?doing well by doing good? view remains debated in the literature. Our study contributes to this debate by investigating the impact of firms? engagement on ESG policies on their innovation capacity levels. More specifically, we apply a nonparametric frontier analysis framework to a sample of 320 Japanese firms over the period 2008-2016. Our study provides evidence of a nonlinear relationship between ESG policy adoption and firms? innovation capacity. In other words, our findings are consistent with a process of ?indirect value-creation? under which firms? CSR/ESG policy adoption initially enhances their ability to pursue innovation activities and, then, eventually affects positively their value creation and financial/operational performance.

AB - Firms' choices on corporate social responsibility (CSR) and on environmental, social and governance (ESG) implementation strategies can arguably have a positive impact on their value and performance. This ?doing well by doing good? view remains debated in the literature. Our study contributes to this debate by investigating the impact of firms? engagement on ESG policies on their innovation capacity levels. More specifically, we apply a nonparametric frontier analysis framework to a sample of 320 Japanese firms over the period 2008-2016. Our study provides evidence of a nonlinear relationship between ESG policy adoption and firms? innovation capacity. In other words, our findings are consistent with a process of ?indirect value-creation? under which firms? CSR/ESG policy adoption initially enhances their ability to pursue innovation activities and, then, eventually affects positively their value creation and financial/operational performance.

KW - Corporate social responsibility (CSR)

KW - Environmental, social and governance (ESG)

KW - Corporate social performance (CSP)

KW - Innovation capacity

KW - Efficiency and productivity

KW - Nonparametric analysis

UR - https://kar.kent.ac.uk/75521/

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DO - 10.1016/j.jbusres.2019.07.014

M3 - Article

SN - 0148-2963

VL - 119

SP - 99

EP - 110

JO - Journal of Business Research

JF - Journal of Business Research

ER -

Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

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Martin Meyer

Cite this

Does corporate social responsibility impact firms' innovation capacity? The indirect link between environmental social governance implementation and innovation performance

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Profiles

Martin Meyer

Cite this