Fostering Workplace Innovation through CSR and Authentic Leadership: Evidence from SME Sector

Abstract

The cut-throat situation of competitiveness in almost every business sector, followed by globalization, shortened product life cycles, and rapid technological changes have raised the importance of innovation to overrun the rivals. Scholars have established that appropriate leadership style is a key enabler for organizational success. However, it is not clear in existing literature how the concept of authentic leadership is related to innovative work behavior (IWB). Likewise, the role of corporate social responsibility (CSR) to induce IWB is also vague in current literature. Thus, the basic purpose of the current study was to test the relationship of CSR and IWB with the mediating effect of authentic leadership. The proposed model was tested in the small and medium-sized enterprises (SMEs) sector of China. The data were collected through a questionnaire that was distributed among different respondents of the current survey. The data were obtained from a dyad of supervisor and subordinate serving in different SMEs in Wuhan city of China. The study used the structural equation modeling (SEM) technique to validate different hypotheses. The empirical results confirm that CSR positively relates to IWB while authentic leadership partially mediates this relationship. The findings of the current survey will be helpful for policymakers to recognize employees as a source of innovation through CSR and authentic leadership.

Corporate social responsibility and the impact on economic value added: the role of environmental innovation

“…Policymakers can propose actions to stimulate managers in small firms to implement viable CSR strategies. For instance, the focus on leadership and employees is an excellent target to address (Gao et al , 2021). Alternatively, policymakers could create quotas for other genders in higher company positions (Tapver et al , 2020).…”

Impact of Corporate Social Responsibility on Economic Value Added: The Role of the Supply Chain Management Environment at LQ45 Indonesia

“…For example, focusing on leadership and employees is a significant goal to pursue. Policymakers may also establish quotas for other genders in senior company roles (Deng et al, 2020;Gao et al, 2021;Tapver et al, 2020). Small companies with better CSR scores may benefit from tax revenues or other financial incentives to implement CSR, which is important for government policymakers to consider.…”

“…Furthermore, more research is necessary to determine whether the link between CSR and company size affects EVA. Previous studies stipulate that when the company size is higher, CSR strategy has a greater impact on EVA, which formulated the hypothesis: H2a: The Size of Indonesian LQ45 companies mediates the effect of CSR on EVA Previous research (Gao et al, 2021) stated that large organizations have greater capabilities due to the possession of more resources, expertise, and SCME. Companies are also better equipped structurally to handle any SCME implementation difficulties.…”

Corporate Social Responsibility through Collaboration in the Supply Chain: Insights into a More Sustainable Economy

“…The literature on SSCM emphasizes the need of balancing environmental, social, and monetary concerns (Fahad et al 2022). Suppliers are crucial in this case since they manufacture products while also ensuring the environmental and social environment (Gao et al 2021).…”