On the micro-foundations of corporate social responsibility: a perspective based on dynamic managerial capabilities

Abstract

PurposeThis study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital – represent individual-level micro-foundations that influence corporate social responsibility (CSR). It further explores the interaction mechanism between the three underpinnings in influencing CSR, and their influence depends on the technological turbulence caused by big-data-related technologies.Design/methodology/approachThis study uses a quantitative research method and partial least squares structural equation modelling (PLS-SEM) to test the relationship between latent factors based on a sample of 270 Chinese top managers.FindingsThe three core underpinnings of DMCs are positively related to CSR. Managerial human capital and managerial social capital mediate the relationship between managerial cognition and CSR. Technological turbulence's moderating effects are also tested. Specifically, technological turbulence amplifies the positive relationship between managerial cognition, managerial human capital and CSR but negatively moderates the relationship between managerial social capital and CSR.Originality/valueWhy are some firms more willing to participate in CSR than others mainly depend on the fact that the actual participants of CSR are the top managers who formulate strategies and implement CSR plans. This study, grounded in the DMCs framework and the upper echelons perspective, is arguably the first to link DMCs' three core underpinnings and CSR, and further explore the multiple drivers' mechanisms and boundary conditions. This study contributes to individual micro-foundation of CSR literature, and advances the understanding of whether and how top managers influence CSR engagement.

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“…On the contrary, we argue that global dynamic capacity alleviates the negative effect of internationalization depth on green innovation for the following reasons. First, the international managerial human capital can help multinational firms accurately identify and apprehend the existing knowledge and resources in overseas markets (Chen et al, 2022). This gives assistance in dealing with the threats and disadvantages confronted by MNEs in the host market, such as to reduce xenophobia and regional protectionism in the host country market through integration and configuration of existing resources (Johnson et al, 2013), which facilitates the acquisition of overseas knowledge of MNEs.…”

“…Second, the international managerial social capital can help MNEs enhance their level of trust with local stakeholders (Chen et al, 2022), which can assist MNEs in liberating themselves from the institutional constraints of the host market environment and further increase their level of autonomy. This allows MNEs to obtain more local resources and key information in the host country and alleviate the resource constraints for MNEs perform green innovation activities (Heubeck & Meckl, 2022).…”

Guest editorial: Microfoundations of CSR and sustainable performance

“…The fourth paper, "On the micro-foundations of corporate social responsibility: a perspective based on dynamic managerial capabilities" by Chen et al (2023), deals with managerial cognition, managerial human capital and managerial social capital as individuallevel microfoundations influence a firm's CSR. This study's findings contribute to the microfoundation of CSR literature and advance the understanding of whether and how top managers influence CSR engagement.…”

“…The fourth paper, “On the micro-foundations of corporate social responsibility: a perspective based on dynamic managerial capabilities” by Chen et al . (2023), deals with managerial cognition, managerial human capital and managerial social capital as individual-level microfoundations influence a firm's CSR.…”