Progressive and Rational CSR as Catalysts of New Product Introductions

Abstract

Whereas extant literature has examined the overall effect of corporate social responsibility (CSR) on innovation, it is argued that CSR is a multidimensional concept encompassing both progressive activities concerning a firm's engagement in the social domain, as well as rational aspects pertaining to corporate governance practices and the protection of shareholder rights. This study integrates organizational hypocrisy with the knowledge-based view literatures to examine how different forms of CSR engagement affect the rate of new product introductions (NPI). Results suggest that the mechanisms by which progressive and rational CSR are associated to increases in the rate of NPI differ. Specifically, while progressive CSR positively affects the rate of NPI and such effect is deemed stronger for firms that are more vertically integrated, the effect of rational CSR on the rate of NPI is conditional on a firm's level of absorptive capacity.

Differentiation strategies and firms' environmental, social and governance: The different moderating effects of historical and social performance shortfalls

“…By actively interacting and communicating with various stakeholders to improve or enhance the relationship between the firm and its stakeholders (Miller et al, 2018), involvement in ESG makes the firm more sensitive to the needs of its stakeholders (Porter & Kramer, 2011). In turn, companies can gain a more comprehensive and deeper understanding of the needs of their stakeholders (e.g., consumers) and thus seek more market opportunities to develop new products or services (Murcia, 2021).…”

Challenges and opportunities of brand corporate social responsibility classification: A review, new conceptualization and future research agenda

“…For example, researchers have suggested that business‐level CSR activities can be in the areas of philanthropy, improving operational effectiveness and transforming the business model (Rangan et al, 2015). A recent empirical study has reported that a firm's progressive CSR positively affects the rate of new product introductions, whilst the impact of rational CSR is conditional on the firm's absorptive capacity (Murcia, 2021). Twenty‐nine studies considered business CSR activities and analysed their impacts at the product brand level.…”

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Dual function of corporate social responsibility on R&D strategy: Moderating effect of board interlock

“…Scholars believe that CSR benefits a company's innovation activities by enhancing their interactions with stakeholders (Luo & Du, 2015), increasing their R&D resources (Song et al, 2019), and generating a positive attitude of R&D activities among the corporate leadership (Chkir et al, 2020). The existing literature indicates that CSR increases R&D investment (Luo & Du, 2015) or reduces R&D input (Gallego‐Alvarez et al, 2011), increases patents (Wu et al, 2018), introduces new products (Murcia, 2020; Song et al, 2019), and further boosts various types of R&D outputs, such as responsible innovations (Hadj, 2020) and eco‐innovations (Pan et al, 2020). However, there is a lack of research on the relationship between CSR and R&D strategy.…”

“…When CSR is integrated with corporate strategy, its key role of driving technological innovation cannot be ignored (Bocquet et al, 2013). Many researchers have studied the influence of CSR on R&D and innovation, such as R&D input (Gallego‐Alvarez et al, 2011), patents (Wu et al, 2018), new product introduction (Hur et al, 2014; Murcia, 2020), and new production success (Song et al, 2019). However, constrained by the input–output mindset, these scholars have largely ignored the role of CSR in the R&D decision making process.…”