The Effect of R&amp;D Intensity on Corporate Social Responsibility

Padgett, Robert C.; Galán, José Ignacio Pichardo

doi:10.1007/s10551-009-0230-x

Cited by 271 publications

(215 citation statements)

References 72 publications

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“…Also, they prove that CSR is positively correlated with R&D intensity. Another research by Hull and Rothenberg (2008), corroborate this finding and finally Padgett and Galan (2010) study the relationship between these two variables and found a significant positive relationship. A more recent research Wagner (2010) analyzes the link between innovation with high social benefits and corporate social performance.…”

Section: Introductionsupporting

confidence: 61%

Innovation with High Social Benefits and Corporate Financial Performance

Padgett

Moura-Leite

2012

Journal of Technology Management & Innovation

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This article analyzes the effect that innovation with high social benefit has on financial performance, and to improve our understanding of this effect we extend our research by analyzing the effect of being an innovation leader has on financial performance. We intend to give insight about which innovation strategy impacts with more intensity on financial performance. To support this analysis we will make use of the resource-based view theory and the institutional theory. Our research used the panel data technique. The final sample contains 2025 observations for 418 firms. The results of this research demonstrate that there is a negative and significant effect between innovation with high social benefit and financial performance, highlighting the importance of the involvement of governmental and non-governmental institutions to create an incentive for firms to incur in innovative activities that produce social benefits.Keywords: corporate social responsibility; innovation with high social benefits; research and development; resource based view theory; institutional theory. which resource selection decisions are embedded and how this context might influence sustainable differences (Oliver, 1997;Ginsberg, 1994). According to Oliver (1997), in order to complement the RBV theory and analyze the social context of resources, it is necessary to include the institutional theory (DiMaggio and Powell, 1991;Scott, 1995), which examines the role of social influences and pressures for social conformity in determining organizations' decisions and actions.By implementing both the RBV theory and the institutional theory as the theoretical framework for this research, we intend to support the intentions of firms to participate in R&D activities, because firm's innovations (social or not) will produce a differentiation in the market, thus creating a competitive advantage that will generate above normal rates of return and furthermore can create legitimacy which leads to a good reputation.Our research used a panel data technique, which allowed us to control the risk of unobserved heterogeneity on the manager's conceptions of social responsibility and company strategy (Bouquet and Deutsch, 2008). Our main hypothesis tries to identify if innovation with high social benefit has a positive impact on the financial performance of firms, since firms seek to obtain benefits such as differentiation and higher sales from innovation. Some researchers like Lev, Redhakrishnan and Ciftci (2006) have stated that there is a clear difference in the performance of innovation followers and leaders, which are recognized as having excess returns, because of higher sales growth, and return on assets. Thus, we extend our research by focusing on the performance of innovation leaders, and expect that leaders will always have an above average performance when investing in innovation. This article contributes to the literature because we are studying the effect that innovation with high social benefit has on financial performance, which observes an...

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Section: Introductionsupporting

confidence: 61%

Innovation with High Social Benefits and Corporate Financial Performance

Padgett

Moura-Leite

2012

Journal of Technology Management & Innovation

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“…Social performance is classified by the KLD (Kinder, Lydenberg, Domini & Company) index and financial performance is classified by ROA (Return on Assets). Padgett [24] found that the R&D intensity influences social responsibility significantly in the manufacturing industry; however, the findings did not show a significant effect in the non-manufacturing industry. As explained in Padgett's [24] analysis, pressure from the government and stakeholders in the manufacturing industry is high, and the influence of the R&D intensity on CSR is higher for this industry.…”

Section: Randdmentioning

confidence: 91%

“…Padgett [24] found that the R&D intensity influences social responsibility significantly in the manufacturing industry; however, the findings did not show a significant effect in the non-manufacturing industry. As explained in Padgett's [24] analysis, pressure from the government and stakeholders in the manufacturing industry is high, and the influence of the R&D intensity on CSR is higher for this industry. Padgett [24] discovered that a higher probability of implementing a CSR activity has a positive relationship with corporate governance variables, such as the leadership and independency of the board of directors as well as the sharing of institutional investors.…”

Section: Randdmentioning

confidence: 91%

“…As explained in Padgett's [24] analysis, pressure from the government and stakeholders in the manufacturing industry is high, and the influence of the R&D intensity on CSR is higher for this industry. Padgett [24] discovered that a higher probability of implementing a CSR activity has a positive relationship with corporate governance variables, such as the leadership and independency of the board of directors as well as the sharing of institutional investors. In addition, the likelihood of the CSR implementation has a positive relationship with corporate characteristics variables, such as size of the firm, R&D expenditure, profitability, and diversification; however, it has negative relationship with debt ratio.…”

Section: Randdmentioning

confidence: 99%

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An Analysis of CSR on Firm Financial Performance in Stakeholder Perspectives

Hong

Hwang

2017

Sustainability

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Sustainable growth can be a source of success for firms. Corporate social responsibility (CSR) is a key tool for sustainable growth. However, should firms invest in CSR without having confidence in the effects and methods of CSR? This study explored the R&D, technology commercialization, and CSR motivation as core competencies that enhance corporate performance through CSR from a normative perspective-the stakeholder's perspective. The purpose of this study was to investigate both strategic and traditional CSR's relationships with financial performance based on the confidence in the effectiveness of CSR. Another important objective of this study was to explore management factors that influence strategic CSR. Firms consider R&D and technology commercialization as strategic management factors. Therefore, this study analyzed the influence of these strategic management factors along with CSR motivations, which may influence strategic and traditional CSR.

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“…Researchers propose that corporate social responsibility (CSR) is highly correlated with innovation such as intangible assets and research and development or R&D activities [1][2][3]. However, there has been little research into the relationship between corporate innovation, CSR and environmental sustainability.…”

Section: Introductionmentioning

confidence: 99%

Curvilinear Relationship between Corporate Innovation and Environmental Sustainability

Lee

Kim

2017

Sustainability

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This paper proposes and tests the impacts of firms' innovation activities, such as patents, on their involvement in environmental sustainability, such as environmental performance. Combining resource allocation and eco-innovation perspectives assuming constant levels of trade-off costs, this study proposes diminishing trade-off costs between corporate innovation and environmental sustainability. Specifically, this research hypothesizes a U-shaped relationship, suggesting that a firm will suffer trade-off costs between innovation and environment-oriented activities up to a certain level, and that once a firm accumulates an adequate level of innovation, it may reduce trade-off costs, caring more for environmental issues. A proposed hypothesis is supported by empirical testing of a sample of 11,657 firm-year observations with 1564 firms, spanning from 1991 to 2010. We also found that corporate patenting activities are relevant to undesirable impacts on environmental performance overall, instead of satisfying outcomes. We suggest that firms and managers should care for environmental sustainability issues once they accumulate an adequate level of innovation assets through patenting activities.

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The Effect of R&D Intensity on Corporate Social Responsibility

Abstract: competitive advantage, corporate social responsibility, industry, research and development, resource-based view theory,

Cited by 271 publications

References 72 publications

Innovation with High Social Benefits and Corporate Financial Performance

Innovation with High Social Benefits and Corporate Financial Performance

An Analysis of CSR on Firm Financial Performance in Stakeholder Perspectives

Curvilinear Relationship between Corporate Innovation and Environmental Sustainability

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