The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital

Abstract

As the concept of corporate social responsibility advances, it is crucial to recognize the broad roles of sustainability and the Sustainable Development Goals (SDGs) influencing the implementation of corporate social responsibility (CSR) initiatives. This research contributes to the expanding field of CSR, sustainable innovation ambidexterity (SIA), sustainable supply chain management (SSCM), and second-order social capital (SOSC). This research produced a theoretical framework based on social exchange theory, social capital theory, and Carroll’s CSP model to investigate the impact of CSR on SIA, SSCM, and SOSC. Furthermore, this study examined the mediating effects of SSCM and SOSC on the correlation between CSR and SIA. Additionally, this study presents a model to explain the impact of SSCM and SOSC on SIA. This study concentrated on top-level managers of several manufacturing businesses situated in Pakistan. A total of 42 manufacturing businesses were chosen utilizing a convenience cluster sampling method. As per the results of this research, CSR was discovered to have a positive impact on SSCM, SIA, and, SOSC. Moreover, SOSC and SSCM were found to be in a significant relationship with SIA. Finally, SOSC and SSCM fully mediated the relationship between CSR and sustainable innovation ambidexterity. This research can guide companies by effectively delivering their finances in CSR initiatives. The findings also suggest that companies should concentrate on improving their CSR initiatives because CSR has a significant effect on SIA. The SDGs provide a road map for companies that can assist them to tactically manage their CSR initiatives according to the international and national sustainable development guidelines. Hence, the CSR–SDG tie is essential for the improvement in the role of CSR in sustainable development. Moreover, to improve and measure SSCM, SOSC, and SIA, policymakers and general managers should devote efforts to CSR.

The role of strategic entrepreneurship and social capital on sustainable supply chain management and organizational performance

“…Supply partners need to improve coordination processes between their key organizations. Chu et al (2017), Jia et al (2020 and Khan et al (2021) mention environmental impacts and supplier responsibilities. Mutual consideration of economic, environmental and social responsibility aspects encourages transparency in the process and collaboration with others.…”

“…Companies that are able to offer goods at lower prices and with higher quality will be able to increase sales, so that profit margins and return on investment can also be increased. Khan et al (2021) and Lin et al (2006) explained that companies with product innovation and fast delivery times can increase market share and sales, where companies have a high level of responsiveness and flexibility and the ability to increase company assets. Currently, there are many problems faced by the manufacturing industry sector, namely the shortage of raw materials, infrastructure, utilities, and experts.…”

Supply Chain Management and the United Nations Sustainable Development Goals

“…The United Nations Organization (UNO) developed 17 Sustainable Development Goals (SDG) in 2015 as a global transformative agenda for 2030. These objectives create a shared vision for people's peace and prosperity, as well as the CSR encourages people to adopt SSCM to impact businesses (Khan et al, 2021).…”

Redefining Corporate Social Responsibility and its relation to Sustainable Development Objectives

“…Thus, according to the different investigations it can be inferred that the economic capacity of a country is fundamental in the development in the SDOs, and therefore the sustainability has an impact on the competitiveness of countries in the traditional sense, which concludes that it is extremely imperative for countries to bet on sustainability aligned with the SDOs for a better organizational performance, and therefore better competitiveness (Khan et al, 2021).…”