The interplay between corporate social responsibility and knowledge management strategies for innovation capability development in dynamic environments

Abstract

Purpose This paper aims to analyze unexplored connections between economic, environmental and social dimensions of corporate social responsibility (CSR) and knowledge management (KM) strategies (exploration, exploitation), also considering environmental dynamism as an influencing variable on these connections. The predicted CSR-KM interplay suggests, from stakeholder and knowledge-based views of the firm, the existence of ideal configurations between CSR and KM strategies that generate differentiated impacts on companies’ innovation capabilities, especially in dynamic environments. Design/methodology/approach Structural equation modeling by means of the partial least squares technique was used to test the study’s hypotheses after collecting survey data from Spanish companies of the renewable energy sector. Findings The study findings show that in highly dynamic environments, companies will tend to commit prominently in CSR, although their orientation (economic, environmental, social) and effects on innovation capabilities will depend mainly on the selected KM strategies. Social and environmental CSR are found to be highly related to KM exploration, whereas economic CSR is highly related to KM exploitation. Nevertheless, while a significant indirect effect of economic CSR by means of the KM exploitation strategy on innovation capabilities is found, the proposed indirect effect of both environmental and social CSR through the KM exploration strategy on innovation capabilities is not significant. Practical implications The results suggest that company managers should be aware of the advantages of following specific paths of investment in KM and CSR initiatives in highly dynamic environments, as there is a potential payoff in terms of innovation capability improvement. The results also suggest that “good” relationships with stakeholders, built from specific CSR investments, make firms able to get valuable knowledge that it is useful to develop KM strategies for innovation capability development. Originality/value Previous studies do not consider the interplay between KM strategies and CSR as a catalyzer for developing a firm’s innovation capabilities. This paper contributes to the KM and innovation literatures by introducing CSR into the conversation about how to improve innovation capabilities in dynamic and sustainable industries by using configurations of KM strategies and specific CSR investments in economic, social and environmental areas.

Models and strategies for implementation of social responsibility in modern enterprises

“…(9) Continuous improvement and adaptation (González-Ramos et al, 2023;Medne & Lapina, 2019). Social responsibility is an ongoing commitment that requires continuous improvement.…”

Corporate social responsibility and sustainability practices: mediating effect of green innovation and moderating effect of knowledge management in the manufacturing sector

“…The three main dimensions of KM – accumulating, storing and sharing knowledge – should be incorporated in daily operations to improve sustainable performance (Schinzel, 2018) and competitiveness over time. Gonzalez-Ramos et al (2023) notes that the interlinks between KM and CSR have been extensively explored considering the factor of innovation capability development. However, research on the utilisation of effective KM strategies is limited; therefore, the current study aims to undertake a more thorough exploration of the practical dimensions of KM as linked to CSR.…”