IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v15y2018i2p268-d130197.html
   My bibliography  Save this article

Will Green CSR Enhance Innovation? A Perspective of Public Visibility and Firm Transparency

Author

Listed:
  • Weiwei Wu

    (School of Management, Harbin Institute of Technology, 13 Fayuan Street, Nangang District, Harbin 150001, China
    These authors contributed equally to this manuscript.)

  • Yexin Liu

    (School of Management, Harbin Institute of Technology, 13 Fayuan Street, Nangang District, Harbin 150001, China
    These authors contributed equally to this manuscript.)

  • Tachia Chin

    (School of Management, Hangzhou Dianzi University, Xiasha District, Hangzhou, 310018, China)

  • Wenzhong Zhu

    (School of Business, Guangdong University of Foreign Studies, 2 Baiyun N Ave, Guangzhou District, Guangzhou 510420, China)

Abstract

In response to the asking and requiring of stakeholders to be more environmentally responsible, firms must commit to green corporate social responsibility (CSR). Firms being green and responsible always can acquire intangible resources that are important for firm innovation. Given the scarcity of existing research addressing relevant issues in depth, this paper expands our understanding of green CSR by revealing its antecedent effects on firm innovation performance. We also include public visibility and firm transparency as contingency factors to explore the relationship between green CSR and firm innovation performance. Using data collected from publicly listed firms in China, we find that greater innovation performance is associated with an increase in firm green CSR, and the positive relationship between green CSR and innovation performance is moderated by public visibility and firm transparency. Based on the results, theoretical contributions and practical implications are outlined.

Suggested Citation

  • Weiwei Wu & Yexin Liu & Tachia Chin & Wenzhong Zhu, 2018. "Will Green CSR Enhance Innovation? A Perspective of Public Visibility and Firm Transparency," IJERPH, MDPI, vol. 15(2), pages 1-14, February.
    • Handle: RePEc:gam:jijerp:v:15:y:2018:i:2:p:268-:d:130197
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/15/2/268/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/15/2/268/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    2. Kathy Babiak & Sylvia Trendafilova, 2011. "CSR and environmental responsibility: motives and pressures to adopt green management practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(1), pages 11-24, January.
    3. Konstantinos Grigoriou & Frank T. Rothaermel, 2017. "Organizing for knowledge generation: internal knowledge networks and the contingent effect of external knowledge sourcing," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 395-414, February.
    4. Iwata, Hiroki & Okada, Keisuke, 2011. "How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms," Ecological Economics, Elsevier, vol. 70(9), pages 1691-1700, July.
    5. S. Zeng & X. Xu & H. Yin & C. Tam, 2012. "Factors that Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information," Journal of Business Ethics, Springer, vol. 109(3), pages 309-321, September.
    6. Henri Servaes & Ane Tamayo, 2013. "The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness," Management Science, INFORMS, vol. 59(5), pages 1045-1061, May.
    7. Meng Zhao, 2012. "CSR-Based Political Legitimacy Strategy: Managing the State by Doing Good in China and Russia," Journal of Business Ethics, Springer, vol. 111(4), pages 439-460, December.
    8. Kenneth Roeck & Nathalie Delobbe, 2012. "Do Environmental CSR Initiatives Serve Organizations’ Legitimacy in the Oil Industry? Exploring Employees’ Reactions Through Organizational Identification Theory," Journal of Business Ethics, Springer, vol. 110(4), pages 397-412, November.
    9. Zelong Wei & Hao Shen & Kevin Zheng Zhou & Julie Juan Li, 2017. "How Does Environmental Corporate Social Responsibility Matter in a Dysfunctional Institutional Environment? Evidence from China," Journal of Business Ethics, Springer, vol. 140(2), pages 209-223, January.
    10. C. Christopher Baughn & Nancy L. (Dusty) Bodie & John C. McIntosh, 2007. "Corporate social and environmental responsibility in Asian countries and other geographical regions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(4), pages 189-205, September.
    11. Mahfuja Malik, 2015. "Value-Enhancing Capabilities of CSR: A Brief Review of Contemporary Literature," Journal of Business Ethics, Springer, vol. 127(2), pages 419-438, March.
    12. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2013. "Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance," Journal of Business Ethics, Springer, vol. 115(2), pages 383-402, June.
    13. Pratima Bansal, 2005. "Evolving sustainably: a longitudinal study of corporate sustainable development," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 197-218, March.
    14. Noushi Rahman & Corinne Post, 2012. "Measurement Issues in Environmental Corporate Social Responsibility (ECSR): Toward a Transparent, Reliable, and Construct Valid Instrument," Journal of Business Ethics, Springer, vol. 105(3), pages 307-319, February.
    15. Robert M. Bushman & Joseph D. Piotroski & Abbie J. Smith, 2004. "What Determines Corporate Transparency?," Journal of Accounting Research, Wiley Blackwell, vol. 42(2), pages 207-252, May.
    16. Magali A. Delmas & Maria J. Montes‐Sancho, 2010. "Voluntary agreements to improve environmental quality: symbolic and substantive cooperation," Strategic Management Journal, Wiley Blackwell, vol. 31(6), pages 575-601, June.
    17. J. Emil Morhardt & Sarah Baird & Kelly Freeman, 2002. "Scoring corporate environmental and sustainability reports using GRI 2000, ISO 14031 and other criteria," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 9(4), pages 215-233, December.
    18. C. Trumpp & J. Endrikat & C. Zopf & E. Guenther, 2015. "Definition, Conceptualization, and Measurement of Corporate Environmental Performance: A Critical Examination of a Multidimensional Construct," Journal of Business Ethics, Springer, vol. 126(2), pages 185-204, January.
    19. Thomas Keil & Markku Maula & Henri Schildt & Shaker A. Zahra, 2008. "The effect of governance modes and relatedness of external business development activities on innovative performance," Strategic Management Journal, Wiley Blackwell, vol. 29(8), pages 895-907, August.
    20. Shuili Du & C. B. Bhattacharya & Sankar Sen, 2011. "Corporate Social Responsibility and Competitive Advantage: Overcoming the Trust Barrier," Management Science, INFORMS, vol. 57(9), pages 1528-1545, March.
    21. Yu Yu & Nita Umashankar & Vithala R. Rao, 2016. "Choosing the right target: Relative preferences for resource similarity and complementarity in acquisition choice," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1808-1825, August.
    22. Luc Fransen, 2013. "The Embeddedness of Responsible Business Practice: Exploring the Interaction Between National-Institutional Environments and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 115(2), pages 213-227, June.
    23. Thomas P. Lyon & John W. Maxwell, 2008. "Corporate Social Responsibility and the Environment: A Theoretical Perspective," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 240-260, Summer.
    24. Berchicci, Luca, 2013. "Towards an open R&D system: Internal R&D investment, external knowledge acquisition and innovative performance," Research Policy, Elsevier, vol. 42(1), pages 117-127.
    25. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    26. Jordi Surroca & Josep A. Tribó & Sandra Waddock, 2010. "Corporate responsibility and financial performance: the role of intangible resources," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 463-490, May.
    27. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    28. Sang-Bing Tsai & Min-Fang Chien & Youzhi Xue & Lei Li & Xiaodong Jiang & Quan Chen & Jie Zhou & Lei Wang, 2015. "Using the Fuzzy DEMATEL to Determine Environmental Performance: A Case of Printed Circuit Board Industry in Taiwan," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-18, June.
    29. Caterina Tantalo & Richard L. Priem, 2016. "Value creation through stakeholder synergy," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 314-329, February.
    30. Lioui, Abraham & Sharma, Zenu, 2012. "Environmental corporate social responsibility and financial performance: Disentangling direct and indirect effects," Ecological Economics, Elsevier, vol. 78(C), pages 100-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mingyue Chu & Haslinah Binti Muhamad & Mazlina Binti Mustapha & Ong Tze San & Fangfang Zan & Xiaoxiao Jia, 2022. "Research Trends in Corporate Social Responsibility and Innovation: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    2. Rong Wu & Jian Zhang & Yubing Yu & Sajjad M. Jasimuddin & Justin Zuopeng Zhang, 2023. "The Impact of Value Cocreation on CSR Innovation and Economic Performance," Sustainability, MDPI, vol. 15(5), pages 1-22, February.
    3. Wei Wang & Xue-Zhou Zhao & Feng-Wen Chen & Chia-Huei Wu & Sangbing Tsai & Jiangtao Wang, 2019. "The Effect of Corporate Social Responsibility and Public Attention on Innovation Performance: Evidence from High-polluting Industries," IJERPH, MDPI, vol. 16(20), pages 1-20, October.
    4. Saeid Homayoun & Bita Mashayekhi & Amin Jahangard & Milad Samavat & Zabihollah Rezaee, 2023. "The Controversial Link between CSR and Financial Performance: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(13), pages 1-15, July.
    5. Qian Zhang & Yun Liu, 2019. "Employees’ Environmental Protection and Charitable Donation and Ethical Leadership: An Empirical Study," IJERPH, MDPI, vol. 16(13), pages 1-19, June.
    6. Wenjing Ma & Mingyue Wang, 2023. "Discussion on the Relationship between Environmental Regulation and Green Technology Innovation from the Perspective of Innovation External Cooperation: Evidence from Chinese Private Enterprises," Sustainability, MDPI, vol. 15(23), pages 1-28, November.
    7. Luis E. Villegas & Andrés A. Acuña-Duarte & César A. Salazar, 2023. "Corporate Social Responsibility and the Willingness to Eco-Innovate among Chilean Firms," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    8. Rashi Malpani & Anupam Ghosh, 2023. "Corporate Social Responsibility Practices: A Strategy for Indian Startups to Sustain," Business Perspectives and Research, , vol. 11(2), pages 246-268, May.
    9. Paula Anzola-Román & Teresa Garcia-Marco & Ferdaous Zouaghi, 2024. "The Influence of CSR Orientation on Innovative Performance: Is the Effect Conditioned to the Implementation of Organizational Practices?," Journal of Business Ethics, Springer, vol. 190(1), pages 261-278, February.
    10. Li, Yan & Wang, Junkai & Mu, Zi & Li, Lingxiao, 2023. "The impact of corporate environmental responsibility on green technological innovation: A nonlinear model including mediate effects and moderate effects," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 754-769.
    11. Shuying Li & Yujie Liu & Yang Xu, 2022. "Does ESG Performance Improve the Quantity and Quality of Innovation? The Mediating Role of Internal Control Effectiveness and Analyst Coverage," Sustainability, MDPI, vol. 15(1), pages 1-25, December.
    12. Wei Fang & Lulu Tang & Pengxiao Cheng & Naveed Ahmad, 2018. "Evolution Decision, Drivers and Green Innovation Performance for Collaborative Innovation Center of Ecological Building Materials and Environmental Protection Equipment in Jiangsu Province of China," IJERPH, MDPI, vol. 15(11), pages 1-19, October.
    13. Ding, Yibing & Li, Jing & Tian, Yuqi, 2024. "The short and long-term effects of cross-border M&A network on Chinese enterprises’ green innovation," Economic Modelling, Elsevier, vol. 134(C).
    14. Minh-Hieu Le & Wen-Min Lu & Qian Long Kweh, 2023. "The moderating effects of power distance on corporate social responsibility and multinational enterprises performance," Review of Managerial Science, Springer, vol. 17(7), pages 2503-2533, October.
    15. Fang Chen Kao & Minh‐Hieu Le, 2022. "Effects of corporate social responsibility on pharmaceutical multinational enterprises performance: Research and development and business efficiency perspectives," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3419-3434, December.
    16. Hafidha Bettayeb & Mohammad Al-Hawari, 2024. "The Impact of Green Corporate Social Responsibility on Employee Green Well-being and Creativity," International Review of Management and Marketing, Econjournals, vol. 14(4), pages 191-201, July.
    17. Xue-Zhou Zhao & Jun Chen & Feng-Wen Chen & Wei Wang & Senmao Xia, 2020. "How High-Polluting Firms Suffer from Being Distracted form Intended Purpose: A Corporate Social Responsibility Perspective," IJERPH, MDPI, vol. 17(24), pages 1-29, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weiwei Wu & Rizwan Ullah & Syed Jamal Shah, 2020. "Linking Corporate Environmental Performance to Financial Performance of Pakistani Firms: The Roles of Technological capability and Public awareness," Sustainability, MDPI, vol. 12(4), pages 1-18, February.
    2. Rizwan Ullah & Weiwei Wu, 2023. "How green-friendly practices and environmental disclosure affect the technological capability of the firm," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1276-1300, February.
    3. Zelong Wei & Hao Shen & Kevin Zheng Zhou & Julie Juan Li, 2017. "How Does Environmental Corporate Social Responsibility Matter in a Dysfunctional Institutional Environment? Evidence from China," Journal of Business Ethics, Springer, vol. 140(2), pages 209-223, January.
    4. Yuxuan Li & Xin Miao & Dequan Zheng & Yanhong Tang, 2019. "Corporate Public Transparency on Financial Performance: The Moderating Role of Political Embeddedness," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    5. Iskandar Zainuddin Rela & Abd Hair Awang & Zaimah Ramli & Sarmila Md Sum & Meisanti Meisanti, 2020. "Effects of environmental corporate social responsibility on environmental well‐being perception and the mediation role of community resilience," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2176-2187, September.
    6. Chee Kwong Lau, 2019. "The economic consequences of business sustainability initiatives," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 937-970, December.
    7. Zhuoer Yang & Yahui Zhang & Yu Gao & Shanxing Gao & Kuo-Feng Huang, 2019. "Boundary Conditions of the Curvilinear Relationships between Environmental Corporate Social Responsibility and New Product Performance: Evidence from China," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    8. Cecile K. Cho & Theresa S. Cho & Jessie Lee, 2019. "Managerial attributes, consumer proximity, and corporate environmental performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 159-169, January.
    9. Huanyong Ji & Guannan Xu & Yuan Zhou & Zhongzhen Miao, 2019. "The Impact of Corporate Social Responsibility on Firms’ Innovation in China: The Role of Institutional Support," Sustainability, MDPI, vol. 11(22), pages 1-20, November.
    10. Forcadell, Francisco Javier & Úbeda, Fernando & Aracil, Elisa, 2021. "Effects of environmental corporate social responsibility on innovativeness of spanish industrial SMEs✰,✰✰,★,★★," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    11. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    12. Yuanyuan Zhang & Zhe Ouyang, 2021. "Doing well by doing good: How corporate environmental responsibility influences corporate financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 54-63, January.
    13. Wong, Jin Boon & Zhang, Qin, 2022. "Stock market reactions to adverse ESG disclosure via media channels," The British Accounting Review, Elsevier, vol. 54(1).
    14. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.
    15. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    16. Łukasz Matuszak & Ewa Różańska, 2019. "A Non-Linear and Disaggregated Approach to Studying the Impact of CSR on Accounting Profitability: Evidence from the Polish Banking Industry," Sustainability, MDPI, vol. 11(1), pages 1-21, January.
    17. Eduardo Duque-Grisales & Javier Aguilera-Caracuel, 2021. "Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack," Journal of Business Ethics, Springer, vol. 168(2), pages 315-334, January.
    18. Lin Wu & Nachiappan Subramanian & Angappa Gunasekaran & Muhammad Dan‐Asabe Abdulrahman & Kulwant Singh Pawar & Des Doran, 2018. "A two‐dimensional, two‐level framework for achieving corporate sustainable development: Assessing the return on sustainability initiatives," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1117-1130, December.
    19. Tao Bing & Meng Li, 2019. "Does CSR Signal the Firm Value? Evidence from China," Sustainability, MDPI, vol. 11(15), pages 1-22, August.
    20. Ben Lahouel, Béchir & Ben Zaied, Younes & Managi, Shunsuke & Taleb, Lotfi, 2022. "Re-thinking about U: The relevance of regime-switching model in the relationship between environmental corporate social responsibility and financial performance," Journal of Business Research, Elsevier, vol. 140(C), pages 498-519.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:15:y:2018:i:2:p:268-:d:130197. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.