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The Influencing Mechanism of Internal Control Effectiveness on Technological Innovation: CSR as a Mediator

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  • Xinyuan Wang

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea
    School of Economics and Management, Hulunbuir University, Hulunbuir 021000, China)

  • Zhenyang Zhang

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea)

  • Dongphil Chun

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea)

Abstract

The study explores the relationship between internal control effectiveness, corporate social responsibility (CSR), and technological innovation. By establishing a mediating effect model, we analyzed the effect of internal control effectiveness on technological innovation. The study selected the data of Chinese A-share listed companies between 2014 and 2019 as the sample. The sources of variable indicators include China Stock Market and Accounting Research (CSMAR), DIB Internal Control database, and Hexun CSR score. The empirical study shows that internal control effectiveness is significantly and positively related to technological innovation. Enhancing internal control effectiveness has a significant positive effect on the fulfillment of corporate social responsibility. In the process of internal control effectiveness on technological innovation, corporate social responsibility functions as a mediating variable and plays a partial mediating role. The study provides empirical data to support listed companies’ emphasis on internal control and active fulfillment of social responsibility, thereby enhancing their technological innovation performance.

Suggested Citation

  • Xinyuan Wang & Zhenyang Zhang & Dongphil Chun, 2021. "The Influencing Mechanism of Internal Control Effectiveness on Technological Innovation: CSR as a Mediator," Sustainability, MDPI, vol. 13(23), pages 1-17, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13122-:d:688767
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    Cited by:

    1. Jing Wu & Chee Yoong Liew, 2024. "Revisiting the nexus between corporate social responsibility and corporate value: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2066-2085, May.
    2. Waseem Akhter & Arshad Hassan, 2024. "Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 566-578, January.
    3. Liang, Yunbao & Zhou, Hongxia & Zeng, Jun & Wang, Chuanbin, 2024. "Do natural resources rent increase green finance in developing countries? The role of education," Resources Policy, Elsevier, vol. 91(C).
    4. Wennanxiang Wang & Ridong Hu & Cheng Zhang & Yang Shen, 2023. "Does Socially Responsible Investing Make a Better Society?—A Micro Perspective through Mutual Funds and Their Investee Companies," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    5. Lijuan Wu & Shanyue Jin, 2022. "Corporate Social Responsibility and Sustainability: From a Corporate Governance Perspective," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    6. Yi Yang & Shuhe Shi & Jingjing Wu, 2022. "Digital Financial Inclusion to Corporation Value: The Mediating Effect of Ambidextrous Innovation," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    7. Jingjing Li & Xianming Wu, 2022. "Technology-Driven Cross-Border M&A, CSR, and Enterprise Innovation Performance—Evidence from China," Sustainability, MDPI, vol. 14(7), pages 1-32, March.

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