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The relationship between firm productivity, firm size and CSR objectives for innovations

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  • Pål Børing

    (NIFU (Nordic Institute for Studies in Innovation, Research and Education))

Abstract

We examine how a firm’s productivity level is related to its potential corporate social responsibility (CSR) objectives for innovations, and whether this relationship is affected by firm size. Two CSR objectives for innovations are examined: a firm’s objective of reducing environmental impacts, and an objective of improving health or safety of the employees. Firm size is measured by the number of employees. A data set comprising Norwegian manufacturing firms with or without innovation activity is used. The estimation results show that the predicted probability of adopting the objective of reducing environmental impacts has a significant negative effect on the productivity level among large firms while this effect is not significant among small firms. The predicted probability of adopting the objective of improving health or safety of the employees has no significant effect on the productivity level of small or large firms. These results indicate that whether ‘it pays to be green’ or not, depends on firm size. The article offers a resource argument in order to explain the different results between small and large firms.

Suggested Citation

  • Pål Børing, 2019. "The relationship between firm productivity, firm size and CSR objectives for innovations," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 269-297, September.
    • Handle: RePEc:spr:eurasi:v:9:y:2019:i:3:d:10.1007_s40821-019-00123-y
    DOI: 10.1007/s40821-019-00123-y
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    4. Yubin Zheng & Md. Harun Ur Rashid & Abu Bakkar Siddik & Wei Wei & Syed Zabid Hossain, 2022. "Corporate Social Responsibility Disclosure and Firm’s Productivity: Evidence from the Banking Industry in Bangladesh," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
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    More about this item

    Keywords

    Manufacturing firms; Productivity level; Firm size; CSR objectives for innovations; Innovation activity; Product and process innovation;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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