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Impact of knowledge absorptive capacity on corporate sustainability with mediating role of CSR: analysis from the Asian context

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  • Mohsin Shahzad
  • Ying Qu
  • Saif Ur Rehman
  • Abaid Ullah Zafar
  • Xiangan Ding
  • Jawad Abbas

Abstract

Considering the growing awareness about sustainable development among various stakeholders, the present study aims to examine the impact of employees’ knowledge absorptive capacity (KAC) on firms’ corporate social responsibility (CSR) practices for accomplishing corporate sustainability performance (CSP) goals by following the absorptive capacity and green theory. Data were collected using a convenience sampling technique from 587 ISO-certified manufacturing Multinational Corporations (MNCs) from the Asia Pacific region, including those from China, Malaysia, Pakistan, the Middle East, and Taiwan. It was analysed using partial least squares structural equation modeling and fuzzy set qualitative comparative analysis (fsQCA). As per the results, KAC is positively correlated with CSR activities and significantly impacts CSP. Second, CSR was found to have a considerable mediating impact. Third, importance-performance map analysis indicated that the performance of KAC is relatively higher than CSR for CSP. Furthermore, fsQCA results validate the robustness of constructs towards CSP.

Suggested Citation

  • Mohsin Shahzad & Ying Qu & Saif Ur Rehman & Abaid Ullah Zafar & Xiangan Ding & Jawad Abbas, 2020. "Impact of knowledge absorptive capacity on corporate sustainability with mediating role of CSR: analysis from the Asian context," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(2), pages 148-174, January.
    • Handle: RePEc:taf:jenpmg:v:63:y:2020:i:2:p:148-174
    DOI: 10.1080/09640568.2019.1575799
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    2. Zsuzsanna Vincze & Linda Hällerstrand & Daniel Örtqvist & Lena Rist, 2021. "Strategic Corporate Sustainability in a Post-Acquisition Context," Sustainability, MDPI, vol. 13(11), pages 1-29, May.
    3. Abdul Waheed & Qingyu Zhang, 2022. "Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 175(4), pages 837-855, February.
    4. Youtang Zhang & Hagos Mesfin Berhe, 2022. "The Impact of Green Investment and Green Marketing on Business Performance: The Mediation Role of Corporate Social Responsibility in Ethiopia’s Chinese Textile Companies," Sustainability, MDPI, vol. 14(7), pages 1-24, March.
    5. Julio C. Acosta-Prado & Oscar H. López-Montoya & Carlos Sanchís-Pedregosa & Ulpiano J. Vázquez-Martínez, 2020. "Sustainable Orientation of Management Capability and Innovative Performance: The Mediating Effect of Knowledge Management," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    6. Boyao Zhang & Ubaldo Comite & Ali Gokhan Yucel & Xintao Liu & Mohammed Arshad Khan & Shahid Husain & Muhammad Safdar Sial & József Popp & Judit Oláh, 2021. "Unleashing the Importance of TQM and Knowledge Management for Organizational Sustainability in the Age of Circular Economy," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    7. Riccardo Rodella & Maria Rosa De Giacomo, 2023. "How do financial markets reward companies tackling climate change concerns? A natural experiment based on the Brexit referendum," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 979-990, March.
    8. Wunnam Basit Issah & Lutfa Tilat Ferdous & Faruk Bhuiyan & Taimur Sharif, 2024. "Digitalisation and environmental management activities: The effects of family ownership`," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4351-4374, July.
    9. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    10. Muddassar Sarfraz & Ilhan Ozturk & Sunghoon Yoo & Muhammad Ali Raza & Heesup Han, 2023. "Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    11. Muhammad Khuram Khalil & Umaporn Muneenam, 2021. "Total Quality Management Practices and Corporate Green Performance: Does Organizational Culture Matter?," Sustainability, MDPI, vol. 13(19), pages 1-27, October.
    12. Yuwei Deng & Jacob Cherian & Kalpina Kumari & Sarminah Samad & Jawad Abbas & Muhammad Safdar Sial & József Popp & Judit Oláh, 2022. "Impact of Sleep Deprivation on Job Performance of Working Mothers: Mediating Effect of Workplace Deviance," IJERPH, MDPI, vol. 19(7), pages 1-17, March.
    13. Abebe Negeri Shonte & Quan Ji, 2022. "Management Commitment and Sustainable Coffee Export Performance, Evidence from Ethiopian Companies: The Mediating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    14. Liu, Wei & Zhang, Jian & Ji, Ming & Luo, Yujia, 2024. "Investigating the link between green finance, environmental orientation, and carbon neutrality: A panel study of the metal extraction sector," Resources Policy, Elsevier, vol. 89(C).
    15. Rana Faizan Gul & Khalid Jamil & Sohaib Mustafa & Nasif Raza Jaffri & Aliya Anwar & Fazal Hussain Awan, 2024. "Studying the green performance under the lens of total quality management in Chinese SMEs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22975-22996, September.
    16. Xiaofei Yan & Juan Felipe Espinosa-Cristia & Kalpina Kumari & Lucian Ionel Cioca, 2022. "Relationship between Corporate Social Responsibility, Organizational Trust, and Corporate Reputation for Sustainable Performance," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    17. Víctor Meseguer-Sánchez & Francisco Jesús Gálvez-Sánchez & Gabriel López-Martínez & Valentín Molina-Moreno, 2021. "Corporate Social Responsibility and Sustainability. A Bibliometric Analysis of Their Interrelations," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    18. Jakeline Serrano‐García & Andrea Bikfalvi & Josep Llach & Juan José Arbeláez‐Toro, 2022. "Capabilities and organisational dimensions conducive to green product innovation: Evidence from Croatian and Spanish manufacturing firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2767-2785, November.

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