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Dual function of corporate social responsibility on R&D strategy: Moderating effect of board interlock

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  • Ming Tian
  • Teng Wang
  • Xiaotong Li

Abstract

Corporate social responsibility (CSR) has been known as a strategic factor that drives enterprises to innovate. However, the current scholarship has largely overlooked the influence of CSR on R&D strategy. This paper investigates the dual function of CSR on R&D strategy from resource and risk perspectives. By using an unbalanced panel dataset compiled from multiple archival sources of Chinese‐listed companies, this paper examines the influence of CSR on R&D strategy (depth and diversification) and the moderating function of board interlock. The results indicate that a U‐shaped relationship exists between CSR and R&D depth as well as between CSR and R&D diversification. Furthermore, board interlock moderates the relationship between CSR and R&D depth.

Suggested Citation

  • Ming Tian & Teng Wang & Xiaotong Li, 2021. "Dual function of corporate social responsibility on R&D strategy: Moderating effect of board interlock," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1492-1508, September.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:6:p:1492-1508
    DOI: 10.1002/mde.3322
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    2. Shuxia Zhang & Liping Xu & Ning Liu, 2022. "Crowding‐in and crowding‐out effects of corporate philanthropy on R&D investment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1835-1849, September.

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