Title: Does CSR foster innovation performance? The moderating effect of ownership structure

Authors: Luu Thi Nguyen; Yuexin Shao; Shouming Chen

Addresses: Faculty of Business, FPT University, Hoa Lac High-tech Park, Thach That, Hanoi, Vietnam ' School of Economics and Management, Tongji University, 1239 Siping Road, Shanghai, China ' School of Economics and Management, Tongji University, 1239 Siping Road, Shanghai, China

Abstract: Based on the integration of stakeholder theory and the knowledge-based view, this paper seeks to investigate the effect of firms' active engagement in corporate social responsibility (CSR) on their innovation performance. It is proposed that socially responsible firms, due to their enhanced relationship with stakeholders, could foster innovation performance through the improvement of knowledge acquisition. The moderating effects of two aspects of ownership structure, namely, ownership-control separation and ownership concentration, are examined to highlight the influence of corporate governance over agency problems on the focal relationship. The research uses a longitudinal analysis on a sample of 11,021 observations, including 2,531 firms listed on the Shanghai and Shenzhen exchanges from 2011 to 2016. The results show that participation in CSR activities is positively related to a firm's innovation performance. The positive relationship is stronger when ownership is more concentrated and ownership rights are less separated from control rights.

Keywords: corporate social responsibility; innovation performance; ownership concentration; ownership-control separation; sustainable development.

DOI: 10.1504/IJTM.2022.125974

International Journal of Technology Management, 2022 Vol.90 No.3/4, pp.141 - 181

Accepted: 02 Dec 2021
Published online: 05 Oct 2022 *

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