CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility

Achi, Awele; Adeola, Ogechi and Achi, Francis Chukwuedo (2022). CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility. Journal of Business Research, 139 pp. 771–781.

DOI: https://doi.org/10.1016/j.jbusres.2021.10.016

Abstract

Despite the recognised importance of corporate social responsibility (CSR) to firms, it is far from clear how and when CSR can drive the success of micro, small, and medium-sized enterprises (MSMEs). Drawing on the dynamic capabilities approach and using time-lagged survey data collected from 176 MSMEs operating in a major sub-Saharan African economy, we examine the role of green process innovation and perceived environmental volatility in linking CSR to MSME performance. We find that green process innovation mediates the positive relationship between CSR and MSME performance. Additionally, we discover that perceived environmental volatility negatively moderates the indirect relationship between CSR and MSME performance through green process innovation, lending support to a moderated mediation model. We conclude with a discussion on the theoretical and managerial implications of our findings and provide avenues for future research.

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