The influence of financial performance on corporate social innovation

Abstract

The study draws from the literature on corporate social innovation (CSI) and financial performance and extends previous studies about this relationship. In addition, given the scant literature on corporate social innovation, the paper tries to generate a common framework for this topic. It proposes a definition and a measure of CSI. The measure aims to reflect the contribution that firms make to society in terms of innovation.The sample includes firm observations that cover 6-year longitudinal panel data, including 1,122 firms in 29 countries. Our findings confirm that firms invest their financial resources (mainly firm performance) in CSI but, instead of investing immediately, take at least 1 year to do so. Stakeholder engagement, the relevance of sustainable innovation business models, and social and environmental policies contribute to integrating CSI. Our study contributes to filling the gap in the literature on CSI and provides several implications for NGOs, managers, and policymakers.

Corporate sustainability and financial performance: A hybrid literature review

“…However, the last two research steams (c) and (d) identified a positive relationship. Alonso‐Martínez et al (2019) identified one‐year, lagged, positive relationship between financial performance with corporate social innovation. Setó‐Pamies (2015) identified a positive relationship between board gender diversity and CSR.…”

Exploring the relationships between corporate social responsibility, leadership, and sustainable entrepreneurship theories: A conceptual framework

“…In the second phase (the selection of data), only the documents useful to the research framework, that is, containing pertinent information to investigate the application of the conceptual model, have been stored (Corbin & Strauss, 2008). In the third phase (the analysis of data), the data saved have been analyzed by coding into key themes coherent with our 1 With social innovations we mean the innovations contributing in new technological, environmental, and social ways to improve the quality of life for society, while also generating sustainable economic benefits (Alonso-Martínez, González-Álvarez, & Nieto, 2019;Poussing, 2019). 2 The selected case study has already been analyzed in the article of Silvestri and Veltri (2017) addressed to investigate whether an alliance guided by ethic principles could effectively conjugate ethics and business with reciprocal advantages for the organizations and the territory.…”

“…The GOEL group case study also highlights the relevance of cooperation to introduce social innovations in a disadvantaged context, that is, innovations contributing in a new technological, environmental, and social ways to improve the quality of life for society, while also generating sustainable economic benefits (Alonso-Martínez et al, 2019;Poussing, 2019). The literature underlines that social innovations are more effective if they are undertaken within a network instead of taken in isolation by a lone social entrepreneur (Phillips, Lee, Ghobadian, O'Regan, & James, 2015).…”

Does financial innovation improve performance: Case study of Turkey

“…With enacting interbank money market regulations in 1987 the Central Bank intervened in the money markets for the first time aimed at stabilizing the liquidity levels (The Banks Association of Turkey, 2005). Started from 1994, the government regulations demanded that all stock transactions started to be conducted by the means of electronic devices and computers (Aldis, 2011). The Banking Regulation and Supervision Agency (BRSA) was established to ensure stability in financial markets and coordinate the operation of financial institutions (The Banks Association of Turkey, 2005).…”