The Mediating Role of Green Technology Innovation with Corporate Social Responsibility, Firm Financial, and Environmental Performance: The Case of Chinese Manufacturing Industries

Abstract

This research aims to examine the relationship between corporate social responsibility (CSR), firm environmental performance (FEP), and firm financial performance (FFP), as well as how green technology innovation performs a mediating role in this relationship. The manufacturing firms listed on the Shenzhen Stock Exchanges were selected as the representative sample for the study, and data were gathered from 470 managers and directors of manufacturing firms using a simple random sampling technique. The response rate was 87%. For hypothesis testing, PLS-SEM was used. In addition, green technology innovation is a positive and significant mediator between corporate social responsibility and firm financial and environmental performance. This research provides useful implications for manufacturing firms’ managers, directors, and policymakers to improve corporate social responsibility (CSR) and green technology innovation in measuring the firm’s financial and environmental performance. The results also have several practical implications that may benefit the management of firms. They urge all of the organization’s stakeholders to consider investing in organizational social behavior and green innovation to enhance the manufacturing firms’ overall performance.

Impact of Innovation-Oriented Human Resource on Small and Medium Enterprises’ Performance

“…Moreover, sustainable innovation can also have a positive impact on a firm's non-financial performance measures, such as its brand reputation and employee satisfaction. For example, a study by Xu and colleagues [9] found that firms that implemented sustainable innovation practices had a stronger brand reputation and were more attractive to potential employees. In summary, innovation, particularly sustainable innovation, is critical to the performance of firms [10,11].…”

Does corporate social responsibility drive financial performance? Exploring the significance of green innovation, green dynamic capabilities, and perceived environmental volatility

“…The results fill the gap and contribute to the literature threefold. First, the present study responds to persistent calls for more studies on CSR in the developing economies context (Ali et al, 2020; Bahta et al, 2021; Xu et al, 2022) and the mechanism through which CSR affects a firm's financial outcomes (Pham & Tran, 2020; Yanez‐Araque et al, 2021). More specifically, this study found that CSR practices directly and through GI can enhance the financial performance of manufacturing companies in a developing economy like Pakistan.…”

“…Due to inconsistent findings, some scholars have also proposed that mediation mechanisms can better explain CSR and financial performance nexus (Bahta et al, 2021; Feng et al, 2022; Xu et al, 2022). This means that CSR needs underlying mechanisms to transfer its effect on performance outcomes, which is currently disregarded in most previous studies and can lead to biased conclusions (Ali et al, 2020; Kraus et al, 2020; Padilla‐Lozano & Collazzo, 2022; Úbeda‐García et al, 2021).…”

Does ESG Impact a Firm’s Sustainability Performance? The Mediating Effect of Firm Innovation Performance

“…The findings indicate that if a firm's ESG performance increases, its innovation performance will improve. Firm innovation is, therefore, considered a crucial factor in ensuring sustainability performance, as it also mediates the effect of ESG performance on firm performance [136] and other corporate issues [11]. Through innovation performance, the firm can develop products and sustainable manufacturing processes.…”

“…These literature works further evidenced that innovation influences ESG practices as well as sustainability, and the impact of ESG on some crucial corporate issues was found to be mediated by innovation. Chouaibi, Chouaibi [11] and Xu, Imran [136] identified mediating role of green innovation on ESG and financial performance. Ge, Xiao [137] demonstrated that innovation input mediates the relationship between ESG and the high-quality development of Chinese enterprises.…”