Dynamic Capability and Strategic Corporate Social Responsibility Adoption: Evidence from China

An increasing number of studies have proposed that corporate social responsibility (CSR) performance depends on how firms apply their resources and capabilities to implement CSR. A firm’s ability to integrate, build, and reconfigure internal and external competencies to respond to environmental chan...

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Bibliographic Details
Published in:Sustainability 2021-05, Vol.13 (10), p.5333
Main Authors: Li, Jing Claire, Benamraoui, Abdelhafid, Shah, Neeta, Mathew, Sudha
Format: Article
Language:English
Subjects:
Competitive advantage
Developing countries
Environmental changes
Environmental management
Innovations
Knowledge
LDCs
Social responsibility
Stakeholders
Stockholders
Sustainability
Sustainable development
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Summary:An increasing number of studies have proposed that corporate social responsibility (CSR) performance depends on how firms apply their resources and capabilities to implement CSR. A firm’s ability to integrate, build, and reconfigure internal and external competencies to respond to environmental changes is its dynamic capability. Implementation of CSR at the strategic level, i.e., strategic CSR (SCSR) that requires alignment between activities and organizational configuration and structure will contribute to a firm’s sustainability. However, the research on how dynamic capabilities contribute to such alignment and SCSR adoption is incipient. This study investigates how dynamic capability influences the performance of SCSR in China. By analyzing 134 Chinese listed firms in the period 2017–2019, in this study, we found that firms with dynamic capabilities at a non-average-industrial level, i.e., higher or lower level than the average industrial level, were less likely to adopt SCSR practices, and had a low SCSR adoption performance. These results can help firms better understand dynamic capabilities and how dynamic capabilities contribute to SCSR adoption and firms’ sustainable development and operations. The policy implications of the study are also discussed.
ISSN:2071-1050
2071-1050
DOI:10.3390/su13105333