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

Li, J., Benamraoui, A., Shah, N.S. and Mathew, S. 2021. Dynamic Capability and Strategic Corporate Social Responsibility Adoption: Evidence from China. Sustainability. 13 (10) e5333. https://doi.org/10.3390/su13105333

TitleDynamic Capability and Strategic Corporate Social Responsibility Adoption: Evidence from China
TypeJournal article
AuthorsLi, J., Benamraoui, A., Shah, N.S. and Mathew, S.
AbstractAn 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.
Keywordsdynamic capability
strategic corporate social responsibility adoption
corporate social responsibility (CSR)
sustainable development
China
Article numbere5333
JournalSustainability
Journal citation13 (10)
ISSN2071-1050
Year2021
PublisherMDPI
Publisher's version
License
CC BY 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.3390/su13105333
Publication dates
Published online11 May 2021
LicenseCC BY 4.0

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