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Journal of Business Ethics
Published in: Journal of Business Ethics 3/2021

26-09-2020 | Original Paper

Progressive and Rational CSR as Catalysts of New Product Introductions

Author: Maria Jose Murcia

Published in: Journal of Business Ethics | Issue 3/2021

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Abstract

Whereas extant literature has examined the overall effect of corporate social responsibility (CSR) on innovation, it is argued that CSR is a multidimensional concept encompassing both progressive activities concerning a firm’s engagement in the social domain, as well as rational aspects pertaining to corporate governance practices and the protection of shareholder rights. This study integrates organizational hypocrisy with the knowledge-based view literatures to examine how different forms of CSR engagement affect the rate of new product introductions (NPI). Results suggest that the mechanisms by which progressive and rational CSR are associated to increases in the rate of NPI differ. Specifically, while progressive CSR positively affects the rate of NPI and such effect is deemed stronger for firms that are more vertically integrated, the effect of rational CSR on the rate of NPI is conditional on a firm’s level of absorptive capacity.
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Footnotes
1
Before sample restriction in terms of years, firm age, and US-only index members.
 
2
Cohen's kappa coefficient measures inter-rater agreement for qualitative (categorical) items (i.e., NPI).
 
3
Available online: https://​www.​wiod.​org/​home accessed 07 April 2020.
 
4
It is worth noting that the independent variables are yearly variables, whereas the dependent variable (NPI3) considers three years of NPI. However, the measurement of NPI3 is ahead of the independent variable year. For instance, the first observation in the data for the dependent variable for each firm is in 2008 where NPI3 is computed as the average of NPI of 2006, 2007, and 2008. Accordingly, the independent variables for that NPI3 observation are measured in 2007.
 
5
ASSET4 CSR pillars’ scores are calculated by equally weighting and z-scoring all underlying data points and comparing them against all companies in the ASSET4 universe. The result is therefore a relative measure of performance, z-scored and normalized to position the score between 0 and 100 percent. Thus, a unit increase entails a one percent increase in the z-score, which entails an increase above the mean performance of the CSR pillar being measured.
 
6
Available online: https://​socialscores.​org/​ (Accessed August 2, 2018).
 
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Metadata
Title
Progressive and Rational CSR as Catalysts of New Product Introductions
Author
Maria Jose Murcia
Publication date
26-09-2020
Publisher
Springer Netherlands
Published in
Journal of Business Ethics / Issue 3/2021
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-020-04625-y

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