Does Relationship of Corporate Social Responsibility, Absorptive Capacity and Innovation Performance Exist in Manufacturing Micro Companies?
DOI:
https://doi.org/10.56976/rjsi.v5i2.89Keywords:
Corporate Social Responsibility, Absorptive Capacity, Innovation Performance, Control VariableAbstract
This research is designed to check the Impact of kinds of Corporate Social Responsibility (CSR) on kinds of Absorptive Capacity( AC) and impact of kinds of Absorptive Capacity( AC) on Innovation performance (IP). Data was collecting from 375 employees of manufacturing micro-companies of Pakistan with the help of purposive sampling. Results indicates that there are positive impact of kinds of Corporate Social Responsibility (CSR) on kinds of Absorptive Capacity( AC). Reserch also describes that there are positive impact of kinds of Absorptive Capacity( AC) on Innovation performance (IP). The study also has managerial implications by revealing the contribution of intangible resources to innovation performance. The research also offers different configurations that production managers might choose to use to achieve innovative by using the concept of absorptive capabilities.
References
Abbas, M., Raja, U., Darr, W., & Bouckenooghe, D. (2014). Combined effects of perceived politics and psychological capital on job satisfaction, turnover intentions, and performance. Journal of management, 40(7), 1813-1830.
Abo-Murad, M., & Abdullah, A.-K. (2019). Turnover culture and crisis management: Insights from Malaysian hotel industry. Academy of Strategic Management Journal, 18(2), 1-14.
Acevedo, J., & Díaz-Molina, I. (2021). The role of absorptive capacity in innovation and productivity in Chilean companies: An adapted CDM model across industries. Journal of technology management & innovation, 16(4), 22-35.
Ajina, A. S., Japutra, A., Nguyen, B., Syed Alwi, S. F., & Al-Hajla, A. H. (2019). The importance of CSR initiatives in building customer support and loyalty: Evidence from Saudi Arabia. Asia Pacific Journal of Marketing and Logistics, 31(3), 691-713.
Alavi, M., & Leidner, D. E. (2001). Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS quarterly, 107-136.
Alavi, M., & Tiwana, A. (2002). Knowledge integration in virtual teams: The potential role of KMS. Journal of the American Society for Information Science and Technology, 53(12), 1029-1037.
Ali, B. J., Saleh, P. F., Akoi, S., Abdulrahman, A. A., Muhamed, A. S., Noori, H. N., & Anwar, G. (2021). Impact of Service Quality on the Customer Satisfaction: Case study at Online Meeting Platforms. Paper presented at the Ali, BJ, Saleh, Akoi, S., Abdulrahman, AA, Muhamed, AS, Noori, HN, Anwar, G.(2021). Impact of Service Quality on the Customer Satisfaction: Case study at Online Meeting Platforms. International journal of Engineering, Business and Management. 19(1), 225-247.
Ali, S., Ganai, B. A., Kamili, A. N., Bhat, A. A., Mir, Z. A., Bhat, J. A., . . . Yadav, P. (2018). Pathogenesis-related proteins and peptides as promising tools for engineering plants with multiple stress tolerance. Microbiological Research, 212, 29-37.
Atuahene-Gima, K. (2003). The effects of centrifugal and centripetal forces on product development speed and quality: how does problem solving matter? Academy of management journal, 46(3), 359-373.
Berchicci, L. (2013). Towards an open R&D system: Internal R&D investment, external knowledge acquisition and innovative performance. Research policy, 42(1), 117-127.
Buckley, P. J., Glaister, K. W., Klijn, E., & Tan, H. (2009). Knowledge accession and knowledge acquisition in strategic alliances: the impact of supplementary and complementary dimensions. British Journal of Management, 20(4), 598-609.
Camisón, C., & Forés, B. (2010). Knowledge absorptive capacity: New insights for its conceptualization and measurement. Journal of Business Research, 63(7), 707-715.
Carayannopoulos, S., & Auster, E. R. (2010). External knowledge sourcing in biotechnology through acquisition versus alliance: A KBV approach. Research policy, 39(2), 254-267.
Chang, E. K., Guo, Y., & Xia, X. (2012). CMIP5 multimodel ensemble projection of storm track change under global warming. Journal of Geophysical Research: Atmospheres, 117(D23).
Chen, C.-J., & Huang, J.-W. (2009). Strategic human resource practices and innovation performance—The mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114.
Cheung, C.-k., & Yeung, J. W.-k. (2011). Meta-analysis of relationships between religiosity and constructive and destructive behaviors among adolescents. Children and Youth Services Review, 33(2), 376-385.
Choi, S. Y., Lee, H., & Yoo, Y. (2010). The impact of information technology and transactive memory systems on knowledge sharing, application, and team performance: A field study. MIS quarterly, 855-870.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative science quarterly, 128-152.
Crespo, N. F., Curado, C., Oliveira, M., & Muñoz-Pascual, L. (2021). Entrepreneurial capital leveraging innovation in micro firms: A mixed-methods perspective. Journal of Business Research, 123, 333-342.
Daily, G. C., Polasky, S., Goldstein, J., Kareiva, P. M., Mooney, H. A., Pejchar, L., . . . Shallenberger, R. (2009). Ecosystem services in decision making: time to deliver. Frontiers in Ecology and the Environment, 7(1), 21-28.
Datta, A. (2015). New urban utopias of postcolonial India: ‘Entrepreneurial urbanization’in Dholera smart city, Gujarat. Dialogues in Human Geography, 5(1), 3-22.
David, P. A., & Foray, D. (2003). Economic fundamentals of the knowledge society. Policy futures in education, 1(1), 20-49.
Dewar, R. D., & Dutton, J. E. (1986). The adoption of radical and incremental innovations: An empirical analysis. Management science, 32(11), 1422-1433.
Dyer Jr, W. G., & Panicheva Mortensen, S. (2005). Entrepreneurship and family business in a hostile environment: The case of Lithuania. Family Business Review, 18(3), 247-258.
Elshaer, I. A., & Azazz, A. M. (2021). Amid the COVID-19 Pandemic, Unethical Behavior in the Name of the Company: The Role of Job Insecurity, Job Embeddedness, and Turnover Intention. International Journal of Environmental Research and Public Health, 19(1), 247-268.
Ferraris, A., Santoro, G., & Dezi, L. (2017). How MNC’s subsidiaries may improve their innovative performance? The role of external sources and knowledge management capabilities. Journal of knowledge management. 12(1), 47-59.
Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of management information systems, 18(1), 185-214.
Hair Jr, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I–method. European Business Review. 8, 116974-117017.
Hair, J. F., Money, A. H., Samouel, P., & Page, M. (2007). Research methods for business. Education+ Training.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152.
Harris, R., & Yan, J. (2019). The measurement of absorptive capacity from an economics perspective: definition, measurement and importance. Journal of Economic Surveys, 33(3), 729-756.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing science, 43(1), 115-135.
Hoarau, H. (2014). Knowledge acquisition and assimilation in tourism-innovation processes. Scandinavian Journal of Hospitality and Tourism, 14(2), 135-151.
Huber, G. P. (2001). Transfer of knowledge in knowledge management systems: unexplored issues and suggested studies. European Journal of Information Systems, 10(2), 72-79.
Hur, W. M., Moon, T. W., & Kim, H. (2020). When does customer CSR perception lead to customer extra-role behaviors? The roles of customer spirituality and emotional brand attachment. Journal of Brand Management, 27, 421-437.
Inkinen, H., Kianto, A., Vanhala, M., & Ritala, P. (2017). Structure of intellectual capital–an international comparison. Accounting, Auditing & Accountability Journal.
Inkpen, A. C. (2000). Learning through joint ventures: A framework of knowledge acquisition. Journal of Management Studies, 37(7), 1019-1044.
Jamali, D., Karam, C., & Blowfield, M. (2015). Development-Oriented Corporate Social Responsibility: Volume: Greenleaf Publishing Sheffield, UK.
Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: how do organizational antecedents matter? Academy of management journal, 48(6), 999-1015.
Jo, H., & Harjoto, M. (2014). Analyst coverage, corporate social responsibility, and firm risk. Business Ethics: A European Review, 23(3), 272-292.
Kang, K., Lee, K.-H., Han, Y., Gao, H., Xie, S., Muller, D. A., & Park, J. (2017). Layer-by-layer assembly of two-dimensional materials into wafer-scale heterostructures. Nature, 550(7675), 229-233.
Kato, M., & Zhou, H. (2018). Numerical labor flexibility and innovation outcomes of start-up firms: A panel data analysis. Technovation, 69, 15-27.
Kim, S., Chen, J., Cheng, T., Gindulyte, A., He, J., He, S., . . . Yu, B. (2019). PubChem 2019 update: improved access to chemical data. Nucleic acids research, 47(D1), D1102-D1109.
Kim, Y. J., Kim, W. G., Choi, H.-M., & Phetvaroon, K. (2019). The effect of green human resource management on hotel employees’ eco-friendly behavior and environmental performance. International Journal of Hospitality Management, 76, 83-93.
Kocks, J. N., & Raupp, J. (2015). 16 Flesh and Bone or the Integration of Perspectives in Social Network Analysis. Political Communication in the Online World: Theoretical Approaches and Research Designs, 248.
KsiężaK, P. (2016). The Benefits from CSR for a Company and Society. Journal of Corporate responsibility and leadership, 3(4), 53-65.
Larrán Jorge, M., Herrera Madueno, J., & Javier Andrades Peña, F. (2015). Factors influencing the presence of sustainability initiatives in the strategic planning of Spanish universities. Environmental Education Research, 21(8), 1155-1187.
Laursen, K., & Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategic management journal, 27(2), 131-150.
Lee, P.-C., Lo, T.-P., Tian, M.-Y., & Long, D. (2019). An efficient design support system based on automatic rule checking and case-based reasoning. KSCE Journal of Civil Engineering, 23(5), 1952-1962.
Lei, D., Hitt, M. A., & Bettis, R. (1996). Dynamic core competences through meta-learning and strategic context. Journal of management, 22(4), 549-569.
Lewin, A. Y., Massini, S., & Peeters, C. (2011). Microfoundations of internal and external absorptive capacity routines. Organization science, 22(1), 81-98.
Ma, J., Li, Y., Grundish, N. S., Goodenough, J. B., Chen, Y., Guo, L., . . . Qie, L. (2021). The 2021 battery technology roadmap. Journal of Physics D: Applied Physics, 54(18), 183001.
Majchrzak, A., Cooper, L. P., & Neece, O. E. (2004). Knowledge reuse for innovation. Management science, 50(2), 174-188.
Malerba, F., & McKelvey, M. (2020). Knowledge-intensive innovative entrepreneurship integrating Schumpeter, evolutionary economics, and innovation systems. Small Business Economics, 54(2), 503-522.
Malik, A. A., McFadden, S. M., Elharake, J., & Omer, S. B. (2020). Determinants of COVID-19 vaccine acceptance in the US. EClinicalMedicine, 26, 100495.
Martinez-Conesa, I., Soto-Acosta, P., & Palacios-Manzano, M. (2017). Corporate social responsibility and its effect on innovation and firm performance: An empirical research in SMEs. Journal of Cleaner Production, 142, 2374-2383.
Mehralian, G., Nazari, J. A., Zarei, L., & Rasekh, H. R. (2016). The effects of corporate social responsibility on organizational performance in the Iranian pharmaceutical industry: The mediating role of TQM. Journal of Cleaner Production, 135, 689-698.
Melnikas, B. (2010). Sustainable development and creation of the knowledge economy: the new theoretical approach. Technological and Economic Development of Economy, 16(3), 516-540.
Miller, D. J., Fern, M. J., & Cardinal, L. B. (2007). The use of knowledge for technological innovation within diversified firms. Academy of management journal, 50(2), 307-325.
Minor, D., & Morgan, J. (2011). CSR as reputation insurance: Primum non nocere. California Management Review, 53(3), 40-59.
Mitchell, T. M. (2006). The discipline of machine learning (Vol. 9): Carnegie Mellon University, School of Computer Science, Machine Learning ….
Mothe, C., & Nguyen-Thi, U. T. (2017). Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms. Journal of Cleaner Production, 162, S59-S69.
Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243, 118595.
Muster, V., & Schrader, U. (2011). Green work-life balance: A new perspective for green HRM. German Journal of Human Resource Management, 25(2), 140-156.
Naz, M., Bou-Rabee, M., Shukrullah, S., Ghaffar, A., Gungor, A., & Sulaiman, S. (2021). A review of hybrid energy technologies tenets, controls and combinational strategies. Cleaner Engineering and Technology, 5, 100340.
Ojo, A. S., Balogun, S. A., Williams, O. T., & Ojo, O. S. (2020). Pulmonary fibrosis in COVID-19 survivors: predictive factors and risk reduction strategies. Pulmonary medicine, 2020.
Oliveira, M., Curado, C. M., Maçada, A. C., & Nodari, F. (2015). Using alternative scales to measure knowledge sharing behavior: Are there any differences? Computers in Human Behavior, 44, 132-140.
Ooi, M. K., Denham, A. J., Santana, V. M., & Auld, T. D. (2014). Temperature thresholds of physically dormant seeds and plant functional response to fire: variation among species and relative impact of climate change. Ecology and evolution, 4(5), 656-671.
Paill, W., Gunczy, J., DeGasPeri, G., & Kunz, G. Neufund von Parophonus hirsutulus (Dejean, 1829) und ein Bestim-mungsschlüssel der Gattung für Österreich (Coleoptera: Carabidae).
Palacios-Manzano, M., Gras-Gil, E., & Santos-Jaen, J. M. (2021). Corporate social responsibility and its effect on earnings management: an empirical research on Spanish firms. Total Quality Management & Business Excellence, 32(7-8), 921-937.
Peltoniemi, M. (2015). Cultural industries: Product–market characteristics, management challenges and industry dynamics. International journal of management reviews, 17(1), 41-68.
Petruzzelli, A. M., & Savino, T. (2014). Search, recombination, and innovation: Lessons from haute cuisine. Long Range Planning, 47(4), 224-238.
Pham, N. T., Tučková, Z., & Jabbour, C. J. C. (2019). Greening the hospitality industry: How do green human resource management practices influence organizational citizenship behavior in hotels? A mixed-methods study. Tourism Management, 72, 386-399.
Pham, Q.-V., Fang, F., Ha, V. N., Piran, M. J., Le, M., Le, L. B., . . . Ding, Z. (2020). A survey of multi-access edge computing in 5G and beyond: Fundamentals, technology integration, and state-of-the-art. IEEE Access, 8, 116974-117017.
Pütz, L., Schell, S., & Werner, A. (2022). Openness to knowledge: does corporate social responsibility mediate the relationship between familiness and absorptive capacity? Small Business Economics, 1-34.
Rico, P., & Cabrer-Borrás, B. (2019). Entrepreneurship, firms creation and regional performance. European Journal of Management and Business Economics. 8, 116974-117017.
Ringle, C. M. (2005). SmartPLS 2.0 (M3). http://www. smartpls. de.
Ringle, C. M., Sarstedt, M., & Straub, D. W. (2012). Editor's comments: a critical look at the use of PLS-SEM in" MIS Quarterly". MIS quarterly, iii-xiv.
Rooney, D., Hearn, G., & Kastelle, T. (2012). Knowledge is people doing things, knowledge economies are people doing things with better outcomes for more people. In Handbook on the knowledge economy, volume two (pp. 1-14): Edward Elgar Publishing.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.
Santhosh, M., & Baral, R. (2015). A conceptual framework for exploring the impacts of corporate social responsibility on employee attitudes and behaviour. Journal of Human Values, 21(2), 127-136.
Santoro, G., Bresciani, S., & Papa, A. (2020). Collaborative modes with cultural and creative industries and innovation performance: the moderating role of heterogeneous sources of knowledge and absorptive capacity. Technovation, 92, 102040.
Schiuma, G. (2011). The value of arts for business: Cambridge University Press.
Schiuma, G., & Lerro, A. (2014). Do Cultural and Creative Industries (CCI) matter for innovation and value creation in knowledge-based business? Aims, forms and practice of collaboration in Italy.
Sherwood, A. L., & Covin, J. G. (2008). Knowledge acquisition in university–industry alliances: An empirical investigation from a learning theory perspective. Journal of Product Innovation Management, 25(2), 162-179.
Soo, C., Tian, A. W., Teo, S. T., & Cordery, J. (2017). Intellectual capital–enhancing HR, absorptive capacity, and innovation. Human Resource Management, 56(3), 431-454.
Srinaruewan, P., Binney, W., & Higgins, C. (2015). Consumer reactions to corporate social responsibility (CSR) in Thailand: The moderating effect of competitive positioning. Asia Pacific Journal of Marketing and Logistics, 27(4), 628-652.
Sullivan, D. M., & Marvel, M. R. (2011). Knowledge acquisition, network reliance, and early‐stage technology venture outcomes. Journal of Management Studies, 48(6), 1169-1193.
Tefera, C. A., & Hunsaker, W. D. (2020). Intangible assets and organizational citizenship behavior: A conceptual model. Heliyon, 6(7), e04497.
Todorova, G., & Durisin, B. (2007). Absorptive capacity: Valuing a reconceptualization. Academy of management review, 32(3), 774-786.
Umrani, W. A., Channa, N. A., Yousaf, A., Ahmed, U., Pahi, M. H., & Ramayah, T. (2020). Greening the workforce to achieve environmental performance in hotel industry: A serial mediation model. Journal of Hospitality and Tourism Management, 44, 50-60.
Valentina, N., & Passiante, G. (2009). Impacts of absorptive capacity on value creation. Anatolia, 20(2), 269-287.
Volberda, H. W., Foss, N. J., & Lyles, M. A. (2010). Perspective—Absorbing the concept of absorptive capacity: How to realize its potential in the organization field. Organization science, 21(4), 931-951.
Yli‐Renko, H., Autio, E., & Sapienza, H. J. (2001). Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms. Strategic management journal, 22(6‐7), 587-613.
Yong, J. Y., Yusliza, M.-Y., & Fawehinmi, O. O. (2019). Green human resource management: A systematic literature review from 2007 to 2019. Benchmarking: An International Journal.
Yoo, D. K., Vonderembse, M. A., & Ragu‐Nathan, T. (2011). Knowledge quality: antecedents and consequence in project teams. Journal of knowledge management.
Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Faezah, J. N., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334.
Yusoff, Y. M., Omar, M. K., Zaman, M. D. K., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626-637.
Yusoff, Y., Nejati, M., Kee, D., & Amran, A. (2018). Linking green human resource management practices to environmental performance in hotel industry. 0972150918779294.
Zahra, S. A., & George, G. (2002). The net-enabled business innovation cycle and the evolution of dynamic capabilities. Information systems research, 13(2), 147-150.
Zainol, M. M., Amin, N. A. S., & Asmadi, M. (2015). Synthesis and characterization of carbon cryogel microspheres from lignin–furfural mixtures for biodiesel production. Bioresource technology, 190, 44-50.
Zhou, D., Zheng, H., Liu, Q., Lu, X., Deng, X., Jiang, L., . . . Ding, Y. (2019). Attenuated plasmodium sporozoite expressing MAGE-A3 induces antigen-specific CD8+ T cell response against lung cancer in mice. Cancer Biology & Medicine, 16(2), 288.
Zhou, L., Lin, Y., Huang, Z., Ren, J., & Qu, X. (2012). Carbon nanodots as fluorescence probes for rapid, sensitive, and label-free detection of Hg 2+ and biothiols in complex matrices. Chemical communications, 48(8), 1147-1149.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Muhammad Shakeel Aslam, Tayyaba Syed, Zaeem Ahmad
This work is licensed under a Creative Commons Attribution 4.0 International License.
