Innovation and paths to social-ecological sustainability

Innovation is highly demanded for achieving competitiveness and sustainability in value chains. However, few empirical studies have been conducted to identify causal conditions and measurements of innovation capacity in value chains, particularly in developing countries. Combing concepts and methods from value chain upgrading, technological capability and sustainability-oriented innovation system literature, this study aims at identifying a condition or combination of conditions for promoting innovation capacity for inclusive sustainable value chains. It then empirically analyzes the necessary conditions and identifies multiple paths for developing innovation capacity by taking up the cases of two local and two globally linked value chains from Ethiopia. The study also develops a comprehensive innovation capacity evaluation model by combining different capability building strategies and learning mechanisms, and applies a comprehensive fuzzy evaluation method for measuring the level of innovation capacity of the four value chains. The study identifies eight main dimensions of innovation capacity for sustainable value chains, which are categorized into four groups in order to identify necessary and sufficient conditions. The study finds that the simultaneous presence of technological upgrading, value chain restructuring and green governance reforms is sufficient conditions for the development of innovation capacity. We also find that public-private partnership (innovation platform) is necessary condition for achieving outstanding value chain innovation capacity. By developing and applying a fuzzy comprehensive evaluation model for measuring value chain innovation capacity and fuzzy set qualitative comparative analysis for identifying necessary and sufficient conditions for innovation capacity development in a sustainable value chain, the study makes an important methodological contribution to existing literature. It also provides relevant insight for policy makers and practitioners in designing strategies and policy instruments for achieving a high degree of innovation capacity.

Corporate social responsibility (CSR) has become an international phenomenon, and while enterprises are engaging in related activities for the benefit of stakeholders, one might question whether CSR has a key driving role at establishing corporate reputation and brand equity. To address the issue, this research explores the causal impact of CSR and corporate reputation on brand equity by using structural equation modeling and fuzzy set qualitative comparative analysis. The findings from structural equation modeling show that CSR has a positive effect on brand equity and corporate reputation. In addition, fuzzy set qualitative comparative analysis identifies several causal configurations of CSR and corporate reputation in building brand equity. Overall, the driving factors of CSR and corporate reputation, depending on enterprise characteristics, have different impacts on brand equity. These results suggest that companies need to rethink their strategic actions for brand equity building.

The factors driving industrial integration: A fuzzy set qualitative comparative analysis

PurposeAccording to reputation theory, enterprises that adopt a proactive approach to corporate social responsibility (CSR) are known to actively invest in corporate innovation. However, this theory does not fully explain the mechanisms through which CSR influences corporate innovation, nor does it address how to effectively amplify CSR’s positive impact on innovation. To overcome these limitations, this research aims to incorporate the theories of innovation investment and dynamic capabilities. Innovation investment theory elucidates how CSR can attract additional financing, which can be directed toward innovation activities. Meanwhile, dynamic capabilities theory highlights how digital transformation in enterprises can enhance the positive effects of CSR on innovation, providing insights from both theoretical and empirical perspectives.Design/methodology/approachTo demonstrate the mediating role of debt financing costs and the moderating role of enterprise digital transformation in the mechanism of CSR on corporate innovation, this research conducts fixes effects models by collecting 27,912 data points from 3,775A-share China-listed enterprises, ranging in period from 2010 to 2020. Empirical research once again proves that the theories of innovation investment and dynamic capabilities effectively compensates for the shortcomings of reputation theory. These three theories effectively explain that what is the effect of CSR on enterprise innovation? How does CSR influence corporate innovation? And through what mechanisms can CSR better enhance corporate innovation?FindingsAccording to innovation investment theory, the cost of debt financing mediates the positive relationship between CSR and corporate innovation. This occurs because enterprises with robust CSR practices are more likely to secure external funding, thereby reducing their costs associated with external debt financing. Lower debt financing costs provide a stable source of funds for corporate innovation. Additionally, dynamic capability theory suggests that enterprise digital transformation moderates the positive relationship between CSR and corporate innovation. Building on these insights, it is recommended that enterprises, especially state-owned ones, should prioritize technological innovation to enhance their competitiveness.Research limitations/implicationsThis research aims to address and narrow the knowledge gap regarding the relation between CSR and corporate innovation through theoretical and empirical analyses. With respect to the influence mechanism, this research solely based on innovation investment theory and dynamic capabilities theory, focuses on the influence mechanism of CSR on corporate innovation, with the debt financing costs as the mediating variable and digital transformation as the moderating variable. However, the influence mechanism turns out to be complicated and there is room for further exploring numerous mechanisms. For example, future research can focus on identifying additional channels through which CSR exerts an influence on corporate innovation based on TOE theoretical framework.Practical implicationsThis research presents several strategies to enhance corporate innovation based on its conclusions: First, enterprises should promptly publish social responsibility reports to build a positive industry reputation. Moreover, by actively participating in CSR activities, they can strengthen their networks and enhance their industry standing. Second, the significant mediating role of debt financing costs should not be ignored. Enterprises are encouraged to seek diverse financing channels to reduce financial pressures, address financing challenges and facilitate the coordinated development of CSR and innovation. Third, enterprise digital transformation significantly affects the impact of CSR on innovation. Therefore, enterprises should advance digital transformation initiatives that incorporate technological innovation, organizational improvements and integration with supply chain partners. Finally, it has been noted that state-owned enterprises are often less responsive to technological innovation than their non-state counterparts. SOEs could redefine the scope and priorities of their social responsibilities to prevent excessive resource consumption that could hinder innovation. For instance, integrating some of their social responsibilities with innovation projects could promote both social and technological innovation objectives. Additionally, the government could ensure fair resource distribution among different types of enterprises and provide an equitable financing platform to mitigate financial challenges for both state-owned and non-state-owned enterprises.Originality/valueReputation theory does not fully elucidate the mechanisms by which CSR influences corporate innovation or how to effectively enhance CSR’s positive impact on innovation. This research integrates the theories of innovation investment and dynamic capabilities to address these gaps. According to innovation investment theory, debt financing costs mediate the positive relationship between CSR and corporate innovation. Meanwhile, dynamic capabilities theory posits that enterprise digital transformation moderates this positive relationship, further strengthening the impact of CSR on innovation.

This study explores the influence of organizational learning and external cooperation configuration on enterprise technological innovation and constructs a comprehensive theoretical framework of "organizational learning-external cooperation-technological innovation" based on the fuzzy set qualitative comparative analysis (fsQCA) method. The results show the following. (1) A single episode of organizational learning or external cooperation cannot affect the enterprise’s technological innovation, which requires the mutual linkage of the two to improve enterprise technological innovation performance. (2) The technological innovation model in which organizational learning and external cooperation interact is an effective way for enterprises to improve technological innovation performance. There are four technological innovation models that produce high technological innovation performance, namely consciousness-system synergy, consciousness-led, quasi-full, and all-around drive. (3) There are four models of non-high-tech innovation performance, which are not opposed to the technological innovation model of high-tech innovation performance. This research expands the technological innovation perspective of organizational learning and external cooperation matching, provides enterprises with effective technological innovation activities, and provides a theoretical reference and practical guidance for improving technological innovation performance.

PurposePrioritising economic, environmental and social requirements of society has become imperative for attaining a competitive edge in the global marketplace. This study examines how internal and external factors influence sustainable strategic orientations of Chinese small technology enterprises. It uses an initial framework grounded in institutional theory and resource-based view (RBV).Design/methodology/approachThe study surveyed small technology enterprises using quantitative techniques. A combination of partial least squares structural equation modelling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) was used to analyse 402 valid samples with statistical significance.FindingsThe PLS-SEM results show that absorptive capacity, innovation culture and coercive pressure positively influence small enterprises’ sustainability orientation. Additionally, the fsQCA method identifies five complex combinations of causal antecedents that can facilitate small enterprises’ adoption of sustainability orientation.Practical implicationsThe findings reaffirm the importance of maintaining ideal environmental cognition and external institutional pressure. Specifically, enterprises need to strategically allocate their limited resources to optimal levels and combinations to achieve sustainability orientation.Originality/valueThis study enhances the understanding of sustainability orientation by integrating the RBV and institutional theory, highlighting various factors that promote sustainability at the firm level. Furthermore, asymmetric research perspectives show the triggers of sustainability orientation from both symmetrical and asymmetrical perspectives. Set theory approaches represent a pioneering approach that captures the intricacies of sustainability orientation, advancing beyond previous variance-based findings by providing optimal mix solutions.

As the Fourth Industrial Revolution shifts the technological focus of firms towards greater automation and cyber-physical integration, firms increasingly participate in multiple initiatives fostered by governments, universities, or private entities to access new technological knowledge and resources. This thesis conceptualizes and analyses a specific type of Industry 4.0 ecosystems (I4ESes) - their structure, value creation, and effect on regional innovation, building on strategy, innovation, and regional innovation literature. First, the thesis conceptualizes I4ESes as collaborations of diverse, non-hierarchical actors that bring nongeneric Industry 4.0 technologies, knowledge, and funding to the ecosystem and aim to support Industry 4.0 technological adoption or innovation. In the second paper, the thesis empirically examines which combinations of structural features of the I4ESes including the type of orchestrator, funding source and knowledge diversity- create high ecosystem value. A fuzzy set qualitative comparative analysis (fsQCA) of 114 I4ESes across European regions shows that the highest I4ESes value is created when the combination of public orchestrator and high knowledge diversity exists. Finally, drawing on economic geography literature, specifically knowledge relatedness and regional innovation, the third paper looks at how I4ESes affects regional innovation, assuming it will have the highest effect in regions with the highest preconditions such as high level of digitalization, high level of educational attainment and investment in research and development. The analysis specifically looks at how the presence and different types of I4ESes affect the average annual growth rate of patenting and new product launches during 2014 -2021, concluding that I4ES presence positively affects the average annual growth rate of launching innovation-related products, and patenting only in highly advanced regions. The results are confirmed in the subsequent panel data analysis of 226 European NUTS2 regions during 2014-2021. Overall, this thesis presents the first systematic comparative analysis of a large number of Industry 4.0 ecosystems from a comparative perspective. It suggests that I4ESes cannot be designed as a size-fit-all approach but should distinguish their design depending on what kind of innovation they exactly try to support in firms, as well as depending on the existing regional context: are they trying to foster patenting, innovative products launch to market, support adoption of technology, or simply share knowledge. The thesis contributes to strategy and innovation literature by grasping complex collaborations of multiple actors around specific technologies, their impact, and value creation by specifying the ecosystem concept to Industry 4.0 collaborations. Furthermore, it contributes to regional innovation literature by showcasing that policy interventions such as establishing Industry 4.0 ecosystems affect the innovative growth of regions by supporting the launching of new innovative products. Finally, the thesis is relevant for policymakers, mainly dealing with designing smart specialization strategies or innovation ecosystems aiming to support firm and regional technological development and competitiveness.

The purpose of this study is to identify how knowledge acquired from intra- and inter-organisational relationships influence corporate social responsibility (CSR) and their impacts on financial performance via the knowledge-based view (KBV). We used the KBV to argue that internal knowledge from employee relationships, external knowledge from partner and customer relationships and CSR practices together contribute to successful firm performance. The KBV can contribute to the analysis of CSR by offering important insights on valuable knowledge acquisition from a wider range of stakeholders. Fuzzy set qualitative comparative analysis was employed to explain these causal relationships. Based on 73 firms from six service sectors listed in the Stock Exchange of Thailand, the findings provide support for the hypothesised links between intra- and inter-organisational relationships on CSR, which can result in improved financial performance. This study contributes to the management and CSR literature by investigating intra- and inter-organisational relationships as knowledge-based resources.

Institutional Change in Value Chains: Evidence from Tea in Nepal

This study analyzes the effects of the absorptive capacity on the technology innovation and commercialization capacities and the management performance. Based on previous studies, the absorptive capacity is sub-classified into the exploratory absorptive capacity and the exploitative absorptive capacity, which are set as independent variables, to analyze their effects on the technology innovation and commercialization capacities. In short, the absorptive capacity has positive effects on the technology innovation and commercialization capacities. In addition, the technology innovation capacity and the technology commercialization capacity have positive effects on the management performance. The findings confirm that the absorptive capacity is an important factor impacting on the corporate innovation, and suggest that businesses should recognize the importance of the absorptive capacity as a guideline for developing their strategies for technological innovation.

This research examines the relationship between perceived corporate social responsibility (CSR) efforts and financial performance in Vietnamese firms, with particular attention to the mediating roles of corporate reputation and stakeholder support. Drawing on stakeholder theory, legitimacy theory, and the resource-based view, the study employs a mixed-method approach combining structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Data were collected from 387 respondents across 71 Vietnamese firms listed on the Ho Chi Minh and Hanoi Stock Exchanges, representing multiple stakeholder groups and industry sectors. The SEM results demonstrate that perceived CSR efforts significantly influence financial performance through both direct and indirect pathways, with corporate reputation and stakeholder support serving as crucial mediating mechanisms. The fsQCA findings complement these results by identifying three distinct configurations of conditions leading to superior financial performance, highlighting the importance of perceived CSR efforts and corporate reputation across successful configurations. Firm characteristics such as size and age show positive but modest effects, while financial leverage demonstrates small negative impacts on both mediating variables. This study makes several important contributions to the literature. First, it extends stakeholder theory by demonstrating the importance of perceived rather than objective CSR efforts in driving organizational outcomes. Second, it provides empirical evidence for the specific mechanisms through which CSR perceptions influence financial performance in an emerging market context. Third, it offers practical insights for managers in developing economies seeking to leverage CSR initiatives for competitive advantage. The findings have significant implications for both theory and practice in the evolving landscape of CSR research and implementation in emerging markets.

Comparative capitalism research on Corporate Social Responsibility (CSR) has established that CSR emerges differently across countries due to their distinct institutional diversity. The exact mechanisms how institutions drive CSR remain a puzzle, as most theoretical arguments stress either a mirroring or a substitution relationship. To address these questions, we develop a configurational approach to investigate how the interplay of different institutions in national contexts explains patterns of CSR adoption. Based on a fuzzy-set Qualitative Comparative Analyses (fsQCA) of listed corporations in 24 OECD countries between 2008 – 2014, our findings show that CSR both mirrors strong rights of internal stakeholders, as well as acting as a market signal that substitutes for weak regulatory protection of external stakeholders. Drawing on insights from both actor-centred institutionalism and stakeholder theory, we illustrate not only how countries follow different pathways to CSR adoption, but substantial causal complexity in how institutions complement or conflict with one another. In sum, our analyses highlight how mirroring and substitution are not mutually exclusive but represent institutional mechanism linked to different corporate stakeholders and are combined into different institutional configurations.

The purpose of this study is to examine the mediating role of team outcomes on the relationship between corporate social responsibility (CSR) and organizational performance. The study utilized partial least squares structural equation modeling to test the direct and mediation effect based on 225 employees from the cement sector. Fuzzy set qualitative comparative analysis (fsQCA) was used to identify the causal recipes leading to higher organizational performance. The results revealed a significant direct effect of CSR on performance, whereas team performance mediated the relationship; the mediating role of team identity and team efficacy was partially significant. fsQCA showed that a varied combination of CSR and team outcomes can lead to improved organizational performance. Our results contribute to the earlier studies that have predominantly examined the direct relationship between CSR and organizational performance by demonstrating that team outcomes mediate the relationship between CSR and organizational performance.

This study aims to empirically test the relationship between multi-dimensional corporate social responsibility (CSR), human capital, and technological innovation of high-tech enterprises and analyze the mediating role of human capital. This study focuses on high-tech firms located in China. An online questionnaire was distributed among employees of high-tech enterprises. Analysis was performed using a partial least squares structural equation modelling (PLS-SEM). The results show that shareholder, employee, customer, environment, and social CSR significantly affect human capital, and human capital plays a partial mediating role in the relationship between CSR and technological innovation. This study differs from previous CSR research, which evaluates the link between the five dimensions of CSR and technological innovation to examine new opportunities for the development of technological innovation in high-tech enterprises.

This study considers the role and importance of Big Data analytics (BDA) in green governance and corporate social responsibility, as well as the prospects for their development. The purpose of the research is to determine how BDA can contribute to green governance and corporate social responsibility. In addition, the concepts of green governance and corporate social responsibility are studied in terms of their relationship with the concept of sustainable development. The study suggests that currently BDA is not widely used in the formation of corporate social responsibility rules and mechanisms, but it has great potential for the expansion in this area. At the moment, this potential is not being fully realized due to the lack of both relevant empirical studies and data interpretation techniques. Important Big Data sources include social networks and company reports on corporate social responsibility, which are in the public domain.