The role of innovation for performance improvement through corporate social responsibility practices among small and medium‐sized suppliers in <scp>C</scp>hina

Abstract

Abstract Small and medium‐sized enterprises (SMEs) in emergent countries have been motivated to implement corporate social responsibility (CSR) practices, whereas innovation is needed or even necessary to gain performance. This paper develops a conceptual model to explore if three types of innovation (technology, management, and marketing) have moderation and mediation effects on relationships between CSR practices and performance. Using 494 samples collected from Chinese SMEs, hierarchical regression analysis results show that technology innovation can improve environmental performance together with employee efforts, and it can also improve social image together with environmental practices and community involvement. Management innovation is necessary to improve stakeholders' satisfaction, and it can also help bring environmental performance through employees' efforts and improve social image through organizational governance. Marketing innovation is necessary to gain economic performance. Meanwhile, marketing innovation can improve stakeholders' satisfaction together with organizational governance, and it can help to improve environmental performance through community involvement.