Does CSR contribute to firms’ open innovation? Evidence from China

Abstract

Purpose

Open innovation enables firms to incorporate external expertise and resources into their innovations. However, it is far from easy to obtain sufficient support from external contributors due to potential concerns about the risks of opportunism and appropriation. This paper aims to investigate whether firms’ engagement in corporate social responsibility (CSR) contributes to their open innovation, considering the contingency factors of technological capability, environmental dynamism and state ownership based on capability and motivation perspectives.

Design/methodology/approach

Using a sample of Chinese listed firms covering the period from 2009 to 2018, instrumental variable and propensity score matching approaches were used to address the endogenous problems.

Findings

This paper obtains empirical results showing that firms engaged in higher levels of CSR produce more joint outputs (co-owned patents) and that this effect is strengthened by technological capability and environmental dynamism. Among state-owned enterprises, CSR engagement is less impactful with regard to open innovation. It is further shown that open innovation is a primary channel through which CSR engagement enhances innovative efficiency.

Originality/value

This study enriches the knowledge of the antecedents of open innovation and contributes to the debate regarding the relationship between CSR and innovation by establishing a relationship between CSR and open innovation, whereas most prior studies focus on how the input and output of innovation are affected by CSR initiatives.

Citation

Zou, H., Qi, G. and Xie, X. (2024), "Does CSR contribute to firms’ open innovation? Evidence from China", Journal of Business & Industrial Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JBIM-06-2023-0364