Zheng, X; Deng, J; Song, X; Ye, M and Luo, L (2024) Examining the nonlinear relationships of corporate social responsibility, innovation and construction firm performance: The moderating role of construction firms' competitive position. Engineering, Construction and Architectural Management, 31(4), pp. 1517-1538. ISSN 0969-9988
Abstract
Purpose: Corporate social responsibility (CSR) and innovation are the two main approaches firms utilize to promote sustainable development. However, as yet, scholars have reached no consensus regarding their precise impact on construction firm performance (CFP), hindering efforts to implement effective sustainable development strategies that improve CFP. In view that a simple linear relationship may not be sufficient to capture their precise pattern, this study aims to unveil the nonlinear impact of CSR and innovation on CFP, especially when construction firms take up a distinct competitive position. Design/methodology/approach: This study first proposed four hypotheses to establish a new theoretical model by incorporating CSR, innovation, CFP and construction firms' competitive position (CFCP). Then the model was tested by using 292 annual observations collected from 75 construction firms in China. A multiple regression model analysis was carried out to analyze the survey data and validate the hypotheses. Findings: The results reveal that both CSR and innovation have a U-shaped impact on the price-to-book ratio of a construction firm, a specific CFP measure. CFCP negatively moderates the U-shaped relationship between CSR and CFP, but positively moderates the U-shaped relationship between innovation and CFP. Originality/value: This study goes beyond a simple linear view, instead of unveiling the nonlinear U-shaped effects of CSR and innovation on CFP that deepen the understanding of their complex relationships in the construction industry and makes construction firms aware that CSR and innovation can only improve performance if they reach a certain level. The moderating role of CFCP provides important implications for construction firms seeking to adopt appropriate competitive strategies related to social responsibility and innovation that both promote CFP and achieve sustainable development.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competitive position; corporate social responsibility; innovation; moderating effect; nonlinear relationship |
| Index terms: | construction industry, corporate social responsibility, multiple regression model, social responsibility, competitive strategy, China, methodology, sustainable development, strategy, survey, construction firm |
| Subjects: | statistical analysis, industry analysis, research methods, management, health safety and environment, Geography, economic analysis, organization, data collection methods |
| Topics: | Geographical Context, Research Practice, Business Strategy, Health and Safety |
| Descriptive scope: | 5 PCTEA |
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