CSR strategy, green innovation, and firm performance: A conceptual framework

Abstract

This paper discusses antecedent and consequent of green innovation from CSR perspective and proposes a conceptual framework indicating the relationship among CSR strategy, green innovation and firm performance. The conceptual framework demonstrates that CSR strategy is one important antecedent of green innovation and different green innovations contribute to different firm performance. More specifically, proactive CSR strategy more leads to radical green innovation, while reactive CSR strategy more leads to incremental green innovation; radical green innovation is more positively correlated to short-term firm performance while incremental green innovation is more positively correlated to long-term firm performance. In addition, this paper identifies two condition variables (market absorptive capability and visibility of green innovation) which influence the relationship between green innovation and firm performance.