R&D investment and Chinese manufacturing SMEs' corporate social responsibility: The moderating role of regional innovative milieu. (10th June 2020)

• Record Type: Journal Article
• Authors: Yu, Feifei; Shi, Ye; Wang, Teng
• Is Part Of: Journal of cleaner production. Volume 258(2020)
• Publication Date: 2020-06-10
• Subjects: R&D investment -- Corporate social responsibility -- Regional innovative milieu -- Manufacturing SMEs; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2020.120840
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: Previous corporate social responsibility (CSR) research focused on large businesses rather than small and medium-sized enterprises (SMEs).With the transition of the Chinese economy, more attention has been given to the issue of how to motivate manufacturing SMEs to behave in a socially responsible manner. Although research and development (R&D) activities can enhance SMEs innovative abilities through the improvement of their production process and product quality, few studies have explored the direct influence of SMEs' R&D investment on CSR behavior. This paper explores the relationship between CSR and the R&D investment of Chinese manufacturing SMEs. Based on a balanced panel data of 657 listed manufacturing SMEs from 2015 to 2017, we used random effects regression to find an inverted U-shaped relationship between R&D investment and CSR of SMEs. Furthermore, the relationship is found to be flatter in SMEs that have a good record of regional innovation. The results of this study suggest that suitable investments in R&D and the availability of a fair and supportive environment for regional innovation are indispensable for fulfillment of CSR by SMEs.