Effect of innovation on corporate social responsibility: does ownership matter? Evidence from Indian manufacturing firms

Ritika Jain () and V.S. Krishnapriya

Economics of Innovation and New Technology, 2022, vol. 31, issue 7, 628-649

Abstract: Based on the resource-based view that identifies both CSR and innovation as resourceful and competitive advantage-generating activities, the current paper examines the effect of innovation spending on corporate social responsibility (CSR) decisions and how this relationship is affected by state ownership. Using firm-level data on India’s manufacturing sector from 2014 to 2016, the study examines the relationship between innovation and CSR spending in the period after the mandatory CSR provisions of the Companies Act, 2013 came into force. An instrumental variable approach is adopted to overcome the problem of endogeneity. To examine if the innovation-CSR spending association is affected by state ownership, the study draws firm-level data on two Indian industry groups from 2011 to 2016 and uses double robustness models. The results suggest that innovation spending affects CSR decisions positively. Additionally, the effect of innovation spending on CSR spending is stronger for private firms.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/10438599.2020.1843271 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:ecinnt:v:31:y:2022:i:7:p:628-649

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GEIN20

DOI: 10.1080/10438599.2020.1843271

Access Statistics for this article

Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli

More articles in Economics of Innovation and New Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().