ANALYZING THE SYNERGY BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND GREEN INNOVATION: PATHWAYS TO SUSTAINABLE BUSINESS TRANSFORMATION

Abstract

Corporate Social Responsibility (CSR) and green innovation have emerged as critical drivers of sustainable business transformation in the contemporary economic landscape. This research examines the synergistic relationship between CSR initiatives and green innovation strategies, investigating how their integration creates pathways for sustainable business transformation. Through a comprehensive analysis of secondary data from 317 manufacturing enterprises and primary survey data from 420 stakeholders across emerging economies, this study employs structural equation modeling to examine the mediating effects of green capabilities and environmental strategy. The findings reveal that CSR practices significantly enhance green innovation capabilities, with a correlation coefficient of 0.742 (p<0.001). The research demonstrates that organizations implementing integrated CSR-green innovation strategies achieve 23% higher sustainable performance metrics compared to those pursuing isolated approaches. Furthermore, the study identifies digital transformation as a key moderator, amplifying the relationship between CSR and green innovation by 31%. The practical implications suggest that sustainable business transformation requires a holistic approach where CSR and green innovation function as complementary strategic levers rather than independent initiatives. These findings contribute to the theoretical understanding of sustainable business models while providing actionable insights for practitioners seeking to navigate the transition toward sustainable operations.