Corporate Social Responsibility in China: The Influence of Dynamic Capability and the Implications on Financial Performance and Investment
type: CreativeWork
description: The thesis explores the determinants of corporate social responsibility (CSR) adoption and its implications on company financial performance (CFP) and investment in China. In doing so, we aim to answer two primary research questions: (1) how a company’s dynamic capabilities—its ability to respond to the changing environment—can influence the company at incorporating CSR into its operations; and (2) how corporate social performance (CSP) is associated with a company’s financial accounting and investment performance. The study is divided into three empirical research papers as outlined below. The purpose of paper one is to investigate the determinants that influence a company to incorporate CSR into its operations, which is to adopt strategic CSR (SCSR). The paper primarily examines how a company’s dynamic capability can affect the adoption of SCSR. This study draws on the stakeholder, dynamic capability, and neo-institutional theories. Data were collected from 134 Chinese companies listed on the Shenzhen stock exchange (SZSE) and Shanghai stock exchange (SHSE) over the period 2017 to 2019 to examine the role of dynamic capability on SCSR adoption. The findings suggest that a higher level of dynamic capability than the average industrial level negatively affects SCSR adoption. The findings also reveal that dynamic capability, stakeholder pressures, and regional culture are important predictors of the adoption of SCSR. The empirical findings provide valuable insights into how CSR can affect company performance if used strategically. The use of dynamic capability theory in the study explains SCSR adoption from the perspectives of dynamic capabilities. The study partially supports DCT by focusing on the impacts of dynamic capability on SCSR adoption within companies operating in a developing country, China. Paper two aims to investigate how CSP relates to CFP across the company life cycle (CLC) stages, including the introduction, growth, maturity, and decline/shake-out s…
abstract: The thesis explores the determinants of corporate social responsibility (CSR) adoption and its implications on company financial performance (CFP) and investment in China. In doing so, we aim to answer two primary research questions: (1) how a company’s dynamic capabilities—its ability to respond to the changing environment—can influence the company at incorporating CSR into its operations; and (2) how corporate social performance (CSP) is associated with a company’s financial accounting and investment performance. The study is divided into three empirical research papers as outlined below. The purpose of paper one is to investigate the determinants that influence a company to incorporate CSR into its operations, which is to adopt strategic CSR (SCSR). The paper primarily examines how a company’s dynamic capability can affect the adoption of SCSR. This study draws on the stakeholder, dynamic capability, and neo-institutional theories. Data were collected from 134 Chinese companies listed on the Shenzhen stock exchange (SZSE) and Shanghai stock exchange (SHSE) over the period 2017 to 2019 to examine the role of dynamic capability on SCSR adoption. The findings suggest that a higher level of dynamic capability than the average industrial level negatively affects SCSR adoption. The findings also reveal that dynamic capability, stakeholder pressures, and regional culture are important predictors of the adoption of SCSR. The empirical findings provide valuable insights into how CSR can affect company performance if used strategically. The use of dynamic capability theory in the study explains SCSR adoption from the perspectives of dynamic capabilities. The study partially supports DCT by focusing on the impacts of dynamic capability on SCSR adoption within companies operating in a developing country, China. Paper two aims to investigate how CSP relates to CFP across the company life cycle (CLC) stages, including the introduction, growth, maturity, and decline/shake-out s…
author: Li, Jing
keywords: Corporate social responsibility (CSR); Strategic CSR (SCSR); Dynamic capability; Stakeholder pressure; Regional culture; Company life cycle; Financial performance; Investment–cash flow sensitivity; Cash flow volatility/stability; Resource-based view; Dynamic capability theory; Stakeholder theory; Neo-institutional theory; Granger causality; Generalised Least Square model; Generalised method of moments; Developing country; Pharmaceutical; China
date published: 2021
date modified: 2026-07-24T06:01:25Z
provider: University of Westminster
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Westminster

PropertyValue
property ID: DOI
value: 10.34737/vqx47