Abstract:

This study explores the relationship between Corporate Social Responsibility (CSR) and green innovation, focusing on the mediating mechanisms through green dynamic capabilities, green process innovation, and green strategic orientation. In response to global environmental and climate challenges, green innovation is crucial for achieving sustainable development through environmentally-friendly products and processes. By examining CSR’s role, this research aims to understand how it influences green innovation and the intermediary factors that facilitate this process. A survey was conducted in three stages, collecting data from 314 respondents across various manufacturing sectors in Saudi Arabia. Results indicate that CSR has a direct positive effect on green innovation, with green dynamic capabilities, green process innovation, and green strategic orientation acting as significant mediators. Furthermore, green absorptive capacity was found to moderate the relationship between green strategic orientation and green innovation, enhancing the positive impact. The findings highlight the importance of adopting green dynamic capabilities and process innovations to foster a pro-environmental strategic orientation, which is crucial for green innovation. This research contributes to the literature by providing novel insights into CSR’s role in promoting green innovation and offers practical implications for firms seeking to integrate sustainability into their business practices. The study underscores the need for firms to enhance their green absorptive capacity and internal capabilities to effectively drive green innovation.