Corporate social responsibility and business excellence: Examining the serial mediation of green entrepreneurial orientation and differentiation strategy

Due to increasing pressure to implement sustainable practices, firms often exhibit reluctance and indecision, mainly driven by\r\nconcerns about profit reduction. This study examines and clarifies how firms can utilize corporate social responsibility (CSR)\r\npractices by integrating additional strategies to enhance performance. Specifically, we examine how CSR can improve firm\r\nperformance through the serial mediation of green entrepreneurial orientation (GEO) and differentiation strategy. Additionally,\r\nthe role of green innovation as a moderator is investigated. Data from 442 small-and\r\nmedium-sized\r\nenterprises were analyzed\r\nusing the “structural equation modeling” technique. Grounded in a resource-based\r\nview, the results confirm a serial mediation\r\neffect of GEO and differentiation strategy between CSR and firm performance. Furthermore, green innovation positively affects\r\nboth the differentiation strategy and firm performance. Surprisingly, the results show that green innovation does not moderate\r\neither (a) the influence of GEO on differentiation strategy or (b) the relationship between differentiation strategy and firm performance.\r\nThe results contribute to the literature by demonstrating how the interplay between CSR, GEO, green innovation,\r\nand differentiation strategies enhances firm performance. These findings also challenge the prevailing assumption that green\r\ninnovation universally moderates performance indicators, highlighting instead that its moderating effect is context-specific\r\nand\r\nnot universally applicable. A key takeaway for managers is that implementing GEO and differentiation strategies enables CSR to\r\ngenerate substantial benefits for firms.