INNOVATIVE CAPABILITY AS MEDIATOR BETWEEN CORPORATE SOCIAL RESPONSIBILITY, ORGANIZATIONS PERFORMANCE AND VALUE CREATION

Abstract

The corporate Social Responsibility (CSR) and innovation capability are key constituents of the value creation and organisational performance. In this context, the current research examined the impact of innovation capability as a mediator between the corporate social responsibility, organizational performance, and value creation in the Pakistani banking industry. This quantitative study obtained data from 320 respondents using the survey questionnaire and a simple random sample approach. The applied data analysis technique was PLS SEM. Results depicted that CSR has significant positive effects on Innovative capability. Also, innovation on performance has a strong association with value creation and banks performance. The role of Innovative capability as a mediator between CSR and value creation was confirmed through structural equational modeling. Results indicated that innovative capability has significant mediating effect amid CSR and banks performance. This study will open new avenue for scholars and as well for practitioners in different sectors. The findings would be useful to organizations, policymakers, and investors within strategic condition at the micro or macroeconomic level.