Exploring the relationship between CSR and innovation: A comparison between small and largesized French companies

Abstract

This paper explores the relationship between Corporate Social Responsibility (CSR) and innovation and seeks to identify potential specificities related to small-sized companies. We analyze the complementarities between stakeholder and social capital theories on the one hand, and strategic management and evolutionary theories on the other hand, in order to determine whether and how CSR practices can lead to technological innovation. Seven French case studies show that, contrary to theoretical predictions, large companies are not the only ones that can create value through innovation driven by strategic (and formal) CSR. Indeed, small companies can also introduce radical innovation based on their CSR involvement.

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