Article2025

Corporate Social Responsibility and Business Excellence: Examining the Serial Mediation of Green Entrepreneurial Orientation and Differentiation Strategy

Junaid Aftab · Monica Veneziani · Feng Wei · Nabila Abid · Fahad Aftab

19 citations0/0 files storedCorporate Social Responsibility and Environmental Management

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Environmental Sustainability in Business Corporate Social Responsibility Reporting Sustainability and Innovation in Business

Abstract

ABSTRACT Due to increasing pressure to implement sustainable practices, firms often exhibit reluctance and indecision, mainly driven by concerns about profit reduction. This study examines and clarifies how firms can utilize corporate social responsibility (CSR) practices by integrating additional strategies to enhance performance. Specifically, we examine how CSR can improve firm performance through the serial mediation of green entrepreneurial orientation (GEO) and differentiation strategy. Additionally, the role of green innovation as a moderator is investigated. Data from 442 small‐ and medium‐sized enterprises were analyzed using the “structural equation modeling” technique. Grounded in a resource‐based view, the results confirm a serial mediation effect of GEO and differentiation strategy between CSR and firm performance. Furthermore, green innovation positively affects both the differentiation strategy and firm performance. Surprisingly, the results show that green innovation does not moderate either (a) the influence of GEO on differentiation strategy or (b) the relationship between differentiation strategy and firm performance. The results contribute to the literature by demonstrating how the interplay between CSR, GEO, green innovation, and differentiation strategies enhances firm performance. These findings also challenge the prevailing assumption that green innovation universally moderates performance indicators, highlighting instead that its moderating effect is context‐specific and not universally applicable. A key takeaway for managers is that implementing GEO and differentiation strategies enables CSR to generate substantial benefits for firms.

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