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Purpose

The goal of this work is to evaluate how corporate social responsibility (CSR) affects competitive performance in Nigeria's banking industry, with innovation capability acting as a mediator and environmental uncertainty as a moderating factor.

Design/methodology/approach

The banking industry in Nigeria served as the site for the empirical investigation. Employees at deposit money institutions received a questionnaire. Direct and mediating effects and the moderating role were thus examined utilizing a final sample of 267 cases using consistent partial least squares structural equation modeling with ADANCO 2.2.1.

Findings

The data shows that CSR has both a significant strategic impact on innovation capability and a competitive innovation capability. In contrast, the outcome shows a strong effect of CSR's strategic character on performance in the marketplace. Furthermore, evidence for mediating and moderating effects was provided.

Research limitations/implications

The study was restricted to Nigerian banking institutions. Additionally, data on competitive performance were acquired from employees' perspectives, while considering the competitive performance of their rivals.

Originality/value

The primary contribution of this paper is the empirical investigation of the mediating impact of innovation capability and the moderating function of environmental uncertainty in banking organizations that use a CSR strategy to attain competitive performance.

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