Russia–Ukraine conflict and US-China trade friction, along with the lingering effects of the COVID-19 pandemic, rising inflation, and disruptions in global supply chains, lead to numerous business challenges. During this time, organizations are pressured to adapt and innovate their business models to survive. While corporate social responsibility (CSR) initiatives have been acknowledged as critical in achieving sustainable development, organizations may deprioritize their performance over other financial concerns. It raises crucial questions about effectively performing business model innovation (BMI) and demonstrating CSR’s effectiveness during challenging times. To answer these questions, this study aims to empirically investigate the relationship between CSR and BMI through the mediating role of organizational learning and risk perception.
This study proposed research hypotheses on the relationships among CSR, business model innovation, organizational learning, and risk perception using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method with data collected from 182 Vietnamese construction practitioners.
The PLS-SEM results revealed that CSR positively influences organizational learning and business model innovation while negatively affecting risk perception. Moreover, organizational learning and risk perception partly mediate the relationship between CSR and business model innovation.
This study bridges the research gap on how CSR impacts innovation capabilities during economic uncertainty. The findings encourage construction firms to engage in CSR activities, even during challenging times, as a strategy for achieving successful business model innovation. The study supports CSR performance as essential for driving sustainable growth in the construction industry.
