Local embeddedness, and corporate social performance: The mediating role of social innovation orientation

Abstract

Despite the growing research on corporate social performance (CSP), research is lacking regarding the impact of local embeddedness. This article investigates the impact of local embeddedness on CSP through the mediating mechanism of social innovation orientation. In addition, we examined the moderating role of competitive corporate social responsibility (CSR) implementation pressure. Results from 254 firms based in Ghana show that local embeddedness positively relates to social innovation orientation and this relationship is moderated by competitive CSR implementation pressure. Moreover, we found that the impact of local embeddedness on CSP is mediated by social innovation orientation. These findings extend the CSR literature by exploring the mechanism through which local embeddedness influences CSP.