What Makes Successful CSR? the Role of Information Technology-enabled Knowledge Capacities

This study examines how and when information technology (IT), a strategic resource that fosters organizational knowledge capacities, underpins corporate social responsibility (CSR) to achieve competitive advantages. We posit that IT complements and supports CSR in the form of technology-enabled absorptive capacity (IT-AC) and social integration capacity (IT-SIC). Drawing on absorptive capacity theory, we theorize the mechanisms through which IT-AC and IT-SIC influence the relationship between CSR and firm performance (FP). Empirical analyses based on a sample of S&P 500 firms show that both IT-AC and IT-SIC positively interact with CSR to boost FP. Additionally, our results indicate that environmental dynamism strengthens the moderating effect of IT-AC while not affecting the moderating effect of IT-SIC, implying the distinct moderating roles that IT-AC and IT-SIC play in the CSR-FP link. A key implication of our results is regarding how IT creates business value by shaping successful CSR.