Moderating effect of innovation on corporate social responsibility and firm performance in realm of sustainable development

Abstract Pakistan is a developing country making efforts to become compatible to foreign industry for smooth economic activities. A developmental wave of China Pakistan Economic Corridor puts pressure on Pakistan corporate industrial sector to speed up its strategical & developmental implementation process to remains in or surpass competition. For this Pakistan industry is gradually moving towards Corporate Social Responsible actions while China is leading from front. The intention of this paper is to examine moderating and direct impact of innovation on corporate social responsibility and firm performance in manufacturing industry of Pakistan. For this; panel data of three years was collected. Theoretical framework is based on two theories that are resource based and institutional theory. The direct and moderating effect was test by using multiple regression technique. The results was that significant direct relationship exist among CSR, Innovation and Firm Performance while moderating effect of innovation is absent between CSR and Firm performance.