Disruptive and incremental innovation as mediators in the CSR-financial performance link: evidence from Vietnam

Purpose This study aims to examine how disruptive and incremental innovations mediate the link between corporate social responsibility (CSR) and financial performance from a dynamic capability perspective. Moreover, this study uncovers the moderating effect of business type on the CSR–innovation relationship. Design/methodology/approach The authors conduct a quantitative research design through surveying 536 managers of enterprises in Vietnam. Findings The findings show the crucial mediating effect of disruptive innovation on the CSR–financial performance link. The authors observe that the influence of CSR on incremental innovation is stronger for state-owned businesses. Originality/value These findings offer valuable insights for firms aiming to align their CSR strategies with financial objectives and enhance their dynamic capabilities to drive innovation in rapidly changing business environment.