The peer effects of corporate social responsibility performance on innovation outputs: Evidence from China

This study investigates the influence of corporate social responsibility performance by industry peers on innovation outputs of focal firms, along with the underlying mechanism that drives the peer effect. Using a sample of Chinese listed firms from 2010 to 2020, the analysis shows that higher corporate social responsibility performance among peer firms is associated with a reduction in the innovation outputs of focal firms. This outcome indicates that peer firms with superior corporate social responsibility performance hold competitive advantages that limit essential innovation resources for focal firms. Furthermore, the results demonstrate that customer demand partially mediates the negative peer effect. However, the adverse impact diminishes when focal firms maintain stable relationships with suppliers and customers.