Meta-analysis on relationship between corporate social responsibility and firm performance: mediating mechanisms of innovation and reputation

Purpose Although corporate social responsibility (CSR) has been becoming more important, empirical findings regarding its effect on firm performance are inconsistent and inconclusive. This study aims to address this issue. Design/methodology/approach Grounded in dynamic capability theory and stakeholder theory, this study constructs a theoretical model about the relationship between CSR and firm performance and two mediating mechanisms. It further employs meta-analytic structural equation modeling to analyze 98 independent empirical studies. Findings The study indicates that CSR significantly enhances firm performance, both financially and non-financially. Firm innovation and reputation both parallelly and sequentially mediate the influence of CSR on firm performance. Originality/value This study enriches the existing literature and provides implications for CSR practices by broadening the understanding of the potential mechanisms through which CSR affects firm performance.