Environmental corporate social responsibility and green dynamic capability: The moderating role of slack resources

Abstract

AbstractBusinesses are struggling to gain a competitive edge by ensuring the success of ecologically friendly products. However, a notable deficiency exists in the current body of research on how organizations can improve their green dynamic capabilities and gain a competitive edge. Companies may increase their competitive advantage by actively participating in environmental corporate social responsibility activities. Therefore, this study examines the role of environmental corporate social responsibility (ECSR) in developing green dynamic capabilities (GDC), leading to green product success (GPS) and competitive advantages. Moreover, the moderating role of slack resources (SRC) is examined between ECSR and GDC. This study applied partial least squares structural equation modeling for empirical examinations by gathering data from 375 manufacturing sector managers. The outcomes explained that ECSR favorably affects GDC, and in turn, GDC positively influences GPS and competitive advantages. Moreover, the outcomes also revealed that SRC moderates the positive relationship between ECSR and GDC. The results have significant practical consequences for businesses. Companies should prioritize ECSR since it helps improve ecological efficiency and boosts the company's green capabilities and long‐term viability. Therefore, businesses need to include their GDC in their product creation processes to maintain a competitive advantage in the growing consumer market that places a high value on ecological sustainability.