Investigating the Interaction Effect between IT-enabled Innovation and Corporate Social Responsibility on Firm Performance

ABSTRACT

This study examines the relationship between a firm’s CSR and IT-enabled innovation activities and its effect on market performance using more accurate, comprehensive, and practical measures, Environmental, Social, and Governance, Innovation Premium, and Tobin’s Q. This study finds that, while a firm’s CSR and IT-enabled innovation have a positive impact on its long-term financial value, a varying degree of interaction effect exists between the two depending on the firm’s available financial resources.

KEYWORDS:

• IT-enabled innovation
• ESG
• CSR
• innovation premium

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. This result is available and can be provided upon request.

2. The coefficients (t-values) of ESG, E, S, and G are respectively, 0.001 (0.01), −0.004 (−0.62), −0.014 (−1.43), and 0.008 (0.39).

Additional information

Notes on contributors

Mookwon Jung

Mookwon Jung is a professor of finance at Kookmin University in Korea. He serves as the director of the Research Institute of Financial Service. He earned a PhD in finance from the University of Houston and an MBA from the State University of New York at Buffalo. His research interests are ESG, convertible bonds, share repurchases, M&As, spin-offs, stock options, IPOs, securities issues, and corporate innovations. He has many publications in Journal of Corporate Finance, Journal of Business Research, Journal of Empirical Finance, European Journal of Finance among others. He is the vice president of Association for Korean Financial Management.

Mike Taein Eom

Mike Eom is a professor of IS and Emerald Distinguished Professor of Operations and Technology Management at the University of Portland’s Pamplin School of Business. His research focuses on IT leadership, strategic alignment of IT, IT project management and IT innovation, and he has published in many IS journals and presented at major conferences. Mike is the past president of the Association for Information Systems’ Special Interest Group in IT Leadership and has been an active member of the Society for Information Management since 2005. He earned his MBA and Ph.D. from The State University of New York at Binghamton.

Alper Yayla

Alper Yayla is an associate professor and the director of the cybersecurity programs in the Sykes College of Business at The University of Tampa. He earned his Ph.D. degree in Management Information Systems from Florida Atlantic University. He teaches classes on cybersecurity. His research interests include information technology leadership and cybersecurity. His work has been published in several academic journals, including Decision Sciences, European Journal of Information Systems, Journal of Information Technology, International Journal of Electronic Commerce, and Journal of Managerial Issues, as well as in the proceedings of various academic conferences.