The Causal Relationship Between Corporate Environmental Responsibility and Technological Innovation: A Conceptual Framework

DOI

10.2991/978-2-38476-358-0_4How to use a DOI?

Keywords

Sustainability-driven innovation; Environmental corporate responsibility; Green technology; Resource-Based View (RBV); Stakeholder engagement

Abstract

Corporate Environmental Responsibility (CER) and technological innovation are increasingly integral to the strategic frameworks of modern businesses, yet their mutual relationship remains under-explored in existing literature. This paper introduces a conceptual framework that investigates how these two elements interact, primarily through the lenses of the Resource-Based View (RBV), stakeholder theory, and ecological modernization theory. According to this model, a virtuous cycle emerges: firms’ commitment to CER fosters technological innovation, while technological advances enhance a company's environmental performance. This synergistic relationship can lead to a sustainable competitive advantage, helping firms not only meet regulatory requirements but also exceed market expectations for environmental stewardship. Additionally, this reciprocal dynamic creates long-term business value, as innovation-driven CER initiatives appeal to a growing segment of eco-conscious consumers and investors. The framework highlights the importance of integrating CER into corporate innovation strategies and calls for empirical research to further validate this model across industries. Future studies could provide insights into how industry context, firm size, and regulatory environments influence the CER-innovation nexus, enabling businesses to refine their approaches and enhance sustainability efforts.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Woon Leong Lin
AU  - Siong Choy Chong
AU  - Chuen Khee Pek
AU  - Jing Yi Yong
AU  - Kelvin Lee Yong Ming
AU  - Nelvin Leow XeChung
PY  - 2025
DA  - 2025/01/31
TI  - The Causal Relationship Between Corporate Environmental Responsibility and Technological Innovation: A Conceptual Framework
BT  - Proceedings of the International Conference on Environmental, Social, and Governance (ICESG 2024)
PB  - Atlantis Press
SP  - 33
EP  - 47
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-358-0_4
DO  - 10.2991/978-2-38476-358-0_4
ID  - Lin2025
ER  -