Disruptive and incremental innovation as mediators in the CSR-financial performance link: evidence from Vietnam

PurposeThis study aims to examine how disruptive and incremental innovations mediate the link between corporate social responsibility (CSR) and financial performance from a dynamic capability perspective. Moreover, this study uncovers the moderating effect of business type on the CSR-innovation relationship.Design/methodology/approachThe authors conduct a quantitative research design through surveying 536 managers of enterprises in Vietnam.FindingsThe findings show the crucial mediating effect of disruptive innovation on the CSR-financial performance link. The authors observe that the influence of CSR on incremental innovation is stronger for state-owned businesses.Originality/valueThese findings offer valuable insights for firms aiming to align their CSR strategies with financial objectives and enhance their dynamic capabilities to drive innovation in rapidly changing business environment.