Can companies achieve business model innovation through social responsibility?

Abstract

This study explores how the dimensions of corporate social responsibility (CSR) as defined by Carroll, along with environmental responsibility, impact business model innovation (BMI) in small and medium-sized enterprises in Iran. The study proposes a conceptual framework based on extant literature and structural equation modelling was used to test the conceptual model. Employing the quantitative technique, questionnaires were administered face-to-face to small and medium sized businesses in Iran. Appling convenience sampling the study achieved a valid sample size of 483 responses. Salient findings demonstrate that all dimensions of CSR (except philanthropic and environmental) directly and significantly affect BMI. This study represents one of the initial investigations to specifically analyze how each facet of CSR influences BMI. Additionally, a new dimension, environmental responsibility, was incorporated into Carroll's original model due to the growing significance of environmental concerns. This paper provides managers a better insight into CSR and its effects on company performance by highlighting which aspects of CSR can have an impact on BMI.