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Paper Type
Short
Paper Number
1554
Description
To better address social concerns, many companies embrace CSR strategies that are believed to exert a profound influence on firm performance. However, limited research explores whether and how IT plays a role in various types of CSR initiatives. To shed light on this question, we posit how well the firms leverage CSR-related knowledge for value creation heavily depends on their IT-enabled absorptive capacities, which strongly enable knowledge-related processes. Drawing upon the theory of absorptive capacity, we further theorize distinct types of CSR initiatives need to be complemented by different IT-enabled absorptive capacities to enhance firm performance. To test our hypotheses, we have collected detailed archival panel data of the S&P 500 companies and mapped their IT-enabled absorptive capacities to specific IT applications. Our research will not only contribute to the ongoing debate on the business value of CSR by justifying IT-enabled capabilities as significant but long-neglected contingencies, it will also highlight the importance of strategic use of IT to create firm value.
Recommended Citation
Xu, Junmin; Leung, Alvin; Yue, Wei Thoo; and Su, Qin, "Leveraging CSR-related Knowledge for Firm Value: the Role of IT-enabled Absorptive Capacities" (2020). ICIS 2020 Proceedings. 3.
https://aisel.aisnet.org/icis2020/governance_is/governance_is/3
Leveraging CSR-related Knowledge for Firm Value: the Role of IT-enabled Absorptive Capacities
To better address social concerns, many companies embrace CSR strategies that are believed to exert a profound influence on firm performance. However, limited research explores whether and how IT plays a role in various types of CSR initiatives. To shed light on this question, we posit how well the firms leverage CSR-related knowledge for value creation heavily depends on their IT-enabled absorptive capacities, which strongly enable knowledge-related processes. Drawing upon the theory of absorptive capacity, we further theorize distinct types of CSR initiatives need to be complemented by different IT-enabled absorptive capacities to enhance firm performance. To test our hypotheses, we have collected detailed archival panel data of the S&P 500 companies and mapped their IT-enabled absorptive capacities to specific IT applications. Our research will not only contribute to the ongoing debate on the business value of CSR by justifying IT-enabled capabilities as significant but long-neglected contingencies, it will also highlight the importance of strategic use of IT to create firm value.
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