Ochendo: An African Journal of Innovative Studies

This study conceptualizes and empirically tests the mediating role of green innovation in the relationship between corporate social responsibility (CSR) and sustainable competitive advantage. While CSR has been widely linked to improved firm performance and enhanced market competitiveness, the mechanisms through which these outcomes materialize remain insufficiently theorized. Drawing on the natural resource-based view and dynamic capabilities theory, this research posits that green innovation functions as a critical transmission channel through which CSR initiatives translate into long-term strategic gains. Using a quantitative design, the study uses firm-level panel data and applies structural equation modelling and panel regression techniques to assess direct and indirect effects. CSR is operationalized through environmental and social responsibility indices, while green innovation is captured via eco-efficient product and process innovations. Firm performance and market competitiveness are measured using financial indicators and market share dynamics, respectively. The findings indicate that CSR exerts a positive and significant effect on green innovation, which in turn enhances firm performance and strengthens competitive positioning. Importantly, green innovation partially mediates the CSRcompetitive advantage nexus, suggesting that firms derive greater strategic benefits when CSR efforts are aligned with innovation-oriented environmental practices. The study advances existing literature by clarifying the intermediary processes linking ethical responsibility to economic outcomes. The implications show the strategic importance of embedding green innovation within CSR frameworks. Firms seeking sustained competitiveness should prioritize environmentally driven innovation as a pathway to achieving superior performance and long-term market relevance.

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