The Effects of Technology Innovation Activity on CSR: Emphasizing the Nonlinear and Heterogenous Effects

In this study, we systematically investigate several effects of technology innovation activity (TIA)—proxied by Korean listed corporations’ research and development investment—on the performance of corporate social responsibility (CSR) for sustainable corporate growth and value. We find that corporate TIA positively contributes to an increase in CSR performance. Furthermore, our quantile regression estimations point to a heterogeneous effect of TIA, with a significant positive impact on CSR performance at the middle and higher quantiles of the distribution of the dependent variable of CSR performance. Interestingly, we capture a U-shaped nonlinear effect of TIA on the CSR performance of Korean listed corporations. Our findings alert researchers and managers to the importance of a better understanding of the relationship between CSR and TIA for sustainable corporate growth and value