How Corporate Social Responsibility Culture Sparks Innovation: Evidence From Malaysian Employees

Louis Yong Yu Lee; Jamin Kun Peng Xia; Ranjith P V; Huey Min Beh; Baiduri Binti Khalid; Tiantian Cai; Yangpeng Cai; Lakshmi L; Daisy Mui Hung Kee

doi:10.32535/apjme.v8i3.4248

How Corporate Social Responsibility Culture Sparks Innovation: Evidence From Malaysian Employees

Louis Yong Yu Lee, Jamin Kun Peng Xia, Ranjith P V, Huey Min Beh, Baiduri Binti Khalid, Tiantian Cai, Yangpeng Cai, Lakshmi L, Daisy Mui Hung Kee

Abstract

This study examines how the organizational corporate social responsibility climate (OCSRC) influences employees’ innovative job performance through the mediating roles of job satisfaction, work motivation, and employee creativity. Using a quantitative design, data were collected from 153 full-time employees in Malaysia. Regression analyses revealed that OCSRC significantly enhances job satisfaction (? = 0.896, p < 0.001), work motivation (? = 0.276, p < 0.001), and employee creativity (? = 0.213, p < 0.01). Job satisfaction positively affects work motivation (? = 0.607, p < 0.001) and creativity (? = 0.217, p < 0.01), while work motivation influences both creativity (? = 0.429, p < 0.001) and innovative job performance (? = 0.176, p < 0.05). Employee creativity emerges as the strongest determinant of innovation (? = 0.880, p < 0.001). The model explains 83.5% of the variance in innovative job performance (R² = 0.835). These results confirm that CSR climate indirectly drives innovation through satisfaction, motivation, and creativity, aligning with Social Exchange and Self-Determination theories. The study contributes by positioning CSR as an internal strategic resource that enhances psychological engagement and innovation in Malaysian organizations

Keywords

Organizational CSR Climate; Job Satisfaction; Work Motivation; Employee Creativity; Innovative Job Performance; Malaysia

Full Text:

PDF

References

Afsar, B., Cheema, S., & Javed, F. (2018). Activating employee’s pro-environmental behaviors: The role of CSR, organizational identification, and environmentally specific servant leadership. Corporate Social Responsibility and Environmental Management, 25(5), 904–911. https://doi.org/10.1002/csr.1516

Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, 36, 157-183. https://doi.org/10.1016/j.riob.2016.10.001

Amabile, T. M., Hill, K. G., Hennessey, B. A., & Tighe, E. M. (1994). The Work Preference Inventory: Assessing intrinsic and extrinsic motivational orientations. Journal of Personality and Social Psychology, 66(5), 950–967. https://doi.org/10.1037/0022-3514.66.5.950

Amabile, T.M. (1996). Creativity In Context: Update To the Social Psychology Of Creativity (1st ed.). Routledge. https://doi.org/10.4324/9780429501234

Anderson, N., Poto?nik, K., & Zhou, J. (2014). Innovation and creativity in organizations. Journal of Management, 40(5), 1297–1333. https://doi.org/10.1177/0149206314527128

Baer, M., & Oldham, G. R. (2006). The curvilinear relation between experienced creative time pressure and creativity: Moderating effects of openness to experience and support for creativity. Journal of Applied Psychology, 91(4), 963–970. https://doi.org/10.1037/0021-9010.91.4.963

Bibi, S., Khan, A., Hayat, H., Panniello, U., Alam, M., & Farid, T. (2021). Do hotel employees really care for corporate social responsibility (CSR): a happiness approach to employee innovativeness. Current Issues in Tourism, 25(4), 541–558. https://doi.org/10.1080/13683500.2021.1889482

Blau, P. M. (1986). Exchange and power in social life. In Routledge eBooks. https://doi.org/10.4324/9780203792643

Branco, M., & Rodrigues, L. (2006). Corporate Social Responsibility and Resource-Based Perspectives. Journal of Business Ethics, 69, 111-132. https://doi.org/10.1007/S10551-006-9071-Z.

Brayfield, A. H., & Rothe, H. F. (1951). An index of job satisfaction. Journal of Applied Psychology, 35, 307–311. https://psycnet.apa.org/doi/10.1037/h0055617

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/0007-6813(91)90005-g

Deci, E. L., & Ryan, R. M. (2000). The “What” and “Why” of goal pursuits: human needs and the Self-Determination of behavior. Psychological Inquiry, 11(4), 227–268. https://doi.org/10.1207/s15327965pli1104_01

Diefendorff, J. M., Kenworthy, M. E., Lee, F. C., & Nguyen, L. K. (2022). Work motivation. Oxford Research Encyclopedia of Psychology. https://doi.org/10.1093/acrefore/9780190236557.013.37

Ejoh, E., & Omoile, P. A. (2023). Corporate social responsibility on innovation and creativity in the workplace. Malikussaleh Social and Political Reviews, 4(2), 66. https://doi.org/10.29103/mspr.v4i2.13610

Farooq, O., Payaud, M., Merunka, D., & Valette-Florence, P. (2013). The impact of corporate social responsibility on organizational commitment: Exploring multiple mediation mechanisms. Journal of Business Ethics, 125(4), 563–580. https://doi.org/10.1007/s10551-013-1928-3

Glavas, A. (2016). Corporate Social Responsibility and Employee Engagement: Enabling Employees to Employ More of Their Whole Selves at Work. Frontiers in Psychology, Volume 7 - 2016. https://doi.org/10.3389/fpsyg.2016.00796

Gosselt, J., Rompay, T., & Haske, L. (2017). Won’t Get Fooled Again: The Effects of Internal and External CSR ECO-Labeling. Journal of Business Ethics, 155, 413 - 424. https://doi.org/10.1007/s10551-017-3512-8.

Hossen, M. M., Chan, T. J., & Hasan, N. a. M. (2020). Mediating role of job satisfaction on internal corporate social responsibility practices and employee engagement in higher education sector. Contemporary Management Research, 16(3), 207–227. https://doi.org/10.7903/cmr.20334

Husna, N., Kee, D. M. H., Amirah, N. W., Syazreeza, R., Fatihah, N. A., Pandey, S., Agnihotri, S., & Pandey, R. (2020). How organizational management affect employees’ motivation and service quality: A study of Kentucky Fried Chicken (KFC). International Journal of Applied Business and International Management, 5(2), 73–81. https://doi.org/10.32535/ijabim.v5i2.860

Ibrahim, N. A., Angelidis, J. P., & Howard, D. P. (2006). Corporate Social Responsibility: A comparative analysis of perceptions of practicing accountants and accounting students. Journal of Business Ethics, 66(2–3), 157–167. https://doi.org/10.1007/s10551-005-5572-4

Janssen, O., & Van Yperen, N. W. (2004). Employees’ goal orientations, the quality of leader-member exchange, and the outcomes of job performance and job satisfaction. Academy of Management Journal, 47(3), 368-384. https://doi.org/10.5465/20159587

Jeong, J., Kang, S., & Choi, S. B. (2022). A Multilevel Study of the Relationship between CSR Promotion Climate and Happiness at Work via Organizational Identification: Moderation Effect of Leader–Followers Value Congruence. International Journal of Environmental Research and Public Health, 19(11), 6637. https://doi.org/10.3390/ijerph19116637

Kim, H., Lee, M., Lee, H., & Kim, N. (2010). Corporate Social Responsibility and Employee–Company Identification. Journal of Business Ethics, 95(4), 557–569. https://doi.org/10.1007/s10551-010-0440-2

Kusumajati, D. A. (2018). The influence of employee satisfaction on employees’ creativity: a case study at higher education. Proceedings of the 3rd International Conference on Social Sciences, Laws, Arts and Humanities, 16–22. https://doi.org/10.5220/0009999200160022

Kuvaas, B., & Dysvik, A. (2009). Perceived investment in employee development, intrinsic motivation and work performance. Human Resource Management Journal, 19(3), 217-236. https://doi.org/10.1111/j.1748-8583.2009.00103.x

Lam, K. Y., Kee, D. M. H., Kumar, C. A., Jain, A., Pandey, R., Singh, A., Chua, C. R., Chia, J. W., Arenas, V. T., Lopez, C. A., & Restrepo, C. A. P. (2020). How does job satisfaction affect the job performance of employees? Asia Pacific Journal of Management and Education, 3(2), 22–32. https://doi.org/10.32535/apjme.v3i2.844

Latham, G. P., & Pinder, C. C. (2005). Work Motivation theory and research at the dawn of the Twenty-First Century. Annual Review of Psychology, 56(1), 485–516. https://doi.org/10.1146/annurev.psych.55.090902.142105

Lee, J. J. L., Ooi, L. L., Wun, X. Y., Wong, P. W., Yin, J. Y., Yang, H. H., & Kee, D. M. H. (2024). The impact of job satisfaction and performance on user satisfaction with banking services. International Journal of Tourism & Hospitality in Asia Pasific, 7(3), 379–395. https://doi.org/10.32535/ijthap.v7i3.3575

Leung, S.-O. (2011). A Comparison of Psychometric Properties and Normality in 4-, 5-, 6-, and 11-Point Likert Scales. Journal of Social Service Research, 37(4), 412-421. https://doi.org/10.1080/01488376.2011.580697

Locke, Edwin. (1976). The Nature and Causes of Job Satisfaction. The handbook of industrial and organizational psychology. 31.

Miao, S., Fayzullaev, A. K. U., & Dedahanov, A. T. (2020). Management characteristics as determinants of employee creativity: The mediating role of employee job satisfaction. Sustainability, 12(5), 1948. https://doi.org/10.3390/su12051948

Monga, V. & Soni, S. (2023). Job Satisfaction and Employee Motivation among Employees- Review Study. International Journal of Indian Psychology, 11(3), 4707-4714.

Ng, T. W. H., & Feldman, D. C. (2010). The Relationships of Age with Job Attitudes: a Meta-Analysis. Personnel Psychology, 63(3), 677–718. https://Doi.Org/10.1111/J.1744-6570.2010.01184.X

Nikkhah, Y. (2023). Employees’ CSR Perception s a Determinant of Work Motivation: The Mediating Role of Quality of Work Life. International Journal of Economics, Management and Accounting, 31(2), 247–274.

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and Extrinsic Motivations: classic definitions and new directions. Contemporary Educational Psychology, 25(1), 54–67. https://doi.org/10.1006/ceps.1999.1020

Securities Commission Malaysia. (2021). Malaysian Code on Corporate Governance. https://www.sc.com.my/

Sehgal, G., Kee, D. M. H., Low, A. R., Chin, Y. S., Woo, E. M. Y., Lee, P. F., & Almutairi, F. (2020). Corporate Social Responsibility: A case study of Microsoft Corporation. Asia Pacific Journal of Management and Education, 3(1), 63–71.

Shalley, C. E., Zhou, J., & Oldham, G. R. (2004). The Effects of Personal and Contextual Characteristics on Creativity: Where Should We Go from Here? Journal of Management, 30(6), 933–958. https://doi.org/10.1016/j.jm.2004.06.007

Shen, J., & Zhang, H. R. (2019). Socially Responsible Human Resource Management and Employee Support for External CSR: Roles of Organizational CSR Climate and Perceived CSR Directed Toward Employees. Journal of Business Ethics, 156(3), 875-888. https://doi.org/10.1007/s10551-017-3544-0

Teoh, K. B., Cordova, M., Hor, S. N., Lim, C. H., Yeoh, L. K., Madhu, A., Warrier, U., Chan, J. J., Kee, D. M. H., Tan, F. E., Chia, J. X., & Chuah, Y. J. (2021). The factors of employee performance: A study of SearchNEasy. Asia Pacific Journal of Management and Education, 4(1), 82–96.* https://doi.org/10.32535/apjme.v4i1.1053

Vu, N. H., Nguyen, T. T., & Nguyen, H. T. H. (2021). Linking intrinsic motivation to employee creativity: The role of Empowering leadership. Journal of Asian Finance Economics and Business, 8(3), 595–604. https://doi.org/10.13106/jafeb.2021.vol8.no3.0595

Zhou, J., & George, J. M. (2001). When job dissatisfaction leads to creativity: Encouraging the expression of voice. Academy of Management Journal, 44(4), 682-696. https://doi.org/10.2307/3069410

DOI: https://doi.org/10.32535/apjme.v8i3.4248