Impact of CSR on Innovation: A Research Methodology Analysis

This report details the research methodology employed to investigate the relationship between Corporate Social Responsibility (CSR) and innovation within business organizations. The study begins with a problem statement highlighting the importance of CSR and innovation for competitive advantage, followed by the identification of necessary data, including both primary and secondary sources. Primary data will be collected through online surveys distributed to 75 managers using a random sampling technique, while secondary data will involve an extensive literature review. The report outlines the data analysis technique, which involves quantitative analysis using regression analysis to establish correlations between CSR and innovation. It also presents the research questions and hypotheses, focusing on the impact of different CSR types on innovation and the contribution of innovation and CSR to a firm's growth and competitive advantage. Ethical considerations related to voluntary participation and data privacy are also addressed.

Running head: METHODOLOGY
How Different CSR Affects Different Innovations in Firms: Research Methodology
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Table of Contents
Introduction..........................................................................................................................2
1. Problem Statement...........................................................................................................2
2. Data Needed for the Study...............................................................................................3
3. Data Collection Technique..............................................................................................4
4. Data Analysis Technique.................................................................................................6
5. Research Questions..........................................................................................................8
6. Research Hypothesis........................................................................................................8
6. Ethical Considerations.....................................................................................................9
References..........................................................................................................................11
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Methodology
Introduction
Research methodology helps in defining specific procedures and techniques that can be
used for identification, selection, processing and analyzing the key information about a particular
topic (Bell, Bryman & Harley, 2018). Evaluation of use of correct tools and techniques is
necessary to understand the process in which different CSR affects the entire innovation process
of a firm. An extensive literature review has been conducted on the topic based on which the
techniques that will be followed to execute the research will be proposed. In the following
section, the statement of problem is discussed along with the identification of data required to
successfully execute the study. Identification of the research methods will enable the researcher
to identify the specific procedures and techniques needed for selection, analysis and processing
the topic of the research (Patten & Newhart, 2017). In the following paragraphs, the problem
statement of the study, data needed for the study, data collection method, data analysis method
and the research questions are discussed. On basis of the tools and techniques chosen for the
study the researcher will be conducting the research to answer the research questions that are
identified.
1. Problem Statement
Innovation is the key criteria that provides the business organization a competitive
advantage over their competitors. On the other hand, the increasing significance of the corporate
social Responsibility (CSR) in management paradigm makes it necessary for the business
organizations to know the requirements of the stakeholders. The findings from the literature
review indicates that the companies that do not understand the needs of the stakeholders will
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account an eventual demolition of the marketing value of the business. CSR has become an
important consideration for business organization as it reflects the level in which a particular
company actively engages in achieving the sustainable project goals (Tai & Chuang, 2014).
Therefore, there is no denying the fact that CSR and innovation, both are equally needed for a
business to thrive in this competitive environment (O’Riordan & Fairbrass, 2014). The current
business needs indicate that it is of foremost necessity to analyze the impact of combined
strategy of innovation and CSR on performance of a firm (Park & Kim, 2015). The findings of
the literature review indicate that CSR has a significant impact on a firm’s innovation. CSR
affects the technological innovation and eventually the growth of the firm. The extent to which
the different corporate social responsibility affects the innovation of a firm is needed to be
analyzed to predict the growth and profit of a company (Pedersen & Gwozdz, 2014). Therefore,
conducting this research becomes a necessity as the relationship and the link between CSR and
innovation strategies of the business organization has not been analyzed. Investigation and
analysis of the link between CSR and innovation is necessary to recommend effective strategies
that can be used for gaining competitive advantage. This particular research study is essential as
it aims in discussing the process in which different types of CSR affects the organizational
innovation. Along with that the proposed study attempts to understand the impact of CSR on the
process of organizational innovation and accordingly, the objectives and the hypotheses of the
study is identified.
2. Data Needed for the Study
The study will require the use of both primary and secondary data. The primary data is
required for this proposed study to work on the empirical data analysis. The secondary is
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collected in form of literature review that provides an idea of the previous researches that has
been conducted in this field.
Variables Identification
Dependent Variable: - 1. Innovation 2.Growth of the Firm
Independent Variable: - Reactive and Proactive Corporate Social Responsibility
The association between the independent and dependent variables will be evaluated in the
study and for that primary data will be collected. The study will be conducted from the
managerial perspective as the managers of an organization mainly has the responsibility of
decision making. Therefore, the primary data will be obtained from the managers of different
business organizations that will help in addressing the identified problem statement for the study.
The technique of data collection and analysis are elaborated in the following sections.
3. Data Collection Technique
Data collection, is a technique of collection of data from various sources that can
contribute to addressing the research problem, fulfilling the objectives of the study and for
testing the hypothesis (Tuffour, 2017).
There are mainly two format of data gathering in a research, which include collection of
primary data and collection of secondary data. Primary data gathering can be described as a
process of information collection through first hand research that include survey and focus on
group discussion (Jebb, Parrigon & Woo, 2017). The primary data is collected by the researcher
himself/herself. There are several methods for collection of primary data, which include
interview, survey, focus group and observation. Interview is conducted with a small set of
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individuals into two ways, which are face-to-face method of interview and interview through
telephonic method. Face to face interview is the most operative method for gathering of primary
data through interview as it reduces the chances of error. Another important method for
obtaining of primary data is the method of survey (Treiman, 2014). In this method a pre-
determined set of questionnaire is circulated among the participants to collect their views
regarding a particular subject. The method of focus group is used to collect data from a group of
expert while observation is a process through which data is collected from primary observation.
Secondary data include data and information that has been issued in books, journals,
newspapers and magazines. The collection of secondary data involves researching the internet,
newspaper articles and the company reports. There is a huge amount of secondary data sources
irrespective of the nature of area of the research (Johnston, 2017). The use of a suitable set of
principles in collection of secondary data is necessary to collect accurate information (Cheng &
Phillips, 2014). Since there is an abundance of this data, it is necessary to set the criteria of data
collection appropriately in collection of these data.
Data collection Method Opted:
The secondary data for the study is collected in form of literature review. The extensive
literature review provides an idea of CSR and the effect of CSR on the exploitative and
exploratory innovation. Primary data will be obtained to support the findings of the literature
review and to prove the hypothesis.
Data Collection Technique:-
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Primary data for the study will be collected in form of survey. This exploratory research
requires information from the first hand data sources and therefore the method of survey is
chosen.
Sampling Technique:-
A random sampling method is to be chosen to shortlist 75 managers from different
business organization. The sample for the study is chosen to be the managers as they are
associated with the organizational decision making and therefore should be able to provide the
needed data related to CSR and innovation. The survey will be conducted online to ensure easier
accessibility and to reduce cost. Same set of questionnaire will be circulated among the randomly
chosen 75 managers to collect that data will support the findings from the literature review and
will further contribute to testing of the hypothesis.
Justification:-
The proposed study involves the use of both the types of data (primary and secondary).
The use of both data types for this study is justified as it will enable the researcher in establishing
the relationship between CSR and organizational innovation by evaluating the researches that
have already been conducted in this field along with the information from the primary sources.
The use of survey for gathering primary data is justified as it will help in collection of data from
a significantly greater number of research participants in a considerably lesser time. The survey
is proposed to be conducted online as it will save both time and cost.
4. Data Analysis Technique
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The obtained primary data will be examined by using appropriate analysis tool that will
help in establishment of the co-relation between CSR and innovation. There are mainly two
types of analysis method, which are qualitative data analysis method and quantitative data
analysis method.
The qualitative data analysis method is the process of analysis of non-numeric data or
information or qualitative data (Gibbs, 2018). The non-numeric data or information include
interview transcript, video, audio, image and text documents. The qualitative analysis is carried
out by the use of different tools, such as content analysis, discourse analysis, framework analysis
narrative analysis, and grounded theory (Silverman, 2015). Qualitative analysis method is useful
for analyzing theoretical data and is not suitable for testing hypothesis (Bernard, Wutich & Ryan,
2016).
Quantitative analysis is useful for analyzing statistical data. In this data analysis method,
the raw data is transformed into meaningful format by the application of rational and critical
thinking (Hoy & Adams, 2015). This analysis method involves calculation of frequencies and
variables and is associated with finding evidence to support or reject a particular research
hypothesis.
Analysis Method Chosen:-
The analysis method chosen for this particular study is quantitative analysis method. A
regression analysis will be performed on the obtained data to establish the relationship between
the dependent independent and dependent variable. Regression can be described as a statistical
analysis method that attempts to find out the power and character of association between one
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dependent variable and other variables. The analysis regression will be carried out in Excel
Spreadsheet.
Justification:-
The research study aims in finding associated between reactive and proactive CSR and
the innovation strategy. Therefore the choice of this data analysis method is justified. The
quantitative analysis method will enable the researcher to establish the relation between CSR and
innovation and will further help in testing the hypotheses that are identified for the study. To
narrow down the focus of the study, the research will be examining the impact of Reactive and
Proactive CSR on innovation.
5. Research Questions
The undertaken study will work on the following questions-
1. Do different CSR types actually affect different types of innovation?
2. How does innovation affect organisation’s engagement in CSR?
3. How does innovation and CSR contribute to a firm’s growth?
4. What is the impact of CSR and innovation on the competitive advantage of a firm?
The proposed study will be evaluating the above identified research questions. The
proposed methodology along with the collected primary and secondary data will help in
obtaining answers to the above identified research questions.
6. Research Hypothesis
The following hypotheses will be tested in the study-
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Hypothesis 1:-
H1: CSR is positively linked with service innovation performance of a business organization
H0: CSR is not linked with service innovation performance of a business organization
Hypothesis 2:-
H2: Business organization that adopt strategic CSR has more probability in engaging in product
innovation
H0: Business organization that adopt strategic CSR has less probability to engage in product
innovation
Hypothesis 3:
H3: Innovation performance facilitates the link between CSR and a firm’s performance
H0: Innovation performance does not facilitates the link between CSR and a firm’s performance
The above identified three hypotheses will be tested on basis of the collected data and
results obtained from the analysis of the collected data.
6. Ethical Considerations
The proposed study includes the collection and the use of primary data and therefore,
certain ethical considerations are associated with this study. The ethical considerations of this
study are discussed below-
1. Voluntary participation of the research respondents are opted for this study and the
respondents has the full privilege of opting out of the study if they wish to withdraw.
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2. Anonymity and the privacy of the respondents will be ensured throughout the
execution of the study.
3. Since the study involves collected of secondary data, acknowledgement of the works
of the other authors is of paramount importance (Cacciattolo, 2015).
4. Full consent of all the research respondents is to be obtained before collection of
primary data.
5. The needed level of confidentiality is to be maintained for storing and using primary
data.
The above indicated ethical considerations are linked with the undertaken study and
should be followed during data collection and analysis.
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References
Bell, E., Bryman, A. & Harley, B., (2018). Business research methods. Oxford university press.
Bernard, H.R., Wutich, A. & Ryan, G.W., (2016). Analyzing qualitative data: Systematic
approaches. SAGE publications.
Cacciattolo, M., (2015). Ethical considerations in research. In The Praxis of English Language
Teaching and Learning (PELT) (pp. 55-73). Brill Sense.
Cheng, H.G. & Phillips, M.R., (2014). Secondary analysis of existing data: opportunities and
implementation. Shanghai archives of psychiatry, 26(6), p.371.
Gibbs, G.R., (2018). Analyzing qualitative data (Vol. 6). Sage.
Hoy, W. K., & Adams, C. M. (2015). Quantitative research in education: A primer. Sage
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Jebb, A.T., Parrigon, S. & Woo, S.E., (2017). Exploratory data analysis as a foundation of
inductive research. Human Resource Management Review, 27(2), pp.265-276.
Johnston, M.P., (2017). Secondary data analysis: A method of which the time has
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O’Riordan, L., & Fairbrass, J. (2014). Managing CSR stakeholder engagement: A new
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Park, J., & Kim, S. (2015). The differentiating effects of workforce aging on exploitative and
exploratory innovation: The moderating role of workforce diversity. Asia Pacific Journal
of Management, 32(2), 481-503.
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Patten, M.L. & Newhart, M., (2017). Understanding research methods: An overview of the
essentials. Taylor & Francis.
Pedersen, E. R. G., & Gwozdz, W. (2014). From resistance to opportunity-seeking: Strategic
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fashion industry. Journal of business ethics, 119(2), 245-264.
Silverman, D., (2015). Interpreting qualitative data. Sage.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Treiman, D.J., (2014). Quantitative data analysis: Doing social research to test ideas. John
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Tuffour, I., (2017). A critical overview of interpretative phenomenological analysis: a
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