Impact of Social Responsibility on Organizational Performance: Mediating Role of Innovation & Productivity

Abstract

This study has explored the potential hurdles in practicing SR in project-based organisation. It is aimed to determine the impact of social responsibility (SR) on the performance of public sector organisation in the presence of innovation and productivity as mediating variables. The findings encourage stakeholders to think seriously about it. This study has used onion model to elaborate Research Methodology and methods. It is deductive research in term of approach. Data is collected through Close ended questionnaire survey. Five-point Likert scale is used to measure the response of respondents. It has conducted ‘Mono-Method’ research method. The population comprises of employees of “Pakhtunkhwa Energy Development Organisation (PEDO). The social responsibility and innovation relationship shows a fair degree of significant relationship. Similarly, the innovation and organisational performance relationship was a fairly significant relationship. However, the significance of direct relationship of social responsibility and organisational performance was substantially low. The weak significant relationship provides legitimacy to innovation as an intervening variable but the SR-Performance relationship is not mediated by productivity. The significance of relationship between organisational social responsibility and productivity is far below the acceptance level.  However, the relationship between Productivity and Organisational Performance is significant which shows that productivity can act as a separate standalone predictor variable rather intermediating variable. Thus, the true intermediating variable is ‘innovation’ only. Productivity variable does not meet the criteria of intermediating variable. Thus, there is a need to consider other variables for mediating purpose.

Keyword: Social Responsibility, Organizational Behaviour, Role of Innovation and Productivity