The role of digital transformation in boosting CSR-driven green innovation among Yemeni manufacturing SMEs

Abstract

This study aims to examine the impact of corporate social responsibility (CSR) and digital transformation (DT) on green innovation (GI) among manufacturing SMEs in Yemen, in addition to exploring the moderating role of DT in the relationship between CSR and GI. To this end, data collected from 224 SME managers/owners in Yemen were analyzed using structural equation modeling (SEM-PLS) via SmartPLS. The results indicate that CSR significantly enhances GI among manufacturing SMEs. Furthermore, DT not only has a direct positive effect on GI but also moderates the relationship between CSR and GI, amplifying the impact of CSR practices. This suggests that DT acts as a catalyst, strengthening the effects of CSR on GI. These results are expected to enlighten managers of manufacturing SMEs in least-developed countries on the importance of integrating CSR with DT strategies to improve GI capabilities. Therefore, policymakers should support this integration to foster sustainable development and enhance SMEs’ performance. Overall, our findings contribute to the literature by combining CSR and DT within a framework that elucidates their interaction and impact on GI. It provides new insights into how DT can enhance CSR-driven GI in less developing countries.