The study investigates the burgeoning field of corporate social responsibility (CSR) within technological innovation, specifically focusing on how Corporate Social Responsibility in Technological Innovation (CTR) contributes to Sustainable Competitive Performance (SCP). The 21st century's emphasis on diverse stakeholders necessitates understanding the impact of CTR. Unlike CSR activities primarily focused on profit, CTR prioritizes innovation intent to address social challenges, creating long-term value. SCP, as a unique performance indicator, supports lasting competitive advantage, leading to sustained profitability and strong stakeholder relationships. While stakeholder theory suggests CTR facilitates resource acquisition from various stakeholders, thus supporting SCP, research on the direct link between CTR and SCP remains scarce. Existing research on CTR predominantly explores its characteristics, manifestations (e.g., addressing 'bottom of the pyramid' issues, creating eco-efficient technologies), and effects (varied outcomes linked to shareholder primacy and social identity theories). However, the intervening mechanisms linking CTR to SCP, particularly in the digital era, are largely unexplored. This study aims to address this gap by examining the mediating role of digital transformation and the moderating role of a mastery climate.

The literature review covers three primary areas of CTR research: 1) the characteristics of CTR, emphasizing its focus on stakeholder benefit rather than solely profit; 2) key manifestations of CTR, such as addressing bottom-of-the-pyramid problems and developing eco-friendly technologies; 3) the effects of CTR, revealing a mixed picture with both potential positive (improved employee commitment, enhanced environmental performance) and negative (financial pressures) consequences. The review highlights a gap in understanding the link between CTR and sustainable competitive performance (SCP). Stakeholder theory provides a framework for examining this relationship, suggesting that CTR can lead to stakeholder support and resource acquisition, thereby contributing to SCP. The review also introduces the concept of digital transformation as a potentially mediating factor, given its importance in the modern business environment. Finally, the role of a mastery climate – an organizational context that emphasizes learning and development – as a potential moderator of the relationship between CTR and digital transformation is discussed. This climate influences stakeholder engagement and innovation capability, making it a key boundary condition.

The study employed a quantitative approach using survey data from 356 Chinese firms across various industries. To mitigate common method bias, a two-part questionnaire was used, with different respondents in each firm completing separate parts. The questionnaire included measures for CTR (six dimensions: employees, partners, customers, government, NGOs, community), digital transformation (five items), SCP (ten items assessing profitability, market share, etc.), and mastery climate (six items). Standard procedures were followed to translate the questionnaire into Chinese and back-translate it into English, ensuring accuracy. A pretest with in-depth interviews refined the questionnaire. Confirmatory factor analysis (CFA) verified the construct validity of the measures, while exploratory factor analysis (EFA) and a marker variable technique assessed common method bias. Control variables included state ownership, firm size, age, sales, and industry type. Data were analyzed using Stata 15.0 and SPSS 25.0, employing regression analysis (three-step regression for mediation, and interaction term analysis for moderation) and bootstrapping techniques to test the hypotheses.

The findings strongly supported the hypotheses. First, digital transformation partially mediated the relationship between CTR and SCP. Firms with higher CTR scores exhibited significantly higher digital transformation scores, which in turn were associated with significantly higher SCP scores. Even when controlling for digital transformation, CTR remained a significant predictor of SCP, indicating a partial mediating effect. Second, a mastery climate significantly moderated the relationship between CTR and digital transformation. The positive relationship between CTR and digital transformation was stronger in firms with a high mastery climate than in firms with a low mastery climate. Bootstrapping analysis confirmed this moderated mediation effect, showing that the indirect effect of CTR on SCP through digital transformation was stronger at higher levels of mastery climate. Regression analysis revealed that the interaction term between CTR and mastery climate was significantly positive, further supporting the moderation hypothesis. Figure 2 graphically illustrates the interaction effect, showing the steep increase in the CTR-digital transformation relationship at high mastery climate levels.

The findings contribute to the literature by demonstrating that CTR positively influences SCP, not directly, but primarily through the mediating role of digital transformation. This highlights the importance of strategically leveraging digital technologies to transform business operations and capitalize on the benefits of socially responsible innovation. The study confirms that CTR's positive effects on SCP are amplified in organizational contexts characterized by a mastery climate that fosters continuous learning, knowledge sharing and employee development. This underscores the importance of organizational culture in maximizing the impact of CTR initiatives. The positive effects of both CTR and digital transformation on SCP counter some previous research suggesting potential negative consequences. This contrast might be attributed to the strategic and holistic implementation of CTR and digital transformation in the studied firms, resulting in improved efficiency, stronger stakeholder relationships, resource support, and risk mitigation.

This research makes several contributions. It extends stakeholder theory by focusing on the impact of CTR on SCP, showing that firms can gain a competitive advantage by prioritizing innovation to meet stakeholder needs. It advances innovation-performance research by highlighting digital transformation as a key mechanism linking CTR and SCP. Finally, it contributes to the understanding of how contextual factors, specifically the mastery climate, influence the relationship between CTR and firm outcomes. Managerially, the results suggest that firms should prioritize CTR, invest in digital transformation, and foster a mastery climate to maximize their competitive advantage and long-term sustainability. Future research could explore the generalizability of the findings across different countries and business sectors, investigate other moderating factors, and address potential negative impacts of CTR and digital transformation.

The study's limitations include its reliance on a sample of Chinese firms, potentially limiting the generalizability of the findings. The cross-sectional nature of the data limits causal inference, necessitating longitudinal studies or experiments for stronger conclusions. Further research could explore other moderating factors (e.g., firm transparency, competitive intensity), use a broader theoretical lens, and more comprehensively analyze potential negative outcomes associated with CTR and digital transformation.