Motivating corporate social responsibility practices under customer pressure among small- and medium-sized suppliers in China: The role of dynamic capabilities

Small- and medium-sized suppliers (SMSs) have experienced customer pressure to implement corporate social responsibility (CSR) practices. However, capabilities are needed for SMSs to respond to such pressure. To explore how SMSs can be effectively motivated to make CSR efforts under customer pressure, based on the theory of dynamic capabilities (DCs), this paper identifies five factors of DCs-knowledge accessing (DC1), codevelopment (DC2), supply chain partner development (DC3), supply chain rebuilding (DC4), and flexibility (DC5). Moreover, this paper develops a conceptual model assuming that the five DCs moderate the relationship between customer pressure and CSR practices among SMSs. Using questionnaires collected from 333 Chinese SMSs in manufacturing industries, hierarchical statistical results demonstrate the moderating effect for three of four identified CSR practices. An interaction analysis further reveals that a certain level of DCs is necessary. The results provide managerial implications for large customers and SMSs to improve CSR-related DCs among SMSs.