Csr and Ckmc Impact On New Software Product Development–innovation Link: The Moderating Role of Environmental Dynamism

Purpose: Investigate the influence of new software product development on innovative capability (IC) through mediating role of corporate social responsibility (CSR) and customer knowledge management capability (CKMC). The study also examines how environmental dynamism (ED) acts as a moderator of the relationship between NDP, CSR, CKMC and innovation capability. Design/methodology/approach: This study involved 548 participants employed in IT Small and Medium Enterprises (SMEs), encompassing both public and private sectors in Portugal. Data gathering used a simple random sampling method. The research hypotheses were assessed using smart partial least squares-structural equation modelling using SmartPLS 4 software. Findings: The results revealed that external new product development (NPD) has a significant and positive effect on innovative capability. Furthermore, the mediating role of CSR and CKMC has been tested and proved to be a potential mediator between NPD and innovative capability. Lastly, the moderating effect of ED is positive and significant in the relationship between CKMC and IC; however, the negative moderating effect between NPD and IC, also ED does not have a significant moderating effect among CSR and IC. Practical implications: The study provides a comprehensive analysis of CSR, CKMC, and their impact on NPD. The study emphasises the necessity for SMEs managers to implement processes to collect customer data and delivering tailored services. Additionally, it emphasises the importance of cultivating a competitive corporate environment to effectively apply customer knowledge management skills. By strategically leveraging knowledge-based capabilities, organisations can enhance product sustainability and operational effectiveness, ultimately contributing to value creation during product development. Originality/value: The findings emphasise the importance of CSR and CKMC, as well as new product development capabilities; to the SMEs level, Portugal IT companies also the importance of implementing these techniques. The research indicated that environmental dynamism, new product development performance, and innovative capability are high-impact activities. To be effective, one must have focused their attention primarily on these practices.