The influence of CSR and CKMC on new software product development and innovation capability: the moderating role of environmental dynamism

Purpose This study aims to examine the impact of new software product development (NPD) on innovation capability (IC), taking into account the mediating roles of corporate social responsibility (CSR) and customer knowledge management capability (CKMC). It also examines the moderating role of environmental dynamism (ED) in the relationships between NPD, CSR, CKMC and IC. Design/methodology/approach Data were collected from 548 employees working in information technology (IT) small and medium-sized enterprises (SMEs) across different organisational contexts in Portugal. A self-administered online survey was distributed via email and WhatsApp, enabling broad participation among respondents. The research model and hypotheses were tested using structural equation modelling with SmartPLS 4. Findings The findings reveal statistically significant indirect associations between NPD and IC through CSR and CKMC. ED positively moderates the relationship between CKMC and IC. However, it negatively moderates the relationship between NPD and IC and has no significant moderating effect on the relationship between CSR and IC. Practical implications This study offers practical guidance for SME managers by highlighting the importance of developing CSR and CKMC processes, particularly those related to capturing, analysing and applying customer knowledge to tailor services. Managers should prioritise the establishment of customer feedback integration systems, such as CRM analytics and user feedback loops, and align CSR initiatives with product development processes, such as eco-design and ethical sourcing. The findings indicate that firms that systematically use customer knowledge in NPD processes are more likely to enhance their IC. Originality/value This study offers a novel perspective by integrating CSR and CKMC as dual mediators between NPD and IC, a relationship that has not been extensively explored in the context of Portuguese IT SMEs. In addition, it examines how ED moderates these relationships. This research contributes to the innovation literature by offering a comprehensive, multilayered model that reflects the dynamic nature of innovation in rapidly evolving environments.