<![CDATA[Purpose – This study critically evaluates the theoretical foundations, construct operationalization, methodological rigor, and empirical validity of the study CSR investments and innovation – Aligning and creating shared value. The review focuses on how external environmental responsibility, internal employee-focused social responsibility, and ethical governance responsibility are linked to CSR investments and subsequent product, service, and process innovations, as well as whether the proposed relationships are adequately supported by the research design and measurement procedures. Design/methodology/approach – This research employs a critical literature review methodology to systematically assess the theoretical foundations, methodological robustness, construct measurement, sampling strategy, statistical procedures, and contextual boundaries of the reviewed study. Particular attention is given to the cross-sectional sample of 410 organizations, the use of covariance-based structural equation modelling (SEM), multi-group comparisons across organizational sizes, the operationalization of CSR investments and innovation, the pooling of private, public, and not-for-profit organizations, and the use of Exploratory Factor Analysis and Confirmatory Factor Analysis. Findings – The review identifies several important conceptual, psychometric, and methodological vulnerabilities. The operationalization of the core constructs presents tautological overlap between the exogenous CSR dimensions and the mediating CSR investments construct, while the empirical measurement of innovation does not fully reflect the theoretical emphasis on innovation aligned with shared value. The pooling of private, public, not-for-profit, sole trader, and partnership organizations also creates substantial sectoral heterogeneity that may weaken the internal validity of the structural relationships. Furthermore, the single-informant cross-sectional design creates potential risks of common method variance, simultaneity bias, and reverse causality. The use of Exploratory Factor Analysis with Varimax rotation followed by Confirmatory Factor Analysis on the same sample also raises concerns regarding psychometric redundancy, overfitting, and the appropriateness of the measurement validation procedure. Originality/value – This study provides a critical perspective on the empirical examination of the CSR–investment–innovation relationship by identifying methodological and conceptual tensions that may affect the robustness of the reported findings. The review highlights the importance of clearer construct differentiation, stronger alignment between theoretical concepts and their empirical measures, more homogeneous sampling strategies, longitudinal research designs, and independent validation procedures. These considerations provide directions for future research examining how CSR practices and investments contribute to innovation and shared value creation across organizational contexts. Keywords corporate social responsibility; critical review; innovation; investment; value]]>
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