Competitive advantage as a mediating variable of corporate social responsibility programs’ effect on SME sustainability

Abstract

The important role of small and medium enterprises (SMEs) in the economy requires SMEs to achieve business sustainability. The sustainability of SMEs can be achieved with assistance and guidance from external parties, both government and private, through corporate social responsibility (CSR) programs. This study investigates the mediating role of competitive advantage in the relationship between CSR programs and sustainability. The population of this study comprised SME owners who participated in CSR assistance programs offered by either state-owned enterprises or the private sector. This study collected quantitative data from 110 SMEs in East Java, located in the Malang, Probolinggo, Mojokerto, Kediri, and Blitar regions. Using structural equation modeling (SEM), the result was that companies or governments that provide CSR program assistance to SMEs contribute to an increase in SMEs' competitive advantage and business sustainability. Competitive advantage mediates the relationship between CSR programs and SME business sustainability. For companies or governments, providing CSR programs to SMEs requires mentoring models and CSR programs that focus on providing training to increase product innovation by creating unique products not easily imitated by competitors while maintaining competitive quality and prices. In addition, there is a need for training to increase SMEs’ understanding of compliance with legal standards in business management, the importance of establishing a comprehensive code of ethics in business management, and the role of SMEs’ contribution to charity so that business sustainability can continue to be pursued.

Opportunistic motivation on fair value accounting of investment properties: Does corporate governance matter in Indonesia?

“…Moderated Regression Analysis (MRA) aims to test the ability of moderating variables to strengthen or weaken the influence of the independent variable on the dependent variable (Rochayatun, Pratikto, Wardoyo, & Handayati, 2023). MRA is a special application of multiple linear regression, or logistic regression, where there is a multiplication interaction between two or more of the dependent variables in the regression equation.…”

Pengaruh Kaizen Costing Dan Keunggulan Kompetitif Terhadap Keberlanjutan Umkm

“…Keberlanjutan (sustainability) merupakan sebuah keberhasilan suatu UMKM dalam mempertahankan bisnis dengan mengupayakan sumber daya yang dimiliki dan juga menjadi tujuan UMKM dalam menjalankan suatu usaha (Hazratil Mufidah, Supardi, & Isfaatun, 2023). Keberlanjutan usaha diartikan sebagai suatu pendekatan dengan tujuan untuk menghasilkan manfaat jangka panjang bagi pemangku kepentingan dalam penerapan suatu rencana bisnis yang mempertimbangkan aspek etika, sosial, lingkungan, budaya dan ekonomi saat menjalankan suatu bisnis (Rochayatun, Pratikto, Wardoyo, & Handayati, 2023). Karakteristik sebuah organisasi ataupun bisnis yang kuat mencakup beberapa hal yaitu etos yang relevan, kesadaran situasional yang baik, komitmen untuk mengidentifikasi sumber kerentanan, budaya yang mengedepankan fleksibilitas, perbaikan berkelanjutan, dan inovasi yang baik (Dahlgaard & Anninos, 2022).…”

“…Semakin tingginya keunggulan kompetitif yang dimiliki oleh perusahaan dibandingkan perusahaan lainnya, maka semakin berkembang usaha yang dijalankannya sehingga dapat berkesinambungan / berkelanjutan kedepannya. Hal ini didukung oleh penelitian (Yang, Jaafar, Al Mamun, Salameh, & Nawi, 2022), (Jermsittiparsert, 2020), (Rochayatun, Pratikto, Wardoyo, & Handayati, 2023) bahwa keunggulan kompetitif berpengaruh terhadap keberlanjutan. Adanya inkonsistensi dari penelitianpenelitian tersebut dan banyaknya UMKM yang masih sulit dalam mempertahankan usahanya (berkelanjutan) menjadi salah satu indikator penelitian ini.…”

Corporate Social Responsibility Strategy Practices, Employee Commitment, Reputation as Sources of Competitive Advantage

“…First, we broaden the scope of CSR research and contribute to the existing literature on CSR and CCA by integrating key ideas from stakeholder theory. While earlier scholars have mainly focused on the impact of CSR on firms’ performance and competitiveness (Al Sakkaf et al, 2023; Bashir, 2022; Nyuur et al, 2019; Rochayatun et al, 2023; Sharma et al, 2023), virtually no prior studies have touched on the mediating role of employee commitment and corporate reputation in the CSR-CCA relationship. This study complements this stream of research by investigating how employee commitment and corporate reputation can influence the connection between CSR and CCA.…”