CSR and the Supply Chain: Effects on the Results of SMEs

Abstract

Currently, companies and SMEs (small and medium enterprises) are looking to be more competitive. To achieve this, they are adopting new business models and strategies that allow them to move towards sustainability. Strategies such as CSR (Corporate social responsibility) and supply chain management have become essential for ensuring a company's permanence and financial consolidation. The literature has stated that theories on stakeholders and sustainability are fundamental pillars for the development and sustained growth of business. The purpose of this article is to examine the effects of CSR and SCMM (supply chain management) on innovation, image and reputation, and, in turn, their influences on profitability in SMEs. An additional purpose is to verify the bidirectional relationship that exists between CSR and SCM in SMEs. This research was based on a sample of 143 companies in the city of Guaymas Sonorain Mexico. For the analysis and validation of the results, we used the ordinal least squares method (OLS) through multiple linear regressions and SEM (Structural Equation Modeling) statistical technique based on the variance, through PLS (Partial Least Squares) (using SmartPLS version 3.2.6 Professional). The findings show that SMEs that develop social and sustainable practices increase their level of innovation, and improve their image, their reputation, and their financial profitability. The results also indicate that CSR and SCM have a strong interdependence. This work contributes mainly to the development of the literature on stakeholders and sustainability.

Impact of corporate social responsibility on supply chain management and financial performance in Vietnamese garment and textile firms

“…This study visualized the impact of CSR on SCM; the impact of SCM on financial performance and the impact of CSR on financial performance; test the mediate role of customer loyalty, firm reputation and verify the moderate role of size and export. The results show that CSR has a positive impact on SCM, which is the same result as the research result by Valdez-Juárez et al (2018). A positive impact of SCM on financial performance has also been confirmed as found by Mira et al (2018), Sabara et al (2018), Naway and Rahmat (2018), Setyadi (2018), Hadrawi (2018).…”

Reporting on sustainable development: A comparison of three Italian small and medium‐sized enterprises

“…With regard to CSR (social and environmental issues), a number of contributions have highlighted the challenges that this type of organizations encounters in adopting CSR practices. However, despite these difficulties, in some instances, SMEs have resulted to be able to successfully implement CSR strategies in terms of competitive advantage (Matinaro, Liu, & Poesche, 2019;Valdez-Juárez, Gallardo-Vázquez, & Ramos-Escobar, 2018), also thank to a positive orientation by entrepreneurial/owner/managers (Ayuso & Navarrete-Báez, 2018;Mio, 2010;Revell, Stokes, & Chen, 2010). Fassin (2008) has acknowledged a fallacy in the practice of transposition of the CSR model from large companies to SMEs.…”

“…SMEs can in fact have a different approach to CSR (Battisti & Perry, 2011;Del Baldo, 2015, 2017a, 2017bNigri & Del Baldo, 2018). However, despite these difficulties, in some instances, SMEs have resulted to be able to successfully implement CSR strategies in terms of competitive advantage (Matinaro, Liu, & Poesche, 2019;Valdez-Juárez, Gallardo-Vázquez, & Ramos-Escobar, 2018), also thank to a positive orientation by entrepreneurial/owner/managers (Ayuso & Navarrete-Báez, 2018;Mio, 2010;Revell, Stokes, & Chen, 2010).…”

CSR-related competitiveness and legitimacy in MSMEs

“…These stand out as of above average importance as they were given the highest values in 92%, 84%, and 77% of the responses, respectively. These results indicate that MSMEs perceive maintaining a reputation for quality as a key element (Baldarelli and Gigli, 2014;Jo et al, 2015;Valdez-Juárez et al, 2018), as well as sustaining financial transparency in order to maintain optimal relationships with suppliers of financial resources, which is a key aspect related to MSMEs' survival. In the category of items assessing competitiveness, managerial skills (G3), technological resources and information systems (G7), and corporate culture and values (G9) are also part of these companies' distinctive CSR features (Gallardo-Vázquez et al, 2013, 2019aHerrera-Madueño et al, 2016b).…”

“…Those works that delve into small and medium-sized companies are noteworthy, analyzing the relevant role that this business fabric plays in regions and countries (Gallardo-Vázquez et al, 2013;Gallardo-Vázquez et al, 2014a, 2014bHerrera -Madueño et al, 2016a, 2016bMachová et al, 2016;León et al, 2017;Moneva-Abadía et al, 2018;Valdez-Juárez et al, 2018;Appiah et al, 2019). In small and medium-sized enterprises-especially microenterprisesowners who are also managers focus primarily on solving day-to-day ISSN 2071-789X…”