The Impact of Social Entrepreneurship, Corporate Social Responsibilities, and Working Capital Management Practices on the Performance of Tourism Small–Medium Enterprises (SMEs) During COVID-19: Moderating Role of Employee Behavior

Abstract

The failure or success of an enterprise depends upon its working capital management practices (WCMP) along with effective corporate social responsibilities (CSR) and social entrepreneurship (SE). These factors ensure not only the soundness of financial indicators but also the profitability of an enterprise. Therefore, the objective of this study was to determine the impact of CSR, SE, and WCMP on the performance of small–medium enterprises (SMEs) of tourism sector, during the lockdown period in Malaysia. The goals also include the investigation of moderating role of employee behavior (EB) among the nexus of CSR, SE, WCMP, and performance of SMEs. The survey was performed to find out the practices adopted by the SMEs during corona days. A quantitative research method has been adopted to get data with convenient sampling technique, and PLS-SEM has been exploited to find out the significant nexus among CSR, SE, WCMP, and the performance of SMEs. The results indicate that CSR, SE, and WCMP have a positive association with the performance of SMEs in Malaysia. The results also indicate that EB positively moderates among the nexus of CSR, SE, WCMP, and the performance of SMEs in Malaysia. Stock review strategies by the SMEs during the corona days also exhibit significant differences except for no stock review. Significant differences between the enterprises show a lack of adaptation of the financial indicators that determine enterprise soundness. The study not only provides guidelines for entrepreneurs of SMEs but also helps in maintaining standards for the evaluation of the enterprises.

Sustainable Entrepreneurship: Comparing the Determinants of Entrepreneurial Self-Efficacy and Social Entrepreneurial Self-Efficacy

“…According to Stoian and Gilman (2017), CSR activities in SMEs can enhance the growth of a firm. This result is in line with previous studies and with management literature that affirms the positive relationship between CSR and firm performance (Luo and Homburg 2007;Maignan et al 1999;Qu 2009) and the positive association between CSR and SME per-formance (Ionescu 2021;Li et al 2022;Tsoutsoura 2004;Waddock and Graves 1997). It has been also shown that the relationship between CSR and sustainable financial performance is positive when moderated by entrepreneurship (Luo et al 2022).…”

“…ESE and SESE are two dependent variables that are dominant predictors for performance (Bandura 1977(Bandura , 1982(Bandura , 1986Bandura and Schunk 1981). In this study, potential mediators were organizational capabilities and philanthropic CSR, as they are both a source of competitive advantage (Collis 1994;Ionescu 2021;Li et al 2022;Teece et al 1997;Waddock and Graves 1997), and hence, they could play an important role in influencing the performance of sustainable entrepreneurs.…”

“…The link is further developed by looking at the direct and mediating role of organizational capabilities and philanthropic CSR. The reason why this study specifically explores the role of innovativeness and the mediating role of organizational capabilities and philanthropic CSR is because they are all related to advancing competitive advantages and increasing performance (Collis 1994;Ionescu 2021;Li et al 2022;Teece et al 1997;Waddock and Graves 1997); since the objective of this study is to research what can improve the performance of sustainable entrepreneurs, we assumed that they would have a positive influence.…”

A critical analysis of challenges relating to working capital financing towards SME profitably

“…Important variances among businesses indicate a failure to adjust financial measures that decide entrepreneurship healthiness. Thus, the impact of social obligations and working capital management practices on the presentation of tourism SMEs during covid-19 were discussed in the research proposed by [12].…”