The strategic nature of corporate social responsibility in SMEs: a multiple mediator analysis

Abstract

Purpose The purpose of this paper is to analyse empirically the corporate social responsibility (CSR) strategic effects on the competitive performance of small- and medium-sized enterprises (SMEs) by performing a multiple mediator analysis. Design/methodology/approach The empirical research was conducted in Spanish SMEs. A questionnaire was distributed among managers of these companies. Thus, with a final sample of 481 cases and using consistent partial least squares structural equation modelling, direct and mediating effects were tested. In particular, relationships among corporate social performance (CSP) (exogenous variable), competitive performance (endogenous variable), relational marketing (mediating variable) and innovative capacity (mediating variable) were hypothesized. Moreover, a further analysis about the superior returns offered by socially responsible practices related to core business stakeholders was conducted. Findings The results highlight a significant and positive effect that CSP has on competitive performance. Additionally, both mediating positive effects were supported and the firm size was checked as a relevant control variable which, as proxy for resources availability, affects all constructs used with the exception of relational marketing. Managers interested in a strategic approach to social responsibility should be aware that the investment in activities related to employees and customers leads to higher competitiveness. Research limitations/implications The study was limited to SME in Spain. Moreover, information related to competitive performance was gathered from managers’ own perceptions, considering the performance of their direct competitors as a reference level. Originality/value To the authors knowledge, no research studies were found that empirically examined the business case in SMEs and employed a CSR approach based on stakeholders’ perspective. Therefore, the main contribution of this research is to show how socially responsible management of SMEs leads to higher competitive performance both direct and indirectly, using two strategic variables suggested in literature on large corporations. Despite their resources limitations, this kind of organizations is in a favourable position to engage with different stakeholders and benefit from their relationships, especially with employees and customers.

Transformational leadership, corporate social responsibility, organizational innovation, and organizational performance: Symmetrical and asymmetrical analytical approaches

“…Wang, Chen, Yu, & Hsiao, ; Farrington et al, ; Herrera, ; Marin, Martín, & Rubio, ; Moore, ; Saeidi, Sofian, Saeidi, Saeidi, & Saaeidi, ; Sun & Stuebs, ; Wiengarten, Lo, & Lam, ). However, research shows that the relationship between CSR and organizational performance is not universal, but mediated or moderated by internal and external factors, such as organizational trust and identification, chief executive officer (CEO) founder status, organizational size, customer satisfaction, reputation, competitive advantage, CSR knowledge, trust in CSR commitment, and engagement (Inoue, Funk, & McDonald, ; Inoue & Lee, ; Marin et al, ; Martínez‐Martínez, Madueño, Jorge, & Sancho, ).…”

Sustainable Change Management through Employee Readiness: Decision Support System Adoption in Technology-Intensive British E-Businesses

“…PU and PEU were run together in the model instead of separately. They were added one-by-one to the model, which is similar to the method adopted in a recent study by Martinez-Martinez, Herrera Madueno, Larran Jorge and Lechuga Sancho [119]. It was found that PEU and PU both fully mediate the relationship between EREB and IU, as the variance accounted for value exceeds the 80% benchmark devised by Preacher and Hayes [118].…”

Evaluation of Sustainability Practices in Small and Medium-Sized Manufacturing Enterprises in Southern Brazil

“…It has also been found that the authenticity of perceived CSR is an important mediator in the relationship between employees' perceptions of legitimacy and their work orientations [42]. Similarly, [43] applied a questionnaire among managers of small and medium-sized companies in Spain, totaling 481 companies, performing a more in-depth analysis of the returns generated to the main stakeholders of the business in which sustainable practices were implemented. The results highlighted a significant and positive effect that the CSR has on competitive performance.…”