How does CSR enhance the financial performance of SMEs? The mediating role of firm reputation

Ekonomska Istraživanja

Md Rashidul Islam¹  Kuyon Joseph Bikanyi²  Dawit Bahta³  Jiang Yun³ 

[1] Department of Business Administration, East-West University;School of Accounting, Dongbei University of Finance and Economics;School of Business Administration, Dongbei University of Finance and Economics;

关键词: corporate social responsibility;    developing country;    financial performance;    firm reputation;    small and medium enterprises (smes);   

DOI  :  10.1080/1331677X.2020.1828130

来源: DOAJ

【 摘 要 】

This study investigates the link between corporate social responsibility (CSR) and the performance of small and medium enterprises (SMEs) and the mediating role of firm reputation from a developing country perspective. Empirical research was carried out, and data were gathered using a questionnaire from 402 owners/managers of SMEs in Eritrea, a country in East Africa. Smart-Partial Least Squares structural equation modelling was employed. The results showed that CSR significantly influences the performance of SMEs, and this relationship is partially mediated by firm reputation. This research contributes to the knowledge of how CSR activities lead to SMEs’ financial performance. This strengthens prior evidence on the impact of CSR on business performance while also contributing significantly to the literature on the mediating role of reputation between social and financial performance. The application of the relationship to SMEs in developing nations reinforces the originality of this study. It makes substantial contributions to the literature in terms of theory, practice, and policy.

【 授权许可】

Unknown