Corporate Social Responsibility in SMEs: Implications on Competitive Performance

This study explores the relevance of corporate social responsibility (CSR) in the context of small and medium-sized enterprises (SMEs). The role of CSR in SMEs has so far been scarcely researched, and the relationship between internationalisation and CSR development in SMEs, in particular, could do with the further study. Since it has been found that organisational capabilities and CSR both impact SME performance, we illustrate these relationships and differentiate between the domestic and internationalised SMEs. The empirical part of the study is based on the survey data from a sample of 141 Finnish SMEs. Results obtained via linear regression modelling show that network competence plays a part in contributing to CSR, which in turn positively affects the SME's competitive performance, but only in internationalised SMEs. CSR is found to mediate the relationship between network competence and competitive performance. The study thus contributes both to the literature on CSR as well as that on SME internationalisation and argues for the importance of the former as a true predictor of enhanced SME competitiveness.