IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i23p10224-d1527060.html
   My bibliography  Save this article

Sustainability Beyond Profits: Assessing the Impact of Corporate Social Responsibility on Strategic Business Performance in Hospitality Small and Medium Enterprises

Author

Listed:
  • Zi Mu

    (School of Environment, Education and Development, University of Manchester, Manchester M13 9PL, UK)

  • Yifei Li

    (Department of Industrial Engineering and Operations Research, Columbia University, New York, NY 10027, USA
    Business School, Imperial College London, London SW7 2AZ, UK)

  • Hadi Hussain

    (School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710046, China)

Abstract

In today’s business world, small and medium enterprises (SMEs) are increasingly dedicated to social responsibility and environmental sustainability, gaining recognition from communities, investors, and customers who view them as socially and environmentally conscious. Thus, this research examines how Corporate Social Responsibility (CSR) orientation, commitment, and participation affect strategic business performance (SBP) of SMEs in hospitality sectors, along with the potential mediation function of CSR engagements. To investigate the proposed model, this study employed a cross-sectional dataset of 163 hospitality SMEs, incorporating 482 valid responses. The representative sample was analyzed using structural equation modeling (SEM), regression analysis, and bootstrapping techniques to test direct and indirect effects. Findings indicate that CSR orientation, commitment, and participation play vital roles as antecedents of SBP. In hospitality SMEs, adopting CSR practices is imperative for increasing SBP. This study bridges a crucial research gap, particularly in understanding how hospitality SMEs engage in CSR and its impact on business success, offering valuable insights for SME management, practitioners, and stakeholders.

Suggested Citation

  • Zi Mu & Yifei Li & Hadi Hussain, 2024. "Sustainability Beyond Profits: Assessing the Impact of Corporate Social Responsibility on Strategic Business Performance in Hospitality Small and Medium Enterprises," Sustainability, MDPI, vol. 16(23), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10224-:d:1527060
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/23/10224/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/23/10224/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas O'Regan & Abby Ghobadian, 2005. "Innovation in SMEs: the impact of strategic orientation and environmental perceptions," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 54(2), pages 81-97, March.
    2. Gregory W. Allen & Prince A. Attoh & Tao Gong, 2017. "Transformational leadership and affective organizational commitment: mediating roles of perceived social responsibility and organizational identification," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(3), pages 585-600, August.
    3. Manuel Branco & Lúcia Rodrigues, 2006. "Corporate Social Responsibility and Resource-Based Perspectives," Journal of Business Ethics, Springer, vol. 69(2), pages 111-132, December.
    4. Janet Y Murray & Masaaki Kotabe & Albert R Wildt, 1995. "Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(1), pages 181-202, March.
    5. Tang, Zhi & Tang, Jintong, 2012. "Stakeholder–firm power difference, stakeholders' CSR orientation, and SMEs' environmental performance in China," Journal of Business Venturing, Elsevier, vol. 27(4), pages 436-455.
    6. Ladislav Mura & Zuzana Hajduová, 2021. "Measuring efficiency by using selected determinants in regional SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 487-503, March.
    7. Janthorn Sinthupundaja & N. Chiadamrong & Y. Kohda, 2019. "Internal capabilities, external cooperation and proactive CSR on financial performance," The Service Industries Journal, Taylor & Francis Journals, vol. 39(15-16), pages 1099-1122, December.
    8. Davis, Peter S. & Schul, Patrick L., 1993. "Addressing the contingent effects of business unit strategic orientation on relationships between organizational context and business unit performance," Journal of Business Research, Elsevier, vol. 27(3), pages 183-200, July.
    9. Wioleta Kucharska, 2020. "Employee Commitment Matters for CSR Practice, Reputation and Corporate Brand Performance—European Model," Sustainability, MDPI, vol. 12(3), pages 1-16, January.
    10. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    11. Székely, Francisco & Knirsch, Marianna, 2005. "Responsible Leadership and Corporate Social Responsibility:: Metrics for Sustainable Performance," European Management Journal, Elsevier, vol. 23(6), pages 628-647, December.
    12. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    13. Abdul-Nasser El-Kassar & Leila Canaan Messarra & Raed El-Khalil, 2017. "CSR, organizational identification, normative commitment, and the moderating effect of the importance of CSR," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(3), pages 409-424, July-Sept.
    14. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    2. Marius Banke & Stephanie Lenger & Christiane Pott, 2022. "ESG Ratings in the Corporate Reporting of DAX40 Companies in Germany: Effects on Market Participants," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    3. Li, WeiWei & Padmanabhan, Prasad & Huang, Chia-Hsing, 2024. "ESG and debt structure: Is the nature of this relationship nonlinear?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    4. Shilong Wei & Muhammad Safdar Sial & Ubaldo Comite & Phung Anh Thu & Daniel Badulescu & József Popp, 2021. "An Examination to Explain the Mechanism of Employees’ Environment-Specific Behavior through CSR and Work Engagement from the Perspective of Stewardship Theory," IJERPH, MDPI, vol. 18(17), pages 1-20, September.
    5. Lopez, Belen & Rangel, Celia & Fernández, Manuel, 2022. "The impact of corporate social responsibility strategy on the management and governance axis for sustainable growth," Journal of Business Research, Elsevier, vol. 150(C), pages 690-698.
    6. Amoako, George Kofi & Dartey-Baah, Kwasi & Naatu, Felicia & Acquah, Innocent Senyo Kwasi & Gabrah, Antoinette Yaa Benewaa, 2024. "Corporate social responsibility and brand performance: Evidence from Ghana," Journal of International Management, Elsevier, vol. 30(4).
    7. Vardhini Rajagopal & Lata Dyaram & Venkat Ram Reddy Ganuthula, 2016. "Stakeholder salience and CSR in Indian context," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(4), pages 351-363, December.
    8. Anat Anaqie Zahidy & Shahryar Sorooshian & Zahidy Abd Hamid, 2019. "Critical Success Factors for Corporate Social Responsibility Adoption in the Construction Industry in Malaysia," Sustainability, MDPI, vol. 11(22), pages 1-24, November.
    9. Marc Kouzez & Ji-Yong Lee & Jomana Leroux, 2024. "Investment in ESG activities and bank performance: does bank ownership matter?," Post-Print hal-03859287, HAL.
    10. Hernández, Virginia & Nieto, María Jesús, 2016. "Inward–outward connections and their impact on firm growth," International Business Review, Elsevier, vol. 25(1), pages 296-306.
    11. Nick Lin-Hi & Igor Blumberg, 2018. "The Link Between (Not) Practicing CSR and Corporate Reputation: Psychological Foundations and Managerial Implications," Journal of Business Ethics, Springer, vol. 150(1), pages 185-198, June.
    12. Stefano Dell'Atti & Annarita Trotta & Antonia Patrizia Iannuzzi & Federica Demaria, 2017. "Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 589-605, November.
    13. Eveland, Vicki Blakney & Crutchfield, Tammy Neal & Tsang, Ronald C.W. & Sabol, Misty A., 2024. "Using PLS-SEM to test the relationship model of corporate social performance across the product/service continuum: When do shared values matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    14. Jauhari, Hemang & Kumar, Manish & Pandey, Jayesh, 2024. "Impact of transformational leadership on service delivery behaviours of frontline service employees," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    15. Kuho Lin & Michael Y.‐P. Peng & Muhammad Khalid Anser & Zahid Yousaf & Arshian Sharif, 2021. "Bright harmony of environmental management initiatives for achieving corporate social responsibility authenticity and legitimacy: Glimpse of hotel and tourism industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 640-647, March.
    16. Divya S & B. Prabu Christopher, 2024. "A decadal review of organizational identification: insights from bibliometric analysis and content analysis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-21, December.
    17. Kai Hockerts, 2015. "A Cognitive Perspective on the Business Case for Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 102-122, February.
    18. Zana Prutina & Dzevad Sehic, 2016. "Employees’ Perceptions Of Corporate Social Responsibility: A Case Study Of Award Recipient," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 25(1), pages 239-260, june.
    19. Canale, Fernanda & Müller, Claudio & Laveren, Eddy & Cambré, Bart, 2024. "The role of the family and the institutional context for ambidexterity in Latin American family firms," Journal of Family Business Strategy, Elsevier, vol. 15(1).
    20. Daniel Schulze & Kathrin Heinitz & Timo Lorenz, 2018. "Comparative organizational research starts with sound measurement: Validity and invariance of Turker’s corporate social responsibility scale in five cross-cultural samples," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-15, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10224-:d:1527060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.