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Social Responsibility and Performance: Does Strategic Orientation Matter for Small Businesses?

Author

Listed:
  • Mehran Nejati
  • Ali Quazi
  • Azlan Amran
  • Noor Hazlina Ahmad

Abstract

This paper examines whether strategic orientation toward corporate social responsibility (CSR) is instrumental in shaping small firms’ social responsibility practices leading to their enhanced financial performance and reputation. Data were collected from 182 small businesses operating in Malaysia based on random sampling technique and analyzed using Partial Least Squares Structural Equation Modeling. Analysis of the findings confirm that small firms’ long‐term strategic approach toward CSR is critical in driving their responsible practices toward environment, customer, community, employees, and suppliers which in turn impact small firms’ financial performance and better reputation building. These findings suggest that customers' and employees’ interests are strategic imperatives that small firms should address in enhancing their financial performance and building better reputation in the community. These findings have important implications for small firms’ strategic policy posture which are highlighted in the paper. The paper also identifies the possible limits of the research and suggests avenues for future studies.

Suggested Citation

  • Mehran Nejati & Ali Quazi & Azlan Amran & Noor Hazlina Ahmad, 2017. "Social Responsibility and Performance: Does Strategic Orientation Matter for Small Businesses?," Journal of Small Business Management, Taylor & Francis Journals, vol. 55(S1), pages 43-59, December.
    • Handle: RePEc:taf:ujbmxx:v:55:y:2017:i:s1:p:43-59
    DOI: 10.1111/jsbm.12305
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    Citations

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    Cited by:

    1. Johan Lindeque & Olga Samuel & Corin Kraft, 2022. "Small Businesses’ Social Responsibility and Political Activity Survey Studies: A Review, Synthesis, and Research Agenda," SAGE Open, , vol. 12(2), pages 21582440221, April.
    2. Maria Uzhegova & Lasse Torkkeli, 2023. "Business responsibility and effectuation in internationalized SMEs," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 47-69, March.
    3. Laura Broccardo & Elisa Truant & Lèo‐Paul Dana, 2023. "The sustainability orientation in the wine industry: An analysis based on age as a driver," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1300-1313, May.
    4. Abdullah Abdulaziz-Alhumaidan & Mohammad Jamal Khan, 2024. "The Effect of Ethical Strategy and Innovation on Economic Performance: a Study on Tunisian B2B Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2589-2606, March.
    5. Yongyi Shou & Xueshu Shan & Jinan Shao & Kee-hung Lai & Qing Zhou, 2024. "How Do Foreign SMEs Mitigate Violent Conflict Risk by Doing Good? An Instrumental Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 192(2), pages 407-422, June.
    6. Diaz Restrepo, Carlos Andres & Patiño, Mónica & Duque, Pedro & Cervantes Cervantes, Luis Salvador & Franco Rivera , Andrea, 2023. "Rendimiento financiero en pequeñas y medianas empresas (pymes): un análisis bibliométrico de la producción científica," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 42(75), pages 45-80, January.
    7. Mehran Nejati & Azadeh Shafaei, 2023. "Why do employees respond differently to corporate social responsibility? A study of substantive and symbolic corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2066-2080, July.
    8. Leonidou, Leonidas C. & Eteokleous, Pantelitsa P. & Christodoulides, Paul & Strømfeldt Eduardsen, Jonas, 2023. "A dynamic capabilities perspective to socially responsible family business: Implications on social-based advantage and market performance," Journal of Business Research, Elsevier, vol. 155(PA).

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