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

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.

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.

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.

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.

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.