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A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia

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  • Progress Choongo

    (Department of Management and Organization, Faculty of Economics and Business Administration, VU University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

Abstract

The aim of this study is to investigate the impact of corporate social responsibility on firm performance using a longitudinal design in small and medium-sized enterprises (SMEs). The reported study was conducted in a Sub-Saharan African developing country, Zambia. Data were collected from 153 entrepreneurs in two surveys and changes in CSR and firm performance measures were analysed over a 12-month period using SmartPLS structural equation modelling. The findings show that the relationship between CSR and financial performance is significant. Further, the association between CSR and the two measures of firm performance (corporate reputation and employee commitment) was only partially significant over time. We discuss the relevance of these results for entrepreneurs, researchers and policy makers in understanding the outcomes of sustainability practices in SMEs in developing countries, especially in Sub-Saharan Africa.

Suggested Citation

  • Progress Choongo, 2017. "A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia," Sustainability, MDPI, vol. 9(8), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1300-:d:105931
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    9. Florence Ngúni Mumba & Dr Mike Goma & Prof. Mpundu Mubanga, 2022. "Evaluating factors that affect Corporate Social Responsibility participation in selected Small and Medium Enterprises in Zambia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 566-576, October.
    10. Thurasamy Ramayah & Mohammad Falahat & Pedro Soto‐Acosta, 2022. "Effects of corporate social responsibility on employee commitment and corporate reputation: Evidence from a transitional economy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2006-2015, November.
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    14. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
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    16. Claudia Patricia Maldonado-Erazo & José Álvarez-García & María de la Cruz del Río-Rama & Ronny Correa-Quezada, 2020. "Corporate Social Responsibility and Performance in SMEs: Scientific Coverage," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    17. Yosra Makni Fourati & Mariam Dammak, 2021. "Corporate social responsibility and financial performance: International evidence of the mediating role of reputation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1749-1759, November.
    18. Achi, Awele & Adeola, Ogechi & Achi, Francis Chukwuedo, 2022. "CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility," Journal of Business Research, Elsevier, vol. 139(C), pages 771-781.
    19. Daniel Limones, 2020. "CSR and Firm Performance Nexus in UK: Empirical Evidence of Manufacturing Sector," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 9(2), pages 64-72.
    20. Fan Fan, 2023. "Brand, Quality, and CSR: Which Management Strategy Achieves High Financial Performance for Agricultural Small-Medium Enterprises?," SAGE Open, , vol. 13(4), pages 21582440231, December.
    21. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    22. Babatunji Samuel Adedeji & Md Uzir Hossain Uzir & Mohammad Mizanur Rahman & Ishraq Jerin, 2019. "Corporate Governance and Non-financial Performance of Medium-sized Firms in Nigeria: A CB-SEM Approach," Indian Journal of Corporate Governance, , vol. 12(2), pages 156-168, December.
    23. Francesco Caputo & Luca Carrubbo & Debora Sarno, 2018. "The Influence of Cognitive Dimensions on the Consumer-SME Relationship: A Sustainability-Oriented View," Sustainability, MDPI, vol. 10(9), pages 1-19, September.
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    25. Andersén, Jim, 2021. "A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms," Technovation, Elsevier, vol. 104(C).

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