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Corporate social responsibility and firm performance of Ghanaian SMEs: The role of stakeholder engagement

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  • Abraham Ansong

Abstract

This paper aims to examine the influence of corporate social responsibility (CSR) on financial performance of small- and medium-sized enterprises (SMEs) in Ghana by using stakeholder engagement as a mediating variable. Primary data were collected from 423 SMEs within the Accra Metropolis. Partial least squares estimation technique was used to analyze the data. The study documented evidence for a mechanism through which CSR results in financial performance of firms: SMEs with improved CSR practices are better positioned to engage more with their stakeholders, which translates into improved financial performance. It was recommended that for SMEs to improve upon their CSR practices, which will eventually result in enhanced financial performance, stakeholder engagement should be a major part of their operations. The paper contributes to our knowledge on how CSR practices lead to financial performance of SMEs in developing countries. In addition, this is the first of its kind to establish the relationship between CSR practices and financial performance of SMEs in Ghana by using stakeholder engagement as a mediating factor.

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  • Abraham Ansong, 2017. "Corporate social responsibility and firm performance of Ghanaian SMEs: The role of stakeholder engagement," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1333704-133, January.
    • Handle: RePEc:taf:oabmxx:v:4:y:2017:i:1:p:1333704
    DOI: 10.1080/23311975.2017.1333704
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    1. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    2. Anteneh Mulugeta Eyasu & Demoz Arefayne, 2020. "The effect of corporate social responsibility on banks’ competitive advantage: Evidence from Ethiopian lion international bank S.C," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1830473-183, January.
    3. Peter Ansu-Mensah & Emmanuel Opoku Marfo & Lyon Salia Awuah & Kwame Oduro Amoako, 2021. "Corporate social responsibility and stakeholder engagement in Ghana’s mining sector: a case study of Newmont Ahafo mines," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-22, December.
    4. Rafael Becerra-Vicario & Daniel Ruiz-Palomo & Ana León-Gómez & José Manuel Santos-Jaén, 2023. "The Relationship between Innovation and the Performance of Small and Medium-Sized Businesses in the Industrial Sector: The Mediating Role of CSR," Economies, MDPI, vol. 11(3), pages 1-18, March.
    5. José Manuel Santos‐Jaén & Antonia Madrid‐Guijarro & Domingo García‐Pérez‐de‐Lema, 2021. "The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1200-1215, July.
    6. Abraham Ansong, 2017. "Corporate social responsibility and access to finance among Ghanaian SMEs: The role of stakeholder engagement," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1385165-138, January.
    7. Fernando Gimeno-Arias & José Manuel Santos-Jaén & Mercedes Palacios-Manzano & Héctor Horacio Garza-Sánchez, 2021. "Using PLS-SEM to Analyze the Effect of CSR on Corporate Performance: The Mediating Role of Human Resources Management and Customer Satisfaction. An Empirical Study in the Spanish Food and Beverage Man," Mathematics, MDPI, vol. 9(22), pages 1-21, November.
    8. Rilla Gantino, 2020. "Leadership Style, Intellectual Capital and Corporate Social Responsibility on Performance, a Comparison Model of Listed Companies in Indonesia," GATR Journals afr192, Global Academy of Training and Research (GATR) Enterprise.
    9. Bijay Sigdel & Fuangfa Amponstira, 2020. "Effect of Corporate Social Responsibility on Firms Profitability: A Study on Small and Medium Enterprises in Pokhara City, Nepal," International Business Research, Canadian Center of Science and Education, vol. 13(10), pages 1-76, October.

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