IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i8p1300-d105931.html
   My bibliography  Save this article

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

Author

Listed:
  • 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, Open Access Journal, vol. 9(8), pages 1-19, July.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1300-:d:105931
    as

    Download full text from publisher

    File URL: http://www.mdpi.com/2071-1050/9/8/1300/pdf
    Download Restriction: no

    File URL: http://www.mdpi.com/2071-1050/9/8/1300/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Manuel Branco & Lúcia Rodrigues, 2006. "Corporate Social Responsibility and Resource-Based Perspectives," Journal of Business Ethics, Springer, vol. 69(2), pages 111-132, December.
    2. Dwyer, Sean & Richard, Orlando C. & Chadwick, Ken, 2003. "Gender diversity in management and firm performance: the influence of growth orientation and organizational culture," Journal of Business Research, Elsevier, vol. 56(12), pages 1009-1019, December.
    3. Supriti Mishra & Damodar Suar, 2010. "Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?," Journal of Business Ethics, Springer, vol. 95(4), pages 571-601, September.
    4. Johan Graafland & Corrie Mazereeuw-Van der Duijn Schouten, 2012. "Motives for Corporate Social Responsibility," De Economist, Springer, vol. 160(4), pages 377-396, December.
    5. repec:gam:jsusta:v:8:y:2016:i:1:p:81:d:62296 is not listed on IDEAS
    6. Heledd Jenkins, 2006. "Small Business Champions for Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 67(3), pages 241-256, September.
    7. Duygu Turker, 2009. "How Corporate Social Responsibility Influences Organizational Commitment," Journal of Business Ethics, Springer, vol. 89(2), pages 189-204, October.
    8. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2012. "Capabilities, Proactive CSR and Financial Performance in SMEs: Empirical Evidence from an Australian Manufacturing Industry Sector," Journal of Business Ethics, Springer, vol. 109(4), pages 483-500, September.
    9. Elena Dobre & Georgiana Oana Stanila & Laura Brad, 2015. "The Influence of Environmental and Social Performance on Financial Performance: Evidence from Romania’s Listed Entities," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-41, March.
    10. Bernhardt, Kenneth L. & Donthu, Naveen & Kennett, Pamela A., 2000. "A Longitudinal Analysis of Satisfaction and Profitability," Journal of Business Research, Elsevier, vol. 47(2), pages 161-171, February.
    11. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    12. Geert Demuijnck & Hubert Ngnodjom, 2013. "Responsibility and Informal CSR in Formal Cameroonian SMEs," Journal of Business Ethics, Springer, vol. 112(4), pages 653-665, February.
    13. Belaid Rettab & Anis Brik & Kamel Mellahi, 2009. "A Study of Management Perceptions of the Impact of Corporate Social Responsibility on Organisational Performance in Emerging Economies: The Case of Dubai," Journal of Business Ethics, Springer, vol. 89(3), pages 371-390, October.
    14. Xiping Pan & Jinghua Sha & Hongliang Zhang & Wenlan Ke, 2014. "Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms," Sustainability, MDPI, Open Access Journal, vol. 6(7), pages 1-25, June.
    15. Salaheldin Ismail Salaheldin, 2009. "Critical success factors for TQM implementation and their impact on performance of SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 58(3), pages 215-237, March.
    16. Chin-Shien Lin & Ruei-Yuan Chang & Van Thac Dang, 2015. "An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance," Sustainability, MDPI, Open Access Journal, vol. 7(7), pages 1-20, June.
    17. Progress Choongo & Elco Van Burg & Leo J. Paas & Enno Masurel, 2016. "Factors Influencing the Identification of Sustainable Opportunities by SMEs: Empirical Evidence from Zambia," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-24, January.
    18. Hall, Jeremy K. & Daneke, Gregory A. & Lenox, Michael J., 2010. "Sustainable development and entrepreneurship: Past contributions and future directions," Journal of Business Venturing, Elsevier, vol. 25(5), pages 439-448, September.
    19. Geoff Moore & Laura Spence, 2006. "Editorial: Responsibility and Small Business," Journal of Business Ethics, Springer, vol. 67(3), pages 219-226, September.
    20. repec:gam:jsusta:v:8:y:2016:i:1:p:-:d:62296 is not listed on IDEAS
    21. Martine Spence & Jouhaina Ben Boubaker Gherib & Viviane Ondoua Biwolé, 2011. "Sustainable Entrepreneurship: Is Entrepreneurial will Enough? A North–South Comparison," Journal of Business Ethics, Springer, vol. 99(3), pages 335-367, March.
    22. José Allouche & Patrice Laroche, 2005. "A Meta-analytical investigation of the relationship between corporate social and financial performance," Post-Print hal-00923906, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:12:p:2171-:d:120307 is not listed on IDEAS
    2. repec:gam:jsusta:v:9:y:2017:i:11:p:2121-:d:119383 is not listed on IDEAS

    More about this item

    Keywords

    CSR; firm performance; longitudinal design; SMEs; developing country; Africa; Zambia;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:9:y:2017:i:8:p:1300-:d:105931. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: http://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.