Strategic CSR Practices and Sustainability in Bangladesh’s Manufacturing SMEs: A Multimethod Analytical Approach

This study investigates how corporate social responsibility (CSR) practices influence sustainable business performance (SBP) in Bangladesh’s manufacturing small and medium-sized enterprises (SMEs). Drawing on data collected from 510 SMEs across six industrial sectors. The research employs a multi-method analytical framework comprising partial least squares structural equation modeling (PLS-SEM), fuzzy-set qualitative comparative analysis (fsQCA), and machine learning (ML) algorithms. Findings confirm that economic, environmental, and ethical CSR practices are key drivers of business sustainability. Legal and philanthropic CSR show moderate influence, while social CSR has limited effects. fsQCA reveals multiple effective CSR combinations that can lead to sustainability. ML results highlight environmental CSR as the strongest predictor of business performance. SME leaders are encouraged to integrate core CSR dimensions within strategic business planning. This research contributes methodologically by integrating statistical, configurational, and predictive techniques. The hybrid approach enhances understanding of CSR’s dual explanatory and predictive capabilities. Nevertheless, it supports strategic planning by offering a practical and adaptable CSR decision framework. This study extends CSR literature with empirical evidence tailored to developing-economy SMEs.