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Effect of Corporate Social Responsibility on the Performance of Indonesian MSMEs Model Mediation of Innovation and Moderation of Competitiveness

In: Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

Author

Listed:
  • Retno Cahyaningati

    (Institut Teknologi Dan Bisnis Widya Gama Lumajang, Accounting Program)

  • Grahita Chandrarin

    (Universitas Merdeka, Doctoral Program in Economics, Faculty of Economics and Business)

  • Harmono

    (Universitas Merdeka, Doctoral Program in Economics, Faculty of Economics and Business)

  • Diyah Sukanti Cahyaningsih

    (Universitas Merdeka, Doctoral Program in Economics, Faculty of Economics and Business)

Abstract

This study examines the relationship between CSR and MSME performance, using innovation as a mediator and competitiveness as a moderator. It collected primary data from 161 MSMEs across 15 districts in Indonesia and employed Smart PLS 3 for data analysis. The findings highlight several key points. First, CSR has a positive influence on MSME performance. Second, innovation significantly contributes to enhancing MSME performance. Third, innovation plays a mediating role in the impact of CSR on MSME performance. Furthermore, competitiveness acts as a moderator, strengthening the connection between CSR and MSME performance. The study’s contributions are noteworthy. It provides a conceptual framework for understanding CSR practices in Indonesian MSMEs, an area previously underexplored. It also empirically validates the role of innovation as a mediator in the CSR-MSME performance relationship. Additionally, the study delves into the importance of competitiveness in amplifying the effects of CSR on MSME performance. By shedding light on these relationships, the research complements and strengthens previous findings regarding the influence of CSR on MSME performance.

Suggested Citation

  • Retno Cahyaningati & Grahita Chandrarin & Harmono & Diyah Sukanti Cahyaningsih, 2023. "Effect of Corporate Social Responsibility on the Performance of Indonesian MSMEs Model Mediation of Innovation and Moderation of Competitiveness," Advances in Economics, Business and Management Research, in: Imam Abrori & Indrian Supheni & Muhammad Mudhofar & Wahyuning Murniati & Nico Irawan & Arfan Ikhsan (ed.), Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), pages 153-159, Springer.
  • Handle: RePEc:spr:advbcp:978-94-6463-346-7_29
    DOI: 10.2991/978-94-6463-346-7_29
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