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Corporate Social Responsibility, Green Innovation, and Firm Performance: Evidence in Small and Medium-Sized Enterprises (SMEs) in Bali Province

In: Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024)

Author

Listed:
  • I Nyoman Abdi

    (Politeknik Negeri Bali, Accounting Department)

  • Ni Made Mega Abdi Utami

    (Politeknik Negeri Bali, Accounting Department)

Abstract

Regressive nature issues (e.g., global warming and climate change) have alerted businesses throughout the world to environmental consequences. Consumers’ and businesses’ understanding of the value of nature and global competitiveness has pushed corporations to adopt environmentally friendly practices as a strategic tool promoting sustainable development and also known as corporate social responsibility (CSR). CSR is utilized as a strategic tool to grow the firm by incorporating organizational innovation (i.e., green innovation) into its ecosystem. Green innovation drives organizational competitiveness because it can reduce the firm’s ecological activities, thereby improving firm performance. This study aims to expand empirical evidence on the effect between CSR, green innovation, and firm performance (SMEs) and investigate the mediating effect between green innovation on firm performance (SMEs) in Bali Province. To collect primary data for this study, questionnaires were electronically and directly shared with SMEs. This research sample is the manager/owner of SMEs in Bali Province. The data analysis instrument used SmartPLS 4.0. The results of this study indicate that CSR directly affects firm performance (SMEs) and CSR indirectly affects firm performance (SMEs) through green innovation. Green innovation was found to partially mediate the influence of CSR and firm performance (SMEs). According to this study, SMEs managers and entrepreneurs should think about strategies like corporate social responsibility (CSR) and green innovation to boost firm performance and preserve the company’s sustainability during global uncertainty.

Suggested Citation

  • I Nyoman Abdi & Ni Made Mega Abdi Utami, 2024. "Corporate Social Responsibility, Green Innovation, and Firm Performance: Evidence in Small and Medium-Sized Enterprises (SMEs) in Bali Province," Advances in Economics, Business and Management Research, in: Anak Agung Ngurah Gde Sapteka & I Gusti Lanang Made Parwita & I Komang Wiratama & Fransiska Moi & Ko (ed.), Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024), pages 286-296, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-622-2_32
    DOI: 10.2991/978-94-6463-622-2_32
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