Entrepreneurial orientation and CSR: a dynamic capability in the corporate performance of Mexican SMEs

Abstract

In the current business context, SMEs play a determining role for most regions. For this reason, more and more companies are adopting business strategies that lead them to maintain and increase their competitiveness. Two of these strategies are Entrepreneurial Orientation (EO) and Corporate Social Responsibility (CSR). The purpose of the study is to observe the effects that the EO has on the CSR and on the Corporate Performance (CPERF). In addition, it seeks to determine if the CSR has significant effects on the Corporate Performance, and it has also been proposed to examine the mediating effect that the CSR has between the variable EO and Corporate Performance. The study analyzes a sample of 488 trade and service SMEs from the Northwest region in Mexico. The information was collected through a self-directed survey of the manager of each SME from May to September 2018. For the analysis of the data, the statistical technique PLS-SEM was used (partial least squares structural equation modeling). The results report that EO has a strong significant effect on CSR and also on the Corporate Performance of SMEs. Furthermore, the results have corroborated that CSR is a mediating variable between EO and Corporate Performance. The study contributes to the development of the theory of Dynamic Capabilities and of Stakeholders, corroborating that SMEs that adopt EO and CSR can lead them to the permanent adoption of sustainable entrepreneurship and the improvement of their corporate performance results.

Effect of CSR Implementation and Crisis Events in Business on the Financial Management of Smes

“…Moreover, Valdez-Juárez et al (2021) sees CSR as one of the two business strategies currently being adopted to maintain and increase the competitiveness of SMEs. They consider entrepreneurial orientation (EO) as the other key business strategy that has a significant impact on CSR as well as on the business performance of SMEs.…”

Enhancing social responsibility and resilience through entrepreneurship and digital environment

“…Overall, DCT suggests that an employer's organisation can be a powerful driver of CSR by enabling companies to develop dynamic capabilities aligned with social and environmental objectives. By leveraging EO, a company can create long‐term value for its stakeholders, while enhancing its reputation, competitive advantage and overall sustainability (Valdez‐Juárez et al, 2021).…”

Impact of entrepreneurial leadership on supply chain performance: the mediating role of supply chain resilience

“…EL helps the firm to learn new ideas, and development of new products and services (Aslam et al, 2020;Cai et al, 2019), which results in making the firm resilient to withstand and adapt to the changes present due to the uncertain environment and further results in gaining competitive advantage (Liu et al, 2018). EL as a dynamic capability (Valdez-Ju arez et al, 2021;Sijabat et al, 2021;Teece, 2012), improves explorative and exploitative learning simultaneously, explorative learning helps the firm with new product development and exploitative learning helps with the efficient utilization of resources (Wu et al, 2021). This helps firms to remain flexible and adaptive, resulting in positively affecting firm performance.…”