Organizational Learning and Corporate Social Responsibility Drivers of Performance in SMEs in Northwestern Mexico

Abstract

The main objective of this article is to examine the effects of the organizational learning and corporate social responsibility (social, economic and environmental) practices that exert on the financial performance of SMEs (small and medium enterprises). The research is based on a sample of 343 companies of which 19.8% belong to the primary sector, 26.6% to the secondary sector and 53.6% to the tertiary sector of the northwestern region of Mexico. The data were collected from February to May 2018 with the support of a self-directed structured survey of company managers. For the analysis and validation of the results, the statistical technique of the structural equations model (SEM) based on the variance was used to validate the structured relationships in this investigation through PLS (partial least squares). These analyses were prepared with the support of SmartPLS version 3.2.8 Professional. The results indicate that OLE (organizational learning) is a key element to strengthen CSR (corporate social responsibility) practices and increase financial performance in these types of companies, and that CSR is key to increasing financial performance. In addition, it was found that the OLE is a variable that mediates the relationship between CSR and financial performance. The work contributes to the development of the literature of organizational learning, the theory of resources and capabilities, and stakeholder theory

The effect of total quality management-enabling factors on corporate social responsibility and business performance: evidence from Vietnamese coffee firms

“…Consequently, this study's results indicated that business performance has a positive impact on CSR performance through the data of Vietnamese coffee firms. Thus, these results are consistent with the recent study of Valdez-Ju arez et al (2019), which emphasized that three aspects on the basis of the CSR definition are the key factors to increasing the business performance of SMEs in North-Western Mexico (Valdez-Ju arez et al, 2019). Reinforcing this viewpoint, as a result, business performance will increase significantly in the future, and it also will espouse all companies to continue implementing CSR initiatives.…”

“…Defining CSR depends on the specific context; thus, most scholars have attempted to explain CSR's concept based on the relationship between CSR initiatives and corporate performance. Thanks to these CSR activities, the firm can achieve positive financial benefits and sustainable financial performance (Hou, 2018;Lu et al, 2018;Valdez-Ju arez et al, 2019). Regarding the nonfinancial performance in CSR literature, there is a diversity of CSR research linked to the firms' nonfinancial benefits.…”

Performance management of SMEs: a systematic literature review for antecedents and moderators

“…Knowledge – learning antecedents is the third category. S everal studies suggest that knowledge and learning are drivers of SMEs’ performance (Ferraris et al , 2019; Valdez-Juárez et al , 2019). The fundamental concept is that learning may help firms in reducing the complexity and risks in a SME (Darroch and McNaughton, 2002).…”

The Organizational Learning Implementation to Improve Accreditation Performance at the Gayungan Health Center, Surabaya, Indonesia

“…In organizational learning, leaders must create an environment that supports all members of the organization as learners, teachers, and leaders to improve the progress of what they choose; they do that to develop the ability of employees 10,24 . A previous study revealed that there is a positive relationship between organizational learning capability elements and organizational performance 25,26 .…”