Unpacking CSR in women-owned SMEs: Innovation and competitive advantage as pathways to performance

Abstract

This research examines the impact of corporate social responsibility (CSR) on innovation (IN) and business performance (BP), emphasizing the mediating effects of innovation and competitive advantage (CA). Additionally, it investigates how innovation orientation (IO) directly influences IN and moderates the connection between CSR directed at employees and innovation. Data was gathered from 688 managers of women-owned small and medium-sized enterprises (SMEs) in Vietnam. The findings indicate that CSR initiatives aimed at employees, customers, suppliers, and the environment significantly boost IN within women-owned SMEs. Among these, CSR directed at customers shows the strongest impact, while environmental responsibility has the weakest. IN, in turn, significantly contributes to CA and BP. Both IN and CA mediate the link between CSR and BP. Additionally, IO not only promotes IN but also strengthens the effect of CSR toward employees on IN. These findings provide valuable insights into how CSR initiatives and IO drive performance and competitiveness in women-led SMEs in emerging markets.