Influence of corporate social responsibility on sustainable practices of small and medium‐sized enterprises: Implications on business performance

Abstract

Abstract The strategic approach of corporate social responsibility (CSR) can be associated with sustainable practices, being considered as a source of value creation that generates competitive advantage and superior performance for companies. This perspective notes that the use of economic, social, and environmental resources and capacities can individually contribute to improving business performance (BP). The present study analyzes the strategic influence of the economic, social, and environmental dimensions of CSR on the performance of small and medium‐sized enterprises (SMEs). Using a sample of 103 companies based in Brazil, the results indicate that SMEs can strategically use their resources and related capacities mainly for social and environmental issues, followed by the economic dimension of CSR, as an opportunity to create value and generate advantage competitive with rivals. Additionally, these three dimensions of CSR, with emphasis on the social aspect, can also provide better levels of BP in SMEs compared to competitors.