Cahyaningati, Retno, Chandrarin, Grahita ORCID: https://orcid.org/0000-0002-7024-1315, Harmono, Harmono ORCID: https://orcid.org/0000-0002-1933-5017 and Cahyaningsih, Diyah Sukanti ORCID: https://orcid.org/0000-0002-9810-5075 (2024) Effect of Corporate Social Responsibility on the Performance of Indonesian MSMEs Model Mediation of Innovation and Moderation of Competitiveness. In: Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), 9-10 October 2023, Lumajang, Indonesia (Hybrid).

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Abstract

This study examines the relationship between CSR and MSME performance, using innovation as a mediator and competitiveness as a moderator. It collected primary data from 161 MSMEs across 15 districts in Indonesia and employed Smart PLS 3 for data analysis. The findings highlight several key points. First, CSR has a positive influence on MSME performance. Second, innovation significantly contributes to enhancing MSME performance. Third, innovation plays a mediating role in the impact of CSR on MSME performance. Furthermore, competitiveness acts as a moderator, strengthening the connection between CSR and MSME performance.The study’s contributions are noteworthy. It provides a conceptual framework for understanding CSR practices in Indonesian MSMEs, an area previously underexplored. It also empirically validates the role of innovation as a mediator in the CSR-MSME performance relationship. Additionally, the study delves into the importance of competitiveness in amplifying the effects of CSR on MSME performance. By shedding light on these relationships, the research complements and strengthens previous findings regarding the influence of CSR on MSME performance.

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