The Process of SME CSR Toward a Local Community Contributing to Firm Performance:

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  • Yokota Riu
    Faculty of Economics and Business Administration, Reitaku University
  • Tanaka Takayuki
    Faculty of Commerce, Takasaki University of Commerce

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Other Title
  • 中小企業の地域社会に対するCSR活動が業績に貢献する過程
  • 中小企業の地域社会に対するCSR活動が業績に貢献する過程 : ソーシャル・キャピタルの視点に基づく事例研究
  • チュウショウ キギョウ ノ チイキ シャカイ ニ タイスル CSR カツドウ ガ ギョウセキ ニ コウケン スル カテイ : ソーシャル ・ キャピタル ノ シテン ニ モトズク ジレイ ケンキュウ
  • A Social Capital Perspective
  • ―ソーシャル・キャピタルの視点に基づく事例研究―

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Abstract

<p>Conventional corporate social responsibility (CSR) researches employ large firms as their samples and explain the process of CSR contributing to firm performance through the stakeholder theory. Following this framework, however, it remains unclear how CSR in small and medium-sized enterprises (SMEs) toward the local community contributes to firm performance.<br>This research proposes that the mechanism of SME CSR contributing to firm performance is better understood through the social capital theory; the research also investigates the process by exploring the case of Japanese SME in the Takasaki area. The results shows that SME CSR toward the local community helped SME managers build social capital, which in turn contributed to firm performance by: 1) expanding their local network by decreasing transaction costs, 2) acquiring new managerial knowledge, 3) increasing the firm visibility in the community, and 4) fulfilling the lack of knowledge and technology inside the firm through alliances.<br>Such effects of CSR as the increased corporate images and the decreased negative impacts of corporate scandals presented in previous researches are less likely to apply to SMEs. However, this study demonstrates that SME CSR may contribute to firm performance indirectly by building social capital in the local community.</p>

Journal

  • Organizational Science

    Organizational Science 53 (1), 53-64, 2019-09-20

    The Academic Association for Organizational Science

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