Abstract
Previous studies have largely ignored the role of small and medium-sized businesses (SMEs) and instead concentrated on corporate social responsibility (CSR) in large corporations. In the developing Chinese economy, promoting responsible behavior among manufacturing SMEs has taken on greater significance. Using mixed-level probit regression and qualitative comparative analysis, this study examines data from Chinese SMEs between 2010 and 2018. Results show that worker productivity has a positive impact on how public spending and R&D spending are related. The study reveals a wide range of relationships between various SME categories. Results show that public spending and R&D significantly contribute to the economic expansion of Chinese SMEs. Pre-crisis financial flexibility, which has little impact on R&D employment flexibility during a crisis, also undermines the positive relationship between increased R&D flexibility and post-crisis business performance. These observations clarify how SMEs participate in international R&D and highlight opportunities and management challenges.
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