Intellectual capital, corporate social responsibility and sustainable competitive performance of small and medium-sized enterprises: mediating effects of organizational innovation

Abstract

PurposeThis study aims to explore the mechanism by which intellectual capital and corporate social responsibility (CSR) influence the sustainable competitive performance of small and medium-sized enterprises (SMEs), with the mediating role of organizational innovation in an emerging economy.Design/methodology/approachThe data collection was conducted through a survey completed by 208 owners and top managers operating in the service, trading and manufacturing sector SMEs, positioned within twin cities of Pakistan. Structural equation modeling (SEM) was utilized for data analysis.FindingsThe results of the study suggest that intellectual capital and CSR have a markedly positive influence on the sustainable competitive performance of SMEs. The organizational innovation appears to mediate these relationships.Originality/valueThis study pioneers research on the links between intellectual capital, CSR organizational innovation and sustainable competitive performance of SMEs. The current research contributes to the literature by defining intellectual capital and CSR as an antecedent and organizational innovation as an intervening variable for the sustainable competitive performance of SMEs. In addition, this study underlines the significance of intellectual capital and CSR activities as valuable intangible assets for the achievement of sustainable competitive performance of SMEs.