The Effect of Corporate Social Responsibility (CSR) on Increasing the Competitiveness of Small and Medium Enterprises (SMEs) in OKU Timur, Indonesia

Helisia Margahana

doi:10.29040/ijebar.v4i03.1157

Abstract

The purpose of this study is to determine whether Corporate Social Responsibility (CSR) affects the Competitiveness of Small and Medium Enterprises (SMEs). The population in this study are consumers who use e- commerce media in the South Sumatra area. The sample in this study was 200 respondents who were random samples from the Small and Medium Enterprises in South Sumatra. This study uses a survey method to see the amount of influence caused by the independent variables on the dependent variable. The independent variable examined in this study is the Corporate Social Responsibility (CSR) variable. The dependent variable in this study is the Competitiveness of Small and Medium Enterprises (SMEs). Based on the results of the study it can be seen that Corporate Social Responsibility (CSR) affects the Competitiveness of Small and Medium Enterprises (SMEs). So it can be concluded that if a business or business follows the regulations of the government, runs it and implements it based on predetermined factors, including work orientation factors, market orientation factors, and environmental orientation factors, then the business will be better known by the stakeholders and will be more competitive in the long run. Therefore SMEs must continue to consult with the government regarding CSR activities, which factors of CSR are most beneficial for all parties in business activities. SMEs must also focus on factors of price competition and competitive advantage to improve the image of SMEs and enhance competitiveness.  Corporate Social Responsibility (CSR), Competitiveness, SMEs

Highlights

In the business world, companies often deal with stakeholders
The Indonesian Chamber of Commerce and Industry noted the contribution of the MSME sector to gross domestic product (GDP) increased from initially 57.84 percent to 60.34 percent in the last five years
Corporate Social Responsibility can be done through the development of Small Medium Enterprises based on real needs that are dialogically communicated with the community, government, companies, communities, and academics

Summary

Introduction

Companies often deal with stakeholders. Stakeholders are used by business people in carrying out economic activities. Corporate Social Responsibility can be done through the development of Small Medium Enterprises based on real needs that are dialogically communicated with the community, government, companies, communities, and academics. The characteristics of Small and Medium Enterprises (SMEs) include: get ingredients to be sold, and can use simple technology so that transfer technology is easy to do, basic skills are generally owned for generations, are labor- intensive or absorb a large workforce, market opportunities are quite extensive, most of the products are absorbed in the domestic market has not been fulfilled, while others have the potential to export, involving small and medium businesses, so that it will be economically profitable. Based on the model of mind-set, this study hypothesizes that it is suspected that there is an influence of CSR advertising with its indicators of work orientation, community orientation, market orientation and environmental orientation towards the interest in increasing the competitiveness of SMEs in South Sumatra. The CFA results concluded that all research indicators can be used to measure and analyze research variables

Estimate Hasil

Findings

Competitiveness CSR OE CSR OM CSR OW CSR PC Competitive