The effect of supply chain corporate social responsibility (CSR) program on small business innovation through entrepreneurial orientation

Abstract

This research aimed to examine the effect of the model of Corporate Social Responsibility (CSR) Programs on SME Innovation (SI) by involving Entrepreneurial Orientation (EO) as the mediating variable. This quantitative research used a Structural Equation Model (SEM) analysis technique with SEM-PLS 3.2.9 software. Respondents in this research were small businesses as mitra binaan of the Oil and Gas SOE in Wast Java Province, consisting of 87 small businesses or enterprises engaged in fashion, food, beverages, toys, and educational props. Sampling was done using a purposive random sampling technique. The results showed that CSR programs had a significant direct effect on Entrepreneurial Orientation and SME Innovations. It was also found that Entrepreneurial Orientation was significantly and directly correlated with SME Innovations. CSR programs had a significant indirect effect on SME Innovations through Entrepreneurial Orientation. The study confirmed that CSR programs impacted SME Innovations by involving entrepreneurial orientation to strengthen the influence of CSR programs on small businesses.