The Role of SMEs’ Innovation and Learning Orientation in Mediating the Effect of CSR Programme on SMEs’ Performance and Competitive Advantage

Abstract

The purpose of this study is to investigate the role of SMEs’ innovation and learning orientation in mediating the effect of corporate social responsibility (CSR) programme on SMEs’ performance and competitive advantage in Malang. This research uses explorative design by distributing questionnaires on small and medium enterprises (SMEs). The analytical tool used is structural equation model (SEM). The results show that CSR programme has a significant effect on SMEs’ innovation, learning orientation and SMEs’ performance. The discussions and implications of this research contribute to the SME sector as it is proved to be able to increase SMEs’ innovation, learning orientation, SMEs’ performance and competitive advantage. This study is limited only to Malang-Indonesia SMEs receiving CSR programme assistance.