The theory of planned behaviour and transformational leadership: an examination of corporate philanthropy among SMEs in Malaysia

Abstract

A wide body of knowledge concerning CSR has been acquired by integrating this strategy as the corporate strategy in large-scale organisations. However, CSR in SMEs has received relatively little attention despite their important role and contribution in building a nation. The data for Malaysia highlight that small and medium enterprises (SMEs) are the main driver of Malaysia's economic growth. Therefore, this study examines the determinants of the corporate philanthropic decisions of SMEs by mapping it to Ajzen's theory of planned behaviour (TPB) and Bass's transformational leadership theory. Moral obligation and government incentives are also included to provide better understanding of the research. The study was carried out using 82 questionnaires answered by the top management of SMEs. Overall, this study offers new understanding concerning the determinant factors for the engagement of SMEs in corporate philanthropy. This paper also discussed the suggestions for future study as well as the limitations.