HOW MANAGERIAL CSR PERCEPTION INFLUENCES THE BUSINESS SUCCESS OF SMALL MEDIUM ENTERPRISES IN HO CHI MINH CITY
DOI:
https://doi.org/10.62985/j.huit_ojs.vol26.no3E.565Keywords:
Managerial CSR Perception, environmental, philanthropic, competitive advantage, business success.Abstract
This study examines the relationships between managerial corporate social responsibility perception (MCP), environmental and philanthropical CSR practices, firm competitive advantage, and business success. Drawing on stakeholder theory and the resource-based view, the research proposes that CSR-related managerial perceptions influence business success both directly and indirectly through CSR practices and firm competitive advantage. Using partial least squares structural equation modeling (PLS-SEM), data were analyzed to test the proposed direct and mediating relationships. The results indicate that MCP has significant positive effects on environmental CSR practices, philanthropical CSR practices, firm competitive advantage, and business success. Both environmental and philanthropical CSR practices are found to positively enhance firm competitive advantage, which in turn exerts a strong effect on business success. Mediation analysis further reveals that firm competitive advantage plays a crucial mediating role in the relationships between CSR practices and business success. Moreover, the findings confirm significant sequential mediation effects, whereby MCP influences business success through CSR practices and firm competitive advantage. Overall, the study highlights MCP as a critical upstream driver that activates CSR engagement and translates it into sustainable competitive and performance advantages. The findings provide important theoretical contributions to CSR literature and offer practical implications for managers seeking to leverage CSR initiatives to enhance long-term business success.
References
[1] D. Jamali and Y. Sidani, “Classical vs. Modern Managerial CSR Perspectives: Insights from Lebanese Context and Cross‐Cultural Implications,” Bus. Soc. Rev., vol. 113, no. 3, pp. 329–346, Sep. 2008, doi: https://doi.org/10.1111/j.1467-8594.2008.00323.x
[2] L. Zu and L. Song, “Determinants of managerial values on corporate social responsibility: Evidence from China,” J. Bus. Ethics, vol. 88, no. Suppl 1, pp. 105–117, 2009, doi: https://doi.org/10.1007/s10551-008-9828-7
[3] S. P. Saeidi, S. Sofian, P. Saeidi, S. P. Saeidi, and S. A. Saaeidi, “How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction,” J. Bus. Res., vol. 68, no. 2, pp. 341–350, 2015, doi: https://doi.org/10.1016/j.jbusres.2014.06.024
[4] A. Gregory, J. Whittaker, and X. Yan, “Corporate social performance, competitive advantage, earnings persistence and firm value,” J. Bus. Finance Account., vol. 43, no. 1–2, pp. 3–30, 2016, doi: https://doi.org/10.1111/jbfa.12182
[5] Central Retail Vietnam, “Central Retail in Vietnam was awarded the Saigon Times CSR 2023 Certificate of Recognition for the Enterprise for the Community in 2023,” 2023. [Online]. Available: https://centralretail.com.vn/news-and-update/central-retail-in-vietnam-was-awarded-the-saigon-times-csr-2023-certificate-of-recognition-for-the-enterprise-for-the-community-in-2023/. [Accessed: Nov. 15, 2023].
[6] Stockbiz.vn, "Ho Chi Minh City economic and enterprise statistics", 2024. [Online]. Available: https://www.stockbiz.vn/. [Accessed: Nov. 15, 2025].
[7] Ho Chi Minh City Business Association (HUBA), "155 Green Businesses Achieved Green Business Status in Ho Chi Minh City in 2025,'' 2025. [Online]. Available: https://huba.vn/155-doanh-nghiep-xanh-tphcm-2025/.[Accessed: Dec. 23, 2025].
[8] M. Mackenzie and M. Peters, “Hospitality Managers’ Perception of Corporate Social Responsibility: An Explorative Study,” Asia Pac. J. Tour. Res., vol. 19, no. 3, pp. 257–272, Mar. 2014, doi: https://doi.org/10.1080/10941665.2012.742915
[9] F. Gangi, M. Mustilli, and N. Varrone, “The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry,” J. Knowl. Manag., vol. 23, no. 1, pp. 110–134, 2019, doi: https://doi.org/10.1108/JKM-04-2018-0267
[10] M. A. Moliner, D. Monferrer Tirado, and M. Estrada-Guillén, “CSR marketing outcomes and branch managers’ perceptions of CSR,” Int. J. Bank Mark., vol. 38, no. 1, pp. 63–85, 2020, doi: https://doi.org/10.1108/IJBM-11-2018-0307
[11] M. J. Maloni and M. E. Brown, “Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry,” J. Bus. Ethics, vol. 68, no. 1, pp. 35–52, Oct. 2006, doi: https://doi.org/10.1007/s10551-006-9038-0
[12] M. Castillo, “Managing corporate social responsibility through social learning,” Glob. Bus. Organ. Excell., vol. 42, no. 1, pp. 10–21, Nov. 2022, doi: https://doi.org/10.1002/joe.22170
[13] C. L. Murillo‐Avalos, M. Cubilla‐Montilla, M. Á. Celestino Sánchez, and P. Vicente‐Galindo, “What environmental social responsibility practices do large companies manage for sustainable development?,” Corp. Soc. Responsib. Environ. Manag., vol. 28, no. 1, pp. 153–168, Jan. 2021, doi: https://doi.org/10.1002/csr.2039
[14] Q. Thi and P. L. Van, “Consumers’ perception towards corporate social responsibility and repurchase intention: A study of consumer industry in Vietnam,” Ind. Eng. Manag. Syst., vol. 15, no. 2, pp. 173–180, 2016, doi: https://doi.org/10.7232/iems.2016.15.2.173
[15] H. N. T. Trang and L. S. Yekini, “Investigating the link between CSR and financial performance: Evidence from Vietnamese listed companies,” Br. J. Arts Soc. Sci., vol. 17, no. 1, pp. 85–101, 2014. [Online]. Available: https://derby-repository.worktribe.com/output/793256
[16] M. Nguyen and M. Truong, “The effect of culture on enterprise’s perception of corporate social responsibility: The case of Vietnam,” Procedia Cirp, vol. 40, pp. 680–686, 2016, doi: https://doi.org/10.1016/j.procir.2016.01.154
[17] J. Galbreath, “Drivers of Corporate Social Responsibility: the Role of Formal Strategic Planning and Firm Culture,” Br. J. Manag., vol. 21, no. 2, pp. 511–525, Jun. 2010, doi: https://doi.org/10.1111/j.1467-8551.2009.00633.x
[18] H. Chun, “Does corporate philanthropic giving reduce analyst earnings dispersion? Evidence from Korea,” Corp. Soc. Responsib. Environ. Manag., vol. 26, no. 4, pp. 956–964, Jul. 2019, doi: https://doi.org/10.1002/csr.1735
[19] J. L. Peifer and D. T. Newman, “Making the business case for corporate social responsibility and perceived trustworthiness: A cross‐stakeholder analysis,” Bus. Soc. Rev., vol. 125, no. 2, pp. 161–181, Jun. 2020, doi: https://doi.org/10.1111/basr.12210
[20] M. S. Blodgett, R. Hoitash, and A. Markelevich, “Sustaining the Financial Value of Global CSR : Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment,” Bus. Soc. Rev., vol. 119, no. 1, pp. 95–124, Mar. 2014, doi: https://doi.org/10.1111/basr.12026
[21] W. Cheffi, C. Malesios, A. Abdel‐Maksoud, S. Abdennadher, and P. Dey, “Corporate social responsibility antecedents and practices as a path to enhance organizational performance: The case of small and medium sized enterprises in an emerging economy country,” Corp. Soc. Responsib. Environ. Manag., vol. 28, no. 6, pp. 1647–1663, Nov. 2021, doi: https://doi.org/10.1002/csr.2135
[22] W. H. El-Garaihy, A.-K. M. Mobarak, and S. A. Albahussain, “Measuring the impact of corporate social responsibility practices on competitive advantage: A mediation role of reputation and customer satisfaction,” Int. J. Bus. Manag., vol. 9, no. 5, p. 109, 2014, doi: https://doi.org/10.5539/ijbm.v9n5p109
[23] R. B. Nyuur, D. F. Ofori, and M. M. Amponsah, “Corporate social responsibility and competitive advantage: A developing country perspective,” Thunderbird Int. Bus. Rev., vol. 61, no. 4, pp. 551–564, Jul. 2019, doi: https://doi.org/10.1002/tie.22065
[24] F. Bhuiyan, T. Rana, K. Baird, and R. Munir, “Strategic outcome of competitive advantage from corporate sustainability practices: Institutional theory perspective from an emerging economy,” Bus. Strategy Environ., vol. 32, no. 7, pp. 4217–4243, Nov. 2023, doi: https://doi.org/10.1002/bse.3362
[25] K. R. Bhandari, M. Ranta, and J. Salo, “The resource‐based view, stakeholder capitalism, ESG, and sustainable competitive advantage: The firm’s embeddedness into ecology, society, and governance,” Bus. Strategy Environ., vol. 31, no. 4, pp. 1525–1537, May 2022, doi: https://doi.org/10.1002/bse.2967
[26] S. Z. Khan, Q. Yang, and A. Waheed, “Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance,” Corp. Soc. Responsib. Environ. Manag., vol. 26, no. 2, pp. 285–295, Mar. 2019, doi: https://doi.org/10.1002/csr.1678
[27] F. J. De Graaf, “CSR as Value Attunement within Governance Processes: Stakeholder Dialogue, Corporate Principles and Regulation,” Bus. Soc. Rev., vol. 121, no. 3, pp. 365–390, Sep. 2016, doi: https://doi.org/10.1111/basr.12091
[28] A. Al Fadli, J. Sands, G. Jones, C. Beattie, and D. Pensiero, “The influence of ownership structure on the extent of CSR reporting: An emerging market study,” Bus. Soc. Rev., vol. 127, no. 3, pp. 725–754, Sep. 2022, doi: https://doi.org/10.1111/basr.12286
[29] Y. Gong, C. Yan, and K. Ho, “The effect of managerial ability on corporate social responsibility and firm value in the energy industry,” Corp. Soc. Responsib. Environ. Manag., vol. 28, no. 2, pp. 581–594, Mar. 2021, doi: https://doi.org/10.1002/csr.2070
[30] F. J. De Graaf, “CSR processes in governance systems and structures: The development of mental modes of CSR,” Bus. Soc. Rev., vol. 124, no. 4, pp. 431–448, Dec. 2019, doi: https://doi.org/10.1111/basr.12183
[31] X. Kang, “Corporate social responsibility at the intersection of state and market: CSR interpretation in China,” Bus. Soc. Rev., vol. 130, no. 2, pp. 233–259, Jun. 2025, doi: https://doi.org/10.1111/basr.70011
[32] I. García‐Sánchez, N. Hussain, S. A. Khan, and J. Martínez‐Ferrero, “Managerial entrenchment, corporate social responsibility, and earnings management,” Corp. Soc. Responsib. Environ. Manag., vol. 27, no. 4, pp. 1818–1833, Jul. 2020, doi: https://doi.org/10.1002/csr.1928
[33] D. Turker, “Measuring Corporate Social Responsibility: A Scale Development Study,” J. Bus. Ethics, vol. 85, no. 4, pp. 411–427, Apr. 2009, doi: https://doi.org/10.1007/s10551-008-9780-6
[34] A. J. Hoffman, C. J. Corbett, N. Joglekar, and P. Wells, “Industrial Ecology as a Source of Competitive Advantage,” J. Ind. Ecol., vol. 18, no. 5, pp. 597–602, Oct. 2014, doi: https://doi.org/10.1111/jiec.12196
[35] R. Bashir, M. F. Chishti, I. Khan, N. R. Khan, M. R. Khan, and A. M. Ghouri, “The role of environmental, social and governance practices and green innovation in enhancing firm financial performance,” Discov. Sustain., vol. 6, no. 1, p. 1445, Dec. 2025, doi: https://doi.org/10.1007/s43621-025-02246-x
[36] I. Shafique, M. N. Kalyar, and N. Mehwish, “Organizational ambidexterity, green entrepreneurial orientation, and environmental performance in SMES context: Examining the moderating role of perceived CSR,” Corp. Soc. Responsib. Environ. Manag., vol. 28, no. 1, pp. 446–456, Jan. 2021, doi: https://doi.org/10.1002/csr.2060
[37] M. Karwowski and M. Raulinajtys‐Grzybek, “The application of corporate social responsibility (CSR) actions for mitigation of environmental, social, corporate governance (ESG) and reputational risk in integrated reports,” Corp. Soc. Responsib. Environ. Manag., vol. 28, no. 4, pp. 1270–1284, Jul. 2021, doi: https://doi.org/10.1002/csr.2137
[38] W. Cha and U. Rajadhyaksha, “What do we know about corporate philanthropy? A review and research directions,” Bus. Ethics Environ. Responsib., vol. 30, no. 3, pp. 262–286, Jul. 2021, doi: https://doi.org/10.1111/beer.12341
[39] R. Cheruvalath, “Need for a shift from a philanthropic to a humanistic approach to corporate social responsibility,” Ann. Public Coop. Econ., vol. 88, no. 1, pp. 121–136, Mar. 2017, doi: https://doi.org/10.1111/apce.12146
[40] J. Theis, M. Nipper, and M. Meier, “The influence of corporate philanthropic donations on private investors’ valuation judgments: Experimental evidence,” Corp. Soc. Responsib. Environ. Manag., vol. 31, no. 1, pp. 540–554, Jan. 2024, doi: https://doi.org/10.1002/csr.2584
[41] M. Zhong, W. Zhao, and Y. Shahab, “The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID ‐19 crisis: Evidence from China,” Corp. Soc. Responsib. Environ. Manag., vol. 29, no. 2, pp. 339–355, Mar. 2022, doi: https://doi.org/10.1002/csr.2204
[42] Z. Ouyang, P. Cheng, Y. Liu, and R. Yang, “Institutional drivers for corporate philanthropic activities in China: Mediating roles of top management participation,” Corp. Soc. Responsib. Environ. Manag., vol. 27, no. 1, pp. 244–255, Jan. 2020, doi: https://doi.org/10.1002/csr.1796
[43] M. Vilanova, J. M. Lozano, and D. Arenas, “Exploring the Nature of the Relationship Between CSR and Competitiveness,” J. Bus. Ethics, vol. 87, no. S1, pp. 57–69, Apr. 2009, doi: https://doi.org/10.1007/s10551-008-9812-2
[44] F. Testa, O. Boiral, and I. Heras-Saizarbitoria, “Improving CSR performance by hard and soft means: The role of organizational citizenship behaviors and the internalization of CSR standards,” Corp. Soc. Responsib. Environ. Manag., vol. 25, no. 5, pp. 853–865, 2018, doi: https://doi.org/10.1002/csr.1502
[45] J. M. Price and W. Sun, “Doing good and doing bad: The impact of corporate social responsibility and irresponsibility on firm performance,” J. Bus. Res., vol. 80, pp. 82–97, 2017, doi: https://doi.org/10.1016/j.jbusres.2017.07.007
[46] J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM,” Eur. Bus. Rev., vol. 31, no. 1, pp. 2–24, 2019.
[47] M. Sarstedt, C. M. Ringle, and J. F. Hair, “Partial Least Squares Structural Equation Modeling,” in Handbook of Market Research, C. Homburg, M. Klarmann, and A. Vomberg, Eds., Cham: Springer International Publishing, 2022, pp. 587–632, doi: https://doi.org/10.1007/978-3-319-57413-4_15
[48] A. Alvarado-Herrera, E. Bigne, J. Aldas-Manzano, and R. Curras-Perez, “A Scale for Measuring Consumer Perceptions of Corporate Social Responsibility Following the Sustainable Development Paradigm,” J. Bus. Ethics, vol. 140, no. 2, pp. 243–262, Jan. 2017, doi: https://doi.org/10.1007/s10551-015-2654-9
[49] C. Fornell and D. F. Larcker, “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,” J. Mark. Res., vol. 18, no. 1, pp. 39–50, Feb. 1981, doi: http://doi.org/10.1177/002224378101800104
[50] N. Gorovaia and D. Hussain, “From Strategy to Storefront: CSR and Brand Competitiveness in Franchise Networks,” Corp. Soc. Responsib. Environ. Manag., vol. 32, no. 4, pp. 5420–5429, Jul. 2025, doi: https://doi.org/10.1002/csr.3252
