INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON COMPETITIVE ADVANTAGEANDPROFITABILITY OF SMALL AND MEDIUMENTERPRISESIN SOUTHWEST, NIGERIA
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Date
2025
Journal Title
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Department of Business and Entrepreneurship Education.
Abstract
Corporate Social Responsibility (CSR) is considered as a performance tool for organizations,
particularly small and medium-sized enterprises (SMEs), as it improves many aspects of
performance, such as economical, social, and environmental results. It is on this premise that this
study examined the influence of corporate social responsibility (CSR) on enterprise competitiveness,
and profitability of small and medium enterprises in manufacturing sector in South-West, Nigeria.
The study adopted a descriptive survey research design. The population of the study is 14,664
comprising small and medium enterprise manufacturers registered with Small and Medium
Enterprises Development Agency of Nigeria (SMEDAN) in the south-west states, Nigeria. The
sample size for this study comprised 282 respondents who successfully completed and returned
copies of questionnaire distributed to them. The researcher used multi-stage stratified random
sampling technique. Mean and standard deviation were used to analyze research questions. The
null hypotheses were tested using Independent sample t-test at 0.05 level of significance. The
findings of the study revealed that implementation of CSR among SMEs in manufacturing sectors
were rated high in enterprise competitive advantage, and profitability. Further to this, there was no
statistically significant difference in the ratings of male and female respondents as regards the
influence of corporate social responsibility on enterprise competitive advantage of SMEs, and in
the ratings of rural and urban respondents on influence of corporate social responsibility on
profitability. Based on the findings, recommendations were proffered that SMEs should position
their CSR efforts as a unique selling proposition (USP) to widen their competitive advantage over
others, and at the same time develop mechanisms to track and measure the outcomes of their CSR
initiatives, as this will help them assess the profitability/return on investment, understand what
works, and make informed decisions about future CSR activities.
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Citation
Akinbode Sangodapo, Ademiluyi, L.F. & Mamman. J.S (2025): Influence of Corporate Social Responsibility on Competitive Advantage and profitability of small and medium enterprises in Southwest, Nigeria. KWASU Journal of the Business of Education. 5 (1); 28-37