Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs
This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for S...
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| Format: | Article |
| Language: | English |
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Elsevier
2020-12-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2199-8531/7/1/6 |
| _version_ | 1827776129971257344 |
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| author | Nor Hadi Udin Udin |
| author_facet | Nor Hadi Udin Udin |
| author_sort | Nor Hadi |
| collection | DOAJ |
| description | This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered. |
| first_indexed | 2024-03-11T13:59:56Z |
| format | Article |
| id | doaj.art-133d6f814af3497e9b7855bdac7d5df8 |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-11T13:59:56Z |
| publishDate | 2020-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-133d6f814af3497e9b7855bdac7d5df82023-11-02T04:53:06ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312020-12-0176610.3390/joitmc7010006Testing the Effectiveness of CSR Dimensions for Small Business EntrepreneursNor Hadi0Udin Udin1Faculty of Economics and Islamic Business, Institut Agama Islam Negeri Kudus, Jawa Tengah 59322, IndonesiaBusiness and Economic Faculty, Universitas Muhammadiyah Yogyakarta, Daerah Istimewa Yogyakarta 55183, IndonesiaThis article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered.https://www.mdpi.com/2199-8531/7/1/6social responsibilitylegitimacySMEspartnershipsempowering |
| spellingShingle | Nor Hadi Udin Udin Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs Journal of Open Innovation: Technology, Market and Complexity social responsibility legitimacy SMEs partnerships empowering |
| title | Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs |
| title_full | Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs |
| title_fullStr | Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs |
| title_full_unstemmed | Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs |
| title_short | Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs |
| title_sort | testing the effectiveness of csr dimensions for small business entrepreneurs |
| topic | social responsibility legitimacy SMEs partnerships empowering |
| url | https://www.mdpi.com/2199-8531/7/1/6 |
| work_keys_str_mv | AT norhadi testingtheeffectivenessofcsrdimensionsforsmallbusinessentrepreneurs AT udinudin testingtheeffectivenessofcsrdimensionsforsmallbusinessentrepreneurs |