IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i22p12710-d680992.html
   My bibliography  Save this article

Unleashing the Barriers to CSR Implementation in the SME Sector of a Developing Economy: A Thematic Analysis Approach

Author

Listed:
  • Asif Mahmood

    (Department of Business Studies, Namal Institute, Mianwali 42250, Pakistan)

  • Rana Tahir Naveed

    (Department of Economics and Business Administration, Division of Management and Administrative Sciences, University of Education, Lahore 54000, Pakistan)

  • Naveed Ahmad

    (Faculty of Management Studies, University of Central Punjab, Lahore 54000, Pakistan
    Department of Management Sciences, Virtual University of Pakistan, Lahore 54000, Pakistan)

  • Miklas Scholz

    (Division of Water Resources Engineering, Department of Building and Environmental Technology, Faculty of Engineering, Lund University, P.O. Box 118, 221 00 Lund, Sweden
    Department of Civil Engineering Science, School of Civil Engineering and the Built Environment, University of Johannesburg, Kingsway Campus, P.O. Box 524, Johannesburg 2006, South Africa
    Department of Town Planning, Engineering Networks and Systems, South Ural State University, 76 Lenin Prospekt, 454080 Chelyabinsk, Russia
    Institute of Environmental Engineering, Wroclaw University of Environmental and Life Sciences, ul. Norwida 25, 50-375 Wrocław, Poland)

  • Muhammad Khalique

    (Faculty of MUST Business School, Mirpur University of Science and Technology (MUST), Mirpur 10250, Pakistan
    Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK), Taman Bendahara, Pengkalan Chepa 16100, Malaysia)

  • Mohammad Adnan

    (Swiss Business School (SBS), 8032 Kloten, Switzerland)

Abstract

The notion of corporate social responsibility (CSR) from the perspective of sustainability has been a part of the academic discussion in recent years. Different studies have also highlighted the inability of the SME sector to implement a CSR plan to achieve sustainability objectives. However, why this sector is unable to adopt CSR is something that has not been properly attended by contemporary scholars. Against this backdrop, the current study aims to explore the major barriers that inhibit SMEs from implementing CSR and sustainability measures. The current study data were collected from the senior management of different SMEs in Pakistan and were analyzed using thematic analysis to extract different patterns of themes. The results unveil that the “lack of finances” is the most critical barrier for CSR, followed by the “lack of CSR knowledge.” The implications for theory and practice are also discussed in detail.

Suggested Citation

  • Asif Mahmood & Rana Tahir Naveed & Naveed Ahmad & Miklas Scholz & Muhammad Khalique & Mohammad Adnan, 2021. "Unleashing the Barriers to CSR Implementation in the SME Sector of a Developing Economy: A Thematic Analysis Approach," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12710-:d:680992
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/22/12710/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/22/12710/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Catalina Sitnikov & Claudiu Bocean, 2017. "Relationships Between Corporate Social Responsibility and Strategic Planning," CSR, Sustainability, Ethics & Governance, in: Samuel O. Idowu & Stephen Vertigans (ed.), Stages of Corporate Social Responsibility, chapter 0, pages 121-137, Springer.
    2. Alejo Sison, 2009. "From CSR to Corporate Citizenship: Anglo-American and Continental European Perspectives," Journal of Business Ethics, Springer, vol. 89(3), pages 235-246, November.
    3. Ali Uyar & Cemil Kuzey & Merve Kilic & Abdullah S. Karaman, 2021. "Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1730-1748, November.
    4. Daina Mazutis & Natalie Slawinski, 2015. "Reconnecting Business and Society: Perceptions of Authenticity in Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 131(1), pages 137-150, September.
    5. Ndubisi, Nelson Oly & Zhai, Xin (Amy) & Lai, Kee-hung, 2021. "Small and medium manufacturing enterprises and Asia's sustainable economic development," International Journal of Production Economics, Elsevier, vol. 233(C).
    6. Moazzam Abbas & Yongqiang Gao & Sayyed Sadaqat Hussain Shah, 2018. "CSR and Customer Outcomes: The Mediating Role of Customer Engagement," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    7. Jamshed Raza & Abdul Majid, 2016. "Perceptions and practices of corporate social responsibility among SMEs in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2625-2650, November.
    8. Xie Hongming & Bilal Ahmed & Arif Hussain & Alam Rehman & Irfan Ullah & Farman Ullah Khan, 2020. "Sustainability Reporting and Firm Performance: The Demonstration of Pakistani Firms," SAGE Open, , vol. 10(3), pages 21582440209, September.
    9. Jui‐Ling Hsu & Meng‐Cheng Cheng, 2012. "What Prompts Small and Medium Enterprises to Engage in Corporate Social Responsibility? A Study from Taiwan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(5), pages 288-305, September.
    10. Juanita Álvarez Jaramillo & Jhon Wilder Zartha Sossa & Gina Lía Orozco Mendoza, 2019. "Barriers to sustainability for small and medium enterprises in the framework of sustainable development—Literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 512-524, May.
    11. Tetiana Galetska & Natalya Topishko & Ivan Topishko, 2020. "Social Responsibility Of Economic Enterprises As A Social Good: Practice Of The Eu And Ukraine," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 6(3).
    12. Lixin Shen & Kannan Govindan & Madan Shankar, 2015. "Evaluation of Barriers of Corporate Social Responsibility Using an Analytical Hierarchy Process under a Fuzzy Environment—A Textile Case," Sustainability, MDPI, vol. 7(3), pages 1-22, March.
    13. Ali Alotaibi & Francis Edum-Fotwe & Andrew D.F. Price, 2019. "Critical Barriers to Social Responsibility Implementation within Mega-Construction Projects: The Case of the Kingdom of Saudi Arabia," Sustainability, MDPI, vol. 11(6), pages 1-27, March.
    14. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    15. Hussain Bux & Zhe Zhang & Naveed Ahmad, 2020. "Promoting sustainability through corporate social responsibility implementation in the manufacturing industry: An empirical analysis of barriers using the ISM‐MICMAC approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1729-1748, July.
    16. Marko Reimer & Sebastiaan Doorn & Mariano L. M. Heyden, 2018. "Unpacking Functional Experience Complementarities in Senior Leaders’ Influences on CSR Strategy: A CEO–Top Management Team Approach," Journal of Business Ethics, Springer, vol. 151(4), pages 977-995, September.
    17. Naveed Ahmad & Asif Mahmood & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Mohi ud Din & Ghazanfar Iqbal Khan & Zia Ullah, 2021. "Sustainability as a “New Normal” for Modern Businesses: Are SMEs of Pakistan Ready to Adopt It?," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    18. Janthorn Sinthupundaja & N. Chiadamrong & Y. Kohda, 2019. "Internal capabilities, external cooperation and proactive CSR on financial performance," The Service Industries Journal, Taylor & Francis Journals, vol. 39(15-16), pages 1099-1122, December.
    19. Blasi, Silvia & Caporin, Massimiliano & Fontini, Fulvio, 2018. "A Multidimensional Analysis of the Relationship Between Corporate Social Responsibility and Firms' Economic Performance," Ecological Economics, Elsevier, vol. 147(C), pages 218-229.
    20. Desislava Tsvetkova & Emma Bengtsson & Susanne Durst, 2020. "Maintaining Sustainable Practices in SMEs: Insights from Sweden," Sustainability, MDPI, vol. 12(24), pages 1-26, December.
    21. Adriana Burlea-Schiopoiu & Laurentiu Stelian Mihai, 2019. "An Integrated Framework on the Sustainability of SMEs," Sustainability, MDPI, vol. 11(21), pages 1-22, October.
    22. Kuo, Tsai Chi & Kremer, Gül E. Okudan & Phuong, Nguyen Thi & Hsu, Chia-Wei, 2016. "Motivations and barriers for corporate social responsibility reporting: Evidence from the airline industry," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 184-195.
    23. Muhammad Waqas & Qian-li Dong & Naveed Ahmad & Yuming Zhu & Muhammad Nadeem, 2018. "Critical Barriers to Implementation of Reverse Logistics in the Manufacturing Industry: A Case Study of a Developing Country," Sustainability, MDPI, vol. 10(11), pages 1-25, November.
    24. Jaroslav Belas & Gentjan Çera & Jan Dvorský & Martin Čepel, 2021. "Corporate social responsibility and sustainability issues of small‐ and medium‐sized enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 721-730, March.
    25. Naveed Ahmad & Miklas Scholz & Zia Ullah & Muhammad Zulqarnain Arshad & Raja Irfan Sabir & Waris Ali Khan, 2021. "The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    26. Zengming Zou & Yu Liu & Naveed Ahmad & Muhammad Safdar Sial & Alina Badulescu & Malik Zia-Ud-Din & Daniel Badulescu, 2021. "What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    27. Massimo Battaglia & Lara Bianchi & Marco Frey & Fabio Iraldo, 2010. "An innovative model to promote CSR among SMEs operating in industrial clusters: evidence from an EU project," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(3), pages 133-141, May.
    28. Mallika Tamvada, 2020. "Corporate social responsibility and accountability: a new theoretical foundation for regulating CSR," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-14, December.
    29. Hans Verboven & Lise Vanherck, 2016. "Sustainability management of SMEs and the UN Sustainable Development Goals," Sustainability Nexus Forum, Springer, vol. 24(2), pages 165-178, November.
    30. Myria W. Allen & Christopher A. Craig, 2016. "Rethinking corporate social responsibility in the age of climate change: a communication perspective," International Journal of Corporate Social Responsibility, Springer, vol. 1(1), pages 1-11, December.
    31. Progress Choongo, 2017. "A Longitudinal Study of the Impact of Corporate Social Responsibility on Firm Performance in SMEs in Zambia," Sustainability, MDPI, vol. 9(8), pages 1-19, July.
    32. Susanne Arvidsson, 2010. "Communication of Corporate Social Responsibility: A Study of the Views of Management Teams in Large Companies," Journal of Business Ethics, Springer, vol. 96(3), pages 339-354, October.
    33. Felix G. Bello & Grace Kamanga, 2020. "Drivers and barriers of corporate social responsibility in the tourism industry: The case of Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 37(2), pages 181-196, March.
    34. Ibrahem Alshbili & Ahmed A. Elamer & Maha W. Moustafa, 2021. "Social and environmental reporting, sustainable development and institutional voids: Evidence from a developing country," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 881-895, March.
    35. Linghui Kong & Muhammad Safdar Sial & Naveed Ahmad & Mariana Sehleanu & Zhihui Li & Malik Zia-Ud-Din & Daniel Badulescu, 2021. "CSR as a Potential Motivator to Shape Employees’ View towards Nature for a Sustainable Workplace Environment," Sustainability, MDPI, vol. 13(3), pages 1-13, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kankan Wen & Noha Alessa & Karifala Marah & Kwame Kyeremeh & Emmanuel Sampson Ansah & Vincent Tawiah, 2023. "The Impact of Corporate Governance and International Orientation on Firm Performance in SMEs: Evidence from a Developing Country," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    2. Li Xu & Suleiman Jamal Mohammad & Nishad Nawaz & Sarminah Samad & Naveed Ahmad & Ubaldo Comite, 2022. "The Role of CSR for De-Carbonization of Hospitality Sector through Employees: A Leadership Perspective," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    3. Wang Hongxin & Mohammed Arshad Khan & Jian Zhenqiang & Laura-Mariana Cismaș & Mohammad Athar Ali & Usama Saleem & Lucia Negruț, 2022. "Unleashing the Role of CSR and Employees’ Pro-Environmental Behavior for Organizational Success: The Role of Connectedness to Nature," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    4. Li Xu & Jacob Cherian & Muhammad Zaheer & Muhammad Safdar Sial & Ubaldo Comite & Laura Mariana Cismas & Juan Felipe Espinosa Cristia & Judit Oláh, 2022. "The Role of Healthcare Employees’ Pro-Environmental Behavior for De-Carbonization: An Energy Conservation Approach from CSR Perspective," Energies, MDPI, vol. 15(9), pages 1-18, May.
    5. Zafeiria Masouti & George Tsiotras & Katerina Gotzamani, 2024. "The Significance of CSR in the Pursuit of Business Excellence and Competitiveness: Evidence from the Greek Supermarket Industry," Sustainability, MDPI, vol. 16(10), pages 1-25, May.
    6. Camila Kolling & José Luis Duarte Ribeiro & Donato Morea & Gianpaolo Iazzolino, 2023. "Corporate social responsibility and circular economy from the perspective of consumers: A cross‐cultural analysis in the cosmetic industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1226-1243, May.
    7. Meike Nicole Schulte & Cody Morris Paris, 2024. "Working the system—An empirical analysis of the relationship between systems thinking, paradoxical cognition, and sustainability practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4154-4171, September.
    8. Alberto J. Costa & Denise Curi & Ana Maria Bandeira & Augusta Ferreira & Brízida Tomé & Carla Joaquim & Carlos Santos & Cristina Góis & Deolinda Meira & Graça Azevedo & Helena Inácio & Mafalda Jesus &, 2022. "Literature Review and Theoretical Framework of the Evolution and Interconnectedness of Corporate Sustainability Constructs," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    9. Jane Boeske & Peter A. Murray, 2022. "The Intellectual Domains of Sustainability Leadership in SMEs," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    10. Qinghua Fu & Wafa Ghardallou & Ubaldo Comite & Irfan Siddique & Heesup Han & Juan Manuel Arjona-Fuentes & Antonio Ariza-Montes, 2022. "The Role of CSR in Promoting Energy-Specific Pro-Environmental Behavior among Hotel Employees," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    11. Andra Modreanu & Sorin-George Toma & Marin Burcea & Cătălin Grădinaru, 2024. "Perceptions and Attitudes of SMEs and MNCs Managers Regarding CSR Implementation: Insights from Companies Operating in the Retail Sector," Sustainability, MDPI, vol. 16(10), pages 1-29, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zengming Zou & Yu Liu & Naveed Ahmad & Muhammad Safdar Sial & Alina Badulescu & Malik Zia-Ud-Din & Daniel Badulescu, 2021. "What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    2. Naveed Ahmad & Asif Mahmood & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Mohi ud Din & Ghazanfar Iqbal Khan & Zia Ullah, 2021. "Sustainability as a “New Normal” for Modern Businesses: Are SMEs of Pakistan Ready to Adopt It?," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    3. Claudia Patricia Maldonado-Erazo & José Álvarez-García & María de la Cruz del Río-Rama & Ronny Correa-Quezada, 2020. "Corporate Social Responsibility and Performance in SMEs: Scientific Coverage," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    4. Alla Mostepaniuk & Elsie Nasr & Razan Ibrahim Awwad & Sameer Hamdan & Hasan Yousef Aljuhmani, 2022. "Managing a Relationship between Corporate Social Responsibility and Sustainability: A Systematic Review," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    5. Naveed Ahmad & Rana Tahir Naveed & Miklas Scholz & Muhammad Irfan & Muhammad Usman & Ilyas Ahmad, 2021. "CSR Communication through Social Media: A Litmus Test for Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    6. Wang Hongxin & Mohammed Arshad Khan & Jian Zhenqiang & Laura-Mariana Cismaș & Mohammad Athar Ali & Usama Saleem & Lucia Negruț, 2022. "Unleashing the Role of CSR and Employees’ Pro-Environmental Behavior for Organizational Success: The Role of Connectedness to Nature," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    7. Anat Anaqie Zahidy & Shahryar Sorooshian & Zahidy Abd Hamid, 2019. "Critical Success Factors for Corporate Social Responsibility Adoption in the Construction Industry in Malaysia," Sustainability, MDPI, vol. 11(22), pages 1-24, November.
    8. Antonella Biscione & Dorothée Boccanfuso & Annunziata De Felice, 2021. "Regulations and Corporate Environmental Responsibility: evidence from a panel of firms in Transition economies," Applied Economics, Taylor & Francis Journals, vol. 53(54), pages 6286-6299, November.
    9. Ali Alotaibi & Francis Edum-Fotwe & Andrew D.F. Price, 2019. "Critical Barriers to Social Responsibility Implementation within Mega-Construction Projects: The Case of the Kingdom of Saudi Arabia," Sustainability, MDPI, vol. 11(6), pages 1-27, March.
    10. Gao Wei & Wang Lin & Wu Yanxiong & Yan Jingdong & Sadik Yusuf Musse, 2021. "The Relationship of Sustainability Communication on Social Media with Banking Consumers’ Loyalty through e-WOM," Sustainability, MDPI, vol. 13(7), pages 1-13, March.
    11. Margaret Brunton & Gabriel Eweje & Nazim Taskin, 2017. "Communicating Corporate Social Responsibility to Internal Stakeholders: Walking the Walk or Just Talking the Talk?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 31-48, January.
    12. Lin Zhang & Xiaochen Zhang & Jingjing An & Wei Zhang & Jingshen Yao, 2022. "Examining the Role of Stakeholder-Oriented Corporate Governance in Achieving Sustainable Development: Evidence from the SME CSR in the Context of China," Sustainability, MDPI, vol. 14(13), pages 1-22, July.
    13. Cao, Peng & Sial, Muhammad Safdar & Ã lvarez-Otero, Susana & Brugni, Talles Vianna & Comite, Ubaldo, 2024. "Eco-engagement: Tracing CSR communication's ripple effect on consumer hospitality loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    14. Qinghua Fu & Wafa Ghardallou & Ubaldo Comite & Irfan Siddique & Heesup Han & Juan Manuel Arjona-Fuentes & Antonio Ariza-Montes, 2022. "The Role of CSR in Promoting Energy-Specific Pro-Environmental Behavior among Hotel Employees," Sustainability, MDPI, vol. 14(11), pages 1-19, May.
    15. Mauricio Latapí & Lára Jóhannsdóttir & Brynhildur Davíðsdóttir & Mette Morsing, 2021. "The Barriers to Corporate Social Responsibility in the Nordic Energy Sector," Sustainability, MDPI, vol. 13(9), pages 1-30, April.
    16. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    17. Hildegunn Mellesmo Aslaksen & Clare Hildebrandt & Hans Chr. Garmann Johnsen, 2021. "The long-term transformation of the concept of CSR: towards a more comprehensive emphasis on sustainability," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-14, December.
    18. Eduardo Jiménez & Marta de la Cuesta-González & Montserrat Boronat-Navarro, 2021. "How Small and Medium-Sized Enterprises Can Uptake the Sustainable Development Goals through a Cluster Management Organization: A Case Study," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    19. Rafael García Martín & Alfonso Duran-Heras & Karen Reina Sánchez, 2022. "Analysis of the Main Corporate Social Responsibility Drivers and Barriers and Their Foreseeable Evolution—Evidence from Two Leading Multinationals: The Airbus and TASL Cases," Sustainability, MDPI, vol. 14(13), pages 1-23, July.
    20. Tingko Lee & Wei‐Tsung Liu & Jun‐Xian Yu, 2021. "Does TMT composition matter to environmental policy and firm performance? The role of organizational slack," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 196-213, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12710-:d:680992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.