Noorlailie Soewarno, - and Bambang Tjahjadi, - and Mawar Fitriyah, - (2021) The Role of Corporate Social Responsibility on the Relationship of Competitive Pressure and Business Performance of Batik Industry in Central Java, Indonesia. The Journal of Asian Finance, Economics and Business, 8 (1). pp. 863-871. ISSN pISSN: 2288-4637, eISSN: 228-4645

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Abstract

This study aims to document empirically the mediating role of corporate social responsibility (CSR) on the influence of competitive pressure toward business performance on the batik industry in Central Java, Indonesia. This study also examined the effect of competitive pressure and CSR on business performance of small- and medium-sized enterprises (SMEs) in the batik industry in Central Java. This study used an explanatory quantitative approach. Samples of 254 MSEs in the batik industry have been successfully collected. Hypothesis testing uses SEM-PLS. The results of this study indicate that competitive pressure has a positive and significant effect on the batik MSEs business performance in Central Java. Competitive pressure also has positive direct effect on corporate social responsibility, and CSR has a significant and positive direct effect on business performance. The results of this study have successfully documented empirically that CSR has a mediating role on the relationship of competitive pressure toward business performance in the batik MSEs in Central Java, Indonesia. This study provides a comprehensive understanding of the owners of the batik MSMEs in coping with competitive pressure by using CSR as a strategy to create uniqueness that is difficult to imitate and can create an organizational reputation that eventually can increase business performance.

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