A study of the mediating effect of competitive advantage on the relationship between corporate social responsibility and performance

Purpose This study examines the mediating effect of Competitive Advantage (CA) and the moderating effect of Corporate Social Responsibility Communication (CSRC) on the relationship between Corporate Social Responsibility (CSR) activities and Organisational Performance (OP). Design/methodology/approach The study investigates these relationships using a sample of 478 Turkish Small and Medium-sized Enterprises (SMEs) and employs Structural Equation Modelling (SEM) to test the hypotheses. Data were collected through a survey. The scales and items used are provided in the appendix at the end of the study. Findings The results indicate that both CSR and CA have a significant and positive impact on OP. CA is also found to mediate the relationship between CSR and OP. Additionally, the study finds that CSRC moderates the relationship between CSR and OP. Practical implications CSRC should be considered to enhance the impact of CSR activities. The orchestration of resources and capabilities is therefore crucial for organisations. Furthermore, CSR activities may influence OP through intermediaries, so companies need to consider a time lag to observe these impacts. Originality/value By combining the Resource Based View (RBV) and the Resource Orchestration View (ROV) as complementary theoretical frameworks, using the concept of language-based capabilities, and including CA and CSRC as mediating and moderating variables respectively, this study advances understanding of the relationship between CSR activities and OP in the context of SMEs in a developing country.