Authors

1. Ms. Priyanka Jain
2. Dr. Vishal Vyas
3. Ms. Sonika Raitani

Affiliation

• Assistant Professor Faculty of Management Studies Mody Institute of Technology & Science Lakshmangarh
• Assistant Professor ABV-Indian Institute of Information Technology and Management Gwalior
• Research Scholar, Faculty of Management Studies Mody Institute of Technology & Science Lakshmangarh

Abstract

The study attempts to determine how ICT adoption by SMEs facilitates CSR and its implication on financial performance. The study also aims to explore the nature of relationship between CSR activities of SMEs and financial performance. CSR domain includes four stakeholder groups viz. Environment, Customers, Employees, and Community. The underlying rationale of the study is that there are hardly any conclusive empirical findings on relationship between the above stated constructs, particularly evidence from SMEs in developing economies.
For the study data was collected, using structured questionnaire based on pre-tested scale items, from 288 SMEs in Rajasthan. This research employs structural equation modelling (second order) to test the relationship between CSR and financial performance along with ICT adoption.
While a few respondents feel that CSR has a positive impact on financial performance, majority of respondents feel otherwise. This weak positive relationship between CSR and financial performance finds support in previous studies as well. There is a moderate relation between ICT adaptation and CSR practices ICT adaptation and financial performance of the SMEs.
This research was conducted within a specific region in India i.e. Rajasthan state, and as such these findings may or may not be generalized to other geographic areas.

Keywords

ICT Adaptation, Corporate Social responsibility, Financial Performance, Small and Medium Enterprises.

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