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External and Internal Factors Influencing Socially Responsible Behaviour of SMEs: Evidence from Singapore

Alexander Wollenberg 1 and Hanxin Liang 2
1. Department of Business and Management Studies, St. George’s University, Grenada, West Indies
2. Curtin Business School, Curtin University, Singapore

Abstract — Previous literature proves that different factors play particular but impactful roles on firms’ CSR engagement. However, literature has seldom investigated the responsiveness of firms under the context of different influences. The purpose of this research is to investigate the influence of external factors and internal factors on firms’ CSR engagement from the perspective of companies in Singapore. The study finds that interest in CSR is motivated by government regulation for local firms. Limited access to resources is not a constraint factor for small firms to engage in CSR. However, their forms of engaging in CSR differ from large companies. The empirical results indicate that the negative relationship between resource access and CSR responsiveness is not supported. A positive relationship is suggested, which implies that small businesses have a high level of awareness of localised engagement. Small firms are particularly dependent on the goodwill and approval of the local community resulting in more direct communication with local communities and small firms. Communication may have a strong influence on the resource access of small firms. Therefore, developing a localised CSR strategy is a better choice for small companies to enhance such communication. A rational small firm would perceive the benefit from CSR engagement in ensuring resource access. 
Index Terms—CSR, MNE, SMEs, Singapore, Emerging Markets

Cite: Alexander Wollenberg and Hanxin Liang, "External and Internal Factors Influencing Socially Responsible Behaviour of SMEs: Evidence from Singapore" Journal of Advanced Management Science, Vol. 6, No. 3, pp. 149-154, September 2018. doi: 10.18178/joams.6.3.149-154
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