The Impact of CSR-Harmonious on Financial Performance: Moderating Role of Green Entrepreneurial Intellectual Capital

Hanif Rani Iswari; Ery Tri Djatmika Rudijanto Wahju  Wardhana; Puji Handayati; Nurika Restuningdiah; Budi Eko Soetjipto; Cipto Wardoyo; Heri Pratikto

doi:10.47709/governors.v2i2.2304

Authors

Hanif Rani Iswari Doctoral Program in Management, Universitas Negeri Malang; Faculty of Economic & Business, Universitas Widyagama Malang
Ery Tri Djatmika Rudijanto Wahju Wardhana Faculty of Economic & Business, Universitas Negeri Malang
Puji Handayati Faculty of Economic & Business, Universitas Negeri Malang
Nurika Restuningdiah Faculty of Economic & Business, Universitas Negeri Malang
Budi Eko Soetjipto Faculty of Economic & Business, Universitas Negeri Malang
Cipto Wardoyo Faculty of Economic & Business, Universitas Negeri Malang
Heri Pratikto Faculty of Economic & Business, Universitas Negeri Malang

DOI:

10.47709/governors.v2i2.2304

Dimension Badge Record

Abstract

The purpose of this research is to investigate the role of green entrepreneurial intellectual capital as a moderator of the influence of Corporate Social Responsibility Harmonious (CSR-H) on the financial performance of SMEs in the creative industry game developer sub-sector in Malang City. SMEs in the game developer sub-sector are included in businesses that utilize the results of creativity supported by technology so that it is one of the business fields that is closely related to intellectual capital. Related to awareness of green entrepreneurship, the echo developer sub-sector is appropriate if it integrates it into green entrepreneurial intellectual capital. Thus, green entrepreneurial intellectual capital in this case is the focus of attention for research as a moderation between Corporate Social Responsibility Harmonious (CSR-H) and Financial Performance. This research is a quantitative approach with a survey method on SMEs in the game developer sub-sector. The sample population taken was 20 respondents. Questionnaires are distributed using a likert scale. Data analysis uses SmartPLS version 3. The findings of this study obtained Corporate Social Responsibility Harmonious (CSR-H) is not significant to financial performance, Green entrepreneurial Intellectual Capital is positively significant to financial performance and Green entrepreneurial intellectual capital does not moderate the effect of Corporate Social Responsibility Harmonious (CSR-H) on financial performance.

Keywords: Corporate Social Responsibility, CSR Harmonious, Green entrepreneurial, Green intellectual capital, Financial Performances

Google Scholar Cite Analysis
Abstract viewed = 140 times

References

Achmad, T. (2022). 7 Tahun Berdiri, Game Developer Malang Langganan Layani Pasar Luar Negeri. https://www.malangtimes.com/baca/87419/20221130/100600/7-tahun-berdiri-game-developer-malang-langganan-layani-pasar-luar-negeri

Agyabeng-Mensah, Y., & Tang, L. (2021). The relationship among green human capital, green logistics practices, green competitiveness, social performance and financial performance. Journal of Manufacturing Technology Management, 32(7), 1377–1398.

Bambani, A. (2022). Indonesia’s 1000 Digital Startups National Movement 2022 Launched. https://www.theindonesia.id/unique/2022/08/26/000000/indonesias-1000-digital-startups-national-movement-2022-launched

Cabrilo, S., Kianto, A., & Milic, B. (2018). The effect of IC components on innovation performance in Serbian companies. VINE Journal of Information and Knowledge Management Systems.

Carroll, A. B. (2021). Corporate social responsibility (CSR) and the COVID-19 pandemic: Organizational and managerial implications. Journal of Strategy and Management, 14(3), 315–330.

Chen, Y.-S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77, 271–286.

Christiyaningsih. (2017). Puluhan Startup Ditantang Maksimalkan Potensi Kota Malang. http://nasional.republika.co.id/berita/nasional/daerah/17/01/22/ok6v8o368-puluhan-startup-ditantang-maksimalkan-potensi-kota-malang

Dwianika, A., & Gunawan, J. (2020). Sme’s green entrepreneurial intellectual capital. Int. J. Bus. Econ. Law, 23, 322–332.

Grant, A. M., & Parker, S. K. (2009). 7 redesigning work design theories: the rise of relational and proactive perspectives. The Academy of Management Annals, 3(1), 317–375.

Hao, J., & He, F. (2022). Corporate social responsibility (CSR) performance and green innovation: Evidence from China. Finance Research Letters, 48, 102889.

Huang, J. (2022). Corporate social responsibility and financial performance: The moderating role of the turnover of local officials. In Finance Research Letters (Vol. 46, p. 102497). Elsevier BV. https://doi.org/10.1016/j.frl.2021.102497

Huang, L. (2018). The Ideology of He Xie for Management. Diversity of Managerial Ideology, 155–169.

Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y. A., Shah, S. Z. A., & Shahzad, F. (2019). Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), 27–53.

Iqbal, A., Sutrisno, T., & Roekhudin, R. (2021). Corporate Social Responsibility and Financial Performance: Moderating Role of Intellectual Capital. International Journal of Social and Local Economic Governance, 5(1), 1–11.

Khan, I., Jia, M., Lei, X., Niu, R., Khan, J., & Tong, Z. (2023). Corporate social responsibility and firm performance. Total Quality Management & Business Excellence, 34(5–6), 672–691.

Le, T. T., Huan, N. Q., Hong, T. T. T., & Tran, D. K. (2021). The contribution of corporate social responsibility on SMEs performance in emerging country. Journal of Cleaner Production, 322, 129103.

Liu, Y., Saleem, S., Shabbir, R., Shabbir, M. S., Irshad, A., & Khan, S. (2021). The relationship between corporate social responsibility and financial performance: A moderate role of fintech technology. Environmental Science and Pollution Research, 28, 20174–20187.

Lotfi, M., Yousefi, A., & Jafari, S. (2018). The effect of emerging green market on green entrepreneurship and sustainable development in knowledge-based companies. Sustainability, 10(7), 2308.

MacKinnon, D. P. (2011). Integrating mediators and moderators in research design. Research on Social Work Practice, 21(6), 675–681.

Muo, I., & Azeez, A. A. (2019). GREEN ENTREPRENEURSHIP: LITERATURE REVIEW AND AGENDA FOR FUTURE RESEARCH: Muo, I., Azeez, A..(2019). Green Entrepreneurship: Literature Review and Agenda for Future Research. International Journal of Entrepreneurial Knowledge, 7 (2), 17-29. doi: 10.12345-0007. International Journal of Entrepreneurial Knowledge, 7(2).

Mutuc, E. B., & Cabrilo, S. (2022). Corporate social responsibility, intellectual capital and financial performance: evidence from developed and developing Asian economies. Review of Managerial Science, 16(4), 1227–1267.

Namazi, M., & Namazi, N.-R. (2016). Conceptual analysis of moderator and mediator variables in business research. Procedia Economics and Finance, 36, 540–554.

Oduro, S., Adhal Nguar, K. D., De Nisco, A., Alharthi, R. H. E., Maccario, G., & Bruno, L. (2022). Corporate social responsibility and SME performance: a meta-analysis. Marketing Intelligence & Planning, 40(2), 184–204.

Pachaly, M. V. W. (2012). Barriers and Triggers to Green Entrepreneurship. Doctoral dissertation, Thesis, Erasmus Universiteit Rotterdam.

Ren, S., Huang, M., Liu, D., & Yan, J. (2022). Understanding the impact of mandatory CSR disclosure on green innovation: Evidence from Chinese listed firms. British Journal of Management.

Rettab, B., & Mellahi, K. (2019). CSR and corporate performance with special reference to the middle east. Practising CSR in the Middle East, 101–118.

Sasmito, T., Nugroho, M., & Ridwan, M. (2023). The impact of organizational capability, external networking, entrepreneurism, competitive advantage, and corporate social responsibility (CSR) on performance. Uncertain Supply Chain Management, 11(2), 833–842.

Shah, S. M. M., Ahmed, U., Ismail, A. I., & Mozammel, S. (2021). Going intellectually green: Exploring the nexus between green intellectual capital, environmental responsibility, and environmental concern towards environmental performance. Sustainability, 13(11), 6257.

Shim, K., & Yang, S.-U. (2016). The effect of bad reputation: The occurrence of crisis, corporate social responsibility, and perceptions of hypocrisy and attitudes toward a company. Public Relations Review, 42(1), 68–78.

Simmou, W., Govindan, K., Sameer, I., Hussainey, K., & Simmou, S. (2023). Doing good to be green and live clean!-Linking corporate social responsibility strategy, green innovation, and environmental performance: Evidence from Maldivian and Moroccan small and medium-sized enterprises. Journal of Cleaner Production, 384, 135265.

Singh, K., & Misra, M. (2020). Linking harmonious CSR and financial inclusion: The moderating effects of financial literacy and income. The Singapore Economic Review, 1–22.

Skordoulis, M., Kyriakopoulos, G., Ntanos, S., Galatsidas, S., Arabatzis, G., Chalikias, M., & Kalantonis, P. (2022). The Mediating Role of Firm Strategy in the Relationship between Green Entrepreneurship, Green Innovation, and Competitive Advantage: The Case of Medium and Large-Sized Firms in Greece. Sustainability, 14(6), 3286.

Valdez-Juárez, L. E., Gallardo-Vázquez, D., & Ramos-Escobar, E. A. (2021). Entrepreneurial orientation and CSR: a dynamic capability in the corporate performance of Mexican SMEs. Entrepreneurship and Sustainability Issues, 8(3), 654.

Yin, C., Salmador, M. P., Li, D., & Lloria, M. B. (2022). Green entrepreneurship and SME performance: The moderating effect of firm age. International Entrepreneurship and Management Journal, 18(1), 255–275.

Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Faezah, J. N., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, 119334.

Yusoff, Y. M., Omar, M. K., Zaman, M. D. K., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637.