Exploring the role of the theory of planned behaviour, risk orientation, and participative leadership in SME managers’ engagement in CSR

Tan, Athirah Mohd; Ann, Ho Jo

doi:10.7819/rbgn.v25i2.4225

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Article • Rev. Bras. Gest. Neg. 25 (2) • Apr-Jun 2023 • https://doi.org/10.7819/rbgn.v25i2.4225 copy

Exploring the role of the theory of planned behaviour, risk orientation, and participative leadership in SME managers’ engagement in CSR

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose

The purpose of this study was to examine the antecedents that influence SME managers’ intentions to engage in corporate social responsibility (CSR) and whether these intentions translate into actual CSR engagement behaviour.

Theoretical framework

This study used the Theory of Planned Behaviour to examine the influence of SME managers’ attitudes, subjective norms and perceived behavioural control on their intention to engage in CSR activities. Trait Theory and Expected Utility Theory were also used to explain the influence of risk orientation and participative leadership style on their attitudes towards CSR.

Design/methodology/approach

Primary data were collected using questionnaires. The data, which consisted of 301 respondents, were analysed using PLS-SEM.

Findings

Risk orientation and participative leadership style had a significant influence on the managers’ attitudes. Attitudes, subjective norms and perceived behavioural control were also found to have a significant effect on their intention to engage in CSR, which subsequently influenced their actual CSR behaviour.

Practical & social implications of research

For policy makers, this study provides a reference for encouraging CSR engagement among SMEs. For managers and owners of SMEs, it identifies the antecedents that are important for a positive attitude towards CSR engagement.

Originality/value

The findings enrich the literature on risk orientation and participative leadership, which are important antecedents of managers’ CSR attitudes. The findings also support the applicability of the Theory of Planned Behaviour in the area of CSR engagement in the context of SMEs.

Keywords:
Corporate social responsibility; SMEs; participative leadership; risk orientation

CSR Activities	Frequency by variables
Community
Creating jobs	181
Community regeneration	38
Strategic community engagement	59
Employee volunteering	53
Company donations	139
Responses	470
Environment
Energy efficiency	83
Waste management	85
Supply chain efficiency	60
Carbon footprint reduction	28
Biodiversity and Environmental	70
Management System
Responses	326
Workplace
Equality, diversity and inclusion	86
Fair pay and benefits employee	90
Learning and development employee	94
Reward and recognition employee	62
Employee health/ safety and wellbeing	72
Employee engagement in management decisions	46
Responses	450
Marketplace
Responsible marketing	112
Responsible advertising	98
Ethical and environmental standards of supplier	115
Treat suppliers as partners	73
Respect customers and protect vulnerable customers	138
Responses	536

Types of Demographic Variables	n	%
Business Age (years)
Less 5 years	81	26.91
6-10 years	68	22.59
11-15 years	44	14.62
16-20 years	31	10.30
More than 20 years	77	25.58
Sector
Food, beverages and tobacco products	192	63.79
Textiles, wearing apparel and leather products	15	5.99
Wood products, furniture, paper products and printing	27	8.97
Petroleum, chemical, rubber and plastic products	11	3.66
Non-metallic, mineral products, basic metal and fabricated, metalproducts	7	2.68
Electrical and eletronic products	13	4.57
Transport equipment and other manufactures	22	7.50
Others	8	2.84
Firm Size
Less than 5 employees (micro)	17	5.65
Between 5-74 employees (small)	171	56.81
Between 75-199 employees (medium)	113	37.54
Annual Profits
Less than RM 300,000	19	6.31
RM 300,000-less than RM 15 million	156	51.83
RM 15 million-RM50 million	126	41.86
Numbers of years company has been engaged in CSR activities
Less than 1 year	104	33.55
1-5 years	115	38.70
6-10 years	39	12.96
11-15 years	16	5.82
More than 15 years	27	8.97

Construct	Items	Factor Loading	AVE	CR	Construct	Items	Factor	AVE	CR
Actual CSR engagement	B25	0.81	0.67	0.93	Participative leadership	C11	0.86	0.65	0.96
	B26	0.78				C12	0.84
	B27	0.79				C13	0.86
	B28	0.83				C14	0.85
	B29	0.90				C15	0.65
	B210	0.83				C16	0.83
	B211	0.79				C17	0.84
	B212	0.8				C18	0.83
CSR intention	B21	0.93	0.88	0.95		C19	0.72
	B22	0.94				C110	0.85
	B23	0.94				C111	0.69
	B24	0.94				C112	0.31
Atitude toward CSR activities	B11	0.79	0.75	0.90	Risk orientation	C21	0.89	0.59	0.95
	B12	0.90				C22	0.74
	B13	0.93				C23	0.88
	B14	0.89				C24	0.89
Subjective norms	B15	0.89	0.77	0.92		C25	0.51
	B16	0.92				C26	0.91
	B17	0.90				C27	0.88
	B18	0.83				C28	0.78
Perceived behaviour control	B19	0.84				C29	0.51
	B110	0.89				C210	0.86
	B111	0.90				C211	0.78
	B112	0.88				C212	0.43

	1. Actual CSR engagement	2	3	4	5	6
2. Attitude toward CSR activities	0.538
3. CSR intention	0.659	0.604
4. Participative Leadership	0.483	0.339	0.263
5. Perceived behaviour control	0.589	0.543	0.725	0.361
6. Risk Orientation	0.106	0.164	0.084	0.077	0.056
7. Subjective norms	0.635	0.670	0.750	0.289	0.775	0.0774

Construct	Co-efficient of Determination R²	Magnitude
Actual CSR engagement	039	Substantial
Attitude toward CSR activities	0.14	Moderate
CSR intention	0.58	Substantial

	Hypothesis	P-value (p)	Results	Effect size (f²)
Participative Leadership -> Attitude toward CSR activities	H1	0.00	Significant	0.13
Risk Orientation -> Attitude toward CSR activities	H2	0.00	Significant	0.03
Attitude toward CSR activities -> CSR Intention	H3	0.02	Significant	0.05
Subjetive Norm -> CSR Intention	H4	0.00	Significant	0.13
Perceived Behaviour Control -> CSR Intention	H5	0.00	Significant	0.13
CSR Intention -> Actual CSR Engagement	H6	0.00	Significant	0.64

Fundação Escola de Comércio Álvares Penteado Fundação Escola de Comércio Álvares Penteado, Av. da Liberdade, 532, 01.502-001 , São Paulo, SP, Brasil , (+55 11) 3272-2340 , (+55 11) 3272-2302, (+55 11) 3272-2302 - São Paulo - SP - Brazil
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Profa. Dra. Greici Sarturi