THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY AND WORKING CAPITAL MANAGEMENT ON SMES PERFORMANCE DURING A PANDEMIC

Abstract

The main purpose of the study is to examine the impact of corporate social responsibility (CSR) and working capital management practices on the performance of small and medium-sized firms (SMEs) in Kosovo during the lock-in period. In addition, the aim of the study is to investigate how employee behavior affects the relationship between corporate social responsibility, working capital management and the performance of small and medium-sized enterprises. A quantitative research method is used to obtain the necessary data. Respondents are employees of small and medium-sized businesses currently working in Kosovo, and surveys are mailed and in person. The PLS-SEM method was used to examine whether there is a statistically significant relationship between corporate social responsibility, working capital management practices, and SMEs performance. The relationship between corporate social responsibility, working capital management and financial success was investigated using a quantitative research method. The study found a significant correlation between corporate social responsibility (CSR), working capital management practices and the success of small and medium-sized enterprises (SMEs) in Kosovo. The data also showed that employee behavior plays a mediating role in the relationship between corporate social responsibility (CSR), working capital management practices and the performance of small and medium enterprises in Kosovo, according to the results. Significant gaps in the work have been identified as a result of inconsistent application of financial criteria by businesses that define sustainability. In addition, the study contributes to the preservation of enterprise valuation standards by providing guidance for small business owners and operators.