A Model of Corporate Social Responsibility, Firm Reputation, and Firm Performance in Small and Medium Enterprises in Kaski, Lamjung, and Gorkha District of Gandaki Province, Nepal

Abstract

The study’s objective is to create a model and mediating role of firm reputation in the relationship between corporate social responsibility (CSR) and the performance of small and medium enterprises (SME). The quantitative research design was used to collect data via telephone and e-mail with 232 small and medium enterprises. The sample for the study was done by using stratified sampling where Kaski, Gorkha, and Lamjung district of Gandaki province are selected. The analysis was done using Statistical Package for Social Science (SPSS) 26 and Applied Structural Equation Modeling (AMOS) 24 software. The study found that legal and ethical responsibilities have a significant positive relationship with the performance of SMEs and a firm’s reputation. Also, there is a significant positive relationship between a firm’s reputation and the performance of small and medium enterprises. Finally, the study shows that a firm’s reputation mediates the relationship between legal and ethical responsibilities on SME performance. In the structural model, environmental responsibilities have a relationship with performance. Likewise, philanthropic, and economic responsibilities have a relationship with the firm’s reputation, thus creating a new model in this study.