Navigating the Roadblocks: Exploring Challenges in Implementing Corporate Social Responsibility (CSR) Initiatives in a Sub-Saharan African Economy's Small and Medium Enterprises (SMEs)
Nakpodia, Franklin; Olan, Femi; Ogunyemi, Titilayo; Hasan, Arshad
Purpose: This study examines the adoption of corporate social responsibility (CSR) practices among small and medium-sized enterprises (SMEs) in a developing economy. The purpose of this study is to explore the challenges faced by SMEs in adopting CSR practices and to identify strategies that enhance their CSR engagement. Design/methodology/approach: Grounded in social capital theorization, this study uses a qualitative research methodology, incorporating semi-structured interviews with 34 SME owners and managers from the Nigerian business environment. Findings: This research reveals that CSR adoption among Nigerian SMEs is hindered by four key factors: stakeholder apathy, politically motivated CSR interventions, cultural nuances and “tone at the top”. This study further identifies resilience-building and regulatory compliance as pivotal strategies used by Nigerian SMEs to enhance their CSR engagement. Originality/value: This research offers profound insights from SME owners and managers, examining the complex dynamics of historical mistrust, political instrumentalization, cultural intricacies and leadership issues that hinder CSR engagement among SMEs. The study emphasizes the importance of nuanced strategies that align CSR practices with local cultural expectations, thereby contributing to a deeper understanding of the challenges faced by SMEs in integrating CSR into their business models.
Citation
Nakpodia, F., Olan, F., Ogunyemi, T., & Hasan, A. (online). Navigating the Roadblocks: Exploring Challenges in Implementing Corporate Social Responsibility (CSR) Initiatives in a Sub-Saharan African Economy's Small and Medium Enterprises (SMEs). European Business Review, https://doi.org/10.1108/EBR-01-2024-0005
