The Effect of Corporate Social Responsibility (CSR) on Increasing the Competitiveness of Small and Medium Enterprises (SMEs) in OKU Timur, Indonesia

Helisia Margahana

Abstract

The purpose of this study is to determine whether Corporate Social Responsibility (CSR) affects the Competitiveness of Small and Medium Enterprises (SMEs). The population in this study are consumers who use e- commerce media in the South Sumatra area. The sample in this study was
200 respondents who were random samples from the Small and Medium
Enterprises in South Sumatra. This study uses a survey method to see the amount of influence caused by the independent variables on the dependent variable. The independent variable examined in this study is the Corporate Social Responsibility (CSR) variable. The dependent variable in this study is the Competitiveness of Small and Medium Enterprises (SMEs). Based on the results of the study it can be seen that Corporate Social Responsibility (CSR) affects the Competitiveness of Small and Medium Enterprises (SMEs). So it can be concluded that if a business or business follows the regulations of the government, runs it and implements it based on predetermined factors, including work orientation factors, market orientation factors, and environmental orientation factors, then the business will be better known by the stakeholders and will be more competitive in the long run. Therefore SMEs must continue to consult with the government regarding CSR activities, which factors of CSR are most beneficial for all parties in business activities. SMEs must also focus on factors of price competition and competitive advantage to improve the image of SMEs and enhance competitiveness.

Corporate Social Responsibility (CSR), Competitiveness, SMEs

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