Does managerial CSR mindset always drive business performance?

Purpose This study aims to investigate the relationship between managerial corporate social responsibility (CSR) mindset and business performance in small- and medium-sized enterprises (SMEs), focusing on the mediating role of CSR practices and the moderating influence of institutional forces. Design/methodology/approach A structured questionnaire was administered to 221 SME managers. The data was analysed using the Hayes process in SPSS to test the hypothesized relationships. Findings This study found that a managerial CSR mindset significantly improves operational and financial business performance. In addition, CSR practices mediate the relationship between managerial CSR mindset and business performance. Furthermore, institutional forces moderate this relationship, highlighting the critical role of external factors in shaping SME performance. Practical implications The findings suggest that SME managers should adopt a proactive managerial CSR mindset and integrate CSR into their core strategies to enhance business performance. Moreover, managers must be responsive to institutional forces as they adjust their strategy to meet external pressures to ensure sustainable performance. Originality/value This study demonstrates the theoretical explanation of how CSR practices serve as a conduit through which a managerial CSR mindset improves business performance under varying conditions of institutional forces.