Impact of corporate social responsibility on sustainable corporate performance through the mediating role of green supply chain management and corporate reputation

BÁO CÁO TÔNG KÉTĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG ‘’NHÀ NGHIÊN CỨU TRẺ UEH” NĂM 2024 IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON SUSTAINABLE CORPORATE PERFORMANCE THR

BÁO CÁO TÔNG KÉT

ĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG

‘’NHÀ NGHIÊN CỨU TRẺ UEH” NĂM 2024

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON SUSTAINABLE CORPORATE PERFORMANCE THROUGH

THE MEDIATING ROLE OF GREEN SUPPLY CHAIN MANAGEMENT

AND CORPORATE REPUTATION

Thuộc nhóm chuyên ngành:

Thương mại - Ọuản trị kinh doanh

TP Hồ Chí Minh, tháng 02/2024

on sustainable corporate performance and to verify the existence of any mediators The research focuses on four main factors: corporate social responsibility, green supply chain management, corporate reputation, and sustainable corporate performance Data was collected from 397 companies in Vietnam, and analyzed using the PLS-SEM model and bootstrapping methods The results found that corporate social responsibility has a positive effect on green supply chain

Keywords: management, corporate reputation and sustainable corporateCorporate Social

of green supply chain management The paper also contributes

to the burgeoning stream of literature of sustainability in Vietnam and in the world

2.3.2 Proposed research model 18

4.3.2 Coefficient of determination and adjusted (R2) 33

5.2.4 Green Supply Chain Management and Sustainable Corporate Performance

395.2.5 Corporate Reputation and Sustainable Corporate Performance 405.2.6 Green Supply Chain Management and Corporate Reputation 405.2.7 Green Supply Chain Management mediates the relationship between

Corporate Social Responsibility and Sustainable Corporate Performance 405.2.8 Corporate Reputation mediates the relationship between Corporate Social Responsibility and Sustainable Corporate Performance 41

The scale of “Corporate Social Responsibility"

The scale of “Corporate Reputation"

The scale of “ Green Supply Chain Management"

Research sample descriptive analysisConstruct reliability and validity

Indicator outer loadingsHeterotrait-Monotrait (HTMT) ratioInner VIF values

Coefficient of determination R2Effect size F results

Page

62324252627283031323334

No Name of figure Page

Sustainable Corporate PerformanceSmall-Medium Enterprises

CHAPTER 01: OVERVIEW

1.1 Research problems:

In recent years, the importance of CSR has gained significant attention due to its potential to provide organizations with a competitive advantage (Porter and Kramer, 2006; Asiaci and Bontis, 2019) CSR represents an avenue through which organizations can contribute to sustainability, encompassing the involvement of all societal actors (Lassala et al., 2017) Instead of solely focusing on profit maximization, organizations now recognize the significance of the Triple Bottom Line, which emphasizes the simultaneous pursuit of economic prosperity, environmental quality, and social equity (Elkington, 1997) Consequently, companies face increasing pressures regarding their CSR management, as it has become crucial for associated activities to be fully integrated into strategic processes to translate social and environmental improvements into long-term shareholder value (Arjalies and Mundy, 2013)

To effectively manage CSR or sustainability practices and align them with an organization's core strategies and operations, a comprehensive understanding of the internal processes and underlying mechanisms is required This understanding is vital for synthesizing CSR engagement with corporate goals and ultimately gaining a competitive advantage Management control systems play a critical role in supporting the management of CSR, and investigating their impact on SCP is essential (Gond et al., 2012; Wijethilake, 2017) However, the mediating role of GSCM and CR in the relationship between CSR and SCP remains relatively unexplored Therefore, this research paper aims to examine the impact of CSR on SCP, with a specific focus on the mediating role of GSCM and CR

By investigating these mediating factors, this study seeks to provide insights into how CSR initiatives can be effectively integrated into an organization's supply chain management practices, as well as how they can contribute to enhancing the firm's reputation Understanding the mechanisms through which CSR influences SCP will enable organizations to develop more strategic and effective approaches to CSR implementation Additionally, this research will contribute to the existing body of

knowledge on CSR and sustainable business practices, providing valuable insights for both academics and practitioners in the field.

1.2 Research objectives:

1.2.1 Overall objectives:

The impact of Corporate Social Responsibility on Sustainable Corporate Performance through the mediating role of Green Supply Chain Management and Corporate Reputation

1.2.2 Detailed objectives:

From the general objective, the specific objectives set out in the study are as follows:

- The first objective is to identify factors affecting SCP of companies around Vietnam

- The second objective is to measure the impact of factors affecting the SCP of companies around Vietnam

- The final objective is to suggest some recommendations to Vietnamese companies

in order to develop SCP in the future

1.3 Research questions:

- Which factors affect SCP of companies around Vietnam?

- What is the role of CSR practices, GSCM, CR in SCP?

- What are the supporting solutions for the SCP of companies around Vietnam?

1.5 Research significance:

This research aims to investigate the factors influencing the impact of CSR activities on SCP through GSCM and reputation of the company To achieve this objective, we shall develop a comprehensive research model utilizing established theoretical frameworks By analyzing the chosen elements and their interactions, the model will illuminate the mechanisms through which CSR activities influence a firm's sustainable performance

Firstly, this study makes several valuable contributions to the existing literature in the understanding of CSR and its impact on SCP We lend strong support to the stakeholder theory, demonstrating that CSR activities indeed have a positive influence on

a company's success More importantly, our research delves deeper, illuminating the crucial role of reputation as a mediator between social and financial performance By identifying the significant mediation effects of reputation, we highlight its essential nature in translating CSR efforts into concrete business benefits Additionally, our findings resonate with the resource-based view (RBV) theory, underscoring how a positive reputation serves as a valuable resource, ultimately boosting overall business performance The positive impact of reputation on corporate performance underscores the importance of cultivating and managing a favorable reputation in today's competitive business landscape

Secondly, the influence of CSR on business performance remains a heated topic within academic discourse, despite extensive research analyzing their association While some studies suggest a positive correlation between CSR and corporate performance (Oeyono el al., 2011), others indicate a negative relationship (W Yang & Yang, 2016) or

no significant link at all (Chenggen, 2011; Liping et al., 2016) This lack of consensus raises concerns about measurement inconsistencies in both CSR and performance assessment, as highlighted by Galant and Cadez (2017) As long as the theoretical and practical connection between CSR and performance remains a subject of debate, further research in this domain is crucial to resolving the true nature of their potential

interaction.can leverage CSR to achieve long-term economic and environmental sustainability.

Thirdly, this research delves into the impact of CSR practices on sustainable business performance within the Vietnamese context Furthermore, the study investigates the mediating role of CR and GSCM in the relationship between these diverse CSR practices and sustainable business performance By analyzing these intricate dynamics, the research aims to shed light on how companies that operate in the Vietnamese market

The SPSS 20.0 and PLS-SEM were used to analyze collected data

1.7 Chapter summary

The first chapter outlines research problems, research objectives, and research methods Our team has opted to investigate the impact of CSR on SCP To maximize the effectiveness of the research results, this study combines preliminary and formal quantitative research

CHAPTER 02: LITERATURE REVIEW

2.1 Overview

2.1.1 Sustainable Corporate Performance

Stakeholders are starting to place more and more importance on the idea of business sustainability, although it's still hard to define exactly (Madaleno and Vieira, 2020) Aiming to meet stakeholder expectations while meeting sustainable development goals related to the environment, social issues, and governance, the concept of SCP in today's dynamic business environment extends beyond traditional financially-focused metrics to encompass both non-financial and financial aspects (Khaled et al., 2021; Jha and Rangarajan, 2020; Lc cl al., 2022)

SCP encompasses various criteria, including environmental performance, financial performance, social performance within the context of Sustainable Supply Chain Management (Habib et al., 2020) By incorporating these dimensions, SCP aims to sustain market performance and financial outcomes In the research context, SCP places a priority on measuring business performance’s main indicator - CSR, following up with the mediating role of GSCM and CR This approach ensures that enterprises maximize their benefits practicing CSR under the influence umbrella of the two mentioned mediators

2.1.2 Summary of previous studies

The research group opted to exclude 15 quantitative studies, linked to the SCP of enterprises in Vietnam after going through and selecting from more than 40 newspapers,

as indicated in the Table 1 below The description includes: (1) Authors, (2) Research context, (3) Research methodology, (4) Findings, (5) Limitations

Table 1: Summary of related studies

Authors Research context Research

Quantitative Gameful experience moderates the link

between digital servitization and goal commitment

Gameful experience does not moderate the link between digital scrvitization and green supply chain practices

Finn age does not affect sustainable performance, whereas, it is positively affected by firm size

Digital servitization is positively associated with goal commitment

Goal commitment is positively associated with sustainable performance

Green supply chain practices are positively associated with sus­

tainable performance

Sampling limitation Variables

Oubrahim

Ct al

(2023)

Morocco Manufacturing Companies

Quantitative Digital transformation (DT) has a

significant positive influence on Supply chain integration (SCI) and Overall

sustainable supply chain perfonnance (OSSCP) Furthermore, SCI directly and positively impacts OSSCP with a partial mediation effect on the relationship

between DT and OSSCP Further, this research provides insights for practitioners into enhancing sustainable supply chain performance by adopting digital

technologies and integrating sc functions

In particular, this study revealed that DTadoption drives a higher ethical supply chain level from the perspective of sustainability and efficiency in operations

Sample limitation Research context Variables Research data

Feng et al

(2022)

Italy Manufacturing firm’s employees, twenty-five

Quantitative CSR has positive associations with firm

reputation and sustainable firm performance

CR plays an appropriate mediating role,

Sample limitationVariables

manufacturing companies of Italy

meaning it significantly influences the relationship between the implementation of CSR practices and the achievement of

sustainable business performance

Novitasari

Ct al

(2022)

Indonesia PROPER companies

Quantitative GSCM has a positive effect on competitive

advantage

Competitive advantage has a positive effect

on firm performance

GSCM has no effect on Firm Performance

Competitive advantage mediates the relationship between GSCM and Firm Performance

Sample limitation Research context Variables

Le, T T

(2022b)

Vietnam SMEs in the agri-food sector

Quantitative

This study found that big data-driven supply chain management (BDSCM) positively, directly and indirectly, impacted Sustainable Corporate Performance (SCP)

Additionally, the Circular economy thinking application (CETA) moderated the relationship between BDSCM and SSCM

CETA had a direct and positive effect on SSCM

Research context Research data

Sampling technique Survey instrument Sampling limitation

Le, T T

(2022a)

Vietnam SMEs - Top executives, managers and experts

Quantitative The authors findings reveal significant and

positive relationships amongst CSR, firm performance, CSR and CI, CSR and CR, CSR and CL, and most importantly, the findings add value to the cuiTcnl knowledge

by exploring the mediating effect of CI, CR and CL between CSR and firm

performance

ResearchcontextVariables

Asiaei et

al (2021)

IranPublic listed companies

Quantitative There exists a favorable correlation

between CSR and the utilization of sustainability performance measurement

Significant direct impact of CSR on organizational performance

The significant positive relationship between organizational performance and the measurement of sustainability was found

Sample limitation ResearchcontextSampling technique

Zeplin et

al (2021)

East Java, Indonesia manufacturer

Quantitative GSCM affects firm performance in the

company

Enhanced ERP systems affect supplier integration, internal integration, and GSCM

in companiesInternal integration, and supplier integration affects GSCM

Internal integration, and supplier integration affects firm performance

Sampling limitation ResearchcontextVariables

Quantitative GSCM has a positive effect on green

innovationGreen innovation has a positive effect on fnm performance

GSCM has no effect on firm performance

Green innovation mediates the relationship between GSCM and firm performance

Sample limitation Research context

Bahta et

al (2021)

Eritrea, East Africa

Quintana-G

arcia et al

(2020)

European Manufacturing companies

Quantitative Qualitative

Our findings provide strong support for the premise that supplier selection, monitoring and partnership termination based on

environmental criteria positively influence corporate reputation Additionally, evidence suggests that the implementation of those strategies in an integral way as well as progressing towards the adoption ofgreen supply chain management benefit a firm's reputation

Variables Research context Sampling technique

Wang et

al (2019)

ChinaManufacturing industry

Quantitative There is a positive correlation between CSR

and both firm reputation and sustainable business performance

The results further demonstrate that firm reputation has a significant and positive association with sustainable business performance

Firm reputation serves as a positive and significant mediating factor between CSR and sustainable business performance

Sampling limitation Sampling technique (cross-sectio nal design) Variables

Qualitative rhe authors present original research

findings which have both expected and unexpected implications for the circular economy, due to the fact that the data analysis showed that the formal (contracts and environmental norms) and informal (trust and cooperation) instruments of governance positively

influence the induction of green practices within the supply network

Sampling technique Sampling limitation

Qualitative The study established a significant positive

relationship between CSR and financial performance of Ghanaian SMEs Thisimplies that even though there are some factors that serve as mediating role in relation to how CSR influences firm

ResearchcontextVariables

performance, CSR activities byGhanaian SMEs lead to improved financial performance.

Choi et al

(2014)

China companies

Quantitative The empirical findings indicate that both

internal and external CSR exert a favorable influence on green supply chain

Sampling limitation Researchcontext

2.2 Theoretical Backgrounds 2.2.1 Stakeholder Theory

Stakeholder Theory is a theory of capitalism that emphasizes the linked interactions between a company and its customers, suppliers, workers, investors, communities, and anyone with an interest in the firm The notion contends that a company should provide value for all stakeholders, not only shareholders According to stakeholder theory, a company's performance is determined by its capacity to effectively manage relationships with its stakeholders (Martinez-Conesa el al 2017) Managing relationships with key business stakeholders is a significant tool for the organization's value development This indicates that interpreting the stakeholder theory is a necessary step in understanding and drawing conclusions about any potential relationship between CSR and organizational performance Despite the fact that stakeholder theory has a strong moral foundation (Freeman el al 2010), the instrumental version has garnered significant attention (Surroca et al 2010) According to instrumental stakeholder theory, corporate social activities may be used to increase shareholder value CSR-related stakeholder management has instrumental value if the activities provide value for shareholders (Hasan et al 2018)

2.2.2 Resource-Based View

The Resource-Based view theory evaluates and interprets an organization’s internal resources, focusing on resources and capabilities when developing a plan to create long-term competitive advantages Resources may be viewed as inputs that allow businesses to carry out their operations Internal resources and competencies influence organizations' strategic decisions when competing in the external business environment Some organizations' strengths also allow them to add value to the customer value chain, develop new goods, and grow into new markets The RBV leverages the organization's resources and competencies to create long-term competitive advantages According to RBV, not all of a firm's resources will be strategic and hence provide a competitive advantage Competitive advantage emerges only when resources are heterogeneous and immobile

2.3 Hypotheses and Research model

According to Choi et al (2014), the performance of organizations is positively impacted by perceived CSR activities They also mentioned the benefits of CSR strategies for enhancing corporate performance Besides, Asiaei et al (2021) indicated that CSR has a direct, positive, and significant impact on company performance Therefore, the study offers fresh proof of the importance of performance assessment systems in converting the CSR activities of the firms into improved performance While

the literature has long recognized the importance of CSR and its broad implications for organizational perfoimance (Michaels and Gaining 2017), the exact nature of the link between these two concepts is still unclear (McWilliams and Siegel 2000) As a result of the discussion previously mentioned, the following hypothesis is suggested:

Hl: Corporate Social Responsibility has a positive relationship with Sustainable Corporate Performance.

2.3.1.2 Corporate Social Responsibility (CSR) and Green Supply Chain Management (GSCM)

As environmental awareness has increased, GSCM has garnered a lot of interest from academics and industry professionals In their study, Wang et al (2019) discovered that GSCM benefits from CSR, both internal and external In a different study by Almajali (2021), it was shown that CSR has a beneficial impact on GSCM Additionally, companies that engage in internal CSR may benefit from fostering the occurrence of GSCM and improving the current supply chain management system (Russo Spena & De Chiara, 2012) To prove this argument, the research team propose the following hypothesis:

H2: Corporate Social Responsibility has a positive relationship with Green Supply Chain Management.

2.3.1.3 Corporate Social Responsibility (CSR) and Corporate Reputation (CR)

Corporate Reputation refers to how stakeholders perceive a company's performance, habits, and operations (Lombardi et al., 2020) According to Feng et al in

2021, the CSR business approach prioritizing product quality and customer service, utilizing production techniques and marketing channels that provide both economic and emotional satisfaction to consumers can retain former consumers, gain new ones and improve product marketing, leading to sustainable business performance The statement

is also supported by the previous study of Pham & Tran, in 2020, which stated that CSR disclosure has an indirect impact on financial performance due to CR Based on these arguments, the following hypothesis was proposed:

H3: Corporate Social Responsibility has a positive relationship with Corporate Reputation.

2.3.1.4 Green Supply Chain Management (GSCM) and Sustainable Corporate Performance (SCP)

The adoption of environmentally-fricndly practices in supply chain management aims to protect the environment and can benefit companies by reducing expenses on raw materials and utilizing recycled materials This, in turn, can lead to increased profits and enhanced overall company performance Research by Wang et al (2020) suggests a strong positive correlation between GSCM and corporate performance GSCM is recognized as a vital strategy for expanding market share and profitability, as noted by Luthra et al (2016) Additionally, studies by Nejati et al (2017) and Zaid et al (2018) emphasize the role of GSCM in enhancing operational efficiency through cost reduction measures Furthermore, GSCM is viewed as a proactive corporate strategy in meeting stakeholder expectations for improved product offerings Therefore, initiatives such as eco-friendly product development, greenhouse gas emission control, waste minimization, and adherence to recycling regulations are essential for businesses to enhance their SCP.The positive impact of GSCM on firm performance indicates its potential to confer competitive advantages and improve financial outcomes in the long term (Khan & Ọianli, 2017)

However, the perception of implementing GSCM varies among companies, highlighting the need for a thorough understanding of its factors to ensure successful integration and sustainability within each organization (Kuei, Madu, Chow & Chen, 2015) Achieving sustainable supply chain performance requires a balanced approach that considers economic, environmental, performance, and social factors (Geng et al., 2017)

By incorporating green practices into their supply chains, companies can not only reduce costs but also enhance their reputation, contributing to long-term financial success and helping them achieve profit and market-share objectives (Azevedo et al., 2011) These differences in viewpoints have led our team to propose the following hypothesis:

H4: Green Supply Chain Management has a positive relationship with Sustainable Corporate Performance.

2.3.1.5 Corporate Reputation (CR) and Sustainable Corporate Performance (SCP)

Corporate Reputation stands as a critical asset for organizations, widely recognized

as a potent strategic resource for gaining a competitive edge (Flanagan & O'shaughnessy, 2005; Schmidt, 1995) A positive reputation can align firms with market demand, attract investments, and foster employee motivation, serving as a means to distinguish their offerings in the marketplace Numerous empirical studies have established a clear link between CR and performance For example, a stronger reputation tends to correlate with better long-term enterprise performance (Eberl & Schwaiger, 2005) Roberts (2003) suggests that a favorable reputation enhances the perceived value of an organization’s actions and communications, whereas a negative one diminishes the value of its products and services, inviting further criticism In empirical terms, Chung, Eneroth, and Schneeweis (1999) explored how a company's reputation affects the value of its slock, finding that highly regarded firms outperformed those with lower reputations

The RBV theory asserts that intangible resources can yield competitive advantages and enhance an organization's foundation when they are rare, unique, and non-substitutable (Barney, 1991) It regards a firm's reputation as a valuable and scarce resource capable of conferring competitive advantage Similarly, Deephouse (2000) argues that according to RBV, a company's reputation creates competitive advantage by signaling its attractiveness to stakeholders, thus encouraging them to engage with it Consequently, a company's reputation is an intangible asset that is difficult for competitors to replicate and can effectively translate into a competitive edge, benefiting

business performance Fombrun (1996) suggests that CR primarily reflects stakeholders’ perceptions and evaluations of a company's conduct in delivering valuable offerings Additionally, according to Branco et al (2006), a positive CR is positively associated with the quality of relationships with external entities, potentially enhancing stakeholder engagement with the company Thus, we hypothesize as follows:

H5: Corporate Reputation has a positive relationship with Sustainable Corporate Performance.

2.3.1.6 Green Supply Chain Management (GSCM) and Corporate Reputation (CR)

Corporate Reputation is defined as a multidimensional construct encompassing a firm's self-perception, stakeholder perceptions, and its interactions with other organizations (Chun, 2005; Podnar & Golob 2017) It reflects the overall image and assessment of a company by its various stakeholders On the other hand, GSCM focuses

on monitoring and collaborating with suppliers based on their environmental performance and adherence to specific environmental standards (Hsu & Hu, 2009) This practice is gaining increasing importance due to its potential impact on CR

Prior research suggests that GSCM plays a significant role in shaping CR Responsible supplier selection and green practices enhance a company's legitimacy, public image, and stakeholder trust (Luthra et al., 2017) Quintana-Garcia et al (2020) state that green supply chain practices have a significant impact on CR, emphasizing the importance of integrating green suppliers to gain legitimacy and enhance the company's reputation By partnering with environmentally responsible suppliers, businesses can differentiate themselves and build a positive reputation Based on this understanding, the following hypothesis is proposed for further investigation:

H6: Green Supply Chain Management practices positively influences a Corporate Reputation.

2.3.1.7 Green Supply Chain Management (GSCM) mediates the relationship between Corporate Social Responsibility (CSR) and Sustainable Corporate Performance (SCP)

Ogunlela (2018) underscored the pivotal role played by GSCM in fostering sustainable development through enhancements in processes, reductions in costs, and enhancements in operational efficiency These initiatives culminated in the conservation

of resources and the mitigation of waste, pollution, emissions, and deleterious substances (Laguir el al., 2021), consequently yielding heightened productivity, diminished expenses (inclusive of those pertaining to environmental and social concerns, manufacturing outlays, and operational costs), and enhanced economic and operational efficacy (Mishra, Singh, and Rana, 2022)

Grounded in stakeholder theory and the Resource-Based View (RBV), enterprises that engage in CSR endeavors directed towards diverse stakeholders, both internal and external, are likely to propagate GSCM in a manner conducive to positively influencing stakeholders and engendering sustainable managerial behaviors This is accomplished through the judicious utilization of pooled resources stemming from collaborative efforts among stakeholders (Freeman et al., 2021; Le, 2022a) Consequently, stakeholders across the supply chain actively espouse environmentally-conscious behaviors and practices, thereby facilitating the realization of Sustainable Supply Chain Performance (SCPP) (Govindan et al., 2021) Wang el al (2020) have reported a close nexus between CSR and GSCM, indicating that CSR initiatives foster a favorable employee disposition toward the enterprise, potentially motivating them to optimize processes in pursuit of forthcoming sustainable development objectives Rajabion et al (2019) furnish empirical validation for this assertion, evidencing a positive correlation between CSR and the likelihood of GSCM actualization CSR undertakings serve to promote the creation of value-added propositions and innovations in extant supply chain management methodologies, thereby propelling them towards sustainability (Hur et al., 2018), thereby expediting the implementation of GSCM and ensuring SCPP in the protracted term Therefore, our team

chose this hypothesis to analyze more the mediation role of GSCM in the relationship between CSR and firm performance:

H7: Green Supply Chain Management mediates the relationship between CSR and firm performance.

2.3.1.8 Corporate Reputation (CR) mediates the relationship between Corporate Social Responsibility (CSR) and Sustainable Corporate Performance (SCP)

The correlation between CR and firm performance has been consistently observed

as positive and robust, albeit from varied perspectives Consequently, the proposed mediation role of CR in the relationship between CSR and performance holds theoretical validity and has garnered empirical support (Galbreath & Shum, 2012; Saeidi et al., 2015) The theoretical underpinning of CSR actions influencing business performance through their impact on stakeholder perceptions and the enhancement of business reputation finds support in stakeholder theory (Clarkson, 1995; Mitchell Ct al., 1997; Polonsky et al., 2005) Moreover, the augmentation of Corporate Reputation resulting from CSR engagement can yield indirect economic advantages such as the creation of new market opportunities (Fombrun, Gardberg, & Barnett, 2000) Stakeholders, in turn, allocate their resources based on their evaluation of the firm's reputation in connection with its CSR initiatives, thereby exerting influence on company performance (Donaldson

& Preston, 1995)

The mediation role of CR in the relationship between CSR and firm performance can be elucidated through the lenses of stakeholder theory (Freeman, 1984) and RBV theory (Barney, 1991) From the standpoint of stakeholder theory, socially responsible actions and behaviors of enterprises are posited to be directed towards stakeholders, fostering a positive customer attitude towards the business through an affirmative perception of its corporate responsibility (Dawit et al., 2020), thereby enhancing CR and subsequently improving business performance Through the RBV perspective, CSR efforts are construed as a strategic resource for intangible assets like CR, consequently

leading to enhanced firm performance (Margolis et al., 2009) Considering empirical evidence, it is reasonable to assert that CR positively influences the relationship between CSR and firm performance owing to the significant improvement in CR resulting from engagement in CSR activities, which fosters a positive perception and augments the goodwill of the organization among its stakeholders, ultimately culminating in a favorable impact on firm profitability Therefore, the following hypothesis is posited:

H8: Corporate Reputation mediates the relationship between Corporate Social Responsibility and firm performance.

2.3.2 Proposed research model

Hl

H2

Green Supply Chain

H5

Sustainable Corporate Performance (SCP)

H7: GSCM mediates the relationship of CSR and SCP H8: Reputation mediates the relationship of CSR and SCP

Figure Ị Proposed research model

independent variable, 1 dependent variable, 2 mediators and the relationships among them The independent variable remains as CSR, while the dependent variable is SCR The two mediators are CR and GSCM Chapter 3 will elaborate on the research methodology, encompassing both quantitative and qualitative approaches.

CHAPTER 03: RESEARCH METHODOLOGY

Chapter 3's primary content include:

(1) Research design: Quantitative research process and methods

(2) Relevant scales: Building, adjusting and presenting research concept measurement scales

(3) Sample and method of sampling survey

Stage I: Building research models and coming up with research hypotheses

- Identify gaps and issues in existing research related to the topic

- Carry out research synthesis and theoretical evaluations on the issue

- Build research models, creating research hypotheses after the steps of assessing relationships and empirical test results

Stage 2: Conducting preliminary research and finalizing the survey questionnaire

- The group conducted exploratory quantitative research at the beginning of January 2024 by administering a questionnaire to a sample of 50 companies as

a preliminary step before conducting the formal research The purpose of this preliminary research was to measure the scale and gather initial data

- To assess the reliability of the scale, the researchers used Cronbach’s Alpha, a measure of construct reliability This method provided a preliminary assessment of the scale's internal consistency Undesired elements or variables were then excluded from further analysis The remaining variables were included in the complete scale for the official questionnaire, which would be used in the formal quantitative research

- The primary goal of preliminary research is to determine and adjust the observed variables on the study concept scale Before the official survey is conducted, preliminary research is also used to find and address any issues with the questionnaire design.

3.1.1.2 Formal Quantitative Research

3.1.1.2.1 Sample size

This research draws upon the theoretical foundations of Stakeholder Theory and RBV Theory to examine the impact of CSR as an independent variable The mediating roles of CR and GSCM will also be investigated in their influence on the SCP of SMEs Through the combined consideration of these variables, the research aims to quantify the pathways towards SCP achievement for SMEs

While the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach allows for the generation of seemingly reliable results with modest sample sizes, concerns exist regarding its tendency to inflate model fit in such scenarios, ultimately leading to inaccurate estimations (Hair et al., 2017) Consequently, careful consideration of sample size selection is crucial

Historically, the "ten limes rule" guided sample size determination, requiring sample size at least ten times greater than the maximum number of paths directed at a certain construct (Hair et al., 2017) However, Hair et al (2022) revised recommendation suggests a minimum sample size of 155 To ensure that the final sample size remains above this threshold after data filtering and considering R2 of at least 0.1 and 5% significant levels, the research team has established a minimum threshold of 350 responses

3.1.1.2.2 Sampling method

The research team employed a non-probability sampling approach, specifically, a convenience sampling technique An online questionnaire survey was designed and implemented using Google Forms to collect the necessary data The survey link was disseminated to SMEs through various channels To be eligible for participation,

respondents had to be enterprises with a demonstrably established record of engaging in CSR activities for a minimum number of years.

Within a week, a total of 423 responses were collected Subsequently, the data underwent a screening process to identify and exclude unqualified responses or those exhibiting inconsistent or suspicious patterns This process resulted in the removal of 26 responses, leaving a final sample of 397 valid responses suitable for further analysis and coding

3 1.2 Research Process

The research is conducted in three stages, with the following specific content:

Stage 1: Develop a research model and present the research hypothesis.

- Define research problems, then specify objectives and questions

- Conduct a literature review and summarize previous studies on the subject

- The research team creates models and hypotheses after analyzing relationships and empirical data

Stage 2: Conduct preliminary quantitative research to fill out the formal survey questions.

- The questionnaire's first draft was developed through theoretical research This process is used to identify the content, create a scale for research topics, and assess the content value of observable variables

- Preliminary qualitative study with survey participants and group discussion methods The goal of this method is to cognitively adapt the scale to the study setting and official questionnaire responses

Stage 3: Formal quantitative research, surveyed using Google Forms to obtain data for the study.

- Analyze the research data using SmartPLS 4.0.8.8 software to evaluate the measurement and structural models The process of determining the reliability coefficients for each variable of the measurement model, as well as its consistency, convergent validity, and discriminant validity Analyzing a structural

model to assess hypotheses and research models involves measuring multicollinearity, coefficient of determination, adjusted, and effect size The Bootstrap method is used to validate hypotheses.

- Draw findings and highlight the research's managerial implications, followed by limitations and suggestions for future improvements and expansion

Testing reliability coefficient of the scale, hypotheses and research model of the

study

Discussion, statistics and results analysis

Conclusions Managerial implications and suggestions for future

research Formal quantitative

Figure 2 Research process

3.2 Questionnaire design

rhe questionnaire of our team is divided into two sections The first section of the questionnaire inquires respondents about some aspects of their coloration including (1) the size of the enterprise based on the number of employees, and (2) the time of operation

of the company The second part of the questionnaire requires the respondents to rate the constructs investigated in the form of measuring scales using a 5-point Likert measurement method from “1 = Totally disagree" to “5 = Totally agree" This part is set

to investigate 4 variables which are (1) Corporate Social Responsibility (denoted by CSR), (2) Green Supply Chain Management (denoted by GSCM), (3) Corporate Reputation (denoted by CR) and (4) Corporate Performance (denoted by CP)

The scales for the variables are withdrawn from precedent studies with an appropriate examination, edition, and augmentation discussed by the research team and guiding lecturer to properly be suited to Vietnamese corporations Another notable point

of the questionnaire is that the items in the chosen scales are presented in their original language - English and translated into Vietnamese due to the location of the research After the final draft has been finished, the questionnaire is transferred onto an online platform, namely Google Forms, and reaches prospective subjects through different means of communication

3.2.1 Sustainable Corporate Performance

The scale for the Sustainable Corporate Performance variable was developed by Abbas (2020) It includes five items denoted from SCP1 to SCP5, measuring the participants’ behavior and experience on the sustainable aspect of their companies

Table 2 The scale of “Sustainable Corporate Performance”

SCP 1 Our firm achieves revenue growth over time

Abbas (2020)

SCP2 Over time, we arc able to reduce waste

SCP3 We have successfillly managed to reduce our energy consumption

SCP4 We provide employment sustainably to the community over time

SCP5 Over time, we gradually increase our customer base and

experience growth

3.2.2 Corporate Social Responsibility

Corporate Reputation is evaluated by a five-item scale developed by Santos et al (2019) A 5-point Likert-type scale has been used to rate the items in this scale from “1 =

Totally disagree" to “5 = Totally agree" This scale includes 5 observed variables denoted from CSR1 to CSR5.

This scaling system was ultimately selected because of its conciseness and credibility after the team had carefully looked through the possible scales described in the selected research paper

Table 3 The scale of “Corporate Social Responsibility”

CSRl We provide products and services tailored to meet society's

functional needs

Santos et al.(2019)

CSR2 Our firm communicates transparently with stakeholders about

products, services, social responsibility, and policies

CSR3 We continuously improve our processes to boost product quality,

conserve resources, and maximize efficiency

CSR4 Our firm invests in upgrading technology to ameliorate product

quality and reduce emissions and pollution

CSR5 We prioritize providing our employees with a clear career path

and opportunities for developing their skills and competencies

3.2.3 Corporate Reputation

Corporate Reputation is evaluated by a five-item scale developed by Dawid et al (2021) A 5-point Likert-type scale has been used to rate the items in this scale from “1 = Totally disagree" to ”5 = Totally agree" This scale includes 5 observed variables denoted from CR1 to CR5

This scaling system was ultimately selected because of its conciseness and credibility after the team had carefully looked through the possible scales described in the selected research paper.

Table 4 The scale of “Corporate Reputation”

CRl Customers see US as being a very professional organization

Dawid et al

(2021)

CR2 Customers view our firm as one that is successful

CR3 Our firm’s reputation is highly regarded

CR4 Customers view our firm as one that is stable

CR5 Our firm is viewed as well-established by customers

3.2.4 Green Supply Chain Management

The items to measure the construct ofGreen Supply Chain Management have been adopted from the scales developed by Le el al (2023) which encapsulates the first 6 items GSCM1 to GSCM6 This scale investigates almost every aspect that is often associated with GSCM including company policies, green purchasing, green distribution, green marketing, green operational systems, green product development, and green production (Sharma and Gandhi, 2016; Al-Ghwayeen and Abdallah, 2018; Luthra et al., 2014; Zeplin el al., 2021)

GSCM7, which has been developed based on the scales of Sharma et al (2017), has been added later as the authors notice that the original scale fails to mention the relationship of the company with its customers and suppliers in maintaining GSCM, which has been constantly mentioned in many other researchers in the field

Table 5 The scale of “ Green Supply Chain Management"

GSCM2 We manage according to a green purchasing strategy.

GSCM3 We manage according to green distribution and green

marketing strategy

GSCM4 We manage according to a green system that facilitates

recycling

GSCM5 We manage according to the long-term material

development plan with the application ofgreen initiatives

GSCM6 We have a long-term plan to develop green products

according to consumer trends

GSCM7 We cooperate with both customers and suppliers for joint

action in green production and consumption

3.3 Chapter summary

Chapter 3 provides a key basis for the research team by thoroughly exploring study design features such as research design, procedures, scales, and survey samples By offering a full grasp of these components, the chapter allows the team to safely proceed with the next research phases, resulting in a solid and well-designed study

CHAPTER 04: FINDINGS

This chapter will illustrate the data analysis findings It will begin by describing the

research sample characteristics using (SPSS) software version 20.0 Subsequently,

SmartPLS 4 software will be employed to assess the measurement model's reliability and

validity, thereby verifying the scale's effectiveness Finally, the proposed research model's hypotheses will be tested using a multivariate regression model.

4.1 Preliminary Analysis

A total of 423 questionnaires were collected, with 26 votes being unsuitable due to choosing the same level for many different observation questions Thus, the number of votes remaining to be included in the analysis is 397 votes

Table 6 Research sample descriptive analysis

4.2 Assessment of Measurement Model

4.2.1 Construct reliability

Cronbach’s Alpha (the lower bound) and Composite reliability (the upper bound) are commonly employed to assess the reliability of a construct The construct reliability, which measures the utility of a scale, should be between 0.7 and 0.9 A scale can still be characterized in terms of confidence level if its Cronbach's Alpha is at least 0.6 (Nunnally and Bernstein 1994) Cronbach's Alpha should not exceed 0.9, as this suggests that the measurement is multicollinear (Hair, 2017)

According to Hair (2017), “Cronbach’s alpha is a conservative measure of reliability (i.c., it results in relatively low reliability values) However, composite reliability has a tendency to exaggerate internal consistency reliability, resulting in substantially greater reliability estimates," hence composite reliability is used Similar to Cronbach’s Alpha, composite reliability should be greater than 0.6 but less than 0.9 (Hair, 2017)

The research team discovered that the reliability values varied from 0.802 to 0.927 based on Cronbach's Alpha scores, which are presented in the table below As can be seen

in the table below, composite reliability (rho c) of all the variables are at satisfactory levels higher than 0.6, as well as all the variables in composite reliability (rho a) are within the satisfactory standard

Table 7 Construct reliability and validity

Construct Cronbach’s

alpha

Composite reliability (rhoa)

Composite reliability (rhoc)

Average variance extracted (AVE)

4.2.2 Construct validity

As per Hair et al (2021), a study hypothesis that explains more than 50% of the variance in its observed variables has a higher 0.5 AVE score, indicating good convergence On the other hand, if AVE is less than 0.5, then on average there is still more error in the observed variables than there is in the latent variable that accounts for the variance

The above table displays the range of this index, which is 0.613 to 0.718 The research model's AVE value for SCP is 65.1% CR, CSR and GSCM have AVE values of 0.613, 0.663, 0.718, and 0.651, respectively

4.2.3 Indicator Outer Loading

Hair et al (2016) propose an approach to assess the convergent validity ofresearch concepts This approach relies on two key metrics: indicator loadings and average variance extracted (AVE) Indicator loadings reflect the strength of the relationship between each observed variable and its underlying construct Hair cl al suggest that loadings exceeding 0.7 indicate strong convergent validity, while values between 0.4 and 0.7 warrant further evaluation In such cases, removal of the observed variable might be considered if it demonstrably improves the model's overall reliability or increases the AVE above the recommended threshold

The analysis identified four observed variables, which are CR1, CSR4, GSCM4, and GSCM6, with indicator loadings below the recommended threshold of 0.7 To enhance the overall reliability and validity of the measurement scales, these variables were consequently excluded from the model This exclusion aligns with standard statistical practices aimed at optimizing model fit As a result of this refinement, the first algorithm evaluation demonstrates satisfactory indicator loadings across all remaining scales, ranging from 0.751 for CR3 to 0.872 for GSCM2 These values suggest strong convergent validity, indicating that the observed variables adequately capture their respective underlying constructs