Strategic CSR, Human Capital, and Sustainable Value Creation Among Export-Oriented SMEs in Bali

Abstract

Export-oriented small and medium-sized enterprises (SMEs) are under pressure from global market dynamics and supply chains to adopt responsible business practices. Creating sustainable value is becoming increasingly important because it not only strengthens the competitiveness of export-oriented SMEs but also supports long-term relationships with international business partners. Empirical evidence regarding the contribution of strategic Corporate Social Responsibility to sustainable value creation is still dominated by research on large companies. Meanwhile, research in the context of SMEs remains limited, particularly studies examining the role of human resources as a mechanism that bridges this relationship. Given this gap, this study aims to analyze the direct effect of strategic CSR on sustainable value creation and to test the mediating role of human capital. The study employs a quantitative approach through a survey of 100 owners and/or managers of export-oriented SMEs in Bali Province. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that strategic CSR has a positive and significant effect on sustainable value creation and human capital. Human capital also has a positive and significant effect on sustainable value creation and was found to mediate the relationship between strategic CSR and sustainable value creation. The findings indicate that strategic CSR is not merely a social activity, compliance measure, or act of philanthropy, but rather an integral part of a business strategy that supports sustainable value creation. This contribution is further optimized when the implementation of strategic CSR is effectively integrated with human capital development.