Doing Good, Doing Well: The Impact Of Green CSR On Manufacturing SME Sustainability In OMAN

Abstract

Purpose: This study examines whether Green Corporate Social Responsibility (GCSR) enhances the economic, social, and environmental sustainability of manufacturing SMEs in Oman.

Design/methodology/approach: A quantitative, cross-sectional survey was administered to 153 Omani manufacturing SMEs. Constructs were measured with validated multi-item Likert scales. Data were analyzed using PLS-SEM (SmartPLS 4) following a two-step procedure (measurement then structural models). Reliability and validity were assessed via Cronbach’s alpha, composite reliability, AVE, HTMT, and Fornell–Larcker; common method bias was checked with full collinearity VIFs.

Findings: GCSR shows significant positive effects on all three sustainability dimensions: economic (β = 0.739, p < 0.001), social (β = 0.590, p < 0.001), and environmental (β = 0.447, p < 0.001). The model explains 54.6% of variance in economic sustainability (R² = 0.546), 34.8% in social (R² = 0.348), and 20.0% in environmental (R² = 0.200). Reliability indicators were acceptable (CR > 0.80); AVE met the 0.50 threshold for SBS_ECO and SBS_ENV but was marginal for GCSR and SBS_SOC. HTMT and Fornell–Larcker provided mixed evidence of discriminant validity; however, all full collinearity VIFs were < 3.3.

Practical implications: Results support the business case for GCSR in SMEs, particularly its strong economic and meaningful social payoffs, while indicating that environmental outcomes may require complementary enablers (e.g., green finance, technical assistance, or regulatory support).

Originality/value: The study offers context-specific evidence from an emerging economy, extending stakeholder theory by showing that GCSR can materially advance triple-bottom-line performance in manufacturing SMEs.