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The purpose of this paper is to examine corporate social responsibility (CSR) and its effect on small and medium enterprises’ (SMEs) innovation capability and financial performance from the perspective of a developing country. It also aims to explore the role of innovation capability as a mediating factor in the linkage between CSR and SMEs’ financial performance.

A questionnaire was distributed among managers/owners of the sampled companies. Using a data set of 402 Eritrean firms and partial least squares structural equation modeling, direct and mediating effects were tested.

The result reveals that CSR has a positive and significant effect on the financial performance and innovation capability of SEMs. Besides, innovation capability has a positive and significant effect on the business performance of SMEs. The result also supports a partial mediation effect of innovation capability on the association between CSR and firm performance.

The findings from this research could enhance the awareness of the entrepreneurs, researchers and policymakers on CSR-SMEs’ relationship and help understand the importance of CSR as a crucial driver mechanism for companies to become more innovative and competitive.

By empirically examining the relationship between CSR, innovation capability and performance in SMEs, this study contributes to the ongoing scholarly discussion on the linkage between CSR and financial performance. Also, to the best of the authors’ knowledge, no other study investigated the mediating role of innovation capability on the link between CSR activities and firms’ financial performance in SMEs from a developing country perspective, making substantial contributions to research in terms of theory, practice and policy.

This study aims to investigate the relationship between green human resource management (GHRM), corporate social responsibility (CSR) and organizational performance (OP) of small- and medium-sized enterprises (SMEs) by examining corporate reputation (CR) and employee engagement (EE) as mediators in Vietnam.

This study used the quantitative method with 458 valid responses from mid- to senior-level managers and chief executive officers (CEOs) were obtained and used for data analysis. To analyze and explore the relationships between constructs and mediators, SmartPLS version 4.0 structural equation modeling was used to analyze the data of the SMEs of Vietnam in 2023.

The results showed strong and positive relationships between GHRM, CSR and OP in SMEs, with CR and EE serving as significant mediators.

This research provides new insights into how GHRM and CSR enhance OP by using an integrated model that examines how CR and EE mediate this relationship. It demonstrates that businesses implementing GHRM and CSR can promote sustainable development among stakeholders, leading to improved OP in Vietnam’s dynamic economic environment. The findings have practical implications for executives and managers, emphasizing the need to balance stakeholder, environmental and social interests to optimize GHRM and CSR initiatives and foster sustainable growth. This study’s insights could significantly influence SMEs in the Vietnamese economy.