ABSTRACT: The present study intends to examine the impact of corporate social responsibility components as proposed by Carroll, together with environmental responsibility, on business model innovation, competitive advantage, and firm performance within the context of small and medium-sized enterprises. The results of this study were obtained through the examination of 483 questionnaires collected from small and medium-sized enterprises in Iran. The application of structural equation modelling was employed to assess the validity of the conceptual model. The findings of this study indicate that the various elements of corporate social responsibility (except for philanthropic and environmental aspects) have a direct and statistically significant impact on business model innovation. Furthermore, it is worth noting that business model innovation has a direct and substantial impact on competitive advantage. Moreover, the results of this study demonstrate a direct and substantial impact of competitive advantage on firm performance. This study represents one of the first investigations that particularly analyzes the influence of individual dimensions of corporate social responsibility on the process of business model creation, as far as our knowledge goes. This study incorporates a novel feature, namely environmental responsibility, into Carroll’s existing model, in response to the growing significance of environmental concerns. The findings of this study provide managers with an enhanced understanding of corporate social responsibility and its impact on organizational performance. This study demonstrates to managers the significance of directing their attention towards specific dimensions of corporate social responsibility that can potentially business model innovation.

Keywords:- corporate social responsibility; environmental responsibility; business model innovation; competitive advantage; firm performance; small and medium-sized enterprises; SMEs; Iran.

Funding: There is no funding for this research.