University of Vaasa - Vaasan yliopisto

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this issue can be examined with the theory of diffusion of innovations. McManus
(2008) also suggested that, for companies, CSR is an innovation in management, the
same as new management decisions. Therefore, it is possible to examine the factors
that influence the motivations of SMEs in Taiwan in CSR implementations with the
theory of diffusion of innovations. Past studies indicate that the perception of
innovation management tends to be the most important factor that influences the
ultimate adoption. This structure combined with literature review can establish an
understanding of the factors that influence the motivations of Taiwanese SMEs in
CSR implementations. It is also possible to identify the conceptual framework to
address the issues concerning whether Taiwanese SMEs execute CSR policies.
Whilst CSR concept has been seriously discussed and implemented overseas, it
remains a fledgling concept in Taiwan. Therefore, this paper aims to investigate the
factors that influence the CSR implementations of Taiwanese SMEs, so as to
establish a deeper understanding of the CSR policies of Taiwanese SMEs. It is also
hoped that the finding of this paper can stimulate the interest of Taiwanese SMEs in
CSR implementations. To sum up, the research purposes are as follows: (1) to
examine the current status of the CSR implementations of Taiwanese SMEs in the
manufacturing industry with the theory of diffusion of innovations; (2) to gain an
understanding of the factors that influence the CSR implementations of Taiwanese
SMEs in the manufacturing industry.
Background and Research Propositions
Although the studies on the CSR policies by SMEs are less than the studies on the
CRS policies of large companies, few scholars make their contributions to the
research on the issues concerning the CSR implementations by SMEs. Williamson et
al. (2006) conducted a survey on 31 small-and-medium-sized manufacturers in the
UK, and found that the performance of CSR implementations and regulations set by
the government have the most significant influence on whether companies both with
CSR policies. Perrini (2006) sampled 400 SMEs in Italy, and found that the
motivations for Italian SMEs to execute CSR strategies are not based on purposeful
strategies. Rather, they are based on the factors of social capital, such as reputation,
trust of stakeholders, company legitimacy and consensus pressure. Therefore, he
suggests that studies on the motivations of SMEs on CSR policies should pay
attention to the factors associated with social capital. Cochius (2006) investigated the
motivations of Dutch SMEs in CSR policies, and found that most of these SMEs
implement CSR policies based on moral motives. They become engaged in CSR
more with long-term benefits in mind, rather than simply focus on short-term gains.
The major obstacle that stands in the way for SMEs to get involved in CSR is a lack
of sufficient funding. Niblock-Siddle et al. (2007) summarized the studies by the
institutions dedicated on CSR in Australia, and indicated that the motivations for
Australian SMEs in CSR implementations include the acknowledgement and
understanding of CEOs or managers in CSR. They indicated that it is able to attract
and retain valuable employees and reduce staff turnover. In this way, it is possible to
develop more unique sales strength and competitive advantage, to lower costs,
improve efficiency and enhance reputation. The obstacles include the restrictions in
time and resources, a lack of acknowledgement of the benefits (or a lack of SMEs’
understanding in how CSR can help). The existing tools for CSR implementations