Effect of trust of business social responsibility on business performance of small scale industries: Structural equation modelling approach

• Main Authors: Gorondutse, Abdullahi Hassan, Garba, Ali Muhammad, Saye, Suleiman Muhammad
• Format: Article
• Language: English
• Published: Institut Pengurusan Kualiti (IPQ) 2016
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/20564/1/IJOBE%201%201%202016%201%2018.pdf; http://repo.uum.edu.my/20564/; http://www.ijobe.uum.edu.my/index.php/61-current-issues/143-effect-of-trust-of-business-social-responsibility-on-business-performance-of-small-scale-industries-structural-equation-modelling-approach
• Institution: Universiti Utara Malaysia

The objective of this paper is to provide links between Trust of Business Social Responsibility on business performance. Specifically the relationship between Trust of BSR on business performance of Small Scale Industries was examined in this study. This study comprised samples from 800 owners/managers of Small Scale Industries. A cross sectional design was employed to examine the influence of Trust of BSR on Business performance. Data were collected using self-administered questionnaire and analyzed using SPSS version 18 and AMOS graphics version 18.The result of this study shows that all variables achieved measurement model; Composite Reliability and Average Variance Extracted (AVE) are all above yardsticks of 0.7 and 0.5 respectively.The results of hypothesized relationships revealed that Trust of BSR was significantly related to Business performance.Finally, the model indices satisfied the adoption of using Structural Equation Modeling.The utilization of cross-sectional study served as one shortcoming and adoption of only Small Scale Industries owners/managers in Kano state Nigeria limits the generalizability of the findings.A significant implication of this research is the finding which gives light to owners/managers of Small Scale Industries to focus on Trust of BSR which in consequential lead to Business Performance.The findings are new and distinctive from previous research.The result of this research is based on a sample of Small Scale Industries owners/managers in Kano, Nigeria.The result is very imperative to academics and practitioners of Small Scale Industries worldwide.