The effect of corporate social responsibility on the internationalisation of agribusiness small and medium-sized enterprises in South India: who pays the cost of CSR?

With small and medium-sized enterprises (SMEs) representing 90% of businesses in developing economies, it is important to research the impact of corporate social responsibility (CSR) in SMEs as a tool for development and poverty reduction. There is little in-depth work examining the interplay between enhanced CSR performance in SMEs and improved economic outcomes in developing economies. This thesis therefore explores the effect of CSR applied by agribusiness SMEs in a developing economy context on their internationalisation and inclusion in global value chains (GVCs).
Through two months’ qualitative fieldwork in South India in 2019, primary data was collected from 37 respondents including coffee and tea planters (20), government organisations (two), experts (five), intermediaries (five) and sector associations (five). Secondary data was collected from 26 government and policy sources. The primary and secondary data were analysed using the Gioia methodology by developing first order concepts, second order themes and then aggregate dimensions. Three aggregate dimensions developed from the data analysis: related to different understandings of local and international CSR, power dynamics in the GVC and CSR’s impact on internationalisation.
This research contributes to knowledge and theory on CSR and power dynamics in the GVC. It showcases how SMEs from a developing economy engage in CSR, although some might not fit within the dominant ‘frame’ or codify their CSR activities thus creating ‘barriers’ to their engagement in GVCs. While SMEs moving towards higher-value activities resulting from CSR may be taken for granted, this research showcased through empirical data that there might be some benefits for some medium-sized enterprises from implementing CSR. However, there are high costs of investment which often cannot be overcome by many SMEs, in particular small ones. This research also showcased the agency that planters may exercise vis-à-vis buyers in specific contexts.