Sustainable social responsibility toward multiple stakeholders as a trump card for small and medium‐sized enterprise performance (evidence from China)

Sustainable social responsibility (SSR) toward multiple stakeholders is proclaimed as an obligation of firms rather than a voluntary deed. Keeping in view the stipulation of sustainability, this paper examines the influence of SSR on sustainable competitive position (SCP) and firm performance (FP) in the context of 307 Chinese small‐ and medium‐sized enterprises. The results indicate a significant influence of aggregated and segregated SSR on SCP and FP. With the exception of SSR toward owners, the dimensions of SSR toward employees, the environment, the community, suppliers, and customers exhibit a significant positive influence on SCP and FP. Simultaneously, the results show that SCP has a mediating role in the relationship between SSR and FP. The findings of the study inculcate the managers to stretch substantial consideration to the interests of multiple stakeholders rather than owners only. Based on the evaluation, theoretical and practical implications are presented for managers, owners, and local governments.