IMPACT OF GREEN FINANCE, GREEN INVESTMENT, GREEN TECHNOLOGY ON SMES SUSTAINABILITY: ROLE OF CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE GOVERNANCE

Abstract

The present research endeavours to examine the mediating role of corporate social responsibility (CSR) in the relationships among green finance, green investment, green technology, and sustainability, with a concurrent investigation into the moderating influence of corporate governance within Small and Medium Enterprises (SMEs) in Saudi Arabia. Employing a quantitative research methodology, the study gathered numerical data from 250 employees through purposive sampling using structured surveys targeted at SME employees. The findings derived from Partial Least Square (PLS)-Structural Equation Modelling (SEM) indicate a positive and statistically significant impact of green finance, green investment, and green technology on sustainability within SMEs in Saudi Arabia. Furthermore, the study underscores the pivotal role of CSR as a mediating factor in the associations between green finance, green investment, green technology, and sustainability. Additionally, corporate governance is identified as a noteworthy moderator, shaping the translation of CSR initiatives into sustainable practices. This underscores the imperative of aligning internal organizational mechanisms with CSR endeavours to optimize outcomes in terms of sustainability. Theoretical contributions of this study encompass an expanded empirical inquiry within the Saudi context, underscoring the significance of green finance, green investment, technological innovation, CSR, and corporate governance in influencing sustainable outcomes. In practical terms, the research promotes the incorporation of these practices to cultivate sustainability within SMEs, providing guidance for managerial decisions to strategically align financial strategies, CSR initiatives, technological advancements, and internal governance mechanisms. This integrative approach aligns with global sustainability objectives and contributes to the establishment of sustainable business cultures within SMEs in Saudi Arabia. The study acknowledges its limitations and proposes future directions for research to address these constraints and advance the field.