Reinvigorating mission statement to enhance firm performance through CSR practices: evidence from Egyptian SMEs

Abstract

Abstract Although the mission statement has been long considered a vital strategic management tool, its impact on financial performance has not been firmly affirmed. Hence, this paper investigates the effect of mission statement drivers on the mission statement contents and firms’ financial performance. Furthermore, it examines the moderating role of Corporate Social Responsibility (CSR) in these relationships. Using the structural equation modelling method, based on a sample of 298 manufacturing SMEs operate in food production in Egypt, the study identified four main results. First, the contents of the mission statement can be seen as consequences of mission statement drivers. Second, the effect of the mission statement as a set of drivers on financial performance cannot be emphasized. Third, Trible Bottom Line (TBL) mission achieves its ends in terms of financial success. Finally, with respect to the African context particularly Egypt, the financial success can be enhanced by the mission statement through the firm’s commitment to CSR practices.