Abstract
The relationship between corporate social responsibility (CSR) and firm performance (FP) has been extensively studied, yet empirical findings remain inconclusive, particularly regarding the mechanisms that mediate this link. Drawing on the stakeholder theory and the knowledge-based view, this study investigates the mediating role of innovativeness in the CSR–FP relationship within the context of small and medium-sized enterprises (SMEs). Using survey data from 454 Spanish SMEs and applying ordinary least squares (OLS) regression, the results reveal that CSR has a positive influence on both innovativeness and FP, and that innovativeness partially mediates the relationship between CSR and FP. These findings suggest that CSR contributes to performance not only directly, but also indirectly by fostering innovation capabilities. The study advances the literature by offering a theoretically grounded and empirically validated model of CSR-driven performance in SMEs, addressing the limitations of prior research focused predominantly on large firms. It also highlights the strategic relevance of CSR as a source of intangible assets that enhance innovativeness and competitiveness in resource-constrained environments. From a managerial perspective, CSR should be seen as a strategic investment that fosters innovation and drives sustainable performance.