Title: The Role of Corporate Social Responsibility on the Relationship of Competitive Pressure and Business Performance of Batik Industry in Central Java, Indonesia
Authors:
1. Dr. Noorlailie Soewarno, SE., MBA., Ak.
2. Prof. Dr. Bambang Tjahjadi, SE., MBA., Ak.
3. Mawar Fitriyah
Department: Accounting
Journal Name: Journal of Asian Finance, Economics and Business
Type of Journal: Scopus Q2
Keywords: Batik MSMEs;Competitive Pressure; Corporate Social Responsibility; Business Performance

Batik has played an important role in Javanese society in Indonesia. UNESCO has recognized Indonesian batik and included it in the list of representatives of cultural heritage because of the philosophy of batik in Indonesia and the use of batik in the daily lives of Indonesian people, especially in Javanese people. Therefore, the batik industry plays an important role in culturally and economically in Indonesia. In a global environment with a complex background, competition has an important role, therefore business organizations need to adapt to respond to competition in order to survive (Flammer, 2014; Meng, Zeng, Xie, & Qi, 2015; Anning-Dorson, 2016). ). Business organizations need to make the right strategy and carry out these strategies, especially when there is competition in its business environment (Kaplan & Norton, 2004). Based on the theory of industrial organizations, to face competition, companies need to carry out certain strategies (Porter, 1981). Establishing relationships with external parties is a strategy in the form of social capital to deal with competition (Ruiz-ortega, Parra-Requena, & García-Villaverde, 2015), namely Corporate Social Responsibility (CSR).
CSR is a company's commitment to balance social, environmental and economic practices by applying ethical behavior to achieve the satisfaction of stakeholders (Agyemang & Ansong, 2017; Feng et al., 2017; Garg, 2016; Moir, 2001; Pinto & Allui, 2020;). In the modern era, CSR has become a medium of communication with stakeholders both formally and informally and its own concepts are not only focused on the benefits and economic entities but also social (Jain, Vyas, & Roy, 2017; Taghian, D'Souza, & Polsonsky, 2015). All sizes and types of companies have the responsibility to implement CSR, but large companies with MSMEs have differences in implementing CSR (Madueño et al., 2016; Orlitzky, Siegel, & Waldman, 2011).
MSMEs have an important role in the economy and community, because it contributes both in terms of economic and non -economic in the form of providing jobs for the surrounding community (Andoh, Quaye, Akomeafrim, & Futter, 2018; Jain et al., 2017). This study aims to determine the mediation of CSR the effect of competition pressure on the performance of the Batik MSME business in Central Java. This study provides empirical evidence of industrial organizational theory and stakeholder theory about the effect of competition pressure on business performance through CSR. This study also provides empirical evidence that can help MSMEs in making decisions related to improvement of performance through CSR due to competition pressure and can be a reference for further research related to the importance of paying attention to competition pressure on business performance.

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