Title: CORPORATE SOCIAL RESPONSIBILITY DIMENSIONS AND FINANCIAL PERFORMANCE: THE MODERATING ROLE OF MANAGERIAL COMPETENCE IN SOMALI MANUFACTURING FIRMS
Authors:
Abdullahi Mohamud Awad, Biruk Ayalew Wondem, Namungo Hamzah, Omweno Nyameyio Enock, Maina Mochama Enock, Odenyo Mary and Jude Bassey
Abstract:
Purpose: This study aimed to examine the effects of the four dimensions of corporate social responsibility economic, legal, ethical, and philanthropic responsibilities on the financial performance of manufacturing firms in Mogadishu, Somalia, while assessing the moderating role of managerial competency.

Design/Methodology/Approach: The study used a quantitative approach and cross-sectional explanatory research design. Data were collected through a survey of 200 respondents randomly selected from eight manufacturing firms. Exploratory and confirmatory factor analyses were conducted to validate the constructs, and Hayes’ process macro was applied to test the moderation effects using regression analysis.

Findings: the results revealed that ethical, legal, and philanthropic responsibilities had negative effect on financial performance, whereas economic responsibility had a strong positive effect. The results confirmed managerial competence significantly moderates all relationships, mitigating the negative impacts of ethical, legal, and philanthropic responsibilities and amplifying the positive effect of economic responsibility on financial performance.

Original value: This study provides original empirical evidence from a fragile state context, highlighting that corporate social responsibility’s effect on financial performance is contingent on managerial competence. The result highlights the strategic relevance of skilled management in transforming corporate social responsibility initiatives from potential liabilities into drivers of financial success.
Keywords: Corporate Responsibility, Social Responsibility, Economic Responsibility, Legal Responsibility, Philanthropic Responsibility, Managerial Competence, Financial Performance, Manufacturing Firms, Somali.
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