**4.2 Community orientation in CSR practices**

**Table 3** shows the frequency distribution of M7, M8, M9, and M10 questionnaire items that describe community orientation in CSR practices. Item M7 with a mean value of 3.31, Median 3, and Mode 4 indicates that MSMEs have contributed special funds for the development of the surrounding community. Item 8 with a mean of 3.38, a median of 4, and a mode of 4 indicates that, on average, MSMEs contribute funds to village organizations around the district or village pillar. Item M9, with a mean of 3.29, a median, and mode of 3, indicates that MSMEs make donations to schools or religious institutions. Finally, **Table 3** indicated that MSMEs provide non-detailed donations to the surrounding community as shown in statistic value: Mean of 3.39 and a 4 for median and mode.


**Table 2.** *Frequency distribution analysis and categorization on employee orientation in CSR practices.*


#### **Table 3.**

*Frequency distribution analysis and categorization on community orientation in CSR practices.*

### **4.3 Market orientation in CSR practices**

**Table 4** shows the results of the questionnaire items P11, P12, P13, P14, P15, P16, P17, P18, P19, and P20, all of which describe those related to market orientation in CSR practices of MSMEs. Questionnaire item P11 relates to business licenses, with a mean of 3.39 with a median of 3 and mode of 3 (three), indicating that, on average, MSMEs have a business license. Questionnaire item P12 relates to safe products, with a mean of 2.99 with a median of 3 and mode 4, indicating that, on average, MSMEs have safe products for consumers. Questionnaire item P13, related to advertising, has a mean of 3.36, with a median of 4 and mode 4, indicating that MSMEs place advertisements as promotional media on average. The questionnaire item related to product prices, P14, has a mean of 3.64, with a median of 4 and mode 4, indicating that, on average, MSMEs set their product prices following the market price in general. Questionnaire items P15 are those related to MSME suppliers, and those items have a mean of 3.54 with a median of 4 and a mode of 4, indicating that, on average, MSMEs have suppliers. The distribution aspect is contained in the P16 questionnaire item. This item has a Mean of 2.46 with a median


**Table 4.**

*Frequency distribution analysis and categorization on market orientation in CSR practices.*

*CSR Practical Orientation in Small Medium Enterprises (SMEs): A Case Study in Solo City… DOI: http://dx.doi.org/10.5772/intechopen.99859*

of 2 and mode 2, which indicates that MSMEs have no problems with suppliers. Questionnaire item P17, which relates to payments to suppliers, has a mean of 2.59 with a median of 3 and mode 3, which indicates that, on average, MSMEs have no problems in payment to suppliers. Aspects of the Government's role towards MSME service products are described in the questionnaire item P18, with a Mean of 3.22, a median of 3.5, and a Mode 4, which indicates that, on average, the Government utilizes MSME products or services. Questionnaire item P19, which relates to the cooperation of SMEs with large companies, has a Mean of 3.24 with a median of 4 and mode 4, indicating that MSMEs cooperate with large companies, whether they supply products or are supplied with products. Finally, the questionnaire item related to cooperation between MSMEs with similar companies, P20, with a mean of 3.11, a median of 3, and a mode of 3, shows that, on average, MSMEs cooperate with similar entrepreneurs, especially when they receive many orders.

### **4.4 Environmental orientation in CSR practices**

**Table 5** shows the questionnaire items L21, L22, L23, L23, L24, and L25 related to environmental orientation in CSR practices. Questionnaire item L21, relating to aspects of environmentally friendly products, has a mean of 3.39, with a median of 4 and mode 4, indicating that, on average, MSMEs produce environmentally friendly products. The questionnaire item related to plastic packaging, P22, which has a mean of 2.20 with a median of 2 and mode 2, shows that SMEs avoid plastic packaging, although not all of them. Questionnaire item L23 is closely related to production waste and has a mean of 2.36 with a median of 2 and mode 2 (two) and shows that, on average, MSMEs produce waste during their production. Furthermore, the disturbing waste aspect stated in the questionnaire item L24 has a mean of 2.57 with a median of 3 and mode 3, which indicates that there are still MSMEs whose production activities produce waste that disturbs the surrounding environment. Finally, the questionnaire item L25, which relates to waste treatment, has a mean of 3.04 with a median of 3 and mode 3, indicating that MSMEs have attempted to implement simple waste management.

The next step of data analysis is to find the most dominant practice orientation in implementing CSR practices by MSMEs, using confirmatory factor analysis (CFA). Before conducting confirmatory factor analysis, it is necessary to ascertain whether the existing correlation is sufficient to determine a correlation between


**Table 5.** *Frequency distribution analysis and categorization on environmental orientation in CSR practices.*


#### **Table 6.**

*Kaiser Meyer Olkin test analysis measure of sampling adequacy and Bartlett's test of sphericity.*

variables using the Bartlett of Sphericity Test. In addition, the level of intercorrelation between variables is also measured, including measuring whether factor analysis can be carried out/continued. These measurements used the Kaiser Meyer Olkin Measure of Sampling Adequacy (KMO MSA) test tool. The results of data analysis using SPSS obtained a KMO value of 0.705, which means that confirmatory


#### **Table 7.**

*Analysis of how much the variable can explain the factor.*

*CSR Practical Orientation in Small Medium Enterprises (SMEs): A Case Study in Solo City… DOI: http://dx.doi.org/10.5772/intechopen.99859*

factor analysis can be carried out because the KMO value is more than 0.5. The Bartlett test of Sphericity with Chi-Square value is 1313,967, significant with a value of 0.000, so it can be concluded that the confirmatory factor analysis test can be continued (**Table 6**).

Confirmatory factor analysis begins with exploring how much a variable can explain the factor. The result is that almost all variables have extraction values of more than 0.5, which means that the existing variables can explain the factors. Achievements below 0.5 on K2 items are 0.488, as can be seen in **Table 7**. Of all the variables, based on the processed SPSS data, it was found that the maximum factors that can be obtained are 7 (seven) factors with Initial Eigenvalues of more than 1 (one) (**Table 8**).

The next step is to determine which factor each variable belongs to and how the variable correlates to the factor. Then the results are sorted from the largest to the smallest value for each factor so that it is easy to determine the grouping. The order of the most dominant factors and their variables based on the rotated component matrix table (**Table 9**) is as follows:

