Impact of stakeholder pressure on sustainable performance: the mediating role of corporate social responsibility and circular economy practices

Purposes This study was conducted to evaluate the relationship between stakeholder pressure (SP), both internal and external, and corporate sustainable performance (CSP) by exploring the mediating role of corporate social responsibility (CSR) and circular economy practices (CEP) in the context of an emerging country. Design/methodology/approach This study employs a quantitative approach using survey data collected from 289 respondents from 165 Vietnamese manufacturing SMEs. Structural equation modeling (PLS-SEM) with Smart PLS 4 software was applied to test the hypothesized relationships among SP, CSR, CEP, and CSP. Findings Drawing on stakeholder and NRBV theory. The results demonstrate that stakeholder pressure significantly influences corporate sustainable performance. Both CSR and CEP mediate the relationship between SP and CSP. Moreover, CSR positively influences the adoption of CEP, highlighting a sequential linkage between social and environmental initiatives. Practical implications The findings offer practical insights for SME managers and policymakers in emerging economies . Firms should actively engage with stakeholders and integrate CSR and CEP into their strategies to enhance long-term sustainability. Understanding the distinct roles of internal and external pressures can guide more effective sustainability initiatives Social implications The findings also highlight the broader social value of CSR and CEP in improving employee well-being, reducing environmental impacts, and supporting sustainable development in emerging economies Originality/value This study contributes to stakeholder and NRBV theory by validating its applicability in an emerging market SME context. It also advances the literature by demonstrating the dual and interacting mediating roles of CSR and CEP in the stakeholder–sustainability relationship.