Encouraging intentions in sustainable entrepreneurship through appreciation of local culture and corporate social responsibility support

Abstract

The global emphasis on attaining the Sustainable Development Goals (SDGs) has led to increasing academic interest in SEIN since 2020, as it is viewed as a catalyst for advancing these goals. The existing literature emphasizes the pivotal role of culture in shaping sustainable entrepreneurial intentions (SEIN). However, further research suggests that the relationship between culture and SEIN remains inconclusive, as cultural influences need to be examined within specific local contexts and may be mediated by perceived CSR support. In striving toward sustainable development, this study aims to explore the nexus between local culture and perceived CSR support in influencing SEIN within Kulon Progo Regency, Special Region of Yogyakarta Province, Indonesia. Employing a purposive sampling approach, data were collected from a total of 373 respondents, including MSEs, cooperatives, and village-owned enterprises. Twenty indicators were developed to assess the variables, and PLS-SEM was utilized to test the hypotheses. The results indicate that local culture significantly influences both perceived CSR support and SEIN, with perceived CSR support also positively affecting SEIN. Although perceived CSR support significantly mediates the relationship between local culture and SEIN, its effect size is relatively weak. These findings suggest that local culture fosters openness toward CSR support and perceived benefits related to economic, social, cultural, and environmental concerns. As special regions receive dedicated support to promote cultural economic values, this study recommends that government regulations prioritize the integration of local culture and CSR support to enhance the economic value of culture as a key component of sustainable entrepreneurship.