Social Responsibility and its Relationship with Innovation and Technology in SMEs in Arequipa, Peru

This chapter delves into the significant transformation of corporate social responsibility (CSR) in micro and small enterprises (MSEs) driven by increasing digitalization. It explores how digital tools not only enhance efficiency and transparency but also facilitate sustainable innovation, citizen participation, and the protection of digital rights. The study emphasizes the role of digital technologies in collecting and reporting sustainability-related data, thereby increasing transparency and accountability. It also examines how digitization enables MSEs to adopt innovative solutions for addressing social and environmental problems, such as optimizing production processes and developing green products. The integration of artificial intelligence (AI) into business models is highlighted as a key factor in reinforcing responsible innovation and positive societal impact. The research applies the hierarchical Technology-Organization-Environment (TOE) model to analyze the determinants of digital transformation, focusing on technological, organizational, and environmental dimensions. The study concludes that while CSR as a whole does not have a significant direct effect on competitive success, its social and economic dimensions do, albeit with opposite effects. Innovation and technology, along with good performance, are identified as key drivers of competitive success. The findings provide valuable insights for SMEs in Arequipa, Peru, when considering their sustainability and competitiveness strategies in an increasingly digital environment.