Corporate social responsibility (CSR) has become a vital component in addressing environmental, social, and economic challenges. In the context of the construction industry, due to the widespread presence of irresponsible practices, CSR implementation studies have gained significant attention, particularly in developing countries. This study consists of a systematic literature review of 58 articles published between 2018 and 2024, seeking to explore the internal and external factors affecting CSR implementation in emerging construction nations. The analysis employs the PESTEL framework, which refers to external impact factors, including political, economic, social, technological, environmental, and legal aspects. Additionally, the SWOT framework is utilized to identify the strength, weaknesses, opportunities, and threats. The Analytic Hierarchy Process (AHP) is then applied to prioritize the identified factors. The results demonstrate that institutional pressures and economic progress are the most influential external opportunities. Internal weaknesses, including subcontracting and quality challenges and financial constraints of SMEs, are significant barriers. This study contributes to the CSR literature by integrating external macro-environmental factors and internal organizational dynamics, offering a strategic and actionable framework for the advancement of CSR implementation in the construction industries of developing countries.

Corporate social responsibility (CSR) plays a critical role in promoting sustainable development in the construction industry. However, existing PESTEL-based studies have predominantly focused on large construction firms, and empirical evidence on how macro-environmental factors influence CSR performance in construction small and medium-sized enterprises (SMEs) remains limited, particularly in emerging economies. To address this gap, this study integrates the PESTEL framework with stakeholder and contingency theories to quantify the effects of political, economic, social, technological, environmental, and legal external forces on CSR performance in Chinese construction SMEs. Based on 380 valid survey responses and analyzed using partial least squares structural equation modeling (PLS-SEM), the findings reveal that political, economic, and social factors exert the strongest positive effects on CSR performance, while legal factors have a moderate influence. Technological and environmental pressures, although statistically significant, exhibit comparatively weaker impacts, which reflects construction SMEs’ limited financial and absorptive capability, fragmented workflows, and uneven institutional enforcement. Theoretically, this study extends stakeholder and contingency theories by showing that, in emerging-economy construction SMEs, CSR performance is driven primarily by coercive power and institutional legitimacy, and that the effects of macro-environmental pressures are conditional on firm-specific capacities. Practically, the findings suggest that effective CSR promotion requires combining political mandates with capacity-building policies, targeted financing, and SME-oriented technological and environmental support.

Due to acute resource constraints and environmental turbulence, many small and medium-sized construction enterprises (SMEs) prioritize short-term survival over corporate social responsibility (CSR) initiatives. Grounded in social exchange theory (SET), this study investigates how CSR implementation drives financial performance (FP) via the mediating role of non-financial performance (NP), aiming to deconstruct the “psychological black box” of this transformation. Drawing on a sequential mixed-methods design involving PLS-SEM analysis of 380 responses and 10 semi-structured interviews, the results confirm that CSR practices, particularly ethical practices and community engagement, can be effectively translated into improved NP, which acts as a vital strategic conduit for enhancing FP. However, skills development and training showed limited immediate impact due to a systemic “digital mismatch” and significant time-lag effects. Theoretically, this research refines SET by identifying a hierarchical transition where socio-emotional assets serve as compensatory resources in volatile and resource-constrained environments. Practically, the findings offer a strategic roadmap for SMEs to mitigate technological and systemic barriers, providing novel pathways for fostering CSR to achieve sustainable growth.