The effect of contextual factors, government, corporate social responsibility and competency on business development

This study aims to analyze the influence of contextual factors, government role, implementation of corporate social responsibility, and competency on competitiveness of wood craft Small Medium Industries (SMI) in Bali Province, Indonesia. The renewal of this research is to include the imple- mentation of CSR in order to improve business competencies and competitiveness of SMIs. A sam- ple of 152 respondents from the wood crafts SMIs in Bali Province. The research approach used is quantitative (positivist) and the type of research is exploratory with a questionnaire as a method of data collection. Partial Least Square as a data analysis tool is used. The results of the study show that: contextual factors, government role, and CSR implementation had positive and significant effects on competencies and competitiveness of SMIs. Contextual factors have the smallest influ- ence on business competencies and competitiveness when compared with other variables in the study.