The role of signals in gen Z’s intention to apply to Smes examining CSR, corporate reputation, employer brand and the availability of information on social media

Abstract

Research purpose This study investigates the influence of corporate social responsibility (CSR) on Generation Z candidates’ intention to apply (ITA) through corporate reputation (CR) within the context of Vietnamese small and medium-sized enterprises (SMEs). This study thereby offers practical implications for SME managers and policymakers to enhance talent acquisition strategies and strengthen employer reputation in Vietnam’s evolving labor market. Research motivation: Amid the ongoing “war for talent,” SMEs face challenges in attracting qualified candidates, especially among Gen Z, the emerging workforce, who show greater sensitivity to social and environmental issues, and increasingly evaluate employers based on their CSR performance. However, the limited awareness, resource constraints and managerial capacity prevent SMEs from implementing CSR effectively. Moreover, few studies have simultaneously examined CSR, CR, and ITA, particularly in the context of SMEs in emerging markets like Vietnam. These gaps motivate this study. Research design, approach, and method: A quantitative approach was employed using a cross-sectional survey of 504 Gen Z job seekers in Ho Chi Minh City. Data were analyzed using SPSS 20 and SmartPLS 3.2.9. The analysis followed a three-step procedure drawing on the recommendation of Hair et al. (2020) and Gandasari et al. (2024). Main findings: CSR significantly enhances CR, which in turn positively influences Gen Z’s ITA. CR partially mediates the CSR–ITA relationship, confirming CSR’s signaling effect in shaping employer reputation and attractiveness. Practical/managerial implications: For SMEs, CSR should be viewed as a strategic signaling tool to enhance employer reputation and attract Gen Z talent. For policymakers, the results suggest the need to develop SME-oriented CSR guidelines and promote initiatives that improve transparency and visibility of CSR activities in the labor market.