Abstract: This study explores the antecedent motivation of CSR engagement among Small and Medium Enterprises (SMEs) in Indonesia by using institutional and resources-based approach. Collecting data through interview and observation, this study found that SME engagement CSR is driven by normative aspect of owner’s belief and understanding the cultural tradition of Indonesia. It also indicate the organizational capability is not in place of their CSR decision making and seen that owner’s personal values are translated directly into corporate values.