Corporate sustainability in small and medium-sized enterprises: a literature analysis and road ahead

Journal of Indian Business Research - Tập 12 Số 2 - Trang 271-300 - 2019
Maitreyee Das1, K. Rangarajan1, Gautam Dutta1
1Indian Institute of Foreign Trade, New Delhi, India

Tóm tắt

Purpose

The purpose of this paper is to do a thorough literature review to assess the current status of corporate sustainability practices, issues and challenges in small and medium-sized enterprises (SMEs) and, based on literature, suggest a model that can improve and strategically manage their sustainability practices in the emerging market context of Asia.

Design/methodology/approach

The authors did a meta-analysis of the reviewed literature taken from peer-reviewed scholarly journals in the time frame of 1985-2016. Methodology used by the authors is through preferred reporting items for systematic reviews and meta-analysis.

Findings

Corporate sustainability is a well-practiced area in big organisations. However, literature suggests that in case of SMEs, the situation is different. Social and environmental practices are grossly neglected in SMEs, more specifically in emerging markets. Existing literature mentions that collaborative mode of operation, government policy and facilitation and supporting organisation culture can positively influence SME’s sustainability performance and hence improve their financial performance.

Research limitations/implications

Most of the papers in corporate sustainability literature are qualitative in nature and there is no empirical evidence of establishing this relationship in SME context. This paper tries to conceptualise the existence of a possible framework relating factors of sustainability and their role in improving business performance of the SMEs. However, the findings are purely literature-based and piloting of the questionnaire is also done on 20 SMEs in a specific geography. This is a very small and also a biased sample. Future research studies based on this paper are expected to verify the proposed relationship with larger data set catering to different industry clusters and countries.

Practical implications

The proposed model is only directional in nature. With the content analysis, the authors have tried to answer the research questions relating to factors of sustainability and its impact on business performance. To address the research questions in a more generalised way, an empirical research needs to be conducted to establish the research propositions. The proposed model needs to be validated and optimised with further research and data analysis. Once such a model is established, this can be proved beneficial for providing guidance to SMEs to enhance the sustainability of their business operations.

Social implications

The SME sector has made a significant contribution to the economic development in countries, and this sector has huge potential for growth, and their geographic spread and penetration is much higher than large organisations. Sustainable growth of this industry sector can reasonably be expected to lead to stable and sustainable development of the nation. Moreover, environmental and social best practices adopted by SMEs will also have a positive influence on society and environment in the long run.

Originality/value

This paper had done a geography wise analysis of sustainable practices in SMEs, and based on the recommendations and suggestions of different analyses, the authors developed few research propositions and also presented a conceptual model. Finally, to address the gap, it mentions some future research possibilities to test and validate the proposed model in the context of SMEs in emerging markets of Asia.

Từ khóa


Tài liệu tham khảo

2010, SME in search for feasible concepts for systematic social responsibility in times of crisis, Economics and Management, 2010, 635

2012, Sustainability practices and corporate financial performance: a study based on the top global corporations, Journal of Business Ethics, 108, 61, 10.1007/s10551-011-1063-y

2014, Corporate sustainability: an integrative definition and framework to evaluate corporate practice and guide academic research, Journal of Cleaner Production, 76, 12, 10.1016/j.jclepro.2014.02.016

Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2011), “Small vs Young firms across the world – contribution to employment, job creation, and growth, policy”, Research Working Paper 5631 (the World Bank Development Research Group).

2012, Corporate social responsibility and corporate governance in Italian SMEs: the experience of some spirited businesses, Journal of Management and Governance, 16, 13150

2012, Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines, Social Responsibility Journal, 8, 208, 10.1108/17471111211234842

2013, Corporate social responsibility decisions: a dilemma for SME executives?, Social Responsibility Journal, 9, 177, 10.1108/SRJ-07-2011-0028

2011, Walking the Talk? Environmental responsibility from the perspective of small-business owners, Corporate Social Responsibility and Environmental Management, 18, 172, 10.1002/csr.266

2016, Influence of national institutions on the corporate social responsibility practices of small- and medium-sized enterprises in the food-processing industry: differences between France and Morocco, Journal of Business Ethics, 134, 117, 10.1007/s10551-014-2417-z

2015, The accountants’ perspective on sustainable business practices in SMEs, Social Responsibility Journal, 11, 641, 10.1108/SRJ-07-2014-0096

Bichta, C. (2003), “Corporate Social Responsibility – A Role in Government Policy and Regulation?”, Research Report No. 16, University of Bath School of Management.

2009, City and Environment

2016, Reform priorities for corporate sustainability: environmental, social, governance, or economic performance?, Management Decision, 54, 1497, 10.1108/MD-11-2015-0505

Brundtland Report, 1987, Our Common Future, the World Commission on Environment and Development

2012, Micro-business community responsibility in Australia: approaches, motivations, and barriers, Journal of Business Ethics, 115, 489

2010, An investigation of Turkish small and medium-sized enterprises online CSR communication, Social Responsibility Journal, 14, 176

2011, The structure of sustainability research in marketing, 1958-2008: a basis for future research opportunities, Journal of the Academy of Marketing Science, 39, 55, 10.1007/s11747-010-0212-7

2014, A comprehensive model of business social responsibility (BSR) for small scale enterprises in Indian context, Journal of Small Business and Enterprise Development, 21, 716, 10.1108/JSBED-05-2014-0091

2010, Sustainable entrepreneurship in SMEs: a case study analysis, Corporate Social Responsibility and Environmental Management, 17, 125, 10.1002/csr.223

1998, Environmental degradation, property rights, and population movements: hypotheses and evidence from Rajasthan (India), Environment and Development Economics, 3, 35, 10.1017/S1355770X98000035

2016, Using human resource activities to implement sustainability in SMEs, Journal of Small Business and Enterprise Development, 23, 652, 10.1108/JSBED-07-2015-0096

2012, Corporate sustainability: historical development and reporting practices, Management Research Review, 35, 157, 10.1108/01409171211195170

2015, Sustainability and small to medium-sized enterprises – how to engage them, Australian Journal of Environmental Education, 20, 57

2003, Indicators for measuring environmental sustainability: a case study of the pharmaceutical industry, Benchmarking: An International Journal, 10, 107, 10.1108/14635770310469644

2006, Towards sustainable development strategies: a complex view following the contribution of Edgar Morin, Management Decision, 44, 871, 10.1108/00251740610680578

2011, Report on support to SMEs in developing countries through financial intermediaries

2014, A consideration of organisational sustainability in the SME context: a resource-based view and composite model, European Journal of Training and Development, 38, 398, 10.1108/EJTD-10-2013-0108

2017, Sustainability status of Indian MSME, Small Enterprises Development, Management and Extension Journal, 45, 89

2013, Sustainability and competitiveness in Mexico, Management Research Review, 36, 1252, 10.1108/MRR-06-2013-0138

2012, Information on corporate social responsibility and SME’s environmental responsiveness: a regional study, Economics and Sociology, 5, 103, 10.14254/2071-789X.2012/5-2/8

Duch, C. and Polasek, D. (2010), “Corporate social responsibility in small and medium-sized companies in the Czech Republic”, Doctoral Thesis, Czech Management Institute, Praha.

2013, A cognitive elaboration model of sustainability decision making: investigating financial managers’ orientation towards environmental issues, Journal of Business Ethics, 117, 735, 10.1007/s10551-013-1715-1

Edinburgh Group Research Report, 2013, Growing the global economy through SMEs

EIU (Economist Intelligence Unit), 2010, SMEs in Japan: a new growth driver?

2011, Company image and corporate social responsibility: reflecting with SMEs’ managers, Marketing Intelligence and Planning, 30, 266

2014, Implementation of corporate social responsibility in Australian construction SMEs, Engineering, Construction and Architectural Management, 22, 295

2011, Small-business owner-managers’ perceptions of business ethics and CSR-related concepts, Journal of Business Ethics, 98, 425, 10.1007/s10551-010-0586-y

2010, Exploring corporate social responsibility education: the small and medium-sized enterprise view point, Management Decision, 48, 1514, 10.1108/00251741011090306

2010, Socially responsible processes of small family business owners: exploratory evidence from the national family business survey, Journal of Small Business Management, 48, 524, 10.1111/j.1540-627X.2010.00307.x

Flammer, C. (2013), “Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach”, available at: https://ssrn.com/abstract=2146282 or http://dx.doi.org/10.2139/ssrn.2146282

2014, Does it pay to be social responsible? Portuguese SMEs feedback, Omnia Science, 12

2002, Public Sector Roles in Strengthening Corporate Social Responsibility: A Baseline Study

2012, Corporate social responsibility and aging workforces: an explorative study of corporate social responsibility implementation in small- and medium-sized enterprises, Business Ethics: A European Review, 21, 353, 10.1111/j.1467-8608.2012.01659.x

2015, Unexplored aspects of the social licence for SMEs, Corporate Governance: The International Journal of Business in Society, 15, 577, 10.1108/CG-11-2014-0135

2010, Micro, small and medium enterprises (MSMEs) in India: an appraisal, Journal of Technology Management and Innovation, 6, 66

Ghosh, A. (2013), “Corporate sustainability and corporate financial performance: the Indian context”, IIM Calcutta Working Paper.

2014, From the stockholders to Stakeholders-how sustainability can drive financial outperformance

2015, Identification and prioritization of corporate sustainability practices using analytical hierarchy process, Journal of Modelling in Management, 10, 23, 10.1108/JM2-09-2012-0030

2012, The role of an SME’s green strategy in public-private eco-innovation initiatives: the case of ecoprofit, Journal of Small Business and Entrepreneurship, 25, 451, 10.1080/08276331.2012.10593584

2015, Ethics, corporate social responsibility and the use of advisory services provided by SMEs: lessons learnt from Japan, Asian Academy of Management Journal, 20, 71

2016, Measuring and understanding the engagement of Bangladeshi SMEs with sustainable and socially responsible business practices: an ISO 26000 perspective, Social Responsibility Journal, 12, 584, 10.1108/SRJ-08-2015-0125

2016, Exploring the relationship between green orientation, customer based Brand equity (CBBE) and the competitive performance of SMEs in Ghana, Journal of Marketing Development and Competitiveness, 10

2014, Achieving effective sustainable management: a small-medium enterprise case study, Corporate Social Responsibility and Environmental Management, 21, 52, 10.1002/csr.1305

2010, Corporate sustainability and innovation in SMEs: evidence of themes and activities in practice, Business Strategy and the Environment, 19, 417, 10.1002/bse.652

2015, What drives environmental practices of SMEs, Small Business Economics, 44, 759, 10.1007/s11187-014-9618-9

2012, Sustainable SME practice: a reflection on supply-chain environmental management intervention, Management of Environmental Quality: An International Journal, 23, 673, 10.1108/14777831211262945

2012, What prompts small and medium enterprises to engage in corporate social responsibility? A study from Taiwan, Corporate Social Responsibility and Environmental Management, 19, 288, 10.1002/csr.276

2014, Social sustainability in developing country suppliers: an exploratory study in the ready made garments industry of Bangladesh, International Journal of Operations and Production Management, 34, 610, 10.1108/IJOPM-10-2012-0467

2010, Corporate social responsibility in small- and medium-size enterprises: investigating employee engagement in fair trade companies, Business Ethics: A European Review, 19, 126, 10.1111/j.1467-8608.2010.01586.x

2012, Study on the impact on promoting social responsibility in business performance for SMEs, Economy Transdisciplinarity Cognition, 15, 203

2009, Social responsibility in SMEs: a source of business value, Social Responsibility Journal, 5, 423, 10.1108/17471110910977320

2015, Implementation of sustainability management and company size: a knowledge-based view, Business Strategy and the Environment, 24, 765, 10.1002/bse.1844

2016, Implementing sustainability in small and medium-sized construction firms: the role of absorptive capacity, Engineering, Construction and Architectural Management, 23, 407, 10.1108/ECAM-01-2015-0015

2011, Sustainable SMEs network utilization: the case of food enterprises, Journal of Small Business and Enterprise Development, 18, 141, 10.1108/14626001111106479

2010, An investigation into the social and environmental responsibility behaviours of regional small business in relation to their impact on the local community and immediate environment, Australasian Journal of Regional Studies, 16, 253

2013, SMEs, environmental management and global warming: a fusion of influencing factors, Journal of Small Business and Enterprise Development, 22, 528

2013, Corporate social responsibility and its link to financial performance: application to Johnson and Johnson, a pharmaceutical company, World Journal of Science, Technology and Sustainable Development, 10, 4, 10.1108/20425941311313065

2012, Intermediaries driving eco-innovation in SMEs: a qualitative investigation, European Journal of Innovation Management, 15, 442, 10.1108/14601061211272376

2011, International transfer of employee-oriented CSR practices by multinational SMEs, International Journal of Workplace Health Management, 4, 123, 10.1108/17538351111143303

2014, Implementation of CSR concept in manufacturing SMEs, Management, 18, 71, 10.2478/manment-2014-0006

2006, Causes of small business failure in Uganda: a case study from Bushenyi and Mbarara towns, African Studies Quarterly, 8, 27

2015, Corporate social responsibility in SMEs: a shift from philanthropy to institutional works, Journal of Business Ethics, 2016

2004, From the environmental responsibility of Slovenian SMEs to their corporate social responsibility, Zagreb International Review of Economics and Business, SCI, 127

2010, SME in search for feasible concepts for systematic social responsibility in times of crisis, Economics and Management, 2010, p635

2012, The relationship between CSR and corporate strategy in medium-sized companies: evidence from Italy, Business Ethics: A European Review, 21, 402, 10.1111/beer.12002

2016, Perceived corporate social responsibility and its implementation in practice: the case of Lithuanian small and medium-sized enterprises, Inzinerine Ekonomika-Engineering Economics, 27, 479

2015, Information seeking for musical creativity: a systematic literature review, Journal of the Association for Information Science and Technology, 67, 2105

2012, New insights on the operational links between corporate sustainability and firm performance in service industries, International Journal of Business Insights, 4, 80

2012, Bridging the gap: an exploratory study of corporate, social responsibility among SMEs in Singapore, Journal of Public Relations Research, 24, 299, 10.1080/1062726X.2012.689898

2010, The corporate social responsibility orientation of Chinese small and medium enterprises, Journal of Business Systems, Governance and Ethics, 5, 33

2012, Beyond size: predicting engagement in environmental management practices of Dutch SMEs, Journal of Business Ethics, 109, 411, 10.1007/s10551-011-1137-x

2010, Slipstreaming the larger boats: social responsibility in medium-sized businesses, Journal of Business Ethics, 92, 531, 10.1007/s10551-009-0171-4

2013, Adoption of ‘eco-advantage’ by SMEs: emerging opportunities and constraints, European Journal of Innovation Management, 16, 355, 10.1108/EJIM-09-2011-0079

2013, Evolution of the concept and definition of corporate social responsibility, Global Conference on Business and Finance Proceedings, 8, 113

2015, Do corporate sustainability practices enhance organizational economic performance?, International Journal of Quality and Service Sciences, 7, 184, 10.1108/IJQSS-02-2015-0025

2015, Social sustainability in the supply chain: analysis of enablers, Management Research Review, 38, 1016, 10.1108/MRR-02-2014-0037

2016, Knowledge of the concept of corporate social responsibility in agribusiness enterprises (based on the example of the SME sector in malopolska), Management - The Journal of University of Zielona Góra, 20

Margolis, J.D. Elfenbein, H.A. Walsh, J.P. (2009), “Does it pay to be good… and does it matter? A meta-analysis of the relationship between corporate social and financial performance”, available at: https://ssrn.com/abstract=1866371 or http://dx.doi.org/10.2139/ssrn.1866371

2013, Sustainable value creation in SMEs: a case study, The TQM Journal, 25, 44, 10.1108/17542731311286423

2010, An innovative model to promote CSR among SMEs operating in industrial clusters: evidence from an EU project, Corporate Social Responsibility and Environmental Management, 17, 133, 10.1002/csr.224

2015, Sustainability management and small and medium sized enterprises: managers’ awareness and implementation of innovative tools, Corporate Social Responsibility and Environmental Management, 22, 271, 10.1002/csr.1343

2016, SMEs and corporate social responsibility: Indian perception, SCMS Journal of Indian Management, 13, 58

2012, Keeping at arm’s length or searching for social proximity? Corporate social responsibility as a reciprocal process between small businesses and the local community, Journal of Business Ethics, 108, 481, 10.1007/s10551-011-1104-6

2013, Small business implementation of CSR for fair labor association accreditation, Journal of Corporate Citizenship, 2013, 38, 10.9774/GLEAF.4700.2013.se.00005

2016, Sustainability of positive relationship between environmental performance and profitability of SMEs: a case study in the UK, Journal of Enterprising Communities: People and Places in the Global Economy, 10, 138, 10.1108/JEC-05-2014-0008

2009, Preferred reporting items for systematic reviews and meta-analyses: the PRISMA statement, Annals of Internal Medicine, 151, 264, 10.7326/0003-4819-151-4-200908180-00135

2010, Workplace health promotion within small and medium-sized enterprises, Health Education, 110, 61, 10.1108/09654281011008753

2012, Corporate social responsibility in regional small and medium enterprises in Australia, Australasian Journal of Regional Studies, 18, 364

2015, Toward economic reward: corporate social responsibility communication of SMEs, Megatrend Revija, 12, 215, 10.5937/MegRev1503215M

2012, Corporate social responsibility and company performance in the Malaysian context, Procedia - Social and Behavioral Sciences, 65, 897, 10.1016/j.sbspro.2012.11.217

2014, Examining stakeholders’ influence on environmental responsibility of micro, small and medium-sized enterprises and its outcomes, Management Decision, 52, 2021, 10.1108/MD-02-2014-0109

2012, The responsibility of corporate social responsibility in SMEs, International Journal of Organizational Analysis, 21, 385

2014, Managerial perceptions of SMEs in the wood industry supply chain on corporate responsibility and competitive advantage: evidence from China and Finland, Journal of Small Business Management, 54, 162

2014, Corporate social responsibility of Hungarian SMEs with good environmental practices, Journal of East European Management Studies, 19, 327, 10.5771/0949-6181-2014-3-327

2006, Competitive environmental strategies: when does it pay to be green?, California Management Review, 48, 127, 10.2307/41166341

2012, Corporate social responsibility and financial performance: does it pay to be good?

2014, Financial materiality of sustainability: the Japanese context, Journal of Corporate Citizenship, 2014, 31, 10.9774/GLEAF.4700.2014.de.00005

2014, CSR in SMEs: an analysis of donor-financed management tools, Social Responsibility Journal, 10, 602, 10.1108/SRJ-02-2013-0012

2016, A new approach to measure sustainability in German facility management, Facilities, 34, 28, 10.1108/F-01-2014-0005

2015, CSR and small business from the international and national perspective, Research Papers of the Wroclaw University of Economics/Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu, 387, 136

2014, Stakeholders’ involvements in the implementation of proactive environmental practices linking environmental practices and environmental performances in SMEs, Management of Environmental Quality: An International Journal, 25, 132, 10.1108/MEQ-11-2011-0054

2015, Factors influencing green purchasing adoption for small and medium enterprises (SMEs) in Malaysia, International Journal of Business and Society, 16, 3

2005, Sustainable development (1987-2005): an oxymoron comes of age, Sustainable Development, 134, 212

2013, Micro, small and medium enterprise upgrading in India-learning from success cases

2013, SMEs motivation: corporate social responsibility, SCMS Journal of Indian Management, 10, 44501

2011, Little big firms? Corporate social responsibility in small businesses that do not compete against big ones, Business Ethics: A European Review, 20, 30, 10.1111/j.1467-8608.2010.01610.x

Sachdeva, A. and Panfil, O. (2008), “CSR Perceptions and activities of Small and Medium Enterprises in seven geographical clusters UNIDO Survey Report”, cooperation with the UNIDO Cluster Development Programme.

2011, CSR in SMEs: strategies, practices, motivations and obstacles, Social Responsibility Journal, 7, 490, 10.1108/17471111111154581

2014, Social responsibility, sustainability and micro-enterprises: contribution made by a micro enterprise, Original Scientific Paper, 11, 123

2011, Study on promoting social responsibility by SMEs in order to ensure sustainable performance, Economy Trans Disciplinarity Cognition, 14, 73

2013, The relevance of stakeholder theory and social capital theory in the context of CSR in SMEs: an Australian perspective, Journal of Business Ethics, 118, 413, 10.1007/s10551-012-1598-6

1995, Creating sustainable corporations, Business Strategy and the Environment, 4, 154, 10.1002/bse.3280040307

2013, SMEs as ‘transmitters’ of CSR requirements in the supply chain, Supply Chain Management: An International Journal, 18, 497, 10.1108/SCM-04-2012-0152

2012, Going green: the evolution of micro-business environmental practices, Business Ethics: A European Review, 21, 220, 10.1111/j.1467-8608.2011.01651.x

2000, Environmental consequences of agricultural development: a case study from the green revolution state of Haryana, India, Agriculture Ecosystem and Environment, 82, 97

2013, Standard and poor’s environmental, social and governance – (ESG) India index-during and post global financial crisis, Global Journal of Management and Business Studies, 3, 1205

2011, Guest editorial – elements of organizational sustainability, The Learning Organization, 18, 5, 10.1108/09696471111095957

2011, Strategic CSR for SMEs: paradox or possibility, Universia Business Review, L1, 80

2011, SMEs and environmental responsibility: do actions reflect attitudes?, Corporate Social Responsibility and Environmental Management, 18, 186, 10.1002/csr.269

2016, The impact of competitors–firm power divergence on Chinese SMES’ environmental and financial performance, Journal of Business Ethics, 136, 147, 10.1007/s10551-014-2518-8

2014, Sustainable CSR for micro, small and medium enterprises, Journal of Management and Public Policy, 6, 34

2009, Unit Based Sustainability Assessment Tool. A Resource Book to Complement the UNEP Mainstreaming Environment and Sustainability in African Universities Partnership

2012, Capabilities, proactive CSR and financial performance in SMEs: empirical evidence from an Australian manufacturing industry sector, Journal of Business Ethics, 109, 483, 10.1007/s10551-011-1141-1

2016, SMEs in their own right: the views of managers and workers in Vietnamese textiles, garment, and footwear companies, Journal of Business Ethics, 137, 589, 10.1007/s10551-015-2572-x

2010, Establishing strategic CSR in SMEs: an Austrian CSR quality seal to substantiate the strategic CSR performance, Sustainable Development, 18, 90, 10.1002/sd.448

2015, Corporate sustainability: an IS approach for integrating triple bottom line elements, Social Responsibility Journal, 11, 482, 10.1108/SRJ-11-2013-0136

2014, The influence of potential outcomes of corporate social responsibility engagement factors on SME competetiveness, South African Journal of Business Management, 45, 33, 10.4102/sajbm.v45i4.139

2011, Social responsibility and SMEs in Romania, Economic Sciences Series, 63, 92

2011, Corporate social responsibility and SMEs: a literature review and agenda for future research, Problems and Perspectives in Management, 9

2011, How can SMEs in a cluster respond to global demands for corporate responsibility?, Journal of Business Ethics, 101, 175, 10.1007/s10551-010-0708-6

2012, Business social responsibility: how are SMEs doing in Gauteng, South Africa, Social Responsibility Journal, 8, 87, 10.1108/17471111211196593

2016, Developing SMEs as environmental businesses, Construction Innovation, 16, 30, 10.1108/CI-05-2015-0026

Gulati, M. (2009), “Industrial pollution, environmental degradation and disasters-leveraging the Industry – Community interface to reduce vulnerability”, available at: https://ssrn.com/abstract=1531591 or http://dx.doi.org/10.2139/ssrn.1531591

2003, A brief history of social reporting, Business Respect, 51

2009, Corporate social responsibility and SMEs: exploratory study on motivations from a Malaysian perspective, Business Strategy Series, 10, 259, 10.1108/17515630910989150

2018, Contribution of small and medium enterprises to economic development: evidence from a transiting economy, Data in Brief, 18, 835, 10.1016/j.dib.2018.03.126

2017, Alternative Data Transforming SME Finance (English)