Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

In this article, we investigate the financial implication of sustainable environmental practices on UK small and medium‐sized enterprises (SMEs)–traded firms. Existing literature indicates that there is a direct relationship between sustainable environmental practices and financial performance. However, studies looking at this relationship have focused mainly on large firms with little attention paid to SMEs. Further, those looking at environmental and financial performance relationships have often used a single measure of performance in their studies. This study bridges these research gaps by focusing on listed SMEs in the United Kingdom using multiple measures of sustainable environmental policy indices on a panel of 201 SMEs on the Alternative Investment Market from 2011 to 2016. Evidence from our panel data analysis suggests significant and a nonlinear (concave) relationship between sustainable environmental practices and firms' financial performance. Specifically, energy efficiency practices, greenhouse gases, material, and resource efficiency revealed an inverted U‐shaped relationship with financial performance. The results will offer guidance to management in terms of allocating resources to sustainable environmental practices investment.     

Sustainable development of small‐ and medium‐sized enterprises in the European Union: A taxonomy of circular economy practices

This paper focuses on the implementation of circular economy (CE) practices in small‐ and medium‐sized firms in all 28 European Union (EU) countries. The analyses take into account the hierarchical nature of the collected data as firms are nested within EU countries, that is, the heterogeneity between different types of firms and countries according to practices and attitudes towards CE. The multilevel latent class model identifies groups of firms and groups of EU countries that are homogeneous in terms of CE, that is, how the homogeneous groups of small‐ and medium‐sized enterprises (SMEs) are distributed across the groups of EU countries. These results, together with the fact that firms with similar CE attitudes and practices have different demographic and business profiles across groups of countries, shed further light on the topic of green behavior in the EU with implications for businesses' environmental policies. Moreover, indications emerge that European policies favoring the implementation of CE practices should be targeted at least for subgroups of European countries, considering the different composition by typology of SMEs operating in their territories and that, at the same time, policies should be defined within each group of countries to account for the specific features of each of the four classes of SMEs.     

Strategic marketing practices and the performance of Chinese small and medium-sized enterprises (SMEs) in Taiwan

This paper reports on a survey of the strategic marketing practices of 218 small and medium-sized enterprises (SMEs) in Taiwan. The survey's results indicate that while the higher performing Taiwanese SMEs give a higher priority to marketing than to other business functions in corporate planning, they are still sales- or production-oriented. The higher performing Taiwanese SMEs are more aware of strategic planning tools, but they make less use of them. They compete with value-added products and good buyer-seller relationships. The findings suggest that broad, small firm marketing principles, specifically generated from countries in the West, to some extent contribute to the success of Taiwanese SMEs. Interestingly, however, the specific marketing practices of these small firms are different from those of their Western counterparts. The research results provide additional evidence to support the theory that both Chinese cultural value orientations and mediating environmental factors play significant roles in shaping the attitudes and behaviour of Taiwanese owner-managers and, in turn, the marketing practices of Taiwanese SMEs.     

Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values

Ecosystem degradation and social sustainability have become important issues in the corporate sphere during the last few decades. However, research discussing corporate social responsibility and related concepts has often focused on larger companies, sometimes neglecting the specifics of small and medium‐sized enterprises (SMEs). The main purpose of this study is to examine the relationships between two common strategic orientations, market orientation (MO) and entrepreneurial orientation (EO), in relation to sustainability commitment, sustainability practices and management values in SMEs. Questionnaire responses from 450 Swedish SMEs were analyzed, confirming the influence of MO, EO and sustainability practices on commitment to sustainability, implying that firms committed to sustainability see both market and entrepreneurial advantages of sustainability. The results also show that different parts of MO and EO differ in importance for commitment to sustainability among SMEs. Implications concern the importance for firms and policymakers to work with sustainability issues using both internal and external perspectives. © 2015 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

Environmental sustainability engagement of firms: The roles of social capital,resources, and managerial entrepreneurial orientation of small and medium enterprises in Vietnam

How firms in transition economies demonstrate their strategic engagement in sustainable environmental management given their limited resources and capabilities is less understood in the literature. This study explores how small and medium enterprises (SMEs) in Vietnam, an exemplar of a country in transition from a closed and socialist economy to an open and liberal market, draw on their external social capital to access critical resources that are leveraged by the entrepreneurial orientation or capabilities of the firms' top management towards engagement in business-wide environmentally sustainable practices. Drawing on a database of more than 2000 firms from a large-scale survey of firms in Vietnam, this study tests the relationships between two facets of social capital, environmental management resources and environmental sustainability engagement. This study further contends that managerial entrepreneurial orientation moderates by enhancing the strategic utilisation of resources to enable firms in Vietnam to engage in environmental sustainability. The results offer novel theoretical insights and timely managerial or practical implications as well as promising directions for future research on the resources, strategies and capabilities of firms in transition economies.     

Conceptualizing businesses as social actors: A framework for understanding sustainability actions in small‐ and medium‐sized enterprises

Small‐ and medium‐sized enterprises (SMEs) can play a crucial role in advancing environmental and social well‐being. Yet various—often conflicting—explanations have been offered to clarify why SMEs pursue sustainability. Some arguments foreground possibilities of profit maximization, whereas others emphasize individual values and convictions. Research supporting such contradicting explanations is often biased towards large enterprises or small, innovative frontrunners. In this article, we examine the underlying drivers of social and environmental interventions of SMEs by exploring empirical data from a survey of over 1,600 Canadian SMEs and complementary in‐depth interviews. We argue that sustainability actions of SMEs can be understood by viewing these firms as social actors—organizations that are shaped by individual values, internal and external interpersonal relationships, and are embedded in a social environment. This conceptualization directs attention to the full range of factors that shape sustainability engagement of SMEs and highlights frequently overlooked forms of sustainability‐oriented actions.     

UK environmental policy and the small firm: broadening the focus

The poor environmental performance of small and medium‐sized enterprises (SMEs) in the UK has been attributed to a wide range of barriers, both internal and external to the firm. However, the debate has seldom considered the interplay of factors beyond ‘the firm’. In order for the debate to progress we emphasize the importance of situating the environmental practices of small firms within a context of national policy arrangements. A lack of institutional enfranchisement for SMEs in the UK is a key factor in understanding why environmental policies have yet to be successful in encouraging more environmentally proactive behaviour within this sector. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.     

Small businesses and the environment: turning over a new leaf?

Previous studies on the environmental practices of small and medium‐sized enterprises (SMEs) in the UK and beyond have portrayed owner‐managers as laggards who underplay their firm's environmental impacts and resist environmental management due to its perceived cost. Yet a recent cross‐sector survey of 220 UK SMEs suggests that this intransigent stance may be slowly changing. Responses indicate a high percentage of owner‐managers actively involved in recycling, energy efficiency, responsible buying and selling, and efforts to reduce their carbon emissions. Owner‐managers saw it as their responsibility to help solve environmental problems and were reportedly willing to accept the costs of tougher environmental regulations and taxation. Business owners were motivated not just by the ‘push’ of legislation and environmental concern but by the ‘pull’ of potential cost savings, new customers, higher staff retention and good publicity for their firms. The survey also found that owner‐managers had resonance with the Stern Review's (2006) conclusions that the benefits of strong early action on climate change outweigh the costs, and that a transition to a low‐carbon economy will bring opportunities for business growth. This indicates that SMEs may be coming round to the idea that there is a business case for sustainability, although there is still some scepticism on the overall profitability of environmental action. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

The interactions between person–organization fit and leadership styles in Asian firms,an empirical testing

This paper presents a study that examines the use of human resource management (HRM) practices and factors influencing the adoption of HRM practices in small and medium-sized enterprises (SMEs). Using a multiple-case study method, HRM in SMEs was explored by comparing 12 small and medium-sized and 12 large semiconductor design firms. The findings show that there is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs.     

Environmental Management in SMEs in the UK: Practices,Pressures and Perceived Benefits

Environmental management represents a significant challenge for small businesses, and prior research has shown that they are typically less engaged with environmental issues than their larger counterparts. At the same time, prior research has seldom explored engagement among small and medium‐sized companies (SMEs) with the wide variety of practices that are encompassed by environmental management, nor has it sought to explore heterogeneity among SMEs. In this study, we analyse the extent of SME involvement in a wide range of environmental management practices and the differences between small and medium‐sized businesses. We also explore SME perceptions of pressures for, and benefits of, engagement with environmental issues. Our findings show that most small businesses are engaged in some environmental initiatives but that there is significant heterogeneity in the engagement of small and medium‐sized businesses. Consistent with this, we show that the smallest companies perceive significantly fewer benefits of engagement with environmental issues. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Talent management and dynamic view of talent in small and medium enterprises

Talent Management (TM) has become one of the key strategic issues for leaders in global organizations and the majority of research on TM focuses on the large multinational enterprise (MNE) context. Despite the importance of small and medium-sized enterprises (SMEs), research in the area of talent management in this context is scarce, particularly conceptual research. This paper tries to address this gap by a) providing a theoretical rationale for the difference between large and SME firms in their talent management and human resource practices; b) exploring the applicability of the notion of talent management conceptualised in large firms to the SME context. c) Proposing a framework that helps identify the characteristics of talent in SMEs. We are critical of the best practices approach and we argue that the notion of talent management is likely to be different in SMEs compared with large firms mainly due to distinct institutional and structural factors.     

Firm resources and the development of environmental sustainability among small and medium‐sized enterprises: Evidence from the Australian wine industry

Scholars and industry professionals want clarification of the specific firm resources that influence the adoption and development of environmentally sustainable strategies. This paper, set in the context of the Australian wine industry, explores different firm resources that are beneficial for environmentally sustainable development and examines the role of management attitudes and norms in moderating this relationship. It establishes which resources small and medium‐sized enterprises (SMEs) should invest in to be more successful in following environmental principles. The findings of a survey of the owner‐managers of Australian wine‐producing SMEs are reported, and partial least squares structural equation modelling is utilized to analyze the data. Results clearly indicate that successful firms that manage their resources more effectively influence the application of environmental behaviour, with one distinct resource significantly influencing the disclosure of such behaviour. A moderating effect is established which supports the notion that pro‐environmental decision‐making in SMEs is heavily influenced by the attitudes and norms held by management.     

The Dynamics of Labour Flexibility: Relationships between Employment Type and Innovativeness

This paper investigates the relationship between flexible human resource (HR) practices and innovativeness. Testing the research model in a sample of first‐tier automotive suppliers indicates that internal flexibility practices are positively related to innovativeness. Regarding external flexibility, the association depends on the type of contingent employee: negative association for ‘short‐term hires’ and positive association for ‘consulting/contracting firms’. The relationships to innovativeness for practices associated with knowledge transfer are moderated by environmental dynamism, but the non‐knowledge related practices are not. Firms in highly dynamic environments can benefit more from flexible HR practices than firms in less dynamic environments.     

The contours of employee voice in SMEs: the importance of context

This article develops a context‐sensitive approach to analyse how and why voice operates in small‐ to medium‐sized enterprises (SMEs), an area that remains under‐theorised and under‐researched. By building on a priori frameworks with proven ability to unpack complexity and take account of the wider context of SMEs, this article explores how resources (human and social capital) and constraints (product market, labour market and strategic orientation) interact to shape voice practices. The article finds significant differences between ‘reported’ compared with ‘actual’ practices in situ, and identifies different types of firms (‘strategic market regulation’, ‘strategic market‐led’ and ‘non‐strategic market‐led’) along with the factors that influence the form and practice of voice. Overall, the article argues that researchers should further pursue research that appreciates the layered nature of ontology and the role played by firm context to explain complex organisational phenomena, if we are to advance our understanding of voice practices in SMEs and beyond.     

Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?

With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Types of technological scanning in manufacturing SMEs: an empirical analysis of patterns and determinants

As the component of environmental scanning that is concerned with science and technology, products, production processes, hardware and information systems, the concept of technological scanning, especially in small business, has received little empirical attention in the past. This paper aims to better define the different technological scanning practices of small and mediumsized enterprises (SMEs) and identify the main factors that determine these differences. This is done without relation to organizational effectiveness as technological scanning is but one of many potential influences on business performance. Using data obtained from a mail survey on the scanning practices of 324 SMEs, the study hopes to increase our understanding of how various entrepreneurs confront various environments in practice. The research model used is based on the notion that, to define different technological scanning practices in small business, four aspects must be considered: strategic orientation (objectives pursued); types of information sought (on technologies and their costs, human resources necessary, etc.); sources used (customers, fairs, specialized publications, suppliers, research centres, etc.); and scanning management practices (methods used, staff involved, level of formalization, and integration of activities). These aspects are contingent upon four factors: the managers' profile; their perception of the environment; their firm's characteristics; and their information network. A cluster analysis reveals that the sampled firms can be grouped into four separate categories, according to the intensity of their technological scanning activities and the type of strategy used. In the first category, where scanning is most developed, the SMEs emphasize cost reduction and control, followed by improvements in competitiveness; they seek mainly financial and human resource information, and use their own internal resources to obtain it. A second category, where scanning is least developed, puts the emphasis on increasing production capacity and flexibility; these SMEs seek very diverse information from many sources. Of the two intermediate groups, one aims to diversify and increase the quality of products and services; marketing information is obtained through customers, suppliers and subcontractors. The other, whose scanning is better organized, favours increasing production capacity through innovation and market information with the help of governmental and financial institutions. This research concludes that there is no ‘one best way’ to environmental scanning in manufacturing SMEs, and that it all depends upon the organization, its objectives and its environmental pressures.     

Internationalization of private firms: environmental turbulence and organizational strategies and resources

Profiles of exporting and superior-performing private small and medium-sized enterprises (SMEs) are presented. Multivariate regression evidence suggests that SMEs focusing upon an offensive and market differentiation strategy of product/service protection is associated with the propensity and the intensity of exporting. Exporting SMEs are also associated with younger and manufacturing firms as well as firms with product or service quality and/or technology resources. The perceptions by SMEs of external environmental turbulence were not significantly associated with the exporting-dependent variables. Most notably, variables associated with exporting SMEs are not the same as those associated with superior firm performance. Moreover, exporting firms did not report superior levels of performance. Implications for policy-makers, practitioners and researchers are discussed.     

Collective organisation in small‐ and medium‐sized enterprises – an application of mobilisation theory

This article draws on mobilisation theory to explain the presence and absence of collective organisation in small‐ and medium‐sized enterprises (SMEs). The analysis is based upon case studies of 11 UK SMEs reflecting variation in respect of employment size, industry sector, workforce composition, ownership and product/service market characteristics. It suggests that recently introduced statutory trade union recognition legislation and increased formalisation within some larger SMEs may provide the conditions for unionisation, although the presence and role of ‘key activists’ with union histories is critical to the process of gaining recognition and sustaining organisation. The nature of social relations in micro and small firms, however, inhibits the articulation of injustice. This is not least because the framing of grievances is a high‐risk strategy with a potential to shatter the informal social relationships upon which work is based, and this inhibits the identification of collective interests.     

Strategic Staffing and Small‐Firm Performance

Although staffing can be a critical determinant of whether small businesses succeed or fail, there has been less research in this area than might be expected, given the large numbers of such firms. While there has been some research on specific recruiting and selection practices, there has been little attention to the strategic aspects of staffing. We investigated relationships between strategic approaches to staffing and small‐firm performance using lagged survey data from 139 founders and owners of small firms. Results indicate that recruiting approaches imitating the practices (processes) of larger businesses are positively related to a perceptual measure of firm performance. Selection approaches stressing a growth orientation are also positively related to firm performance. Finally, founders’ and owners’ perceptions of the strategic importance of human resources moderate the relationship of firm performance with imitative recruiting practices as well as with growth‐oriented selection practices. An important contribution of this article is that contextual knowledge facilitates our understanding of the performance implications of staffing practices in small firms. © 2015 Wiley Periodicals, Inc.     

An analysis of environmental sustainability in small & medium‐sized enterprises: Patterns and trends

One of the greatest challenges facing the world today is climate change. The need to consistently advance with environmentally sustainable practices in today's businesses is crucial, and businesses are demanded to be more environmentally sustainable every day. This study conducts an analysis of the literature on small and medium‐sized enterprises' (SMEs) environmental sustainability by carefully examining 122 studies from 58 journals published from 2013 to 2019. We investigate the trends in drivers and barriers of sustainability adoption to inform both SMEs managers and policymakers. Our results also classify the reviewed studies on the basis of their methodologies and show the distribution of studies across industry sectors and locations in order to set directions for future research on sustainability practices of SMEs.