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1 – 10 of over 55000Today’s small enterprises are forced to rethink their business-as-usual management and shift toward corporate sustainability. The empirical paper responds to a crucial quest for…
Abstract
Purpose
Today’s small enterprises are forced to rethink their business-as-usual management and shift toward corporate sustainability. The empirical paper responds to a crucial quest for many modern leaders and entrepreneurs, specifically small business owners in emerging economies. This paper aims to answer what they can do to increase long-term financial performance and enhance stakeholder satisfaction, thereby contributing to long-term business sustainability.
Design/methodology/approach
Using a convenience sampling, data were collected from a sample of 280 business leaders and entrepreneurs of small enterprises across industries in an emerging economy of Thailand. This study used a sustainable leadership research framework. Factor analysis and multiple regression analysis were used for data analysis.
Findings
Seven valid and reliable leadership factors were uncovered as new underlying leadership constructs to examine business sustainability in small entrepreneurial enterprises in Thailand. Results from multiple regressions revealed two significantly positive factors or drivers (i.e. trusting, innovative team orientation and strong, shared vision) for enhanced two sustainability performance outcomes (i.e. financial performance and stakeholder satisfaction). The findings thus contribute to advance our limited knowledge about the contextualised constructs and possible theoretical development of the developing research realm.
Research limitations/implications
Successful small entrepreneurial organisations in Thailand and other emerging economies that wish to improve their business sustainability are suggested to adopt the essential leadership and management practices (i.e. trusting, innovative team and strong, shared vision). Future studies may examine data from a larger sample size and other countries to expand our limited understanding in different contexts.
Practical implications
The resulting practical insights can be used to guide business leaders, entrepreneurs, practitioners and policymakers towards making strategic priorities and investments for improved business competitiveness, resilience and sustainability in small entrepreneurial enterprises. Overall, this study may be a starting point for further investigation on developing entrepreneurial growth and business sustainability in small sustainable enterprises across emerging economies.
Originality/value
The paper responds to calls for more contextualised research studies in the evolving multidisciplinary field of entrepreneurial leadership and business sustainability, particularly in an emerging economy of Thailand. It also unveils the essential strategic leadership factors that positively drive business sustainability in small entrepreneurial firms. And, it empirically examines the effects of diverse strategic leadership factors and multiple sustainability performance outcomes in a single study. It further proposes an emergent leadership-performance model for entrepreneurial business sustainability in the context-specific study. Above all, it advances the currently limited empirical knowledge in the emerging research front towards more sustainable futures.
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Aparna Gonibeed, Sally Kah and Roseline Wanjiru
Using Gibson and Tarrant's (2010) resilience triangle model, this study explores how small northwest Himalayan organisations respond to contextual challenges and opportunities and…
Abstract
Purpose
Using Gibson and Tarrant's (2010) resilience triangle model, this study explores how small northwest Himalayan organisations respond to contextual challenges and opportunities and embed sustainability strategies in the organisations' operational values.
Design/methodology/approach
A qualitative exploratory design through individual and group interviews with owner-managers and employees was held in five small northwest Himalayan organisations.
Findings
The findings reveal multiple contextual challenges facing small organisations in northwest Himalayas, including ecological conditions, remoteness, underdeveloped infrastructure and human competencies. The investigated organisations respond to these challenges through reactive and innovation-based services like eco-tourism, conservation and educational initiatives. The organisations engage communities through participatory and educational activities. Owner-managers adjust the respective vision and mission statements, train employees on sustainability values and lobby the government on policy changes to embed sustainability strategies. Some organisations invest in resources and capabilities and others in process capabilities.
Practical implications
Small organisations can improve how the organisations predict contextual issues by developing the organisations' process capabilities, specifically by creating practical tools with parameters relevant to ecological conditions. These organisations can set the tools through participatory actions with the broader communities to ensure the (un)intended consequences of environmental issues are considered. Furthermore, improvements in process and human capabilities will provide new approaches to raising business opportunities, especially in post-pandemic business environments.
Originality/value
This study develops a framework that enhances the understanding of how process capabilities, leadership, people and knowledge capabilities are critical to developing and embedding sustainability strategies in small organisations.
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Danu Patria, Petrus A. Usmanij and Vanessa Ratten
Small traditional industry has been recognized as an important local economy that support cultural industry and is significant in many parts of the world, particularly in…
Abstract
Small traditional industry has been recognized as an important local economy that support cultural industry and is significant in many parts of the world, particularly in developing countries. The significance of this type industry as a poverty barrier, enables jobs for local rural villagers, and their role in continuing local community based cultural activities have become obvious. However, as the current modern days global pressures affecting many traditional people in developing countries, pathways of small traditional industry toward local sustainable development remain unclear. Further continuous investigations are still required on how this industry provide the platform for greater local, regional and global sustainability. Literatures and debates on the sustainability of the rural developing country concerning small traditional industries may even begin from the establishment of Brundtland sustainability commission in 1987. The conflict between brown and green agenda in Brundtland commission may also point to small-scale traditional industry growth in the developing world. Cultural traditional industries in developing countries could better lead to local sustainability pathway. On the other hand, conflict of the use of natural resources and competition may create different stories. How traditional industry in developing country survive and further innovate for development is a significant knowledge to understand. This chapter uses Jepara traditional furniture industry in Central Java – Indonesia which has been the subject of prolonged study on how small-scale industry implicated to global competition and pressures of raw material resources decline. This chapter further reviews previous research and recent study on Jepara industry upgrade and innovation, and how likely innovation may prosper for the future sustainability of this type of industry.
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Given current global environmental concerns, traditional marketing and entrepreneurial practices of small businesses are considered ineffective. This is because sustainability…
Abstract
Purpose
Given current global environmental concerns, traditional marketing and entrepreneurial practices of small businesses are considered ineffective. This is because sustainability requires the involvement of social, economic, and environmental dimensions. This study, therefore, aims at analyzing the moderating effect of technological absorptive capacity (TEOC) in the relationship between green marketing mix (GMX), enviropreneurial orientation (ENVO) and the sustainability of small businesses (SUST).
Design/methodology/approach
This study is cross-sectional. This study used data from 243 fast-moving consumer goods (FMCG) industries, such as food and beverages, cleaning products, office supplies, cosmetics, and toiletries. Structural equation mdeling (SEM) and the PROCESS macro test were employed during data analysis.
Findings
The findings suggest that GMX and ENVO are significant determinants of SUST. Also, TEOC is a significant moderator of GMX, ENVO, and SUST.
Research limitations/implications
This study used owner-managers as the respondents; future studies can use employees and customers to find out how small businesses involve other stakeholders in designing GMX and ENVO and adopting technologies for business sustainability and adopting technologies for business sustainability.
Practical implications
The study has practical implications for policymakers and owner-managers, especially on the significant contributions of GMX, ENVO, and TEOC to business sustainability.
Originality/value
Depending only on traditional marketing and entrepreneurial practices is no longer a reliable technique for business sustainability. By bringing environmental aspects into business management through a green marketing mix and enviropreneurial orientation, the study provides a unique and new way of thinking about sustainability. Also, the study adds knowledge to the body of literature through a moderating effect of TEOC in the relationship between GMX, ENVO, and SUST.
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Caska and Henny Indrawati
This paper aims to analyze sustainability level of crispy palm tankos mushroom business; institutions involved in the development of crispy palm tankos mushroom business in Riau…
Abstract
Purpose
This paper aims to analyze sustainability level of crispy palm tankos mushroom business; institutions involved in the development of crispy palm tankos mushroom business in Riau Region; nutritional composition, sensory assessment both descriptively and hedonically, and also designing the suitable and hygienic packaging for crispy palm tankos mushroom in Riau; institutional structuring model involved in the development of crispy palm tankos mushroom business in Riau; and strategies to improve the quality of crispy palm tankos mushroom in Riau.
Design/methodology/approach
This study is quantitative research conducted by survey. The research was conducted in Indragiri Hulu, Pelalawan, Kampar and Siak, Riau Province, Indonesia from April to August 2017. The study population is all producers producing crispy oil palm mushroom in the research area. The sample was determined purposively with the criterion of the producers who have been running their business for at least 5 years. Based on the criterion, there were 225 producers included as the sample.
Findings
This study found that business sustainability is the main concern of micro business of crispy palm tankos mushroom in Riau Province. Although local government lack of support, the average value of business sustainability is in the very high category. In addition due to the excellent business support quality, business sustainability is supported by the family environment, independence and business progress. There are two institutions involved in the development of makers business to date, they are informal financial institutions that help makers to increase business capital, and retailers who help makers deliver products to consumers. The results of nutritional composition analysis of crispy palm tankos mushroom showed that the crispy tankos mushroom is a product with good nutrition value for consumption by the community. The implication of this study is to improve the quality of the tankos mushroom crispy palm in terms of color according to the choice of the panelists.
Originality/value
Originality of this study aims to provide strategic formulation to use local resources and improve the economic actors of the home industry of crispy palm tankos mushroom processing in Riau. This research is conducting a structure to the institutions involved in the development of crispy palm tankos mushroom and improving the product quality. This research contributes to the development of science, especially economic development, particularly the development of small industries.
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Drawing on the “ISO 26000: 2010 – Guidance on social responsibility” handbook, this paper aims to investigate the extent to which Bangladeshi small- and medium-sized manufacturing…
Abstract
Purpose
Drawing on the “ISO 26000: 2010 – Guidance on social responsibility” handbook, this paper aims to investigate the extent to which Bangladeshi small- and medium-sized manufacturing enterprises (SMEs) are incorporating social responsibility (SR)/sustainability into their regular business activities. It is also aimed at providing insights into how Bangladeshi SME owner-managers perceive the concept of SR, and exploring the key drivers of and barriers to socially responsible and sustainable business practices.
Design/methodology/approach
A mixed-method research was carried out in two sequential phases. During the first phase, 110 printed questionnaires (59 of which were eventually used) were distributed among the owner-managers of the selected SMEs. The second phase involved seven in-depth semi-structured interviews.
Findings
The findings reconfirm the existence of the so called “attitude-behaviour” gap. The barriers that hinder the sustainable engagement of SMEs include corruption, a weak regulatory environment, inefficient or ill-suited government and external support and a lack of awareness of the environmental aspects of SR. In addition, this research reveals that Bangladeshi manufacturing SMEs do, to a certain degree, implement SR; only those few issues that suit the owner-managers’ personal motives are addressed, while many others (e.g. environmental issues) are neglected. Finally, it has been found that the business type and size, and the owner-managers’ educational attainments have no significant influence on the degree of adoption of socially responsible business practices by Bangladeshi manufacturing SMEs.
Originality/value
This paper develops a tool suited to meaningfully assess the socially responsible and sustainable business activities of SMEs. By using the four key elements identified in ISO 26000, namely, labour practices, the environment, consumer issues and community involvement and development, and by using an innovative and effective technique, a sustainability score and implementation level were calculated quantitatively for the selected SMEs. The tool developed here can be used to study the sustainability related issues faced by SMEs based in other low-income developing countries.
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Kusdi Raharjo, Saparila Worokinasih and Nur Imamah
Indonesia is one of the largest developing countries in the world and is a profitable market for investors. Small and medium-sized businesses are one of the business activities…
Abstract
Indonesia is one of the largest developing countries in the world and is a profitable market for investors. Small and medium-sized businesses are one of the business activities that contribute to the improvement of the Indonesian economy. This study examines the influence of government policies on financial literacy and the impact of financial literacy on small and medium enterprises’ (SMEs) sustainability. It employs the resource-based view (RBV) and knowledge-based view (KBV) to develop conceptual models. The model is tested with data collected from 132 SMEs in Malang-East Java, Indonesia, in 2020 through a structured questionnaire. This study uses the G-Power version 3.1 software for initial analysis and the partial least square (PLS) analysis method to test this hypothesis. The results show that government policies positively affect SMEs’ sustainability, and financial literacy positively affects SMEs’ sustainability. This implies that government policy and financial literacy are essential factors for SMEs’ resources and knowledge for business sustainability.
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Yousaf Ali, Ahsan Younus, Amin Ullah Khan and Hamza Pervez
This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm…
Abstract
Purpose
This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance.
Design/methodology/approach
A survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique.
Findings
The findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance.
Research limitations/implications
To counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal.
Originality/value
The study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.
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Ariful Islam, Sazali Abd Wahab and Shehnaz Tehseen
Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive…
Abstract
Purpose
Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive in the long term. So, this study aims to present a model for sustainable growth that bridges the gap between desired growth and managerial competencies. By configuring university helix-induced crowdfunding and opportunity recognition competencies with industry helix-driven innovation, the study encourages a quadruple bottom line (QBL) strategy, helping SMEs attain competitiveness for sustainable growth.
Design/methodology/approach
This pilot study used a sequential mixed methods design and adhered to the pragmatic research paradigm. A survey of 52 SCORE-listed manufacturers yielded quantitative data, complemented by qualitative interviews with 7 SME decision makers. This study used NVivo 10 and SmartPLS 4.0 for the necessary analysis. In addition, an effective triangulation strategy has been implemented to explain causation among selected variables.
Findings
The findings show that opportunity recognition and crowdfunding are positively associated with SMEs’ ability to grow in a sustainable manner and that exploitative and explorative innovation also mediate those relationships. The qualitative part highlighted key insights for successfully applying this model in Malaysian SMEs. The interview results also suggest that corporate spirituality might help SMEs adopt sustainability-focused practices.
Research limitations/implications
More research is required regarding both the methods and results of this pilot study. Although conducting a pilot study increases the likelihood of success in the main study, it does not ensure it.
Practical implications
This study equips Malaysian SMEs with a roadmap for achieving sustainable growth. The obtained findings indicate that Malaysian SMEs that develop strong crowdfunding and opportunity recognition competencies are more likely to achieve innovation-focused long-term survival. In addition, incorporating corporate spirituality can enhance their economic, social and environmental performance.
Social implications
By supporting more innovation in SMEs, which can improve sustainability-oriented successes and support a healthy economic system, these findings may have a beneficial social change impact. The concept may also act as the foundation for SMEs’ promotion of the SDGs.
Originality/value
The study uniquely offers a holistic growth model for Malaysian SMEs founded on the helix-QBL understanding that explains a firm’s sustainability-focused competitive advantage.
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Businesses have increasingly been urged to shift their emphasis away from a purely profit-driven economic perspective to a more sustainable approach to growth that holistically…
Abstract
Businesses have increasingly been urged to shift their emphasis away from a purely profit-driven economic perspective to a more sustainable approach to growth that holistically captures people, the planet and profits. Indigenous businesses are well suited to creatively integrate sustainability principles within their internal culture. This enables them to cope with the dominance created by non-indigenous enterprises while also promoting long-term business success. The Triple Bottom Line (TBL) concept has been applied to explore how indigenous businesses in Uganda manifest their best practices by incorporating sustainability principles for lasting economic performance. A multiple case study approach was adopted, and three well-established female-owned indigenous businesses were investigated using in-depth interviews. Integrating sustainability in the business is a fulfiling process if done holistically by embracing a range of interdependent variables that include environmental, social and economic dimensions. The author contributes an innovative culturally sensitive sustainability scope that reflects practical insights on how internal sustainability efforts can be streamlined for long-term economic prosperity without compromising the wider social and physical environment.
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