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Open AccessArticle

Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa

School of Economics and Management, University of Limpopo, Sovenga 0727, South Africa
Sustainability 2018, 10(11), 3855; https://doi.org/10.3390/su10113855
Received: 17 September 2018 / Revised: 18 October 2018 / Accepted: 19 October 2018 / Published: 24 October 2018
(This article belongs to the Special Issue Sustainability in SMEs)
This study investigated the question of whether environmental sustainability influences firm performance. Firm performance, a multidimensional construct, was researched utilizing innovation, ecological and social measures on the premises of SMEs in South Africa. Thus, the study hypothesized that environmental sustainability is positively and significantly related to innovation, ecological and social measures of firm performance. A cross-sectional research design was adopted in this study to test the abovementioned hypotheses. A total of 208 self-administered questionnaires distributed to SME owners and managers were analyzed utilizing structural equation modelling (SEM) and Amos Version 24 software. Primarily, the study established that environmental sustainability was significantly and positively correlated to all three measures of firm performance used in this study. Thus, the inferences from the findings suggest that environmental sustainability practices contribute positively towards firm innovation, ecological and social performances. The findings of this study greatly contribute towards the practice and theory of small businesses and firm performance by providing a more specific and streamlined perspective for approaching firm performance. View Full-Text
Keywords: environmental sustainability; innovation; ecological; social; firm performance; SMEs; South Africa environmental sustainability; innovation; ecological; social; firm performance; SMEs; South Africa
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Masocha, R. Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa. Sustainability 2018, 10, 3855.

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