Factors Promoting Environmental Responsibility in European SMEs: The Effect on Performance
Abstract
:1. Introduction
- What are the drivers of CER in SMEs?
- Does CER have any effect on SMEs performance?
2. Theoretical Framework and Hypotheses
3. Materials and Methods
Definition of Variables
4. Results
4.1. Descriptives
4.2. OLS Regression on CER
4.3. OLS Regression on Sales
5. Discussion
6. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
References
- Babiak, K.; Trendafilova, S. CSR and environmental responsibility: Motives and pressures to adopt green management practices. Corp. Soc. Responsib. Environ. Manag. 2011, 18, 11–24. [Google Scholar] [CrossRef]
- Gunningham, N. Corporate Environmental Responsibility; Ashgate: Hampshire, UK, 2009. [Google Scholar]
- Cassells, S.; Lewis, K. SMEs and Environmental Responsibility: Do actions reflect attitudes? Corp. Soc. Responsib. Environ. Manag. 2011, 18, 186–199. [Google Scholar] [CrossRef]
- Baumann-Pauly, D.; Wickert, C.; Spence, L.J.; Scherer, A.G. Organizing corporate social responsibility in small and large firms: Size matters. J. Bus. Ethics 2013, 115, 693–705. [Google Scholar] [CrossRef] [Green Version]
- Bos-Brouwers, H.E.J. Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Bus. Strategy Environ. 2010, 19, 417–435. [Google Scholar] [CrossRef]
- Jenkins, H. A critique of conventional CSR theory: An SME perspective. J. Gen. Manag. 2004, 29, 37–57. [Google Scholar]
- Del Brio, J.A.; Junquera, B. A Review of the Literature on Environmental Innovation Management in SMEs: Implications for Public Policies. Technovation 2003, 23, 939–948. [Google Scholar] [CrossRef]
- Gagliardi, D.; Muller, P.; Glossop, E.; Caliandro, C.; Fritsch, M.; Brtkova, G.; Ramlogan, R. A Recovery on the Horizon? Final Annual Report on European SMEs 2012/2013. 2013. Available online: http://th.enterprise-europe-germany.de/public/uploads/een-th/downloads/annual-report-smes-2013_en.pdf (accessed on 1 May 2016).
- Miller, K.; Neubauer, A.; Varma, A.; Willians, E. First Assessment of the Environmental Assistance Programme for SMEs (ECAP); DG Environmental and Climate Action: London, UK, 2011. Available online: http://ec.europa.eu/environment/archives/sme/pdf/First%20assessemnt%20of%20the%20ECAP%20for%20SMEs.pdf (accessed on 1 September 2016).
- Lee, K.H.; Herold, D.M.; Yu, A.-L. Small and medium enterprises and corporate social responsibility practice: A Swedish perspective. Corp. Soc. Responsib. Environ. Manag. 2015. [Google Scholar] [CrossRef]
- Williams, S.; Schaefer, A. Small and Medium-Sized Enterprises and Sustainability: Managers’ Values and Engagement with Environmental and Climate Change Issues. Bus. Strategy Environ. 2013, 22, 173–186. [Google Scholar] [CrossRef]
- Doran, J.; Ryan, G. The importance of the diverse drivers and types of environmental innovation for firm performance. Bus. Strategy Environ. 2014. [Google Scholar] [CrossRef]
- Leonidou, L.C.; Christodoulides, P.; Thwaites, D. External Determinants and Financial Outcomes of an Eco-friendly Orientation in Smaller Manufacturing Firms. J. Small Bus. Manag. 2016, 54, 5–25. [Google Scholar] [CrossRef]
- Aykol, B.; Leonidou, L.C. Researching the green practices of smaller service firms: A theoretical, methodological and empirical assessment. J. Small Bus. Manag. 2014. [Google Scholar] [CrossRef]
- Freeman, E. Strategic Management: A Stakeholder Approach; Prentice-Hall: Englewood Cliffs, NJ, USA, 1984. [Google Scholar]
- Panwar, R.; Nybakk, E.; Hansen, E.; Pinkse, J. The effect of small firm’s competitive strategies on their community and environmental engagement. J. Clean. Prod. 2016, 129, 578–585. [Google Scholar] [CrossRef]
- Bowen, H. Social Responsibilities of the Businessman; Harper: New York, NY, USA, 1953. [Google Scholar]
- Garriga, E.; Melé, D. Corporate social responsibility theory. Mapping and territory. J. Bus. Ethics 2004, 53, 51–74. [Google Scholar] [CrossRef]
- Dahlsrud, A. How corporate social responsibility is defined: An analysis of 37 definitions. Corp. Soc. Responsib. Environ. Manag. 2008, 15, 1–13. [Google Scholar] [CrossRef]
- Holtbrügge, D.; Dögl, C. How international is corporate environmental responsibility? A literature review. J. Int. Manag. 2012, 18, 180–195. [Google Scholar] [CrossRef]
- Cai, L.; Cui, J.; Jo, H. Corporate environmental responsibility and firm risk. J. Bus. Ethics 2016. [Google Scholar] [CrossRef]
- Triguero, A.; Moreno-Mondéjar, L.; Davia, M.A. Eco-innovation by small and medium-sized firms in Europe: From end-of-pipe to cleaner technologies. Innov. Manag. Policy Pract. 2015, 17, 24–40. [Google Scholar]
- Díaz-García, C.; González-Moreno, A.; Sáez-Martínez, F.J. Eco-innovation: Insights from a literature review. Innov. Manag. Policy Pract. 2015, 17, 6–23. [Google Scholar]
- Menon, A.; Menon, A. Enviro-preneurial Marketing Strategy: The Emergence of Corporate Environmentalism as Marketing Strategy. J. Mark. 1997, 61, 51–67. [Google Scholar] [CrossRef]
- Schaper, M. Small Firms and Environmental Management. Int. Small Bus. J. 2002, 20, 235–249. [Google Scholar] [CrossRef]
- Panwar, R.; Nybakk, E.; Hansen, E.; Pinkse, J. Does the business case matter? The effect of a perceived business case on small firms’ social engagement. J. Bus. Ethics 2015. [Google Scholar] [CrossRef]
- Baylis, R.; Connell, L.; Flynn, A. Company Size, Environmental Regulation and Ecological Modernization: Further Analysis at the Level of the Firm. Bus. Strategy Environ. 1998, 7, 285–296. [Google Scholar] [CrossRef]
- Rutherfoord, R.; Blackburn, R.; Spence, L.J. Environmental Management and the Small Firm: An International Comparison. Int. J. Entrep. Behav. Res. 2000, 6, 310–325. [Google Scholar] [CrossRef]
- Williamson, D.; Lynch-Wood, G. A New Paradigm for SME Environmental Practice. TQM Mag. 2001, 13, 424–432. [Google Scholar] [CrossRef]
- Gadenne, D.L.; Kennedy, J.; McKeiver, C. An empirical study of environmental awareness and practices in SMEs. J. Bus. Ethics 2009, 84, 45–63. [Google Scholar] [CrossRef]
- Triguero, A.; Moreno-Mondéjar, M.L.; Davia, M.A. Drivers of different types of Eco-innovation in European SMEs. Ecol. Econ. 2013, 92, 25–33. [Google Scholar] [CrossRef]
- Langerak, F.; Peelen, E.; van der Veen, M. Exploratory Results on the Antecedents and Consequences of Green Marketing. J. Mark. Res. Soc. 1998, 40, 323–335. [Google Scholar]
- Kim, Y.; Ham, H. Intention to pay conventional-hotel prices at a green hotel. A modification of the theory of planed behavior. J. Sustain. Tour. 2010, 18, 997–1014. [Google Scholar] [CrossRef]
- King, A.A.; Lenox, M.J. Industry self-regulation without sanctions: The chemical industry’s responsible care program. Acad. Manag. J. 2000, 43, 698–716. [Google Scholar] [CrossRef]
- Perez-Sanchez, D.; Barton, J.R.; Bower, D. Implementing Environmental Management in SMEs. Corp. Soc. Responsib. Environ. Manag. 2003, 10, 67–77. [Google Scholar] [CrossRef]
- Simpson, M.; Taylor, N.; Barker, K. Environmental responsibility in SMEs: Does it deliver competitive advantage? Bus. Strategy Environ. 2004, 13, 156–171. [Google Scholar] [CrossRef]
- De Marchi, V. Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms. Res. Policy 2012, 41, 614–623. [Google Scholar]
- Sáez-Martínez, F.J.; González-Moreno, A.; Hogan, T. The role of the University in eco-entrepreneurship: Evidence from the Eurobarometer Survey on Attitudes of European Entrepreneurs towards Eco-innovation. Environ. Eng. Manag. J. 2014, 13, 2451–2459. [Google Scholar]
- Wahba, H. Does the market value Corporate Environmental Responsibility? An empirical examination. Corp. Soc. Responsib. Environ. Manag. 2008, 15, 89–99. [Google Scholar] [CrossRef]
- Aragón-Correa, J.A.; Sharma, S. A contingent resource-based view of proactive corporate environmental strategy. Acad. Manag. Rev. 2003, 28, 71–88. [Google Scholar]
- Ambec, S.; Lanoie, P. Does it pay to be green? A systematic overvie. Acad. Manag. Perspect. 2008, 22, 45–62. [Google Scholar]
- Hamman, E.; Habisch, A.; Pechlaner, H. Values that create value: Socially responsible business practices in SMEs- Empirical evidence from German companies. Bus. Ethics Eur. Rev. 2009, 18, 37–51. [Google Scholar] [CrossRef]
- Reyes-Rodriguez, J.F.; Ulhøy, J.P.; Madsen, H. Managerial attitudes, strategic intent, environmental initiatives and competitive advantage. J. Glob. Strateg. Manag. 2012, 7, 165–176. [Google Scholar]
- Reyes-Rodriguez, J.F.; Ulhøy, J.P.; Madsen, H. Corporate environmental sustainability in Danish SMEs: A longitudinal study of motivators, initiatives and strategic effects. Corp. Soc. Responsib. Environ. Manag. 2014, 23, 193–212. [Google Scholar] [CrossRef]
- Torugsa, N.A.; O’Donohue, W.; Hecker, R. Capabilities, proactive CSR and financial performance in SMEs: Empirical evidence from an Australian manufacturing industry sector. J. Bus. Ethics 2012, 115, 483–502. [Google Scholar] [CrossRef]
- Porter, M.; Van del Linde, C. Toward a new conception of the environment-competitiveness relationship. J. Econ. Perspect. 1995, 9, 97–118. [Google Scholar] [CrossRef]
- Stone, G.W.; Wakefield, W.L. Eco-orientation: An Extension of Market Orientation in an Environmental Context. J. Mark. Theory Pract. 2000, 8, 21–31. [Google Scholar] [CrossRef]
- Aragón-Correa, J.A.; Hurtado-Torres, N.; Sharma, S.; García-Morales, V.J. Environmental Strategy and Performance in Small Firms: A Resource-Based Perspective. J. Environ. Manag. 2008, 86, 88–103. [Google Scholar] [CrossRef] [PubMed]
- Revell, A.; Blackburn, R. The business case for sustainability? An examination of small firms in the UK’s construction and restaurant sectors. Bus. Strategy Environ. 2007, 16, 404–420. [Google Scholar] [CrossRef]
- Barney, J. Firm Resources and Sustained Competitive Advantage. J. Manag. 1991, 17, 99–120. [Google Scholar] [CrossRef]
- Hart, S.L. A Natural-Resource-Based View of the Firm. Acad. Manag. Rev. 1995, 20, 986–1014. [Google Scholar]
- Huang, J.-W.; Li, Y.-H. Green innovation and performance: The view of organizational capability and social reciprocity. J. Bus. Ethics 2015. [Google Scholar] [CrossRef]
- Albort-Morant, G.; Leal-Millán, A.; Cepeda-Carrión, G. The antecedents of green innovation performance: A model of learning and capabilities. J. Bus. Res. 2016. [Google Scholar] [CrossRef]
- Arora, S.; Cason, T.N. An Experiment of Voluntary Environmental Regulation: Participation in EPA’s 33/50 Program. J. Environ. Econ. Manag. 1995, 28, 271–286. [Google Scholar] [CrossRef]
- Bossle, M.B.; De Barcellos, M.D.; Vieira, M.L.; Sauveé, L. The drivers for adoption of ecoinnovation. J. Clean. Prod. 2016. [Google Scholar] [CrossRef]
Variables | Variables’ Operationalization |
---|---|
Corporate Environmental Responsibility (CER) | A Likert-type variable that reflects a gradual scale of pro-environmental attitudes. The options are:
|
DRIVERS OF CER: MARKET PULL | |
Clients’ demands | A dummy variable that takes the value 1 when the firm indicates that consumers’ willingness to pay for environmental products/services fostered the development of environmental practices and 0 otherwise. |
Business opportunity | A dummy variable that takes the value 1 when the firm indicates that the possibility of creating a competitive advantage of a business opportunity motivated the development environmental practices, and 0 otherwise |
DRIVERS OF CER: TECHNOLOGY PUSH | |
Competitors | A dummy variable that takes the value 1 when the firm indicates that catching up with main competitors who have already taken action motivated the development of environmental practices, and 0 otherwise. |
DRIVERS OF CER: REGULATORY PUSH/PULL | |
Subsidies | A dummy variable that takes the value 1 when the firm indicates that subsidies fostered the development of environmental practices, and 0 otherwise. |
Fiscal incentives | A dummy variable that takes the value 1 when the firm indicates that financial incentives received through private and public external support fostered the development of environmental practices, and 0 otherwise. |
Compliance | A dummy variable that takes the value 1 when the firm indicates that the need to comply with environmental law fosters the development of environmental practices, and 0 otherwise. |
DRIVERS OF CER: ENTREPRENEUR PUSH | |
Company values and mission | A dummy variable that takes the value 1 when the firm indicates that environmental practices were developed because they were part of the company values and mission, and 0 otherwise. |
Corporate image | A dummy variable that takes the value 1 when the firm indicates that environmental practices were developed to maintain a corporate image, and 0 otherwise |
Others | A dummy variable that takes the value 1 when the firm indicates that other factors fostered the development of environmental practices, and 0 otherwise |
SECTOR | |
Manufacturing | Dummy variable |
Retail | Dummy variable |
Service | Dummy variable |
Industry | Dummy variable |
SIZE OF THE FIRM | |
Micro-firms | A dummy variable that takes the value 1 when the firm has less than 9 employees, and 0 otherwise. |
Small-firms | A dummy variable that takes the value 1 when the firm has from 10 to 49 employees, and 0 otherwise. |
Medium-firms | A dummy variable that takes the value 1 when the firm has from 50 to 249 employees, and 0 otherwise. |
OTHER VARIABLES | |
Country | 38 dummy variables reflecting the current 28 Member States of the European Union plus Albania, Israel, Iceland, Liechtenstein, Montenegro, Former Yugoslav Republic of Macedonia, Norway, Republic of Serbia, Turkey, and the United States |
Investment in resource efficiency | The firm’s financial effort to improve its efficiency. This variable is a scale that reflects the percentage of total annual income invested to improve resource efficiency with the following options:
|
Green experience | The firm experience offering green services or producing green products in areas such as products/services with environmental features, recycled material, solid waste management, renewable energy, air pollution control and/or heat/energy saving audits. This variable is a scale with four possible options:
|
Sales growth | In the last two years, your company turnover has increased (1), remained unchanged (0), or decreased (−1)? |
Independent Variables | |
---|---|
Constant | 2.417 *** |
Size (micro-firms category of reference) | |
Small firm | 0.163 *** |
Medium-sized firm | 0.474 *** |
Investment in resource efficiency | 0.029 *** |
Industry (manufacturing category of reference) | |
Retail | −0.05 |
Service | 0.127 ** |
Industry | 0.029 |
Country dummies | Yes |
Market pull | |
Clients’ demands | 0.062 |
Business opportunity | 0.259 *** |
Technology push | |
Competitors | −0.062 |
Regulatory push/pull | |
Subsidies | 0.157 * |
Fiscal Incentives | 0.076 |
Compliance | 0.034 |
Entrepreneur push | |
Company values and mission | 0.459 *** |
Corporate image | 0.198 *** |
Others | 0.102 |
Adj R2 | 0.108 |
F | 9.506 *** |
N (number of observations) | 3647 |
Independent Variables | Model 1 | Model 2 |
---|---|---|
Constant | −0.035 | −0.035 |
Size (micro-firms category of reference) | ||
Small firm | 0.177 *** | 0.177 *** |
Medium-sized firm | 0.323 *** | 0.323 *** |
Sector (Manufacturing category of ref.) | ||
Retail | −0.002 | −0.002 |
Service | 0.085 *** | 0.085 *** |
Industry | −0.016 | −0.016 |
Country dummies | Yes | Yes |
Green experience | 0.016 ** | 0.016 ** |
CER | 0.050 *** | 0.050 *** |
Env. Resp. X Green Exp. | 0.001 | |
Adj R2 | 0.119 | 0.119 |
F | 38.588 *** | 37.728 *** |
N | 3647 | 3647 |
© 2016 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC-BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Sáez-Martínez, F.J.; Díaz-García, C.; González-Moreno, Á. Factors Promoting Environmental Responsibility in European SMEs: The Effect on Performance. Sustainability 2016, 8, 898. https://doi.org/10.3390/su8090898
Sáez-Martínez FJ, Díaz-García C, González-Moreno Á. Factors Promoting Environmental Responsibility in European SMEs: The Effect on Performance. Sustainability. 2016; 8(9):898. https://doi.org/10.3390/su8090898
Chicago/Turabian StyleSáez-Martínez, Francisco J., Cristina Díaz-García, and Ángela González-Moreno. 2016. "Factors Promoting Environmental Responsibility in European SMEs: The Effect on Performance" Sustainability 8, no. 9: 898. https://doi.org/10.3390/su8090898