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Responsibility and Sustainability in SMEs

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 March 2022) | Viewed by 19458

Special Issue Editors

Department of International Business, Turku School of Economics, University of Turku, 20500 Turku, Finland
Interests: sustainable entrepreneurship; digital entrepreneurship; international entrepreneurship; SMEs
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Sustainable development has emerged as an increasingly influential concept for business and entrepreneurship (Hall et al., 2010). Sustainability in these domains is increasingly understood to extend from mere sustainable competitive advantage to also include environmental sustainability and social responsibility—to in effect account for the “triple-bottom line” (Elkington, 1997). However, the role of the triple-bottom line, corporate social responsibility (CSR) and responsible business practices in small‐ and medium‐sized enterprises (SMEs), is in need of further study (Tsvetkova et al., 2020). Earlier research has noted that SMEs have distinct challenges in understanding corporate social responsibility (CSR) (Murrillo and Lozano, 2006), and that they differ from multinational companies in how they engage in CSR (Morsing and Perrini, 2009). However, while research has outlined the impact of CSR from the multinational perspective (e.g., Kolk and van Tulder, 2010) we know less about sustainability and CSR in SMEs. There is some recent evidence that sustainability and responsible business practices can be an important competitive advantage for SMEs (Burlea-Schiopoiu and Mihai, 2019; Hammann et al., 2019; Tsvetkova et al., 2020); thus, it is important for research to shed more light on what type of capabilities, resources, and business models underlie the development, manifestation, and outcomes of CSR and sustainability in SMEs. The role of stakeholders, institutions, and culture in driving sustainable and responsible business practices in SMEs are also areas of interest where more research is needed.

This Special Issue invites papers adopting both theoretical and practical approaches to shed light on the role of responsibility and sustainability in SMEs. We welcome papers using different research methods (quantitative, qualitative, mixed), analyzing different types of SMEs (e.g., domestic or international), and exploring the topic in different countries; cross-country comparisons are encouraged in particular given the impact of the institutional and cultural context regarding sustainability.

Dr. Lasse Torkkeli
Prof. Dr. Susanne Durst
Guest Editors

References

  1. Burlea-Schiopoiu, A., & Mihai, L. S. (2019). An integrated framework on the sustainability of SMEs. Sustainability, 11(21), 6026.
  2. Elkington, J. (1997). Cannibals with forks. The triple bottom line of 21st century.
  3. Hall, J. K., Daneke, G. A., & Lenox, M. J. (2010). Sustainable development and entrepreneurship: Past contributions and future directions. Journal of Business Venturing, 25(5), 439-448.
  4. Hammann, E. M., Habisch, A., & Pechlaner, H. (2009). Values that create value: socially responsible business practices in SMEs–empirical evidence from German companies. Business Ethics: A European Review, 18(1), 37-51.
  5. Kolk, A., & Van Tulder, R. (2010). International business, corporate social responsibility and sustainable development. International Business Review, 19(2), 119-125.
  6. Morsing, M., & Perrini, F. (2009). CSR in SMEs: do SMEs matter for the CSR agenda?. Business Ethics: A European Review, 18(1), 1-6.
  7. Murillo, D., & Lozano, J. M. (2006). SMEs and CSR: An approach to CSR in their own words. Journal of Business Ethics, 67(3), 227-240.
  8. Tsvetkova, D., Bengtsson, E., & Durst, S. (2020). Maintaining Sustainable Practices in SMEs: Insights from Sweden. Sustainability 12(24): 10242. https://doi.org/10.3390/su122410242

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.



Keywords

  • sustainable entrepreneurship
  • small- and medium-sized enterprises
  • SME internationalization
  • corporate social responsibility
  • responsible business practices

Published Papers (8 papers)

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Research

20 pages, 622 KiB  
Article
Corporate Social Responsibility in Social SMEs: Discourses of Prosocial Behavior in Individual, Organizational, and Societal Levels
by Heidi Myyryläinen and Lasse Torkkeli
Sustainability 2022, 14(11), 6718; https://doi.org/10.3390/su14116718 - 31 May 2022
Cited by 1 | Viewed by 1766
Abstract
The past decades have seen an increase in studies on social entrepreneurship, yet its theorization remains underdeveloped. This is especially the case for clarifying how the social mission inherent in social enterprises is related to the social responsibility of traditional businesses, usually understood [...] Read more.
The past decades have seen an increase in studies on social entrepreneurship, yet its theorization remains underdeveloped. This is especially the case for clarifying how the social mission inherent in social enterprises is related to the social responsibility of traditional businesses, usually understood through corporate social responsibility (CSR) activities. The relation between social entrepreneurship and CSR is not unequivocal, as from a theoretical perspective these constructs should be distinct, yet their boundaries both in theory and in practice are still unclear. The literature suggests that it is their social mission that defines social enterprises whereas, for other types of small- and medium-sized enterprises (SMEs), CSR activities would be instrumental and motivated by profit maximization. Until now, it has been unclear what the role of CSR in activities and behavior in social enterprises is, which is a notable research gap since social entrepreneurship is an emerging domain of study in business research and practice. This study contributes by illustrating how CSR manifests through prosocial behavior across different levels in social SMEs, thus shedding light on how social entrepreneurs view their motivations towards others-oriented behavior in SMEs. We study the discourses of entrepreneurs who manage mission-driven businesses and social enterprises in Finland, Sweden, Estonia, and Latvia. The perspective can also have implications for SMEs and their strategic positioning of social entrepreneurship and CSR. Viewing social entrepreneurship, CSR, and prosocial motivation as sociopsychological and contextual, constructivist processes sheds light on the multifaceted nature of these phenomena. This discourse study presents a model of how individual, group, organization and societal prosocial motivations co-exist. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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12 pages, 423 KiB  
Article
Corporate Social Responsibility of SMEs: Learning Orientation and Performance Outcomes
by Lasse Torkkeli and Susanne Durst
Sustainability 2022, 14(11), 6387; https://doi.org/10.3390/su14116387 - 24 May 2022
Cited by 4 | Viewed by 2689
Abstract
Responsibility and sustainability are today a key part of doing business globally. However, the attention of scholars and policymakers has mainly been on large multinational enterprises, with small and medium-sized enterprises (SMEs) receiving less attention. Recent studies have noted the importance of learning [...] Read more.
Responsibility and sustainability are today a key part of doing business globally. However, the attention of scholars and policymakers has mainly been on large multinational enterprises, with small and medium-sized enterprises (SMEs) receiving less attention. Recent studies have noted the importance of learning for SMEs to engage in corporate social responsibility (CSR), but it is not yet known how the learning orientation of SMEs impacts their CSR, and how the development impacts the internationalization and performance of SMEs, which are research gaps that recent studies have noted. Shedding light on those dynamics is also important from a practical perspective since in most countries SMEs constitute a large majority of firms in both amounts and total employment. The present study contributes by illustrating how CSR impacts different types of performance in SMEs, and how the learning orientation of SMEs predetermines their CSR. Regression analyses conducted on an empirical sample of Finnish SMEs indicate that CSR in SMEs has an impact on certain types of performance and that their learning orientation determines their CSR. Therefore, the study contributes to the literature on responsibility and sustainability in SMEs, and to that SME internationalization, by shedding light on the antecedents and outcomes of CSR for SMEs. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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14 pages, 286 KiB  
Article
The Impact of Perceived Support and Barriers on the Sustainable Orientation of Turkish Startups
by Yasemin Eroglu and Lubna Rashid
Sustainability 2022, 14(8), 4666; https://doi.org/10.3390/su14084666 - 13 Apr 2022
Cited by 2 | Viewed by 1562
Abstract
Sustainable entrepreneurship is a critical component of the solutions to the global challenges of our time. Yet to stimulate sustainable entrepreneurship orientation (SEO), creating supportive environmental conditions is key. While the impact of various external conditions on entrepreneurship orientation is highly studied, the [...] Read more.
Sustainable entrepreneurship is a critical component of the solutions to the global challenges of our time. Yet to stimulate sustainable entrepreneurship orientation (SEO), creating supportive environmental conditions is key. While the impact of various external conditions on entrepreneurship orientation is highly studied, the impact of such factors on sustainable orientation of startup founders is not yet well-researched, particularly outside of the western hemisphere. This quantitative study sheds light on the impact of perceived support and barriers on SEO in Turkey, drawing on the theory of planned behavior, extending entrepreneurship literature, and providing novel insights to practitioners. Findings of linear regression analysis reveal that perceived support has a significant and positive impact on SEO, while barriers are found to not have an effect. Those results may indicate that founders are able to circumvent perceived barriers when enough support is received, promoting their ability to behave sustainably despite contextual challenges. Young founder age is also found to positively and significantly influence sustainable orientation. Implications of those results are discussed with researchers and practitioners in mind. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
19 pages, 1488 KiB  
Article
The Tension between SMEs’ Growth and Sustainability in Emerging and Developed Countries’ Internationalization: Towards a Conceptual Model
by David Coldwell, Robert Venter, Tasneem Joosub and Helen Duh
Sustainability 2022, 14(8), 4418; https://doi.org/10.3390/su14084418 - 08 Apr 2022
Cited by 4 | Viewed by 2876
Abstract
Economic growth is a priority in many developing countries in the drive to eradicate inequality and poverty, but elevated levels of economic growth are regarded as inimical to climate preservation and sustainability. The continuing depletion of natural resources and industrial pollution has led [...] Read more.
Economic growth is a priority in many developing countries in the drive to eradicate inequality and poverty, but elevated levels of economic growth are regarded as inimical to climate preservation and sustainability. The continuing depletion of natural resources and industrial pollution has led to increasing global pressure and government policies aimed at reducing climate deterioration. Advocates of ’strong sustainability’ are concentrated in the economically developed world, while developing countries have a greater need for economic growth and advocate weaker forms of sustainability where economic development, the promotion of employment and eradication of poverty take precedence over climate preservation concerns. Extant internationalization literature does not provide an integrated model of sustainable internationalization. (i.e., the relative emphasis of human and natural capital in contextual and universal factors in the internationalization process of developing and developed countries). To address this underexplored research gap, a cross-sectional, non-probabilistic convenience sample of South African SMEs using a mixed methods approach, and a secondary data eclectic analysis of developed and developing countries’ SME internationalization using a comparative multiple-case design, were adopted in this study. Findings indicate that both contextual and universal factors are prominent in developing and developed countries’ internationalization. The findings also suggest that developing countries initially focus on unsustainable contextual factors and later move on to embracing sustainable universal factors in their internationalization. This paper provides a conceptual model to describe the relative importance of contextual vis-à-vis universal factors in the sustainability of SMEs’ development as they pass through the various stages of internationalization over time. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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14 pages, 538 KiB  
Article
Circular Business Strategies and Quality of Life
by Iben Bolund Nielsen and Henri Hakala
Sustainability 2022, 14(3), 1782; https://doi.org/10.3390/su14031782 - 04 Feb 2022
Viewed by 1321
Abstract
Circular Economy (CE) and Quality of Life (QoL) are trending topics that have been researched extensively at both the local, regional and global levels. CE is often described as one of the key drivers of sustainability, and sustainability is one of the key [...] Read more.
Circular Economy (CE) and Quality of Life (QoL) are trending topics that have been researched extensively at both the local, regional and global levels. CE is often described as one of the key drivers of sustainability, and sustainability is one of the key drivers of improving QoL. However, studies that investigate the relationships between CE and QoL are rare, and a clear research gap exists. Therefore, this paper aims to initiate this discussion and bring forward illustrative examples on areas where CE could potentially have an impact on QoL, both on an individual and a societal level. By asking the question of how circular business strategies may impact QoL and how they relate, we investigate how CE can influence various aspects of QoL. We utilize the framework consisting of six CE strategies known under the acronym ReSOLVE to discuss how these CE strategies can be leveraged to impact QoL. Our discussion indicates a potential for both environmental and social gains through the implementation of circular product and service solutions. We also suggest that unintended consequences may occur, especially at the societal level. Hence, we propose that, while the discussion on CE has been focused on the environmental aspects of sustainability, the broader implications for QoL and other aspects of sustainability should also be included within the domain of CE implications. Hence, we propose that further research is necessary to develop a framework explaining the relationship between CE and QoL, encompassing both the positive and negative aspects. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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11 pages, 1777 KiB  
Article
What Makes Companies to Survive over a Century? The Case of Dongwha Pharmaceutical in the Republic of Korea
by Moon Young Kang
Sustainability 2022, 14(2), 946; https://doi.org/10.3390/su14020946 - 14 Jan 2022
Cited by 1 | Viewed by 1663
Abstract
Considering their significant impacts on national economy, local communities, employees, suppliers, and other stakeholders, firm survival is an important goal for most companies. However, firm longevity is not an easy result to achieve, and it becomes more difficult as business environments shift dramatically. [...] Read more.
Considering their significant impacts on national economy, local communities, employees, suppliers, and other stakeholders, firm survival is an important goal for most companies. However, firm longevity is not an easy result to achieve, and it becomes more difficult as business environments shift dramatically. The average life span of companies listed in Standard and Poor’s 500 was 61 years in 1958, but it fell to less than 18 years in 2016. Nevertheless, more than 3000 companies over 200 years old still operate in Japan, mostly family inherited small and medium enterprises (SMEs), and Germany has many centenarian companies, especially in the manufacturing industry. However, in the Republic of Korea, with over 4000 years of history, there are no companies older than 200 years and only seven companies with over 100 years of history. Centenarian companies in Korea are very limited, and even after surviving over 100 years, they continue to face severe challenges they need to overcome in order to survive. However, it is not clearly proven what factors affect the survival of companies for over a century. Since SMEs contribute to the economic development and survival of a country, it is important to investigate the secrets of their longevity, which has become even more difficult than ever. However, as there is very limited research on firm longevity, the findings from this case study of Dongwha Pharmaceutical, balancing the continuity of tradition and innovation, provide significant implications and practical guidelines for Korean SMEs for their survival and sustainable management, which is an economic and business aspect of sustainability. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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16 pages, 2027 KiB  
Article
Ethics and Social Responsibility in Family Firms. Research Domain and Future Research Trends from a Bibliometric Perspective
by Encarnación Ramos-Hidalgo, Manuel Orta-Pérez and Maria A. Agustí
Sustainability 2021, 13(24), 14009; https://doi.org/10.3390/su132414009 - 19 Dec 2021
Cited by 5 | Viewed by 2430
Abstract
Corporate Social Responsibility and Ethics have been studied in a wide variety of business contexts, but the field of family business has mainly devoted attention to Corporate Social Responsibility, with less attention paid to the field of ethics. Being two closely related fields, [...] Read more.
Corporate Social Responsibility and Ethics have been studied in a wide variety of business contexts, but the field of family business has mainly devoted attention to Corporate Social Responsibility, with less attention paid to the field of ethics. Being two closely related fields, they should be analyzed jointly in order to study the evolution of the field. To achieve this objective, we use two different bibliometric techniques, a co-word and a document coupling, as they are complementary and allow us to identify research topics and, therefore, to establish future research lines. Results show that the differences that exist between CSR in family businesses and CSR in non-family businesses continue to be a central focus, and that ethics should be found in the roots of that question. However, the underpinning factors and the linkage of the different CSR policies and ethical values to performance still require more attention. To be more precise, topics such as socio-emotional wealth, financial performance, ethics, firm, and management remain at the core of the field. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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17 pages, 1693 KiB  
Article
Impacts of Environmental Certificate and Pollution Abatement Equipment on SMEs’ Performance: An Empirical Case in Vietnam
by Jung-Fa Tsai, Phi-Hung Nguyen, Ming-Hua Lin, Duy-Van Nguyen, Hsu-Hao Lin and Anh-Tuan Ngo
Sustainability 2021, 13(17), 9705; https://doi.org/10.3390/su13179705 - 30 Aug 2021
Cited by 13 | Viewed by 3204
Abstract
Increasing global warming and intensity of disasters recently have made improving environmentally-conscious enterprises pivotal, as well as consumer demand for green products and the achievement of green strategies in some enterprises. This study explores the impact of environmental certificates and the cost of [...] Read more.
Increasing global warming and intensity of disasters recently have made improving environmentally-conscious enterprises pivotal, as well as consumer demand for green products and the achievement of green strategies in some enterprises. This study explores the impact of environmental certificates and the cost of pollution abatement equipment on firm performance for small and medium-sized enterprises (SMEs). In this research, the linear regression method examines the effect of environmental-related certificates and technology on SMEs’ performance using Stata version 14.0 software. The training dataset comprises 3504 manufacturing SMEs in Vietnam during 2011–2015. The results highlight the positively considerable impacts of environmental-related certificates and the cost of pollution abatement equipment on SMEs’ performance. More importantly, the findings also highlight the excessive availability of pollution abatement equipment and whether it adversely impacts enterprises’ performance. The equipment cost positively impacts firm performance while, at an extreme value, the result shows a negative correlation. Furthermore, this study enriches the current literature on corporate social responsibility (CSR) and suggests SMEs approach and embrace more environmental-related certificates and technology to increase productivity. Full article
(This article belongs to the Special Issue Responsibility and Sustainability in SMEs)
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