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The Role of Top Managers in Implementing Corporate Sustainability—A Systematic Literature Review on Small and Medium-Sized Enterprises

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  • Jannika Kutzschbach

    (Institute for Management, Accounting & Finance, Leuphana University of Lüneburg, 21335 Lüneburg, Germany)

  • Parvina Tanikulova

    (Institute for Management, Accounting & Finance, Leuphana University of Lüneburg, 21335 Lüneburg, Germany)

  • Rainer Lueg

    (Institute for Management, Accounting & Finance, Leuphana University of Lüneburg, 21335 Lüneburg, Germany
    Department of Business and Economics, University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark)

Abstract

This systematic literature review investigates whether corporate sustainability (CS), according to the triple bottom line concept (TBL), is implemented in small and medium-sized enterprises (SMEs) and further identifies associated drivers. Building on upper echelon theory (UET) and the Schwartz value system (SVS) this study aims to analyze and contextualize extant empirical research. We developed a PRISMA-based framework to select relevant studies systematically. Based on an initial sample of 1249 articles between 2000 and 2020, we provide critical analysis of 31 best practice, peer-reviewed journal articles. Our findings suggest seven specifications of CS in SMEs that are driven by either internal or external motivations. Our review reveals that, overwhelmingly, SMEs engage in CS but fail to report it (“green blushing”). Furthermore, we find that the top managers of SMEs are a huge driver of CS. Oftentimes, they are even pioneers of good social and environmental practices. Finally, we identify four value dimensions (benevolence, achievement, power, and conformity values) according to the dimensions of the SVS that drive SMEs’ top managers’ engagement in CS. We contribute to the current state of research by conducting the first literature review that exclusively investigates how SMEs’ executives influence the enterprise’s commitment towards CS, based on the UET and the SVS. Thereby, we discuss implications and provide valuable recommendations for researchers, practitioners, and regulators alike.

Suggested Citation

  • Jannika Kutzschbach & Parvina Tanikulova & Rainer Lueg, 2021. "The Role of Top Managers in Implementing Corporate Sustainability—A Systematic Literature Review on Small and Medium-Sized Enterprises," Administrative Sciences, MDPI, vol. 11(2), pages 1-19, April.
    • Handle: RePEc:gam:jadmsc:v:11:y:2021:i:2:p:44-:d:540257
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    References listed on IDEAS

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    24. Eva Kiefhaber & Kathryn Pavlovich & Katharina Spraul, 2020. "Sustainability-Related Identities and the Institutional Environment: The Case of New Zealand Owner–Managers of Small- and Medium-Sized Hospitality Businesses," Journal of Business Ethics, Springer, vol. 163(1), pages 37-51, April.
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    Cited by:

    1. Rainer Lueg, 2022. "Constructs for Assessing Integrated Reports—Testing the Predictive Validity of a Taxonomy for Organization Size, Industry, and Performance," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    2. Elisabete Nogueira & Sofia Gomes & João M. Lopes, 2023. "Triple Bottom Line, Sustainability, and Economic Development: What Binds Them Together? A Bibliometric Approach," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    3. Fabio Korinth & Rainer Lueg, 2022. "Corporate Sustainability and Risk Management—The U-Shaped Relationships of Disaggregated ESG Rating Scores and Risk in the German Capital Market," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    4. Hanna Górska-Warsewicz & Maciej Dębski & Michal Fabuš & Marián Kováč, 2021. "Green Brand Equity—Empirical Experience from a Systematic Literature Review," Sustainability, MDPI, vol. 13(20), pages 1-34, October.
    5. Yuan Wu & Jin Zhang & Shoulin Liu & Lianrui Ma, 2022. "Does Government-Led Publicity Enhance Corporate Green Behavior? Empirical Evidence from Green Xuanguan in China," Sustainability, MDPI, vol. 14(6), pages 1-32, March.
    6. Mirko Profitlich & Yassin Denis Bouzzine & Rainer Lueg, 2021. "The Relationship between CFO Compensation and Corporate Sustainability: An Empirical Examination of German Listed Firms," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    7. He-Boong Kwon & Jooh Lee & Laee Choi, 2023. "Dynamic interplay of environmental sustainability and corporate reputation: a combined parametric and nonparametric approach," Annals of Operations Research, Springer, vol. 324(1), pages 687-719, May.

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