Sustainable practices and their driving factors in micro, small and medium enterprises (MSMEs)

Practising sustainability is no longer a new phenomenon in today's business world. However, many micro, small and medium enterprises (MSMEs) face various challenges in exercising sustainable practices. In addition, the stakeholders' roles in driving their sustainable practices still remained unknown. Therefore, this study was conducted to determine sustainable practices exercised by MSMEs and the driving factors of sustainable practices. This study employed a qualitative research method in which a semi-structured interview was performed with 12 micro and small manufacturing MSMEs. The participants were selected using the purposive sampling method. Based on the interview findings, it concluded that MSMEs practised three aspects of sustainability, namely environment, social and governance, although they practised sustainability in different ways and to different extend. Regarding the driving factors of sustainable practices, it concluded that stakeholders such as government, owners and customers played a crucial role. Specifically, the government played a significant role by providing various financial and non-financial support. The owners of MSMEs were able to initiate sustainability practices by sharing their sustainable beliefs among employees. Customers could also spark sustainable practices in MSMEs due to their changed preferences towards environmentally friendly products. The implications of this study include supporting the current sustainability model, shedding light on the importance of stakeholders in driving sustainable practices, and providing new insights into developing strategies for sustainable practices.