IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v26y2017i7p985-999.html
   My bibliography  Save this article

Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?

Author

Listed:
  • Mª Eugenia López‐Pérez
  • Iguácel Melero
  • F Javier Sese

Abstract

With the increasing demands from society towards sustainable and social responsible business practices, management for sustainable development has become a cornerstone to understand the success of many firms in the current competitive context. This article investigates corporate social responsibility (CSR) and examines the links between CSR practices and business outcomes – both financial and non‐financial (i.e. image and corporate reputation) – for small‐to‐medium sized enterprises (SMEs). In addition, we also attempt to determine whether the impact of such relationships is moderated by firm size. To this end, we carry out a quantitative study using PLS techniques to analyze a sample of SME owners and managers, with a view to test the proposed model in the light of social capital theory. In this sense, our study is pioneering in that it aims to determine – from a quantitative viewpoint – the degree to which firm size has a moderating impact on a series of relevant CSR‐driven outcomes. The data suggest that, in SME contexts, CSR impacts corporate reputation, brand image and financial value of the company. Importantly, we find that the larger the firm, the greater the intensity of the relationships linking CSR and business outcomes. Hence, our findings have important implications for CSR implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of CSR‐based business practices. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Mª Eugenia López‐Pérez & Iguácel Melero & F Javier Sese, 2017. "Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 985-999, November.
    • Handle: RePEc:bla:bstrat:v:26:y:2017:i:7:p:985-999
    DOI: 10.1002/bse.1961
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.1961
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.1961?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kamalesh Kumar & Giacomo Boesso & Giovanna Michelon, 2016. "How Do Strengths and Weaknesses in Corporate Social Performance Across Different Stakeholder Domains Affect Company Performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 277-292, May.
    2. Dorothée Baumann-Pauly & Christopher Wickert & Laura Spence & Andreas Scherer, 2013. "Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters," Journal of Business Ethics, Springer, vol. 115(4), pages 693-705, July.
    3. Matthew P. Johnson, 2015. "Sustainability Management and Small and Medium‐Sized Enterprises: Managers' Awareness and Implementation of Innovative Tools," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 271-285, September.
    4. Patricia Martínez García de Leaniz & Ignacio Rodríguez del Bosque Rodríguez, 2016. "Corporate Image and Reputation as Drivers of Customer Loyalty," Corporate Reputation Review, Palgrave Macmillan, vol. 19(2), pages 166-178, April.
    5. David Murillo & Josep Lozano, 2006. "SMEs and CSR: An Approach to CSR in their Own Words," Journal of Business Ethics, Springer, vol. 67(3), pages 227-240, September.
    6. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2013. "Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance," Journal of Business Ethics, Springer, vol. 115(2), pages 383-402, June.
    7. Jay J. Janney & Steve Gove, 2011. "Reputation and Corporate Social Responsibility Aberrations, Trends, and Hypocrisy: Reactions to Firm Choices in the Stock Option Backdating Scandal," Journal of Management Studies, Wiley Blackwell, vol. 48(7), pages 1562-1585, November.
    8. Won-Moo Hur & Hanna Kim & Jeong Woo, 2014. "How CSR Leads to Corporate Brand Equity: Mediating Mechanisms of Corporate Brand Credibility and Reputation," Journal of Business Ethics, Springer, vol. 125(1), pages 75-86, November.
    9. Laura Maria Ferri & Nelly Oelze & André Habisch & Mario Molteni, 2016. "Implementation of responsible Procurement Management: An Institutional Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 261-276, May.
    10. Angeloantonio Russo & Francesco Perrini, 2010. "Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs," Journal of Business Ethics, Springer, vol. 91(2), pages 207-221, January.
    11. Jennifer Martínez‐Ferrero & José Valeriano Frías‐Aceituno, 2015. "Relationship Between Sustainable Development and Financial Performance: International Empirical Research," Business Strategy and the Environment, Wiley Blackwell, vol. 24(1), pages 20-39, January.
    12. Juan Felipe Reyes‐Rodríguez & John P. Ulhøi & Henning Madsen, 2016. "Corporate Environmental Sustainability in Danish SMEs: A Longitudinal Study of Motivators, Initiatives, and Strategic Effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(4), pages 193-212, July.
    13. Torres, Anna & Bijmolt, Tammo H.A. & Tribó, Josep A. & Verhoef, Peter, 2012. "Generating global brand equity through corporate social responsibility to key stakeholders," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 13-24.
    14. Angela R. Dobele & Kate Westberg & Marion Steel & Kris Flowers, 2014. "An Examination of Corporate Social Responsibility Implementation and Stakeholder Engagement: A Case Study in the Australian Mining Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 145-159, March.
    15. Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang & Da-Chang Pai, 2010. "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Springer, vol. 95(3), pages 457-469, September.
    16. Sue Cassells & Kate Lewis, 2011. "SMEs and environmental responsibility: do actions reflect attitudes?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(3), pages 186-199, May.
    17. Ker-Tah Hsu, 2012. "The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan," Journal of Business Ethics, Springer, vol. 109(2), pages 189-201, August.
    18. Maria J. Charlo & Ismael Moya & Ana M. Muñoz, 2015. "Sustainable Development and Corporate Financial Performance: A Study Based on the FTSE4Good IBEX Index," Business Strategy and the Environment, Wiley Blackwell, vol. 24(4), pages 277-288, May.
    19. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    20. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    21. van de Ven, Bert & Jeurissen, Ronald, 2005. "Competing Responsibly," Business Ethics Quarterly, Cambridge University Press, vol. 15(2), pages 299-317, April.
    22. Jesús Barrena‐Martínez & Macarena López‐Fernández & Cristina Márquez‐Moreno & Pedro Miguel Romero‐Fernández, 2015. "Corporate Social Responsibility in the Process of Attracting College Graduates," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(6), pages 408-423, November.
    23. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    24. Margaret Brunton & Gabriel Eweje & Nazim Taskin, 2017. "Communicating Corporate Social Responsibility to Internal Stakeholders: Walking the Walk or Just Talking the Talk?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 31-48, January.
    25. Pasi Heikkurinen & Tarja Ketola, 2012. "Corporate Responsibility and Identity: from a Stakeholder to an Awareness Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 21(5), pages 326-337, July.
    26. Minna Halme & Maria Korpela, 2014. "Responsible Innovation Toward Sustainable Development in Small and Medium‐Sized Enterprises: a Resource Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 23(8), pages 547-566, December.
    27. Francesco Perrini, 2006. "SMEs and CSR Theory: Evidence and Implications from an Italian Perspective," Journal of Business Ethics, Springer, vol. 67(3), pages 305-316, September.
    28. Peter Lund‐Thomsen & Khalid Nadvi, 2010. "Global value chains, local collective action and corporate social responsibility: a review of empirical evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 19(1), pages 1-13, January.
    29. Angeloantonio Russo & Antonio Tencati, 2009. "Formal vs. Informal CSR Strategies: Evidence from Italian Micro, Small, Medium-sized, and Large Firms," Journal of Business Ethics, Springer, vol. 85(2), pages 339-353, April.
    30. Jacob Hörisch & Matthew P. Johnson & Stefan Schaltegger, 2015. "Implementation of Sustainability Management and Company Size: A Knowledge‐Based View," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 765-779, December.
    31. Marjo Elisa Siltaoja, 2014. "Revising the Corporate Social Performance Model – Towards Knowledge Creation for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 23(5), pages 289-302, July.
    32. Garth Hickle, 2017. "Extending the Boundaries: An Assessment of the Integration of Extended Producer Responsibility Within Corporate Social Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 112-124, January.
    33. Arno Mathis, 2007. "Corporate social responsibility and policy making: what role does communication play?," Business Strategy and the Environment, Wiley Blackwell, vol. 16(5), pages 366-385, July.
    34. Kate V. Lewis & Sue Cassells & Hernan Roxas, 2015. "SMEs and the Potential for A Collaborative Path to Environmental Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 750-764, December.
    35. Christian Homburg & Harley Krohmer & John P. Workman. Jr, 1999. "Strategic consensus and performance: the role of strategy type and market‐related dynamism," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 339-357, April.
    36. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    37. Jeremy Galbreath, 2017. "The Impact of Board Structure on Corporate Social Responsibility: A Temporal View," Business Strategy and the Environment, Wiley Blackwell, vol. 26(3), pages 358-370, March.
    38. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    39. Suman Sen & James Cowley, 2013. "The Relevance of Stakeholder Theory and Social Capital Theory in the Context of CSR in SMEs: An Australian Perspective," Journal of Business Ethics, Springer, vol. 118(2), pages 413-427, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mª. Eugenia López‐Pérez & Iguácel Melero & F. Javier Sesé, 2017. "Does Specific CSR Training for Managers Impact Shareholder Value? Implications for Education in Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 435-448, September.
    2. María Eugenia López-Pérez & Iguácel Melero-Polo & Rosario Vázquez-Carrasco & Jesús Cambra-Fierro, 2018. "Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    3. J. Alfredo Flores‐Hernández & Jesús J. Cambra‐Fierro & Rosario Vázquez‐Carrasco, 2020. "Sustainability, brand image, reputation and financial value: Manager perceptions in an emerging economy context," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 935-945, July.
    4. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    5. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    6. Alfredo Flores-Hernández & Ana Olavarría-Jaraba & Guadalupe Valera-Blanes & Rosario Vázquez-Carrasco, 2020. "Sustainability and Branding in Retail: A Model of Chain of Effects," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    7. Leon Guillén & Afcha Sergio & Chu Manuel, 2022. "Research on social responsibility of small and medium enterprises: a bibliometric analysis," Management Review Quarterly, Springer, vol. 72(3), pages 857-909, September.
    8. Maria Jesus Bonilla‐Priego & Juan‐José Nájera‐Sánchez & Xavier Font, 2022. "Beyond ethics: The transformational power of overlapping motivations in implementing strategic sustainability actions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 685-697, March.
    9. Salina P. Siddique & Nick Sciulli, 2018. "Sustainable development of small companies: Investors' perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1258-1271, December.
    10. Hee‐Yong Lee & Dong‐Wook Kwak & Jeong‐Yang Park, 2017. "Corporate Social Responsibility in Supply Chains of Small and Medium‐Sized Enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(6), pages 634-647, November.
    11. Silvia Cantele & Silvia Vernizzi & Bettina Campedelli, 2020. "Untangling the Origins of Sustainable Commitment: New Insights on the Small vs. Large Firms’ Debate," Sustainability, MDPI, vol. 12(2), pages 1-12, January.
    12. Uzhegova, Maria & Torkkeli, Lasse & Saarenketo, Sami, 2019. "Corporate Social Responsibility in SMEs: Implications on Competitive PerformanceDate submitted: October 12, 2017Revised version accepted after double blind review: December 15, 2018," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 30(2-3), pages 232-267.
    13. Carla Gonzales-Gemio & Claudio Cruz-Cázares & Mary Jane Parmentier, 2020. "Responsible Innovation in SMEs: A Systematic Literature Review for a Conceptual Model," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    14. Kim, Yeonshin & Hur, Won-Moo & Lee, Luri, 2023. "Understanding customer participation in CSR activities: The impact of perceptions of CSR, affective commitment, brand equity, and corporate reputation," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    15. Linda Westman & Christopher Luederitz & Aravind Kundurpi & Alexander Julian Mercado & Olaf Weber & Sarah Lynne Burch, 2019. "Conceptualizing businesses as social actors: A framework for understanding sustainability actions in small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 388-402, February.
    16. Ki‐Hoon Lee & David M. Herold & Ae‐Li Yu, 2016. "Small and Medium Enterprises and Corporate Social Responsibility Practice: A Swedish Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(2), pages 88-99, March.
    17. Silvia Cantele & Alessandro Zardini, 2020. "What drives small and medium enterprises towards sustainability? Role of interactions between pressures, barriers, and benefits," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 126-136, January.
    18. Villegas Pinuer, Francisco & Valenzuela Fernández, Leslier & Llonch Andreu, Joan & López Belbeze, Pilar, 2022. "Environmental sustainability and their factors in SMEs: A multiple case study of Spain and Chile," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    19. Ifzal Ahmad & Khurram Shahzad & Asma Gul, 2019. "Mediating Role of Customer Satisfaction between Corporate Social Responsibility and Customer-Based Brand Equity," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(1), pages 123-144, March.
    20. Alexander Bergmann & Peter Posch, 2018. "Mandatory Sustainability Reporting in Germany: Does Size Matter?," Sustainability, MDPI, vol. 10(11), pages 1-20, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:26:y:2017:i:7:p:985-999. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.