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Impact of small‐ and medium‐sized enterprises sustainability practices and performance on economic growth from a managerial perspective: Modeling considerations and empirical analysis results

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  • Chrisovalantis Malesios
  • Antonis Skouloudis
  • Prasanta Kumar Dey
  • Fouad Ben Abdelaziz
  • Apostolos Kantartzis
  • Konstantinos Evangelinos

Abstract

This study assesses the relationship between social, environmental and operational practices and performance with financial performance, focusing on small‐ and medium‐sized enterprises (SMEs). We seek to establish a relationship between the sustainability and the financial performance of SMEs in economic development, as expressed by the indicators of turnover and business growth. A dataset derived from 119 British, French and Indian firms is used and links between sustainability and the financial performance of SMEs are examined. Bayesian regression modeling was chosen and a model comparison approach was used to assess the robustness of the results to the specific choice of analysis with respect to the shape of the dependent variable's distribution. Overall findings indicate robust regression results especially for the highly significant covariates, but caution should be exercised when interpreting the borderline results. A significant positive association between certain items of sustainability and firms’ financial performance is identified as we found that different indicators of sustainability display associations with the two economic indicators and adoption of the former may influence SME performance.

Suggested Citation

  • Chrisovalantis Malesios & Antonis Skouloudis & Prasanta Kumar Dey & Fouad Ben Abdelaziz & Apostolos Kantartzis & Konstantinos Evangelinos, 2018. "Impact of small‐ and medium‐sized enterprises sustainability practices and performance on economic growth from a managerial perspective: Modeling considerations and empirical analysis results," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 960-972, November.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:7:p:960-972
    DOI: 10.1002/bse.2045
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    17. Sheshadri Chatterjee & Ranjan Chaudhuri & Antonino Galati & Demetris Vrontis, 2021. "Adoption of Ubiquitous CRM for Operational Sustainability of the Firms: Moderating Role of Technology Turbulence," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
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    19. Dey, Prasanta Kumar & Malesios, Chrysovalantis & Chowdhury, Soumyadeb & Saha, Krishnendu & Budhwar, Pawan & De, Debashree, 2022. "Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe," International Journal of Production Economics, Elsevier, vol. 248(C).
    20. Priyabrata Chowdhury & Rezaul Shumon, 2020. "Minimizing the Gap between Expectation and Ability: Strategies for SMEs to Implement Social Sustainability Practices," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
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    23. Fouad Ben Abdelaziz & Houda Alaya & Prasanta Kumar Dey, 2020. "A multi-objective particle swarm optimization algorithm for business sustainability analysis of small and medium sized enterprises," Annals of Operations Research, Springer, vol. 293(2), pages 557-586, October.

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