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Being pro‐environmentally oriented SMEs: Understanding the entrepreneur's explicit and implicit power motives

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  • Radityo Putro Handrito
  • Hendrik Slabbinck
  • Johanna Vanderstraeten

Abstract

The increased number of environmental problems caused by business activities put higher pressures on entrepreneurs to implement pro‐environmental policies within their businesses. However, studies show that SMEs are less engaged with sustainable and pro‐environmental policies. Hence, it is important to understand the barriers and drivers of implementing a pro‐environmental strategy in SMEs from an entrepreneur's perspective. In a study with Indonesian SME owners, we find that environmental sustainability orientation (ESO) is driven by an entrepreneur's explicit and implicit power motives. Using polynomial regression with surface analysis, we also reveal that a high level of SME's ESO is affected by power motive discrepancy. We discuss implementations for policymakers, entrepreneurs, and educational programs in entrepreneurship.

Suggested Citation

  • Radityo Putro Handrito & Hendrik Slabbinck & Johanna Vanderstraeten, 2021. "Being pro‐environmentally oriented SMEs: Understanding the entrepreneur's explicit and implicit power motives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2241-2254, July.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:5:p:2241-2254
    DOI: 10.1002/bse.2741
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    References listed on IDEAS

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    Cited by:

    1. Richard M. Crossley & Mohamed H. Elmagrhi & Collins G. Ntim, 2021. "Sustainability and legitimacy theory: The case of sustainable social and environmental practices of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3740-3762, December.
    2. Laura Corazza & Maurizio Cisi & Greta Falavigna, 2022. "The enabling role of formalized corporate networks to drive small and medium‐sized enterprises toward sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 545-558, January.
    3. Smith, Hannah & Discetti, Roberta & Bellucci, Marco & Acuti, Diletta, 2022. "SMEs engagement with the Sustainable Development Goals: A power perspective," Journal of Business Research, Elsevier, vol. 149(C), pages 112-122.

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