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Examining the influence of customers, suppliers, and regulators on environmental practices of SMEs: Evidence from the United Arab Emirates

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  • Sukanlaya Sawang
  • Poh Yen Ng
  • Robbert Anton Kivits
  • Jacinta Dsilva
  • Jasmina Locke

Abstract

This study explores which stakeholders have more substantial influence than others and which combinations of stakeholders will have the greatest impact on small‐ and medium‐sized enterprises' environmental practices. A quantitative survey of 150 manager‐owners of SMEs found that while customers and suppliers significantly influence SMEs' sustainability behaviors, the demands and expectations set by regulatory bodies have a more substantial impact on how SMEs shape their environmental practices. Further, the presence of regulatory pressures does more than directly influence SMEs. Pressure from regulatory bodies also amplifies the effect of other forces on SMEs' environmental practices. In other words, when regulatory pressures exist, the impact of customer and supplier pressures on SMEs' sustainability behaviors becomes even more substantial. This synergistic effect underscores the pivotal role of regulatory pressures in shaping and enhancing SMEs' commitment to environmental sustainability.

Suggested Citation

  • Sukanlaya Sawang & Poh Yen Ng & Robbert Anton Kivits & Jacinta Dsilva & Jasmina Locke, 2024. "Examining the influence of customers, suppliers, and regulators on environmental practices of SMEs: Evidence from the United Arab Emirates," Business Strategy and the Environment, Wiley Blackwell, vol. 33(7), pages 6533-6546, November.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:7:p:6533-6546
    DOI: 10.1002/bse.3831
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