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Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Author

Listed:
  • Banjo Roxas
  • Doren Chadee

Abstract

Purpose - This study aims to challenge the conventional view that resources determine the extent of the environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms. Design/methodology/approach - The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO. Findings - The results indicate that ESO is a multi-dimensional construct with three facets – i.e. awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources-ESO proposition. Research limitations/implications - A proactive ESO is not necessarily beyond the reach of resource-constrained small firms. The generalisability of the findings, however, is limited to small manufacturing firms in The Philippines. Practical implications - This study informs owner-managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should focus not just on financial forms of assistance. Originality/value - To date, this is the only Philippines-based study and one of the scarce small firm-focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource constraints.

Suggested Citation

  • Banjo Roxas & Doren Chadee, 2012. "Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines," Social Responsibility Journal, Emerald Group Publishing, vol. 8(2), pages 208-226, June.
  • Handle: RePEc:eme:srjpps:v:8:y:2012:i:2:p:208-226
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    Citations

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    Cited by:

    1. Ricky Y. K. Chan & Katherine H. Y. Ma, 2016. "Environmental Orientation of Exporting SMEs from an Emerging Economy: Its Antecedents and Consequences," Management International Review, Springer, vol. 56(5), pages 597-632, October.
    2. Parisa Salimzadeh & Jerry Courvisanos, 2015. "A Conceptual Framework for Assessing Sustainable Development in Regional SMEs," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-17, December.

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