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Effects of Entrepreneurial and Environmental Sustainability Orientations on Firm Performance: A Study of Small Businesses in the Philippines

Author

Listed:
  • Banjo Roxas
  • Nicholas Ashill
  • Doren Chadee

Abstract

Why do small businesses in developing countries embrace sustainable business practices and what are the effects on their performance? We address these questions by drawing on the natural‐resource based view of the firm to argue that the environmental sustainability orientation of small businesses can be explained by their entrepreneurial orientation. Our study of 197 small businesses in the Philippines shows that an entrepreneurial strategic orientation enables them to develop a more proactive stance toward environmental sustainability practices which lead to superior firm performance. The implications of the findings for future research and for public policy for small businesses are also discussed.

Suggested Citation

  • Banjo Roxas & Nicholas Ashill & Doren Chadee, 2017. "Effects of Entrepreneurial and Environmental Sustainability Orientations on Firm Performance: A Study of Small Businesses in the Philippines," Journal of Small Business Management, Taylor & Francis Journals, vol. 55(S1), pages 163-178, December.
    • Handle: RePEc:taf:ujbmxx:v:55:y:2017:i:s1:p:163-178
    DOI: 10.1111/jsbm.12259
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    Cited by:

    1. Čater, Tomaž & Čater, Barbara & Milić, Patricia & Žabkar, Vesna, 2023. "Drivers of corporate environmental and social responsibility practices: A comparison of two moderated mediation models," Journal of Business Research, Elsevier, vol. 159(C).
    2. Junaid Aftab & Monica Veneziani & Huma Sarwar & Muhammad Ishtiaq Ishaq, 2022. "Entrepreneurial orientation, entrepreneurial competencies, innovation, and performances in SMEs of Pakistan: Moderating role of social ties," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 31(2), pages 419-437, April.
    3. Jin, Tingting & Chorda, Isidre March, 2025. "The impact of green strategy hybrid orientation on startup performance in SMEs," Journal of Business Research, Elsevier, vol. 201(C).
    4. Muhammad Mohsin & Mohamad Zulkifli Bin Abdul Rahim & Muhammad Aftab & Hamid Mahmood & Muhammad Hanif & Abdul Rauf & Mohsin Raza, 2026. "Small and medium-sized performance in public and private sectors: insights from a PRISMA-guided systematic review," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 16(1), pages 1-16, December.
    5. Carlos F. A. Arranz, 2024. "A system dynamics approach to modelling eco‐innovation drivers in companies: Understanding complex interactions using machine learning," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4456-4479, July.
    6. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2022. "Linking natural resources and performance of small agricultural businesses: Do entrepreneurial orientation and environmental sustainability orientation matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 713-725, August.
    7. David Bruce Audretsch & Maksim Belitski & Georg Maximilian Eichler & Erich Schwarz, 2024. "Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs," Small Business Economics, Springer, vol. 62(2), pages 503-522, February.
    8. Ada Domańska & Remedios Hernández‐Linares & Robert Zajkowski & Beata Żukowska, 2024. "Family firm entrepreneurship and sustainability initiatives: Women as corporate change agents," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 33(2), pages 217-240, April.
    9. Teresa Vallet‐Bellmunt & Víctor Del‐Corte‐Lora & M. Teresa Martínez‐Fernández, 2024. "Do we have to choose between economic or environmental performance? The case of the ceramic industry cluster," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 5815-5836, November.
    10. Wondwosen Tilahun Bekele & Aschalew Degoma Durie & Abiot Tsegaye Kibret, 2025. "Unveiling the Power of Non-Technological Innovation Capability: Bridging Conventional and Emerging Strategic Orientations to Firm Performance—A SEM Analysis," SAGE Open, , vol. 15(4), pages 21582440251, November.
    11. Shuja Iqbal & Hongyun Tian & Shamim Akhtar & Hasnain Javed, 2025. "Effects of green entrepreneurship and digital transformation on eco-efficient e-commerce," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    12. Kwabena Frimpong & Samuel Adomako & Nguyen Phong Nguyen & Obaid AI‐Shuridah, 2025. "Sustainability orientation and post‐entry performance: The role of brand and market‐oriented capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 34(1), pages 1189-1205, January.
    13. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2023. "Sustainable orientation management and institutional quality: Looking into European entrepreneurial innovation ecosystems," Technovation, Elsevier, vol. 124(C).
    14. Zhongyi, Fang & Jing, Tong, 2026. "lmpacts of green finance cognition on entrepreneurial performance," Finance Research Letters, Elsevier, vol. 89(C).
    15. Phong Nguyen, Nguyen & Adomako, Samuel & Ahsan, Mujtaba, 2023. "The base-of- the-pyramid orientation and export performance of Vietnamese small and medium enterprises," Journal of Business Research, Elsevier, vol. 154(C).
    16. Yi Xie & Qinghua Xia & Jianmin Song & Shuchuan Hu, 2025. "Can sustainability orientation make firms more resilient? Exploring the role of digital business model innovation, digital orientation, and environmental dynamism," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 364-378, February.
    17. Nabila Abid & Federica Ceci & Junaid Aftab, 2024. "Attaining sustainable business performance under resource constraints: Insights from an emerging economy," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2031-2048, June.
    18. Massimiliano Vesci & Rosangela Feola & Roberto Parente & Antonio Botti, 2026. "Does humane entrepreneurship have value? Exploring the link between employees’ beliefs and firm financial performance: a perceptual approach," International Entrepreneurship and Management Journal, Springer, vol. 22(1), pages 1-26, March.
    19. Sofia Gomes & Micaela Pinho & João M. Lopes, 2024. "From environmental sustainability practices to green innovations: Evidence from small and medium‐sized manufacturing companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1677-1687, May.
    20. Qing Li & Yanli Zhang & Wenxin Zhang & Kun Chen, 2025. "Multiple Paths for Driving Environmental Sustainability Orientation from the Perspective of Configuration," SAGE Open, , vol. 15(2), pages 21582440251, April.
    21. Mehdi Khazaei & Mohammad Azizi & Mohamadreza Zali, 2021. "How performance of top companies are related on Global Competitiveness Index?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 129-139, December.
    22. Josephat D. Sengura & Mu Renyan, 2024. "The Role of Entrepreneurial Orientation and Entrepreneurial Bricolage on Frugal Innovation and SMEs Sustainable Performance in Emerging Markets," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 10(4), pages 19-37, May.
    23. Shih-Kai Lin & Hung-Chang Chung, 2023. "The Relationship Between Entrepreneurial Orientation and Firm Performance From the perspective of MASEM: The Mediation Effect of Market Orientation and the Moderated Mediation Effect of Environmental Dynamism," SAGE Open, , vol. 13(4), pages 21582440231, December.

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