IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v23y2016i4p193-212.html
   My bibliography  Save this article

Corporate Environmental Sustainability in Danish SMEs: A Longitudinal Study of Motivators, Initiatives, and Strategic Effects

Author

Listed:
  • Juan Felipe Reyes‐Rodríguez
  • John P. Ulhøi
  • Henning Madsen

Abstract

While industry leaders proactively address environmental issues as an integrated part of corporate strategy, small and medium enterprises (SMEs) often perceive it as a means of cost reduction. The aim of this paper is to track the development of motivators, environmental initiatives, and their perceived effects on competitive advantage among SMEs. For that purpose, we conducted a longitudinal analysis of 4 repeated surveys over a period of 14 years among Danish manufacturing SMEs. Results show that Danish SMEs have increasingly deployed environmental initiatives that are associated with both lower costs and a differentiation dimensions of competitive advantage. The study also shows that over managerial attitudes, strategic intent has been the main driver when adopting such initiatives. Furthermore, we found that despite some differences between small and medium‐sized firms in terms of the levels of environmental engagement, the competitive benefits are generally robust regarding firm size. Before concluding, implications for future research and corporate managers are pointed out. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Juan Felipe Reyes‐Rodríguez & John P. Ulhøi & Henning Madsen, 2016. "Corporate Environmental Sustainability in Danish SMEs: A Longitudinal Study of Motivators, Initiatives, and Strategic Effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(4), pages 193-212, July.
    • Handle: RePEc:wly:corsem:v:23:y:2016:i:4:p:193-212
    DOI: 10.1002/csr.1359
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1359
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1359?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Williamson & Gary Lynch-Wood & John Ramsay, 2006. "Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR," Journal of Business Ethics, Springer, vol. 67(3), pages 317-330, September.
    2. Bianchi, Raffaella & Noci, Giuliano, 1998. ""Greening" SMEs' Competitiveness," Small Business Economics, Springer, vol. 11(3), pages 269-281, November.
    3. Nigel Roome, 1992. "Developing environmental management strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 1(1), pages 11-24, March.
    4. Sharma, Pramodita & Sharma, Sanjay, 2011. "Drivers of Proactive Environmental Strategy in Family Firms," Business Ethics Quarterly, Cambridge University Press, vol. 21(2), pages 309-334, April.
    5. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
    6. David Gadenne & Jessica Kennedy & Catherine McKeiver, 2009. "An Empirical Study of Environmental Awareness and Practices in SMEs," Journal of Business Ethics, Springer, vol. 84(1), pages 45-63, January.
    7. Andrea Revell & David Stokes & Hsin Chen, 2010. "Small businesses and the environment: turning over a new leaf?," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 273-288, July.
    8. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    9. Ruihua Joy Jiang & Pratima Bansal, 2003. "Seeing the Need for ISO 14001," Journal of Management Studies, Wiley Blackwell, vol. 40(4), pages 1047-1067, June.
    10. Andrea Revell & Robert Blackburn, 2007. "The business case for sustainability? An examination of small firms in the UK's construction and restaurant sectors," Business Strategy and the Environment, Wiley Blackwell, vol. 16(6), pages 404-420, September.
    11. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    12. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    13. Javier González‐Benito & Óscar González‐Benito, 2006. "A review of determinant factors of environmental proactivity," Business Strategy and the Environment, Wiley Blackwell, vol. 15(2), pages 87-102, March.
    14. Martina Battisti & Martin Perry, 2011. "Walking the talk? Environmental responsibility from the perspective of small‐business owners," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(3), pages 172-185, May.
    15. Fawzi Halila, 2007. "Networks as a means of supporting the adoption of organizational innovations in SMEs: the case of Environmental Management Systems (EMSs) based on ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 14(3), pages 167-181, July.
    16. Gerusa Giménez Leal & Martí Casadesús Fa & Jaume Valls Pasola, 2003. "Using environmental management systems to increase firms' competitiveness," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 10(2), pages 101-110, June.
    17. Lo, Chris K.Y. & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of environmental management systems on financial performance in fashion and textiles industries," International Journal of Production Economics, Elsevier, vol. 135(2), pages 561-567.
    18. Lorraine Uhlaner & Marta Berent-Braun & Ronald Jeurissen & Gerrit Wit, 2012. "Beyond Size: Predicting Engagement in Environmental Management Practices of Dutch SMEs," Journal of Business Ethics, Springer, vol. 109(4), pages 411-429, September.
    19. Sarah Williams & Anja Schaefer, 2013. "Small and Medium‐Sized Enterprises and Sustainability: Managers' Values and Engagement with Environmental and Climate Change Issues," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 173-186, March.
    20. Sue Cassells & Kate Lewis, 2011. "SMEs and environmental responsibility: do actions reflect attitudes?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(3), pages 186-199, May.
    21. Mike Simpson & Nick Taylor & Karen Barker, 2004. "Environmental responsibility in SMEs: does it deliver competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 13(3), pages 156-171, May.
    22. Wagner, Marcus, 2011. "Corporate performance implications of extended stakeholder management: New insights on mediation and moderation effects," Ecological Economics, Elsevier, vol. 70(5), pages 942-950, March.
    23. Scott R. Colwell & Ashwin W. Joshi, 2013. "Corporate Ecological Responsiveness: Antecedent Effects of Institutional Pressure and Top Management Commitment and Their Impact on Organizational Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(2), pages 73-91, February.
    24. William Q. Judge & Thomas J. Douglas, 1998. "Performance Implications of Incorporating Natural Environmental Issues into the Strategic Planning Process: An Empirical Assessment," Journal of Management Studies, Wiley Blackwell, vol. 35(2), pages 241-262, March.
    25. Antony Paulraj, 2009. "Environmental motivations: a classification scheme and its impact on environmental strategies and practices," Business Strategy and the Environment, Wiley Blackwell, vol. 18(7), pages 453-468, November.
    26. Bulent Menguc & Seigyoung Auh & Lucie Ozanne, 2010. "The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm's Performance," Journal of Business Ethics, Springer, vol. 94(2), pages 279-298, June.
    27. D. Perez‐Sanchez & J. R. Barton & D. Bower, 2003. "Implementing environmental management in SMEs," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 10(2), pages 67-77, June.
    28. Pasi Heikkurinen, 2010. "Image differentiation with corporate environmental responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(3), pages 142-152, May.
    29. Pratima Bansal, 2005. "Evolving sustainably: a longitudinal study of corporate sustainable development," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 197-218, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthew P. Johnson, 2015. "Sustainability Management and Small and Medium‐Sized Enterprises: Managers' Awareness and Implementation of Innovative Tools," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 271-285, September.
    2. Kate V. Lewis & Sue Cassells & Hernan Roxas, 2015. "SMEs and the Potential for A Collaborative Path to Environmental Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 750-764, December.
    3. Silvia Cantele & Alessandro Zardini, 2020. "What drives small and medium enterprises towards sustainability? Role of interactions between pressures, barriers, and benefits," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 126-136, January.
    4. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    5. Johan Graafland & Hugo Smid, 2016. "Environmental Impacts of SMEs and the Effects of Formal Management Tools: Evidence from EU's Largest Survey," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(5), pages 297-307, September.
    6. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    7. David Talbot & Nicolas Raineri & Alain Daou, 2021. "Implementation of sustainability management tools: The contribution of awareness, external pressures, and stakeholder consultation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 71-81, January.
    8. Sarah Williams & Anja Schaefer, 2013. "Small and Medium‐Sized Enterprises and Sustainability: Managers' Values and Engagement with Environmental and Climate Change Issues," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 173-186, March.
    9. Brigitte Hoogendoorn & Daniela Guerra & Peter Zwan, 2015. "What drives environmental practices of SMEs?," Small Business Economics, Springer, vol. 44(4), pages 759-781, April.
    10. Torbjörn Ljungkvist & Jim Andersén, 2021. "A taxonomy of ecopreneurship in small manufacturing firms: A multidimensional cluster analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1374-1388, February.
    11. Christian Dienes, 2015. "Energy and Material Efficiency Improvements, Compliance Strategies, and Investments in Resource Efficiency: A Cross-Country Study," Schumpeter Discussion Papers SDP15004, Universitätsbibliothek Wuppertal, University Library.
    12. Jacob Hörisch & Matthew P. Johnson & Stefan Schaltegger, 2015. "Implementation of Sustainability Management and Company Size: A Knowledge‐Based View," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 765-779, December.
    13. Sam Hampton, 2018. "‘It’s the soft stuff that’s hard’: Investigating the role played by low carbon small- and medium-sized enterprise advisors in sustainability transitions," Local Economy, London South Bank University, vol. 33(4), pages 384-404, June.
    14. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    15. Oksana Seroka‐Stolka & Kamil Fijorek, 2020. "Enhancing corporate sustainable development: Proactive environmental strategy, stakeholder pressure and the moderating effect of firm size," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2338-2354, September.
    16. Johan Jansson & Jonas Nilsson & Frida Modig & Gabriella Hed Vall, 2017. "Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 69-83, January.
    17. Francisco J. Sáez-Martínez & Cristina Díaz-García & Ángela González-Moreno, 2016. "Factors Promoting Environmental Responsibility in European SMEs: The Effect on Performance," Sustainability, MDPI, vol. 8(9), pages 1-14, September.
    18. Francesco Testa & Natalia Marzia Gusmerottia & Filippo Corsini & Emilio Passetti & Fabio Iraldo, 2016. "Factors Affecting Environmental Management by Small and Micro Firms: The Importance of Entrepreneurs’ Attitudes and Environmental Investment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(6), pages 373-385, November.
    19. 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.
    20. Henning Madsen & John P. Ulhøi, 2016. "Corporate Environmental Initiatives in Small and Medium Sized Enterprises and Their Outcomes: A Longitudinal Study," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 92-101, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:corsem:v:23:y:2016:i:4:p:193-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.