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The psychological distance and construal level perspectives of sustainable value creation in SMEs

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  • Andrew Mzembe

Abstract

This article examines internal organizational factors and external antecedents of sustainable value creation by small medium enterprises (SMEs) and constructs a framework that integrates, at both levels, the theories of psychological distance and construal level from the field of psychology. This research provides an explanation as to why sustainable value creation remains a complex issue, and why many SMEs' engage with sustainable value creation to varying degrees. This paper particularly highlights how owner/managers of SME may construe different dimensions of psychological distance and apply their understanding to their response to different antecedents of sustainable value creation. Finally, by adopting the psychological distance perspective, this paper highlights the conditions under which internal and external organizational and factors can affect SMEs' propensity to create sustainable value. It further concludes by highlighting areas for further research.

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  • Andrew Mzembe, 2021. "The psychological distance and construal level perspectives of sustainable value creation in SMEs," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 465-478, March.
    • Handle: RePEc:wly:sustdv:v:29:y:2021:i:2:p:465-478
    DOI: 10.1002/sd.2150
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