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Environmental Awareness and Green Business Practices in the Small Business Sector: Empirical Evidence Using a Small and Medium-sized Enterprises Survey in Japan

Author

Listed:
  • Masahiko Shibamoto

    (Research Institute for Economics and Business Administration and Center for Computational Social Science, Kobe University, JAPAN)

Abstract

This study argues that the heterogeneity in environmental awareness among business owners is a pivotal component in characterizing the implementation of green business practices in the small business sector. Specifically, using a large-scale survey of small and medium-sized enterprises (SMEs) throughout Japan, we show a gap between environmental awareness and green business practices in the small business sector; that is, SMEs are aware of environmental issues, but they do not practice green business to a large extent. Further, we quantitatively show that the environmental awareness of SMEs already practicing or attempting to practice green business tends to be greater than that of SMEs not practicing green business. Our empirical results support the link between environmental awareness as a business opportunity and green business practices. However, there is less evidence that environmental awareness divorced from management, such as the need to pass on a sustainable society to future generations, would be involved with green business practices in the small business sector. Our findings advocate that policymakers looking to strengthen environmental initiatives in the small business sector need to direct SMEs to build awareness of environmental issues related to their businesses.

Suggested Citation

  • Masahiko Shibamoto, 2022. "Environmental Awareness and Green Business Practices in the Small Business Sector: Empirical Evidence Using a Small and Medium-sized Enterprises Survey in Japan," Discussion Paper Series DP2022-08, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2022-08
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2022-08.pdf
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    References listed on IDEAS

    as
    1. Brigitte Hoogendoorn & Daniela Guerra & Peter Zwan, 2015. "What drives environmental practices of SMEs?," Small Business Economics, Springer, vol. 44(4), pages 759-781, April.
    2. 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.
    3. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Nishitani, Kimitaka, 2009. "An empirical study of the initial adoption of ISO 14001 in Japanese manufacturing firms," Ecological Economics, Elsevier, vol. 68(3), pages 669-679, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Green business practices; Environmental awareness; Small business sector; Survey data; Japan;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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