Green Goals in Organizations: Do Small Businesses Engage in Environmentally Friendly Strategies?

Authors

  • Richard C. Becherer University of Tennessee, Chattanooga
  • Marilyn M. Helms Dalton State College

Abstract

"Green" environmental goals play a role in a firm's decision making and goal setting. Large firms typically consider being socially responsible or more environmentally oriented as part of their mission, but are these initiatives the same for small businesses? Surveying a U.S. small business sample, this exploratory study finds firm size and industry type are the two demographic variables related to the importance of environmental business issues in small business decision-making processes. Company "Expertise," an internal resource advantage, and the external factors of "Competitiveness" and 'Environmental Hostility," were found to influence small firms' environmental goals. When examining business outcomes and small firms' satisfaction with achievement of their environmental goals, all measures studied (cash flow, market share, sales, and earnings) were related to having such goals. This study extends the dearth of literature studying small firms and the role of environmentally friendly strategies in these ventures.

References

Ahmad, N.H. & Seet, P. (2010). G ender variations in ethical and socially responsible considerations among SME entrepreneurs in Malaysia. International Journal of Business and Society, 11(7), 77-88, 107- 108.

Ansoff, I. (1965). Corporate Strategy. McGraw-Hill, New York, NY.

Armstrong, J.S. & Overton, T.S. (1977). Estimating Nonresponse Bias in Mail Surveys. Journal of Marketing Research, 16(August), 396-492.

Ascigil, S. F. (2010). Toward Socially Responsible SMEs? Q uality Award Model as a Tool, The Quality Management Journal, 17(3), 7-20.

Baden, D. & Harwood, I. A. (2011). The effects of procurement policies on 'downstream' corporate social responsibility activity: Content- analytic insights into the views and actions of SME owner-managers. International Small Business Journal, 29(3), 259.

Beaver, G. (2007). The strategy payoff for smaller enterprises. Journal of Business Strategy, 28(1), 11-17.

Bianchi, R. & Noci, G. (1998). Greening SMEs' Competitiveness. Small Business Economics, 11(3), 269- 281.

Chandler G. N. & S. H. Hanks (1994). Market attractiveness, resource- based capabilities, venture strategies, and venture performance. Journal of Business Venturing, 9.4, 331-349

Chen, Y. (2008). The Driver of Green Innovation and Green Image - Green Core Competence. Journal of Business Ethics, 81(3), 531-543.

Chrisman, J. J. & Fry, F. L. (1982). Public versus Business Expectations: Two Views on Social Responsibility for Small Business. Journal of Small Business Management 20(1), 19-26.

Condon, L. (2004). Sustainability and Small to Medium Sized Enterprises: How to engage them. Australian Journal of Environmental Education, 20(1), 57-67.

Curran, L, Rutherfoord, R., & Lloyd Smith, S. (2000). Is there a local business community?: Explaining the non- participation of small business in local economic development. Local Economy 15(2), 128-143.

Dressen, E. (2009). Sustainability and Business: A Narrative and Annotated Bibliography, available at http://web.ncf.ca/ct976/ (accessed September 2012).

Eilbirt, H. & Parket, I. R. (1973). The current status of corporate social responsibility. Business Horizons, August, 5-14.

Elizabeth, S.L., Martens, M. L., & Cho, C. H. (2010). Engaging Small- and Medium-Sized Businesses in Sustainability. Sustainability Accounting Management and Policy Journal, 1(2), 178-200.

Enderle, G. (2004). Global competition and Corporate Responsibilities of Small and medium-sized enterprises. Business Ethics: A European Review 13(1), 51-63.

Fassin, Y. (2008). SMEs and the fallacy of formalizing CSR, Business Ethics: A European Review, 17(4), 364- 379.

Fassin, Y., Van Rossem, A., & Buelens, M. (2011). Small-business owner- Managers' perceptions of business ethics and CSR-related concepts. Journal of Business Ethics, 98(3), 425-453.

Fraj-Andres, E, Lopez-Perez, M.D., Melero-Polo, I, & Vazquez- Carrasco, R. (2012). C ompany Image and corporate social responsibility: Reflecting with SMEs' managers. Marketing Intelligence & Planning, 30(2), 266-280.

Gadenne, D. L., Kennedy, J., & Mckeiver, C. (2009). An empirical study of environmental awareness and practices in SMEs. Journal of Business Ethics, 84(1), 45-63.

Green, K.M., J.G. Covin, & D.P. Slevin (2008). Exploring the relationship between strategic reactiveness and entrepreneurial orientation: the role of structure-style fit. Journal of Business Venturing 23, 356-383.

Jenkins, H. (2004). A critique of conventional CSR theory: An SME perspective. Journal of General Management 29(4), 37-57.

Jenkins, H. (2006). Small Business Champions for Corporate Social Responsibility. Journal of Business Ethics, 67(3), 241-256.

Kenchiche, A. & Soparnot, R. (2012). CSR within SMEs: Literature Review. International Business Research, 5(7), 97-104.

Labonner, J. (2006). A comparative analysis of the environmental management, performance and innovation of SMEs and larger firms, for the European Commission, Directorate-General Environment, CL Conseil, Saint Michel Sur Orge, 1-44.

Laudi, T. (2011). Drivers and barriers of CSR and the size and internationalization of firms. Social Responsibility Journal, 7(2), 234-256.

Lee, S. & Klassen, R. D. (2008). Drivers and enablers that foster environmental management capabilities in small- and medium- sized suppliers in supply chains. Production and Operations Management, 17(6), 573-586.

Lepoutre, J. & Heene, A. (2006). Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review. Journal of Business Ethics, 67, 257-273.

Lewis, K. & Cassells, S. (2010). Barriers and Drivers for Environmental Practice Uptake in SMEs: A New Zealand Perspective," International Journal of Business Studies, 18(1), 7-21.

Murillo, D.& Lozano, J. M. (2006). SMEs and CSR: An Approach to CSR in their own words. Journal of Business Ethics, 67(3), 227-240.

Perrini, F., Russo, A., & Tencati, A. (2007). CSR strategies of SMEs and large firms: Evidence from Italy. Journal of Business Ethics, 74(3), 285-300.

Roxas, B. & Chadee, D. (2012). Environmental Sustainability Orientation and Financial Resources of Small Manufacturing Firm in the Philippines. Social Responsibility Journal, 8(2), 208- 226.

Russo, A. & Perrini, F. (2010). Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs, Journal of Business Ethics, 91(2), 207-221.

Rutherfoord, R., Blackburn, R. A., & Spence, L. J. (2000). Environmental Management and the Small Firm: A n International Comparison. International Journal of Entrepreneurial Behaviour & Research, 6(6), 310-325.

Schafer, D.& Talavera, O. (2009). Small business survival and inheritance: Evidence from Germany. Small Business Economics 32(1), 95-109.

Simpson, M., Taylor, N, & Barker, K. (2004). Environmental Responsibility in SMEs: D oes it Deliver Competitive Advantage. Business Strategy and the Environment, 13, 156-171.

Studer, S., Tsang, S., Welford, R., & Hills, P. (2008). SMEs and voluntary environmental initiatives: A Study of Stakeholders' Perspectives in Hong Kong. Journal of Environmental Planning and Management, 51(2), 285-301.

Thompson, J.K. & H. L. Smith (1991). Social responsibility and small business: Suggestions for research. Journal of Small Business Research 29(1), 30-44.

Vives, A. (2006). Social and environmental responsibility in small and medium enterprises in Latin America. The Journal of Corporate Citizenship, 21, 39-50.

Walker, H. & Preuss, L. (2008). Fostering sustainability through sourcing from small businesses: P ublic sector perspectives. Journal of Cleaner Production, 16(15), 1600- 1609.

Williamson, D. & Lynch-Wood, G. (2001). A New Paradigm for SME Environmental Practice. The TQM Magazine, 13(6), 424-432.

Wincent, J. & Westerberg. M. (2005). Personal traits of CEOs, inter-firm networking and entrepreneurship in their firms: Investigating Strategic SME network participants. Journal of Developmental Entrepreneurship, 10(3), 271-284.

Downloads

Published

2014-01-22

Issue

Section

Articles

How to Cite

Green Goals in Organizations: Do Small Businesses Engage in Environmentally Friendly Strategies?. (2014). Journal of Small Business Strategy (archive Only), 24(1), 1-18. https://libjournals.mtsu.edu/index.php/jsbs/article/view/184