THE EXISTENCE AND SURVIVAL STAGE IN SMEs SUSTAINABILITY TRANSFORMATION
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Sarah Febrina Yolanda(1*)
School of Business and Management, Institut Teknologi Bandung
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Melia Famiola(2)
School of Business and Management, Institut Teknologi Bandung
(*) Corresponding Author
Keywords:
Sustainable Business Practices, Sustainability Transformation, SMEs, Growth Stage Model
Abstract
The purpose of this study is to explore SMEs’ proactive approach towards sustainability transformation, especially in the existence and the survival stage, what are the challenges and opportunities that come with each stage of a company's existence can help SMEs plan for their sustainability transformation in a way that is appropriate for their current stage of development. The interpretivism paradigm is used in this study. This research involves collecting qualitative data through the interview method. Cross-sectional data were collected from 10 Indonesian SMEs which implemented sustainable business practices through convenience sampling and snowball sampling. Based on the interview, it was generally analyzed the data through initial coding, axial coding, selective coding, and lastly, using the results proposition to make new conclusions and recommendations for the study. The case studies discussed in this research provide insights into the sustainability transformation of SMEs at different stages of development, from existence to survival. The cases illustrate various challenges, opportunities, and approaches that SMEs can use to integrate sustainable practices into their operations. There are several limitations including a limited scope, level of depth, generalizability, reliance on self-report by SMEs, and time-bond. But despite the limitations of these studies, this research provides insights that can help to inform future research on sustainable entrepreneurship, social innovation, and corporate social responsibility.
Keywords: Sustainable Business Practices; Sustainability Transformation; SMEs; Growth Stage Model
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References
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Brochado, A., Teiga, N., & Oliveira-Brochado, F. (2017). The ecological conscious consumer behaviour: are the activists different? International Journal of Consumer Studies, 41(2), 138–146. https://doi.org/10.1111/IJCS.12321
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Lewis, V. L., & Churchill, N. C. (1983). The Five Stages of Small Business Growth. https://papers.ssrn.com/abstract=1504517
Lin, Y. H., & Chen, Y. S. (2017). Determinants of green competitive advantage: the roles of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality and Quantity, 51(4), 1663–1685. https://doi.org/10.1007/S11135-016-0358-6/FIGURES/2
Mafini, C., & Loury-Okoumba, W. v. (2018). Extending green supply chain management activities to manufacturing small and medium enterprises in a developing economy. South African Journal of Economic and Management Sciences, 21(1), 1–12. https://doi.org/10.4102/sajems.v21i1.1996
Maldonado-Guzmán, G., Garza-Reyes, J. A., Pinzón-Castro, S. Y., & Kumar, V. (2017). Barriers to innovation in service SMEs: Evidence from Mexico. Industrial Management and Data Systems, 117(8), 1669–1686. https://doi.org/10.1108/IMDS-08-2016-0339
Masurel, E. (2007). Why SMEs invest in environmental measures: sustainability evidence from small and medium-sized printing firms. Business Strategy and the Environment, 16(3), 190–201. https://doi.org/10.1002/BSE.478
McMahon, R. G. P. (2014). Stage Models of SME Growth Reconsidered. Https://Doi.Org/10.5172/Ser.6.2.20, 6(2), 20–35. https://doi.org/10.5172/SER.6.2.20
Mendes, A. C. S., Ferreira, F. A. F., Kannan, D., Ferreira, N. C. M. Q. F., & Correia, R. J. C. (2022). A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises. Journal of Cleaner Production, 371. https://doi.org/10.1016/j.jclepro.2022.133300
Miles, M. B., Huberman, A. M., & Saldaña, J. (2013). Qualitative data analysis : a methods sourcebook.
Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296–306. https://doi.org/10.1002/SD.346
Müller, A. L., & Pfleger, R. (2014). Business transformation towards sustainability. Business Research, 7(2), 313–350. https://doi.org/10.1007/S40685-014-0011-Y/TABLES/6
Nagypál, N. C. (2014). Corporate social responsibility of Hungarian SMEs with good The contribution of CSR to sustainable development. Journal for East European Management Studies, 19(3), 327–347. https://doi.org/10.1688/JEEMS-2014-03-Nagypal
Ogrean, C., & Herciu, M. (2021). Romania’s SMEs on the Way to EU’s Twin Transition to Digitalization and Sustainability. Studies in Business and Economics, 16(2), 282–295. https://doi.org/10.2478/sbe-2021-0040
Omer, A. M. (2008). Energy, environment and sustainable development. Renewable and Sustainable Energy Reviews, 12(9), 2265–2300. https://doi.org/10.1016/J.RSER.2007.05.001
Rajapakse, R. M. D. A. P., Azam, S. M. F., & Khatibi, A. (2022). Towards Green Credentials of SMEs: Qualitative Insights on Barriers to Green Responsiveness from a Developing Economy. International Journal of Applied Economics, Finance and Accounting, 14(1), 15–24. https://doi.org/10.33094/ijaefa.v14i1.635
Revell, A., Stokes, D., & Chen, H. (2010). Small businesses and the environment: turning over a new leaf? Business Strategy and the Environment, 19(5), 273–288. https://doi.org/10.1002/BSE.628
Rezai, G., Sumin, V., Mohamed, Z., Shamsudin, M. N., & Sharifuddin, J. (2016). Implementing Green Practices as Sustainable Innovation Among Herbal-Based SME Entrepreneurs. Journal of Food Products Marketing, 22(1), 1–18. https://doi.org/10.1080/10454446.2015.1048030
Ritchie, J., Lewis, J., Nicholls, C. M., & Ormston, R. (2014). Qualitative Research Practice: A Guide for Social Science Student & Researcher (Second Edition). SAGE Publications Ltd.
Robinson, O. C. (2013). Sampling in Interview-Based Qualitative Research: A Theoretical and Practical Guide. Https://Doi.Org/10.1080/14780887.2013.801543, 11(1), 25–41. https://doi.org/10.1080/14780887.2013.801543
Rodríguez-Espíndola, O., Cuevas-Romo, A., Chowdhury, S., Díaz-Acevedo, N., Albores, P., Despoudi, S., Malesios, C., & Dey, P. (2022). The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs. International Journal of Production Economics, 248(June 2020), 108495. https://doi.org/10.1016/j.ijpe.2022.108495
Sharma, N. K., Govindan, K., Lai, K. K., Chen, W. K., & Kumar, V. (2021). The transition from linear economy to circular economy for sustainability among SMEs: A study on prospects, impediments, and prerequisites. Business Strategy and the Environment, 30(4), 1803–1822. https://doi.org/10.1002/bse.2717
Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. Https://Doi.Org/10.5465/Ame.2002.7173581, 16(2), 132–148. https://doi.org/10.5465/AME.2002.7173581
Wang, H., Tong, L., Takeuchi, R., & George, G. (2016). Corporate Social Responsibility: An Overview and New Research Directions. Https://Doi.Org/10.5465/Amj.2016.5001, 59(2), 534–544. https://doi.org/10.5465/AMJ.2016.5001
Wilkinson, A., Hill, M., & Gollan, P. (2001). The sustainability debate. International Journal of Operations and Production Management, 21(12), 1492–1502. https://doi.org/10.1108/01443570110410865/FULL/XML
Yadav, N., Gupta, K., Rani, L., & Rawat, D. (2018). View of Drivers of Sustainability Practices and SMEs: A Systematic Literature Review. European Journal of Sustainable Development, 7(4), 531–544. https://ecsdev.org/ojs/index.php/ejsd/article/view/745/740
Berry, M. A., & Rondinelli, D. A. (1998). Proactive corporate environmental management: A new industrial revolution. Https://Doi.Org/10.5465/Ame.1998.650515, 12(2), 38–50. https://doi.org/10.5465/AME.1998.650515
Bocken, N. M. P., & Geradts, T. H. J. (2020). Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Long Range Planning, 53(4). https://doi.org/10.1016/j.lrp.2019.101950
Brochado, A., Teiga, N., & Oliveira-Brochado, F. (2017). The ecological conscious consumer behaviour: are the activists different? International Journal of Consumer Studies, 41(2), 138–146. https://doi.org/10.1111/IJCS.12321
Butryumova, N., Karpycheva, S., Grisheva, K., & Kasyanova, E. (2015). Obstacles to small innovative companies’ development: Case study of Nizhny Novgorod region. Journal of Technology Management and Innovation, 10(4), 74–84. https://doi.org/10.4067/S0718-27242015000400008
Caldera, H. T. S., Desha, C., & Dawes, L. (2019). Evaluating the enablers and barriers for successful implementation of sustainable business practice in ‘lean’ SMEs. Journal of Cleaner Production, 218, 575–590. https://doi.org/10.1016/j.jclepro.2019.01.239
Carolina, G., Stefano, S., & Gabriele, P. G. (2020). Opportunities of sustainable business practices in SME. Le Nuove Comunità Urbane e Il Valore Strategico Della Conoscenza. Come i Processi Cognitivi Possono Motivare La Politica, Garantire l’utilità Del Piano, Offrire Una via d’uscita Dall’emergenza, 1–12. https://www.academia.edu/4871986/Opportunities_of_sustainable_business_practices_in_SMEs
Dressler, M. (2022). Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor. International Entrepreneurship and Management Journal. https://doi.org/10.1007/s11365-022-00809-2
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. https://doi.org/10.1007/S10551-008-9672-9
Ghadge, A., Kaklamanou, M., Choudhary, S., & Bourlakis, M. (2017). Implementing environmental practices within the Greek dairy supply chain Drivers and barriers for SMEs. Industrial Management and Data Systems, 117(9), 1995–2014. https://doi.org/10.1108/IMDS-07-2016-0270
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11–32. https://doi.org/10.1016/J.JCLEPRO.2015.09.007
Gibbs, D. (2009). Sustainability Entrepreneurs, Ecopreneurs and the Development of a Sustainable Economy. Sustainability Entrepreneurship Research, 55, 63–78. https://www.jstor.org/stable/greemanainte.55.63
Goddard, J. U., Glass, J., Dainty, A., & Nicholson, I. (2016). Implementing sustainability in small and medium-sized construction firms the role of absorptive capacity. Engineering, Construction and Architectural Management, 23(4), 407–427. https://doi.org/10.1108/ECAM-01-2015-0015
Hoffman, A. J. (2018). The Next Phase of Business Sustainability. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.3191035
Huang, K. F., Dyerson, R., Wu, L. Y., & Harindranath, G. (2015). From Temporary Competitive Advantage to Sustainable Competitive Advantage. British Journal of Management, 26(4), 617–636. https://doi.org/10.1111/1467-8551.12104
Kantabutra, S. (2012). Sweet success beyond the triple bottom line: Honeybee practices lead to sustainable leadership at Thailand’s True Corp. Global Business and Organizational Excellence, 32(1), 22–39. https://doi.org/10.1002/JOE.21461
Kiefer, C. P., González, P. D. R., & Carrillo‐hermosilla, J. (2019). Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective. Business Strategy and the Environment, 28(1), 155-172. https://doi.org/10.1002/bse.2246
Köhler, J., Geels, F. W., Kern, F., Markard, J., Onsongo, E., Wieczorek, A., Alkemade, F., Avelino, F., Bergek, A., Boons, F., Fünfschilling, L., Hess, D., Holtz, G., Hyysalo, S., Jenkins, K., Kivimaa, P., Martiskainen, M., McMeekin, A., Mühlemeier, M. S., … Wells, P. (2019). An agenda for sustainability transitions research: State of the art and future directions. Environmental Innovation and Societal Transitions, 31, 1–32. https://doi.org/10.1016/J.EIST.2019.01.004
Lewis, V. L., & Churchill, N. C. (1983). The Five Stages of Small Business Growth. https://papers.ssrn.com/abstract=1504517
Lin, Y. H., & Chen, Y. S. (2017). Determinants of green competitive advantage: the roles of green knowledge sharing, green dynamic capabilities, and green service innovation. Quality and Quantity, 51(4), 1663–1685. https://doi.org/10.1007/S11135-016-0358-6/FIGURES/2
Mafini, C., & Loury-Okoumba, W. v. (2018). Extending green supply chain management activities to manufacturing small and medium enterprises in a developing economy. South African Journal of Economic and Management Sciences, 21(1), 1–12. https://doi.org/10.4102/sajems.v21i1.1996
Maldonado-Guzmán, G., Garza-Reyes, J. A., Pinzón-Castro, S. Y., & Kumar, V. (2017). Barriers to innovation in service SMEs: Evidence from Mexico. Industrial Management and Data Systems, 117(8), 1669–1686. https://doi.org/10.1108/IMDS-08-2016-0339
Masurel, E. (2007). Why SMEs invest in environmental measures: sustainability evidence from small and medium-sized printing firms. Business Strategy and the Environment, 16(3), 190–201. https://doi.org/10.1002/BSE.478
McMahon, R. G. P. (2014). Stage Models of SME Growth Reconsidered. Https://Doi.Org/10.5172/Ser.6.2.20, 6(2), 20–35. https://doi.org/10.5172/SER.6.2.20
Mendes, A. C. S., Ferreira, F. A. F., Kannan, D., Ferreira, N. C. M. Q. F., & Correia, R. J. C. (2022). A BWM approach to determinants of sustainable entrepreneurship in small and medium-sized enterprises. Journal of Cleaner Production, 371. https://doi.org/10.1016/j.jclepro.2022.133300
Miles, M. B., Huberman, A. M., & Saldaña, J. (2013). Qualitative data analysis : a methods sourcebook.
Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296–306. https://doi.org/10.1002/SD.346
Müller, A. L., & Pfleger, R. (2014). Business transformation towards sustainability. Business Research, 7(2), 313–350. https://doi.org/10.1007/S40685-014-0011-Y/TABLES/6
Nagypál, N. C. (2014). Corporate social responsibility of Hungarian SMEs with good The contribution of CSR to sustainable development. Journal for East European Management Studies, 19(3), 327–347. https://doi.org/10.1688/JEEMS-2014-03-Nagypal
Ogrean, C., & Herciu, M. (2021). Romania’s SMEs on the Way to EU’s Twin Transition to Digitalization and Sustainability. Studies in Business and Economics, 16(2), 282–295. https://doi.org/10.2478/sbe-2021-0040
Omer, A. M. (2008). Energy, environment and sustainable development. Renewable and Sustainable Energy Reviews, 12(9), 2265–2300. https://doi.org/10.1016/J.RSER.2007.05.001
Rajapakse, R. M. D. A. P., Azam, S. M. F., & Khatibi, A. (2022). Towards Green Credentials of SMEs: Qualitative Insights on Barriers to Green Responsiveness from a Developing Economy. International Journal of Applied Economics, Finance and Accounting, 14(1), 15–24. https://doi.org/10.33094/ijaefa.v14i1.635
Revell, A., Stokes, D., & Chen, H. (2010). Small businesses and the environment: turning over a new leaf? Business Strategy and the Environment, 19(5), 273–288. https://doi.org/10.1002/BSE.628
Rezai, G., Sumin, V., Mohamed, Z., Shamsudin, M. N., & Sharifuddin, J. (2016). Implementing Green Practices as Sustainable Innovation Among Herbal-Based SME Entrepreneurs. Journal of Food Products Marketing, 22(1), 1–18. https://doi.org/10.1080/10454446.2015.1048030
Ritchie, J., Lewis, J., Nicholls, C. M., & Ormston, R. (2014). Qualitative Research Practice: A Guide for Social Science Student & Researcher (Second Edition). SAGE Publications Ltd.
Robinson, O. C. (2013). Sampling in Interview-Based Qualitative Research: A Theoretical and Practical Guide. Https://Doi.Org/10.1080/14780887.2013.801543, 11(1), 25–41. https://doi.org/10.1080/14780887.2013.801543
Rodríguez-Espíndola, O., Cuevas-Romo, A., Chowdhury, S., Díaz-Acevedo, N., Albores, P., Despoudi, S., Malesios, C., & Dey, P. (2022). The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs. International Journal of Production Economics, 248(June 2020), 108495. https://doi.org/10.1016/j.ijpe.2022.108495
Sharma, N. K., Govindan, K., Lai, K. K., Chen, W. K., & Kumar, V. (2021). The transition from linear economy to circular economy for sustainability among SMEs: A study on prospects, impediments, and prerequisites. Business Strategy and the Environment, 30(4), 1803–1822. https://doi.org/10.1002/bse.2717
Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. Https://Doi.Org/10.5465/Ame.2002.7173581, 16(2), 132–148. https://doi.org/10.5465/AME.2002.7173581
Wang, H., Tong, L., Takeuchi, R., & George, G. (2016). Corporate Social Responsibility: An Overview and New Research Directions. Https://Doi.Org/10.5465/Amj.2016.5001, 59(2), 534–544. https://doi.org/10.5465/AMJ.2016.5001
Wilkinson, A., Hill, M., & Gollan, P. (2001). The sustainability debate. International Journal of Operations and Production Management, 21(12), 1492–1502. https://doi.org/10.1108/01443570110410865/FULL/XML
Yadav, N., Gupta, K., Rani, L., & Rawat, D. (2018). View of Drivers of Sustainability Practices and SMEs: A Systematic Literature Review. European Journal of Sustainable Development, 7(4), 531–544. https://ecsdev.org/ojs/index.php/ejsd/article/view/745/740
Published
2023-07-01
How to Cite
Yolanda, S., & Famiola, M. (2023). THE EXISTENCE AND SURVIVAL STAGE IN SMEs SUSTAINABILITY TRANSFORMATION. Journal of Management : Small and Medium Enterprises (SMEs), 16(2), 207-223. https://doi.org/10.35508/jom.v16i2.9929
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