The impact of external pressure and sustainable management practices on manufacturing performance and environmental outcomes

Does internationalization improve environmental disclosure willingness and quality? The moderating role of green investors

Environmental issues have gradually become a key concern for society. The public has been paying increasing attention to corporate environmental disclosure and performance. With the "go global" trend, more and more enterprises are looking to overseas markets for new technologies and resources. Multinational enterprises (MNEs) are facing more challenges than domestic enterprises. To remain competitive and sustainable, enterprises from developing countries need to gain a foothold in developed countries. We explore how MNEs' internationalization impacts environmental disclosure, specifically focusing on the role of green investors as stakeholders. We draw evidence from Chinese-listed MNEs, with a total of 4,709 panel data observations. For the main analysis, we use a fixed effect model. The findings suggest that a higher level of internationalization can improve both the willingness and quality of environmental disclosure for MNEs, and this relationship is further strengthened by green investors. A heterogeneity analysis reveals that the positive effect of internationalization on environmental disclosure is mainly present in state-owned enterprises (SOEs) and developed host countries. We find that external pressure from host countries motivates MNEs to increase environmental disclosure willingness and quality. This study provides valuable insights for MNEs from emerging economies on how to achieve legitimacy and a positive reputation in overseas markets through environmental disclosure strategies. This study proposes the importance of green investors on environmental disclosure issues from a stakeholder perspective and provides new theoretical insights for environmental policy reform in developing countries such as China.

Awareness as a catalyst for sustainable behaviors: A theoretical exploration of planned behavior and value-belief-norms in the circular economy

This study explores the interplay of intrinsic and extrinsic factors influencing sustainable behaviours within the Circular Economy (CE) through the lenses of the Theory of Planned Behaviour (TPB) and the Value-Belief-Norm (VBN) theory. This objective was achieved by conducting a large scale survey in Brazil and using Composite-Based Structural Equation Modeling (cSEM) technique in conjunction with R software to analyze data and assess our research hypotheses. Our findings underscore the paramount importance of intrinsic factors-such as personal values, beliefs, and positive evaluations of sustainability outcomes-over external pressures like environmental laws and organizational policies in fostering sustainable actions. While increased awareness of the CE significantly enhances attitudes towards and the likelihood of engaging in sustainable behaviours, the study reveals that external pressures and perceived barriers, such as time, cost, and skill limitations, do not significantly deter those with a high level of awareness and positive sustainability evaluation from acting sustainably. Academically, the study enriches environmental psychology by extending TPB and VBN theories, advocating for a refinement of TPB to better account for contexts where personal values are stronger drivers than external pressures or immediate practical constraints.

Dynamic Capabilities and an ESG Strategy for Sustainable Management Performance

This research explores the dynamic capabilities required for firms to implement environmental, social, and governance (ESG) strategies, and investigates sustainable management performance that can be created based on them. By using dynamic capabilities theory, we integrate sustainable management and the ESG literature to suggest a research model and identify the factors that act as the catalysts achieving sustainability. The data used for the analysis were collected from 78 firms listed on the Korea Exchange (KRX) with assets totaling more than 2 trillion Korean won. In this study, the partial least squares structural equation model (PLS-SEM) is applied. We found that absorptive capability and adaptive capability significantly affect sustainable management performance through implementation of the ESG strategy as a mediating variable. In particular, a firm's implementation of an ESG strategy is a significant determinant that impacts sustainable management performance. We also believe our model contributes to the current knowledge by filling several research gaps, and our findings offer valuable and practical implications not only for achieving sustainable growth but also for creation of competitive advantage.

Relationship between Sustainable Management Activities and Financial Performance: Mediating Effects of Non-Financial Performance and Moderating Effects of Institutional Environment

The importance of corporate responsibility for society and environments is emphasized by increasing influence of firms on various stakeholders. Firms strengthen environmental, social, and governance (ESG) activities, which are critical elements for sustainable management. However, there are inconsistent findings on the relationship between ESG activities and firms’ financial performance in prior studies because of the lack of full consideration of internal mechanisms and external conditions. To overcome this limitation, this study investigates the mediating effect of non-financial performance and the moderating effect of the institutional environment on the relationship between firms’ ESG activities and their financial performance in a unified moderated mediation model. Samples for empirical analyses were collected by a survey from 304 small and medium-sized Chinese manufacturers. The results of a mediation analysis reveal that each ESG activity has a positive effect on firms’ financial performance, and the impact of ESG activities on financial performance is completely mediated by non-financial performance. The results of a moderated mediation analysis further indicate that the mediating effect varies depending on the level of institutional pressure from the government, consumers, and competitors. The study suggests the need for interdisciplinary research in sustainable management and institutional theory and emphasizes the importance of sustainable management for performance improvement in a changing environment.

The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital

As the concept of corporate social responsibility advances, it is crucial to recognize the broad roles of sustainability and the Sustainable Development Goals (SDGs) influencing the implementation of corporate social responsibility (CSR) initiatives. This research contributes to the expanding field of CSR, sustainable innovation ambidexterity (SIA), sustainable supply chain management (SSCM), and second-order social capital (SOSC). This research produced a theoretical framework based on social exchange theory, social capital theory, and Carroll’s CSP model to investigate the impact of CSR on SIA, SSCM, and SOSC. Furthermore, this study examined the mediating effects of SSCM and SOSC on the correlation between CSR and SIA. Additionally, this study presents a model to explain the impact of SSCM and SOSC on SIA. This study concentrated on top-level managers of several manufacturing businesses situated in Pakistan. A total of 42 manufacturing businesses were chosen utilizing a convenience cluster sampling method. As per the results of this research, CSR was discovered to have a positive impact on SSCM, SIA, and, SOSC. Moreover, SOSC and SSCM were found to be in a significant relationship with SIA. Finally, SOSC and SSCM fully mediated the relationship between CSR and sustainable innovation ambidexterity. This research can guide companies by effectively delivering their finances in CSR initiatives. The findings also suggest that companies should concentrate on improving their CSR initiatives because CSR has a significant effect on SIA. The SDGs provide a road map for companies that can assist them to tactically manage their CSR initiatives according to the international and national sustainable development guidelines. Hence, the CSR–SDG tie is essential for the improvement in the role of CSR in sustainable development. Moreover, to improve and measure SSCM, SOSC, and SIA, policymakers and general managers should devote efforts to CSR.

Determinants and implications of environmental practices for waste management and the minimization in the construction industry: a case study of Pakistan

The construction projects and activities generate waste materials, which impose negative impacts on the environment and contribute towards environmental degradation. In this regard, the implementation of environmental practices (EPs) can play a vital role in reducing the environmental risks associated with waste materials from construction projects. Based on this hypothesis, the present survey study was conducted to assess the effectiveness of different EPs in reducing environmental risks associated with waste materials from construction firms (n = 159) operating in Pakistan. Organizational and government support, regulatory pressure, and economic and environmental performance were among the main determinants of EPs studied in the present study. The partial least squares technique was used for the data collection, assessment, and prediction of the results based on the hypothesis testing for a range of determinants. Compose reliability analysis of determinants showed that all items gave a value of 0.7, which is a clear indication of the reliability of each determinant in the formation of the hypothesis. From all eight hypotheses, H₁ (0.475), H₄ (0.217), H₆ (0.114), H₇ (0.210), and H₈ (0.149) hypotheses with size effect in parentheses were acceptable due to their positive construction with EPs, while H₂, H₃, and H₅ hypothesis did not show the significant effect with size effect values lower than 0.1. The study demonstrated that current environmental regulations and governing bodies in Pakistan are not sufficiently effective and strict to implement environmental regulations. In this regard, regulatory pressure is necessary to promote EPs along with increasing stakeholders' awareness. Overall, the implementation of EPs not only prepares construction firms to deal with the pressure exerted by regulations and customers but also enhances the environmental and economic performance of construction firms.

Addressing supplier sustainability misconducts: response strategies to nonmarket stakeholder contentions

Purpose

Firms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for their suppliers' misconducts by mobilizing demonstrations, social media campaigns and boycotts. This paper aims to develop a typology of response strategies by targeted firms when they face such contentions and to empirically investigate why these strategies vary among those firms.

Design/methodology/approach

Drawing on social movement and stakeholder salience theories, the authors develop a set of hypotheses linking their typology of four response strategies to three key contextual factors – nonmarket stakeholder salience, nonmarket stakeholder ideology and the target firm reputation – and examine them using a vignette-based experiment methodology.

Findings

The results suggest that nonmarket stakeholder salience significantly impacts the nature of response (reject or concede), whereas the nonmarket stakeholder ideology is significantly related to the intensity of response (trivial or vigorous). Interestingly, the firms' reputation was found to have no significant effect on their response strategy when they faced stakeholder contentions.

Originality/value

This paper adds both theoretical and methodological value to the existing literature. Theoretically, the study develops and tests a comprehensive typology of response strategies to nonmarket stakeholder contentions. Methodologically, this study is original in leveraging a vignette-based experiment that allows establishing causal factors of response strategies following a supplier sustainability misconduct.

The Functional Controller for Sustainable and Value Chain Management: Fashion or Need? A Sample of Job Advertisements in the COVID-19 Period

This article aims to present a profile of functional controllers created in German-speaking countries in the context of their competences and tasks for sustainable management and value chain creation. Sustainable chain management requires finding a balance between the economic, social, and environmental spheres, inside and outside the organizations, in all business functions/processes related to value chain formation. Managers for sustainable management need to have adequate and high-quality financial and non-financial information. They are crucial during the pandemic COVID-19 period. Functional controllers can provide this. Content analysis of job advertisements was used as a research method. The identification of competences was based on Cheetham and Chivers’ model. Tasks were referred to as essential functions of controlling. Descriptive statistics and the Student’s t-test with Cochran–Cox correction and the Wilcoxon-Mann–Whitney test were used to analyze the data. In terms of the studied controllers, more functional than meta competence was identified. There were more hard skills than soft skills. In terms of tasks, studied controllers are preoccupied with analysis, coordination and optimization, participation in management, definition of new tools, and reporting. The results confirm that functional controllers have an impact on sustainable development and value chain creation.

Sustainable HRM Practices in Corporate Reporting

Shaped by the current turbulent era of macroeconomic forces, inclusive of the technological challenges of Industry 4.0, and ubiquitous uncertainties, the business environment and its stakeholders hold high expectations for sustainable organizational practices, including harmonized and comprehensible sustainability reporting. Increasingly, responsible behavior towards internal stakeholders comes from within organizations, valuing employees as a key asset and introducing sustainable human resource management (S-HRM) practices to motivate their workforce. Reporting on these S-HRM practices and sustainability is in the highest interests of managers and investors alike. Focusing on the involved parties, employees most particularly, the paper contributes to the stakeholder theory. The literature review, previous S-HRM studies’ interpretation and their critical assessment, the GRI standards’ comparative analysis, and Lawshe’s content validity approach have been applied as the methodological framework. With the purpose to extend the scientific literature on S-HRM and its reporting, the authors aim to close the gap between purely theoretical S-HRM treaties and more practically oriented studies on reporting. The findings on the key areas of S-HRM practices give rise to the S-HRM Practices Model, the main goal of this study. This comprehensible model may serve as a harmonized instrument for sustainable HRM reporting analysis and auditing for academia and practitioners alike.

Aspirations and environmental performance feedback: a behavioral perspective for green supply chain management

Purpose

This study investigates the relationships between environmental performance feedback and green supply chain management (GSCM). It explores how environmental performance above or below aspirations affects the implementation of GSCM practices (specifically sustainable production [SP] and sustainable sourcing [SS]) through the lens of the behavioral theory of the firm (BTOF), which has received scant attention in the operations management literature.

Design/methodology/approach

The study used data from the sixth round of the International Manufacturing Strategy Survey (IMSS). It employed hierarchical linear regression to test the proposed hypotheses. Moreover, the study tested an alternate model to rule out the possible role of financial performance aspirations in explaining the implementation of SP and SS.

Findings

The results indicate that organizations determine their efforts put into the two GSCM practices according to environmental performance feedback: the greater the aspiration–environmental performance discrepancy, the stronger the efforts put into implementing GSCM practices.

Originality/value

This study contributes to the GSCM literature by revealing the impact of environmental performance aspirations on the implementation of GSCM practices through the lens of the BTOF. It also extends the BTOF by applying it in the GSCM context and indicating that performance feedback is based on environmental performance instead of financial performance in this specific context.

Solid Wastes Provide Breeding Sites, Burrows, and Food for Biological Disease Vectors, and Urban Zoonotic Reservoirs: A Call to Action for Solutions-Based Research

Background: Infectious disease epidemiology and planetary health literature often cite solid waste and plastic pollution as risk factors for vector-borne diseases and urban zoonoses; however, no rigorous reviews of the risks to human health have been published since 1994. This paper aims to identify research gaps and outline potential solutions to interrupt the vicious cycle of solid wastes; disease vectors and reservoirs; infection and disease; and poverty.

Methods: We searched peer-reviewed publications from PubMed, Google Scholar, and Stanford Searchworks, and references from relevant articles using the search terms (“disease” OR “epidemiology”) AND (“plastic pollution,” “garbage,” and “trash,” “rubbish,” “refuse,” OR “solid waste”). Abstracts and reports from meetings were included only when they related directly to previously published work. Only articles published in English, Spanish, or Portuguese through 2018 were included, with a focus on post-1994, after the last comprehensive review was published. Cancer, diabetes, and food chain-specific articles were outside the scope and excluded. After completing the literature review, we further limited the literature to “urban zoonotic and biological vector-borne diseases” or to “zoonotic and biological vector-borne diseases of the urban environment.”

Results: Urban biological vector-borne diseases, especially Aedes-borne diseases, are associated with solid waste accumulation but vector preferences vary over season and region. Urban zoonosis, especially rodent and canine disease reservoirs, are associated with solid waste in urban settings, especially when garbage accumulates over time, creating burrowing sites and food for reservoirs. Although evidence suggests the link between plastic pollution/solid waste and human disease, measurements are not standardized, confounders are not rigorously controlled, and the quality of evidence varies. Here we propose a framework for solutions-based research in three areas: innovation, education, and policy.

Conclusions: Disease epidemics are increasing in scope and scale with urban populations growing, climate change providing newly suitable vector climates, and immunologically naïve populations becoming newly exposed. Sustainable solid waste management is crucial to prevention, specifically in urban environments that favor urban vectors such as Aedes species. We propose that next steps should include more robust epidemiological measurements and propose a framework for solutions-based research.

Corporate Environmental Management for the Textile Industry: Toward an Empirical Typology

The increasing attention of stakeholders regarding environmental issues is pushing companies to question their own environmental strategies and to consequently adopt coherent practices. The textile industry appears to be particularly affected because of its heavy impact on the environment. Despite many companies in this industry having developed integrated environmental management systems to make their environmental strategies more effective, the alignment of environmental practices with these strategies is not yet completely evident. This paper aims to fill this gap through a three-step research process. First of all, a reference model built upon an in-depth analysis of the literature provides a summary of the main strategies and practices for corporate environmental management. The model is then used to support an online survey aimed at understanding the level of adoption of environmental management practices in the textile industry. Subsequently, a cluster analysis identifies three different types of companies characterized by three strategic configurations: “committed”, “prone”, and “subjected” to environmental sustainability. Then, each type of company is characterized in terms of practices. Finally, the achieved results are used to derive some considerations (e.g., engaging with stakeholders, looking back to align practice with strategy, looking forward to become environmental leaders) that companies can consider to move forward in their environmental sustainability journey.

The adoption of green practices by Chinese firms

Purpose

Despite touting the value of green practices, many firms struggle to respond appropriately to the diverse environmental issues. The purpose of this paper is to investigate how the external and internal pressures interplay to influence top management championship, which, in turn, fosters the company’s green culture and the adoption of green practices. It thus helps to explain Chinese firms’ diversity with respect to the adoption of green practices.

Design/methodology/approach

A conceptual model is developed that summarizes the interplay of external and internal pressures, top management championship, green culture and the adoption of green practices. Data from 148 Chinese manufacturing firms were collected and a structural equation model was used for statistical analysis.

Findings

Government policy that provides incentives to adopt green practices and overseas customers’ green demand has significant positive influences on top management championship, while resources pressure has a significant negative effect. Government command and control policy, domestic customers’ green demand and organizational inertia do not impact top management championship. Furthermore, top management championship is positively correlated to both green culture and green practices, and green culture contributes to implementing green practices.

Practical implications

The findings help us understand which external and internal factors inspire or force top management to adopt green practices, and how they do so. Moreover, managers must also be aware of the bridging role of green culture. The findings will be valuable to policy makers in forming and enforcing “stick” or “carrot” environmental policies.

Originality/value

Leveraging a multi-theoretic approach, the authors’ research builds on insights from the institutional theory, natural resource-based view (NRBV) and upper echelons perspective, so as to increase the authors’ understanding on how firms adopt green practices to respond to environmental sustainability pressures. The institutional theory and the NRBV are leveraged in this study to recognize that firms perceive not only external institutional pressure for environmental management but also the internal pressure from resource constraints and capability to change. Upper echelons perspective is integrated into this study to explain the leadership role that top management serves in the management of the organization’s response to dynamic changes in the institutional environment and cultivate green culture within organization.

Corporate social responsibility initiatives and its impact on social license: some empirical perspectives

Purpose

The purpose of this study is to understand the driving forces of corporate social responsibility (CSR) initiatives in organizations and how these social initiatives influence organizations’ “license to operate” using data from the Ghanaian business environment.

Design/methodology/approach

This study used purposive sampling with a well-structured questionnaire as a data collection tool. Partial least squares-structural equation modeling was used to study the driving forces of CSR initiatives in organizations and how these social initiatives influence their social license.

Findings

The findings indicate that CSR initiatives are driven by the normative, mimetic, investors and community pressures. The regulative pressure has no significant effect on CSR initiatives. The authors found no difference between the services and the manufacturing sectors as far as the results are concerned using multi-grouping analysis.

Research limitations/implications

From the results, the importance of normative, mimetic, investors and community pressures as the driving forces of CSR are established. The finding indicates that CSR demands by suppliers, customers the extent to which organizations perceive their competitors have benefited from initiating CSR are benefiting, the willingness of investors to invest in companies whose CSR activities are best and the opinion on the extent to which the District Assembly and the Chief Executive in the district, the Chiefs, the Churches, the Opinion leaders have significant impact on CSR initiatives.

Practical implications

The results indicate the need for suppliers and customers to continually demand from corporations to initiate CSR activities as organizations seem to respond to these pressures, and these initiatives are also likely to be mimicked by other organizations in the same industry to enable this drive the social responsibility agenda. Investors and community members are also encouraged to invest and accept, respectively, organizations with very good CSR records to send a signal to companies who see CSR as a cost instead of performance enhancement.

Originality/value

The work illustrates and provides some insights and builds on the literature in the area of CSR from a developing country’s environment. This is also one of the few works that investigate the driving forces of CSR and social license using the institutional theory based on data from the African business environment.

Interactions in sustainable supply chain management: a framework review

Purpose

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social performance and the level of sustainability, as suggested in the Carter and Rogers (2008) framework.

Design/methodology/approach

This paper conducts a systematic literature review based on the Tranfieldet al.(2003) method of the articles published in 13 major journals in the area of supply chain management between the years 2010 and 2016. Results were analyzed using an expert panel.

Findings

The area of research between environmental and social performance is sparse and relegated to empirical investigation. As an important area of interaction, this area needs more research to answer the how and why questions. The economic activity seems to be the persistent theme among the interactions.

Research limitations/implications

The literature on the “environmental performance and social performance (ES)” interactions is lacking in both theoretical and analytical content. Studies explaining the motivations, optimal levels and context that drive these interactions are needed. The extant research portrays economic performance as if it cannot be sacrificed for social welfare. This approach is not in line with the progressive view of sustainable supply chain management (SSCM) but instead the binary view with an economic emphasis.

Practical implications

To improve sustainability, organizations need the triple bottom line (TBL) framework that defines sustainability in isolation. However, they also need to understand how and why these interactions take place that drive sustainability in organizations.

Originality/value

By examining the literature specifically dedicated to the essential, interim, dyadic interactions, this study contributes to bridging the gap between stand-alone performance and the TBL that creates true sustainability. It also shows how the literature views the existence of sustainability is progressive, but many describe sustainability as binary. It is possible that economic sustainability is binary, and progressive characterizations of SSCM could be the reason behind the results favoring economic performance over environmental and social.

An empirical study on productivity analysis of Indian leather industry

Purpose

It is essential to track the development of resource and pollution intensive industries such as textile, leather, pharmaceutical, etc., under burgeoning pressure of environmental compliance. Therefore, the purpose of this paper is to analyze the progress of Indian leather industry in terms of individual factors and total factor productivity.

Design/methodology/approach

This study applies and examines the various concepts of productivity such as labor productivity, capital productivity, material productivity and energy productivity. Further, it assesses and compares the performance of Indian leather industry in Tamil Nadu (TN), West Bengal (WB) and Uttar Pradesh (UP) based on productivity analysis, spatial variations determinants in productivity and technology closeness ratio.

Findings

The findings suggest that as per the productivity analysis, WB leather clusters have performed remarkably better in terms of partial factor productivity and technical efficiency (TE), followed by TN and UP. This can be attributed to shifting of leather cluster of WB to a state-of art leather complex with many avenues for resource conservation. Further, the findings reveal that the firm size and partial factor productivities have significant positive correlation with TE which supports technological theory of the firm.

Practical implications

The results of this study can be useful for the policy makers associated with the Indian leather industry especially to design interventions to support capacity building at individual firm level as well as cluster level to enhance the efficiency and productivity of overall industry.

Social implications

The findings also support the resource dependence theory of firm according to which the larger size firms should reflect on resource conservation practices, for instance the concept of prevention is better than cure based upon 3R (reduce, recycle and reuse) principles.

Originality/value

The paper gives an explanation of the productivity in the leather industry in terms of its factor productivity and TE.

Efficacy of China’s strategic environmental management in its institutional environment

Purpose

The Chinese Government encourages firms to diffuse their operational-level environmental management (EM) into their organization’s mission and strategy to develop strategic EM to promote sustainable development. The purpose of this paper is to utilize two concepts of institutional theory (isomorphic pressures and decoupling behavior) to assess how different institutional forces arising from Chinese macro-level factors (market pressure, business turbulence, legal voids, carbon policy, structural-level governmental interference and guanxi with government) influence the efficacy of strategic EM.

Design/methodology/approach

In partnership with a major consulting firm in China, the authors collect multi-informant survey data from 183 manufacturing firms drawn from a variety of industries for testing the hypotheses posited.

Findings

The efficacy of strategic EM in the sampled firms is confirmed by the positive association with environmental performance. The authors also find that the efficacy of strategic EM is weakened by market pressure, business turbulence and legal voids, whereas it is strengthened by structural-level governmental interference. However, carbon policy and guanxi with government do not impact it significantly.

Research limitations/implications

To extend the findings on the environmental importance of strategic EM, future research can develop and validate a management framework to guide the adoption of strategic EM. With regard to the four valid macro-level factors influencing the efficacy of strategic EM, future research can identify the reasons (e.g. conflict with corporate functions) behind them to aid manufacturers to mitigate their negative influence or enhance the positive influence on strategic EM.

Social implications

China’s Government and its manufacturers (or those sharing a similar institutional environment) can expand the scope of their EM efforts from operational-level EM practices to strategic EM. The findings on the valid macro-level factors have led to practical suggestions for government bodies and manufacturers to improve the efficacy of strategic EM adoption. Overall, the implications help achieve the higher levels of firm-level environmental performance and alleviate the global pollution problem.

Originality/value

A particular value of this work lies in the demonstration of combining institutional theory (organization decoupling, isomorphic pressures) with practical consideration such as guanxi with government in the particular institutional environment of China to help address an important and context-related problem, environmental performance.

Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa

This study investigated the question of whether environmental sustainability influences firm performance. Firm performance, a multidimensional construct, was researched utilizing innovation, ecological and social measures on the premises of SMEs in South Africa. Thus, the study hypothesized that environmental sustainability is positively and significantly related to innovation, ecological and social measures of firm performance. A cross-sectional research design was adopted in this study to test the abovementioned hypotheses. A total of 208 self-administered questionnaires distributed to SME owners and managers were analyzed utilizing structural equation modelling (SEM) and Amos Version 24 software. Primarily, the study established that environmental sustainability was significantly and positively correlated to all three measures of firm performance used in this study. Thus, the inferences from the findings suggest that environmental sustainability practices contribute positively towards firm innovation, ecological and social performances. The findings of this study greatly contribute towards the practice and theory of small businesses and firm performance by providing a more specific and streamlined perspective for approaching firm performance.

The Impact of Coercive Pressures on Sustainability Practices of Small Businesses in South Africa

The study sought to examine the role that coercive isomorphic pressures play in the sustainable development practices by small and medium enterprises (SMEs). The survey research approach was utilised in the research through 222 self-administered questionnaires distributed to SME owners and managers. The structural equation modelling (SEM) method was utilised to analyse the data through the Maximum Likelihood Estimation (MLE) method in Amos Version 24 software. Major findings in this study are that coercive isomorphic pressures have a significant impact on all the three dimensions of sustainable development which are economic, environmental and social. The implications are that government, environmental pressure groups and other stakeholders need to take into consideration the coercive pressures such as laws and regulations in pressuring small businesses to enhance sustainability practices. The research contributes by unearthing the extent to which coercive pressures impact the behaviour and practices of SMEs in sustainability practices. The study indicates that eventually small firms are expected to behave the same when it comes to adopting sustainability practices due to coercive isomorphism. The findings of this study further contribute toward understanding the concept of sustainable development in practice and theory.