The Role of Mimicry Isomorphism in Sustainable Development Operationalisation by SMEs in South Africa

Do environmental management practices mediate institutional pressures-environmental performance relationship? Evidence from Vietnamese SMEs

Although SMEs contribute much to Vietnamese economic growth, they cause significant negative impacts on the environment. In environmental literature, the institutional theory is suggested to be used as a theoretical lens to examine the pressure driving an organization to improve environmental performance and indirectly through strategic response. Despite that, this theory needs more application to predict SMEs' environmentally friendly outcomes. Hence, this study draws upon institutional theory to examine that three institutional pressures, coercive, normative, and mimetic pressures have a direct impact on environmental performance as well as an indirect impact through the adoption of environmental management practices. Data were collected by surveying 253 manufacturing SMEs operating in Vietnam. Partial least-squared structural equation modeling was executed to assess data. The results suggest that three institutional pressures, coercive, mimetic, and normative pressure, indirectly improve environmental performance by adopting environmental management practices. At the same time, there is no direct effect of these pressures on environmental performance. These findings shed light on how institutional pressures affect environmental management practice adoption and environmental performance in the SME context. These findings also contribute the theoretical development of institutional theory by showing that adopting environmental management practices is a strategic response to institutional pressures to gain environmental performance. Lastly, due to mixed results on the relationship between institutional pressures and its outcomes (e.g., environmental management practice adoption, environmental performance), this study cast light on those relationships in Vietnam.

Impact of Government Support, Business Style, and Entrepreneurial Sustainability on Business Location of SMEs in South Africa’s Mpumalanga Province

Finance, incubation, managerial support initiatives, and technological innovation have all been identified as major drivers of SMEs’ business location. Despite the importance of SMEs, little attention has been paid to business research regarding the impact of government support, business style, and entrepreneurial sustainability on SME activities in rural, semi-urban, and urban areas. Identifying the necessary support for SMEs in rural, semi-urban, and urban areas is critical for the government as well as stakeholders and SME owners in assessing their survival status and other goal-setting achievements. The article’s central question is whether government support, business style, and entrepreneurship sustainability affect SME operations differently depending on location (rural, semi-urban, or urban). The MANOVA technique was used for the analysis to determine whether there is a significant difference between groups on a composite dependent variable as well as the univariate results for each dependent variable separately. Because conducting a series of studies (ANOVA) reveals the possibility of an inflated Type 1 error, MANOVA is preferred. The test re-test reliability method (trustworthiness assessment of the questionnaire) and the Cronbach Alpha test (internal consistency of instrument sections) yielded satisfactory results of 0.70 and 0.875, respectively. Government support (GS), business style (BS), and entrepreneurial sustainability were used as dependent variables (SE). The independent variable was the business location. On the combined dependent variables, there was a statistically significant difference between SME location: F (3, 902) = 20.388, p = 0.001, Wilks’ Lambda = 0.88, partial eta squared = 0.06. When the results for the dependent variables were considered separately, they all reached statistical significance, using a Bonferroni adjusted alpha level of 0.017. BS: F (1, 904) = 13.29, p ≤ 001, partial eta squared = 0.03. GS: F (1, 904) = 30.28, p ≤ 0.001, partial eta squared = 0.06. SE: F (1, 904) = 8.08, p ≤ 0.001, partial eta squared = 0.02. The findings show that locational effects on government support have a knock-on effect on the business plan and long-term entrepreneurship. As a result, the government must reconsider its rural activities to ensure that support is distributed equitably across levels of location.

'Too many mice make no lining for their nest' - Reasons and effects of parallel governmental structures for disaster risk reduction and climate change adaptation in Southern Africa

Many African countries face escalating challenges of increasing disaster risk and anticipated impacts of climate change. Although disaster risk reduction (DRR) and climate change adaptation (CCA) are tightly linked and comprising virtually identical practices in vulnerable countries in Southern Africa, research has identified parallel governance structures across the region. This study applied comparative case study research, based on 27 semi-structured interviews, to investigate the reasons for and effects of such parallel structures for DRR and CCA in Botswana, Mozambique, the Seychelles, Tanzania and Zambia. It revealed overwhelmingly negative effects in terms of unclear mandates and leadership, uncoordinated efforts, duplication of efforts, suboptimal use of resources and competition over resources and control. The study identified both external reasons for the parallel structures, in terms of global or international initiatives or incentives, and internal reasons, with regard to the history and quality of the governance structures. Although the identified negative effects are common to a range of complex nexuses, there is a clear distinction with the DRR-CCA nexus comprising virtually indistinguishable practices in Southern Africa. There is, as such, no practical reason for keeping them apart. The parallel structures for DRR and CCA are instead the result of pervasive institutionalisation across the region, driven by coercive, mimetic and normative pressures coming from both within and abroad. Although much point to the difficulties of changing the studied institutional arrangements, these parallel structures for DRR and CCA must be addressed if the populations in Southern Africa are to enjoy safety and sustainable development.

Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia

Purpose

The purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera.

Design/methodology/approach

This study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested.

Findings

It is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA.

Originality/value

By using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.

A Construct Validation Approach for Exploring Sustainability Adoption in Pakistani Construction Projects

Sustainable Project Management (SPM) is a novel theme in construction industries of developing countries and very little is known (so far) about the sustainability performance of construction projects in those settings. Accordingly, the quantitative measurement of SPM as a higher-order construct is not well established and lacks a holistic approach and homogenous taxonomy of indicators. This study explores the SPM practices of construction firms by validating SPM as a second-order construct in the Pakistani construction industry. Data were obtained from 146 construction firms, which were then analyzed using partial least square structure equation modeling. Results of the first and second level measurement model assessments showed that construction firms practice SPM, with varying degrees of attention paid to three sustainability aspects. Environmental dimension surfaced as the most important, in-terms of practice and social sustainability as least. The analysis of the second-order measurement model yielded significant results, thus, validating the higher-order structure of SPM. This study contributes to the field by presenting one of the first studies of its kind by focusing on the sustainability practices of construction firms by using a higher-order design of SPM construct within the context of developing countries.

Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

The importance of heeding the environmental sustainability commitment call cannot be underestimated. Laggards in terms of environmental sustainability commitment are likely to face fines and penalties as talks to tighten environmental legislation are now at an advanced stage globally. The current work assessed the link between environmental sustainability commitment and financial performance of firms listed on the Johannesburg Stock Exchange (JSE). The study was quantitative in nature with a case study research design. The longitudinal design was adopted where the researcher collected panel data from 2011–2018. The population of the study included all firms listed on the JSE Responsible Investment Index in South Africa. The sample constituted of 32 firms listed on the Financial Times Stock Exchange FTSE/JSE Responsible Investment Index in South Africa. The researchers employed the panel regression analysis model to analyze the data. Specifically, the Feasible Generalized Least Squares regression model was used in this study. Financial performance was treated as the dependent variable as measured by earnings per share and share price. The independent variables of the study included components of environmental sustainability such as carbon emission reduction and environmental compliance. Control variables such as firm size and liquidity were used in the study. The findings indicated that carbon emission reduction was positively and significantly related to earnings per share and share price. The findings further exhibited that environmental compliance was positively related to earnings per share and share price. It was concluded that firms can enhance their financial performance from environmental investment as all the hypotheses were supported. This study contributes practically towards shaping environmental policies and it also serves as motivation to listed companies that they can enhance both their profitability and market value from environmental investments.

A Structural Model for the Antecedents of Sustainable Project Management in Pakistan

Sustainable development is the core agenda item of the 21st century to be addressed simultaneously by societies, businesses, and academia. Likewise, sustainability research in the project context is fragmented and still at a nascent stage with less attention directed towards the key antecedents particularly in developing countries. Using institutional theory, this paper analyzes the role of normative and mimetic isomorphic pressures as external enablers for integrating sustainability in project processes. Additionally, it aims to empirically validate a structural model for predictors of sustainable project management (SPM). Data were collected from 146 large construction firms in Pakistan which were then analyzed using the partial least square structural equation modeling (PLS-SEM) technique. The results show that mimetic isomorphic pressures assert more influence than normative pressures in predicting the sustainability performance of construction projects. The inferred implications suggest that large construction firms will tend to improve their sustainable performance under isomorphic pressure from professional bodies and from those competitors who are early adopters of sustainable project practices. This paper contributes to the literature by explaining the role of non-coercive isomorphism as an important enabler of SPM in developing countries. The model presented will enrich our current understanding of SPM by studying its juxtaposition with institutional theory and sustainable development research.

Maritime National Single Window—A Prerequisite for Sustainable Seaport Business

This paper presents a comprehensive review of National Single Window concept and its impact on sustainability in maritime transport and seaports. The theoretical frameworks of sustainability, maritime transport, seaports, the National Single Window and the Maritime National Single Window is provided. The importance of stakeholder connectivity in maritime transport and seaports in improving sustainability is demonstrated, as well as the advantages of smoother data exchange through global analysis of National Single Window examples, the majority of which present national and regional best practices and initiatives. Empirical data has been provided in order to demonstrate the impact of National Single Windows and Maritime National Single Windows on seaport sustainability (economic, environmental, and social).

Social Sustainability Practices on Small Businesses in Developing Economies: A Case of South Africa

This study makes a significant contribution towards theory and knowledge of small and medium enterprises (SMEs) within the social sustainability discourse. The study focused on investigating if SMEs in developing economies directly benefit from practising social sustainability through examining the relationship between social sustainability and financial performance, customer satisfaction as well as employee satisfaction. A total of 238 SMEs from the Limpopo province of South Africa were surveyed through a self-administered questionnaire at the hand of convenience sampling technique. The hypotheses in the study were assessed through structural equation modelling (SEM) through AMOS software version 25. The study results revealed that all three postulated hypotheses were supported. Thus, social sustainability was found to be positively and significantly associated with financial performance, customer satisfaction performance as well as employee satisfaction performance. The findings in this study indicate that by practising social sustainability, SMEs potentially benefit on a broader performance spectrum.

Communication of commitment towards sustainable development of certified Portuguese organisations

Purpose

The purpose of this paper is twofold: first, it aims at the identification and assessment of the commitments towards sustainable development (SD) communicated to all interested parties (stakeholders) by top management; and second, mapping the profile of the organisations which prominently communicate those commitments.

Design/methodology/approach

The research methodology was supported on the content analysis of the organisations’ statements (disclosed on the institutional website) that sustain the strategy and policies (organisational culture). A total of 540 certified Portuguese organisations in Quality, Environment and Occupational Health and Safety (QEOHS) comprised the sample.

Findings

According to this research, it is possible to identify three main commitments towards SD addressing customers (consumers), human resources (employees) and continuous improvement. Furthermore, results suggest that commitments towards customers and human resources fit properly into the theoretical assumptions of the stakeholder theory and, in turn, the commitment towards continuous improvement fits accurately into the assumptions of the “normative isomorphism” of the institutional theory. Moreover, the results pointed out the characteristics of Portuguese organisations (QEOHS) that prominently communicate commitments towards SD: large business volume, located in Lisbon or Setubal, fall within the public business sector, are members of the BCSD Portugal and publish annual reports on the institutional website.

Research limitations/implications

Solely organisations operating in Portugal and simultaneously encompassing three certified management subsystems (against the clauses of ISO 9001, ISO 14001 and OHSAS 18001 standards) were considered throughout this study. So it is not possible to ascertain at which extent the conclusions are valid. However, although the statistical generalisation of the results may be precluded, there is not any peculiar reason preventing the analytical generalisation, namely, in organisations operating in countries with similar macro-characteristics of Portugal.

Originality/value

To the best of authors’ knowledge this is the first time that such a comprehensive, detailed and thorough analysis of the communicated commitments towards SD is carried out regardless the activity sector. The conclusions from this paper are useful both for practitioners and scholars. On one hand companies have now information on the more often communicated statements, while on the other hand academics and scholars will benefit from this research and hopefully be able to replicate it in other contexts.

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.