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Sustainability of positive relationship between environmental performance and profitability of SMEs

Sustainability of positive relationship between environmental performance and profitability of SMEs PurposeThis paper aims to conduct an in-depth study of any changes that small medium enterprises (SMEs) environmental performance face, in the retailing and manufacturing sector, as well as to identify their main drivers. Furthermore, it seeks to investigate SMEs’ perspectives regarding the environmental management systems and more specifically International Organisation for Standardisation (ISO) 14001 on the one side, whether it is a positive relationship between the implementation of “ISO 14001” by SMEs and their profitability of business on the other.Design/methodology/approachThis study is a qualitative research, which combines secondary data enriched with daily articles and primary data using in-depth interviews with experts from the SME sectors, which attempts to build a sufficient “theory” by answering the research questions.FindingsThe business world has started to get widely involved with the environmental issues and even if this, in some cases, happened only for marketing purposes, it is difficult now to be changed. The SMEs have started to realise their responsibilities and act accordingly, but there is a long way to cover until their actions will be actually beneficial for the environment. However, the improvement or stability of SMEs’ environmental performance, meaning the implementation of more environmental activities, depends on the impact that those changes will have in every SME, due to the unique idiosyncrasy that each of it consists.Originality/valueThis paper reveals proper method for documenting monetary rewards to entrepreneurship through maintaining environmental issues accurately using information about profitability of SME’s. After maintaining environmental factors, the premia illustrates about the entrepreneurs concentrating not only profitability but also environmental concern. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

Sustainability of positive relationship between environmental performance and profitability of SMEs

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1750-6204
DOI
10.1108/JEC-05-2014-0008
Publisher site
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Abstract

PurposeThis paper aims to conduct an in-depth study of any changes that small medium enterprises (SMEs) environmental performance face, in the retailing and manufacturing sector, as well as to identify their main drivers. Furthermore, it seeks to investigate SMEs’ perspectives regarding the environmental management systems and more specifically International Organisation for Standardisation (ISO) 14001 on the one side, whether it is a positive relationship between the implementation of “ISO 14001” by SMEs and their profitability of business on the other.Design/methodology/approachThis study is a qualitative research, which combines secondary data enriched with daily articles and primary data using in-depth interviews with experts from the SME sectors, which attempts to build a sufficient “theory” by answering the research questions.FindingsThe business world has started to get widely involved with the environmental issues and even if this, in some cases, happened only for marketing purposes, it is difficult now to be changed. The SMEs have started to realise their responsibilities and act accordingly, but there is a long way to cover until their actions will be actually beneficial for the environment. However, the improvement or stability of SMEs’ environmental performance, meaning the implementation of more environmental activities, depends on the impact that those changes will have in every SME, due to the unique idiosyncrasy that each of it consists.Originality/valueThis paper reveals proper method for documenting monetary rewards to entrepreneurship through maintaining environmental issues accurately using information about profitability of SME’s. After maintaining environmental factors, the premia illustrates about the entrepreneurs concentrating not only profitability but also environmental concern.

Journal

Journal of Enterprising Communities: People and Places in the Global Economy – Emerald Publishing

Published: May 9, 2016

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