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Environmental strategy and performance in small firms: A res

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Janine Vanry

on 29 October 2013

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Transcript of Environmental strategy and performance in small firms: A res

Environmental strategy and performance in small firms: A resource-based perspective

J. Alberto Aragon-Correa, Nuria Hurtado-Torres, Sanjay Sharma, Victor J. Garcia-Morales
Environmental proactivity = $

SME advantages:
Flexible, focused strategies for niche products and services
Some competitive advantages
Better lines of communication with employees and clients
Ability to convey and motivate the founder’s vision on the employees
SME disadvantages:
Under researched based on limited finances
The Study
Compared 108 automotive garages in Southern Spain
All were considered SMEs with an average of 6 employees
1 manager from each firm was interviewed and filled out a survey ranking
Based on the results:
24% labeled as "leadership"
42% labeled as "pollution prevention"
34% labeled as "reactive"
Usefulness in SM
As future entrepreneurs and employees we need to know the value of our environmental proactivity
We also now know that SMEs have numerous benefits and advantages over larger firms
Research Questions
"Based on the unique strategic characteristics of SMEs, which are the organizational capabilities likely to be associated with their proactive environmental strategies?"

"What effect do such proactive environmental strategies have on the financial and competitive performance of these SMEs?
A SME’s potential to adopt proactive environmental practices is associated with their unique strategic characteristics
Data clearly broke the SMEs into 3 categories: reactive, pollution prevention and leadership
Proactive environmental strategies = $
Eco-efficient practices = $
SMEs have an important role in reducing negative environmental impacts
More research is needed on SMEs
1. Shared vision will make it possible to
implement proactive environmental
2. Having stakeholders will positively
influence proactive environmental
3. The strategic proactivity of SMEs will
enable the development of proactive
environmental strategies.
4. Proactive environmental strategies will
reap financial reward.
What are SMEs and why are they Important?
SME - small and medium sized enterprise is a business with less than 500 employees

70% of the total global pollution
60% of the total carbon emissions
Sum total of SMEs’ environmental impacts outweigh the combined environmental impact of large firms
Full transcript