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Environmental strategy and performance in small firms: a resource-based perspective
J Alberto Aragón-Correa1, Nuria Hurtado-Torres, Sanjay Sharma
1University of Granada, Spain; Rotterdam-Erasmus University, The Netherlands. jaragon@ugr.es
Journal of Environmental Management
|January 24, 2007
Summary
Small and medium-sized enterprises (SMEs) in Spain
Area of Science:
- Environmental Management
- Business Strategy
- SME Research
Background:
- Limited research exists on the environmental impacts of SMEs.
- SMEs are often assumed to lack resources for proactive environmental strategies.
- Environmental strategies of SMEs are crucial for sustainable economies.
Purpose of the Study:
- To investigate the environmental strategies adopted by SMEs.
- To identify organizational capabilities linked to environmental strategies in SMEs.
- To examine the relationship between environmental practices and financial performance in SMEs.
Main Methods:
- Survey of 108 SMEs in the automotive repair sector in Southern Spain.
- Analysis of environmental strategies ranging from regulatory compliance to pollution prevention.
- Assessment of organizational capabilities: shared vision, stakeholder management, and strategic proactivity.
Main Results:
- SMEs employ a spectrum of environmental strategies, from reactive to proactive.
- Environmental strategies are associated with shared vision, stakeholder management, and strategic proactivity.
- Proactive environmental practices correlate with significantly positive financial performance.
Conclusions:
- SMEs can implement diverse environmental strategies beyond regulatory compliance.
- Organizational capabilities are key enablers of proactive environmental management in SMEs.
- Investing in proactive environmental strategies can lead to enhanced financial performance for SMEs.
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