Hostname: page-component-848d4c4894-p2v8j Total loading time: 0 Render date: 2024-06-11T23:10:25.207Z Has data issue: false hasContentIssue false
  • English
  • Français

Understanding the interplay between sustainability strategy and the approach to sustainability reporting in SMEs

Published online by Cambridge University Press:  11 January 2024

Michele Guidi Open the ORCID record for Michele Guidi [Opens in a new window] ,
Sonia Vitali Open the ORCID record for Sonia Vitali [Opens in a new window] ,
Marco Giuliani Open the ORCID record for Marco Giuliani [Opens in a new window]  and
Maria Serena Chiucchi Open the ORCID record for Maria Serena Chiucchi [Opens in a new window]
Michele Guidi*
Affiliation:
Department of Management, Università Politecnica delle Marche (Italy), Ancona, Italy
Sonia Vitali
Affiliation:
Department of Management, Università Politecnica delle Marche (Italy), Ancona, Italy
Marco Giuliani
Affiliation:
Department of Management, Università Politecnica delle Marche (Italy), Ancona, Italy
Maria Serena Chiucchi
Affiliation:
Department of Management, Università Politecnica delle Marche (Italy), Ancona, Italy
*
Corresponding author: Michele Guidi; Email: m.guidi@univpm.it
Get access Rights & Permissions [Opens in a new window]

Abstract

The study aims to understand the interplay between sustainability strategy and the approach to sustainability reporting in small- and medium-sized enterprises (SMEs). To achieve this purpose, a case study is developed, examining four companies that exemplify different sustainability strategy types delineated by Baumgartner: introverted, extroverted, conservative, and visionary. According to the findings of the research, while it is possible to identify sustainability strategies based on the key defining elements of the adopted conceptual map, and to interpret the company’s perception and approach to sustainability reporting considering the sustainability strategy, integrating owner-manager values, stakeholder proximity, and supply chain dynamics the conceptual map becomes a more adaptable and practical tool for SMEs seeking to thrive in an increasingly sustainability-focused business landscape. The incorporation of these insights extends Baumgartner’s work, enhancing the comprehension of sustainability strategies within SMEs and providing implications for regulatory bodies, consultants, and managers.

Keywords

sustainability reportingsustainability strategysmall- and medium-sized enterprisesSMEcase study
Type
Research Article
Information
Journal of Management & Organization , First View , pp. 1 - 20
Copyright
© The Author(s), 2024. Published by Cambridge University Press in association with the Australian and New Zealand Academy of Management

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum, 32(4), 288–302.CrossRefGoogle Scholar
Álvarez Jaramillo, J., Zartha Sossa, J. W., & Orozco Mendoza, G. L. (2019). Barriers to sustainability for small and Álvarez Jaramillomedium enterprises in the framework of sustainable development – Literature review. Business Strategy and the Environment, 28(4), 512–524.CrossRefGoogle Scholar
Arena, M., & Azzone, G. (2012). A process‐based operational framework for sustainability reporting in SMEs. Journal of Small Business and Enterprise Development, 19(4), 669–686.CrossRefGoogle Scholar
Bartolacci, F., Caputo, A., & Soverchia, M. (2020). Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review. Business Strategy and the Environment, 29(3), 1297–1309.CrossRefGoogle Scholar
Baumgartner, R. J. (2009). Organizational culture and leadership: Preconditions for the development of a sustainable corporation. Sustainable Development, 17(2), 102–113.CrossRefGoogle Scholar
Baumgartner, R. J., & Ebner, D. (2010). Corporate sustainability strategies: Sustainability profiles and maturity levels. Sustainable Development, 18(2), 76–89.CrossRefGoogle Scholar
Benameur, K. B., Mostafa, M. M., Hassanein, A., Shariff, M. Z., & Al-Shattarat, W. (2023). Sustainability reporting scholarly research: A bibliometric review and a future research agenda. Management Review Quarterly, 1–44.Google Scholar
Bhimani, A., Silvola, H., & Sivabalan, P. (2016). Voluntary corporate social responsibility reporting: A study of early and late reporter motivations and outcomes. Journal of Management Accounting Research, 28(2), 77–101.CrossRefGoogle Scholar
Blackburn, R., & Kovalainen, A. (2009). Researching small firms and entrepreneurship: Past, present and future. International Journal of Management Reviews, 11(2), 127–148.CrossRefGoogle Scholar
Borga, F., Citterio, A., Noci, G., & Pizzurno, E. (2009). Sustainability report in small enterprises: Case studies in Italian furniture companies. Business Strategy and the Environment, 18(3), 162–176.CrossRefGoogle Scholar
Bos‐Brouwers, H. E. J. (2010). Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Business Strategy and the Environment, 19(7), 417–435.CrossRefGoogle Scholar
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40.CrossRefGoogle Scholar
Bunclark, L., & Barcellos-Paula, L. (2021). Sustainability reporting for sustainable supply chain management in Peru. Sustainable Production and Consumption, 27, 1458–1472.CrossRefGoogle Scholar
Burritt, R. L., & Schaltegger, S. (2010). Sustainability accounting and reporting: Fad or trend? Accounting, Auditing & Accountability Journal, 23(7), 829–846.CrossRefGoogle Scholar
Burton, S., & Steane, P. (2004). Surviving Your Thesis. London: Routledge.CrossRefGoogle Scholar
Caldera, H. T. S., Desha, C., & Dawes, L. (2019). Evaluating the enablers and barriers for successful implementation of sustainable business practice in ‘lean’ SMEs. Journal of Cleaner Production, 218, 575–590.CrossRefGoogle Scholar
Cardoni, A., Kiseleva, E., & Bellucci, A. (2022). The quality of SMEs stakeholder communication during strategic crises: The case of Italian unlisted SMEs. Business Strategy and the Environment, 32(6), 3292–3308.CrossRefGoogle Scholar
Casadei, A., & Amadei, F. (2010). The competitive influence of corporate social responsibility and corporate social disclosure in Italian small and medium sized companies: Focus on disclosure and competitive drivers. Social and Environmental Accountability Journal, 30(1), 13–25.CrossRefGoogle Scholar
Del Baldo, M. (2012). Corporate social responsibility and corporate governance in Italian SMEs: The experience of some “spirited businesses.” Journal of Management and Governance, 16(1), 1–36.CrossRefGoogle Scholar
Del Baldo, M. (2017). The implementation of integrating reporting <IR> in SMEs: Insights from a pioneering experience in Italy. Meditari Accountancy Research.CrossRefGoogle Scholar
Del Giudice, M., Khan, Z., De Silva, M., Scuotto, V., Caputo, F., & Carayannis, E. (2017). The microlevel actions undertaken by owner‐managers in improving the sustainability practices of cultural and creative small and medium enterprises: A United Kingdom–Italy comparison. Journal of Organizational Behavior, 38(9), 1396–1414.CrossRefGoogle Scholar
Denzin, N. K., & Lincoln, Y. S. (2008). Introduction: The discipline and practice of qualitative research.Google Scholar
De Steur, H., Temmerman, H., Gellynck, X., & Canavari, M. (2020). Drivers, adoption, and evaluation of sustainability practices in Italian wine SMEs. Business Strategy and the Environment, 29(2), 744–762.CrossRefGoogle Scholar
Dinh, T., Husmann, A., & Melloni, G. (2023). Corporate sustainability reporting in Europe: A scoping review. Accounting in Europe, 20(1), 1–29.CrossRefGoogle Scholar
EFRAG (2022). EU Voluntary Sustainability Reporting Standard for non-listed SMEs that are outside the scope of CSRD – Issue Paper. Retrieved April 02 , 2023, from www.efrag.orgGoogle Scholar
Eisenhardt, K. M. (1989). Building theories from case study research. The Academy of Management Review, 14(4), 532–550.CrossRefGoogle Scholar
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.CrossRefGoogle Scholar
European Commission (2023). Opening address by Commissioner McGuinness at the launch of 2023 PwC CEO Report –Europe. Retrieved April 02 , 2023, from ec.europa.eu/commission/presscorner/detail/en/SPEECH_23_1812Google Scholar
Fernández Campos, P., Trucco, P., & Huaccho Huatuco, L. (2019). Managing structural and dynamic complexity in supply chains: Insights from four case studies. Production Planning and Control, 30(8), 611–623.CrossRefGoogle Scholar
Galeitzke, M., Orth, R., & Kohl, H. (2019). Sustainability strategies in german small and medium-sized companies. Journal of Sustainability Research, 4(3), 1–15.Google Scholar
Girella, L., Zambon, S., & Rossi, P. (2019). Reporting on sustainable development: A comparison of three Italian small and medium‐sized enterprises. Corporate Social Responsibility and Environmental Management, 26(4), 981–996.CrossRefGoogle Scholar
Hsiao, P. C. K., de Villiers, C., Horner, C., & Oosthuizen, H. (2022). A review and synthesis of contemporary sustainability accounting research and the development of a research agenda. Accounting & Finance, 62(4), 4453–4483.CrossRefGoogle Scholar
Jenkins, H. (2004). A critique of conventional CSR theory: An SME perspective. Journal of General Management, 29(4), 37–57.CrossRefGoogle Scholar
Journeault, M., Perron, A., & Vallières, L. (2021). The collaborative roles of stakeholders in supporting the adoption of sustainability in SMEs. Journal of Environmental Management, 287, .CrossRefGoogle Scholar
Krawczyk, P. (2021). Non-financial reporting – Standardization options for SME sector. Journal of Risk and Financial Management, 14(9), .CrossRefGoogle Scholar
Kreiner, K., & Mouritsen, J. (2005). The analytical interview. In The art of science (). Liber: Copenhagen.Google Scholar
Kvale, S., & Brinkmann, S. (2009). Interviews: Learning the craft of qualitative research interviewing. Thousand Oaks: Sage.Google Scholar
Massari, G. F., & Giannoccaro, I. (2023). Adopting GRI Standards for the Circular Economy strategies disclosure: The case of Italy. Sustainability Accounting, Management and Policy Journal, 14(4), 660–694.CrossRefGoogle Scholar
Michelon, G., Sealy, R., & Trojanowski, G. (2020). Understanding research findings and evidence on corporate reporting: An independent literature review.Google Scholar
Moneva, J. M., & Hernández-Pajares, J. (2018). Corporate social responsibility performance and sustainability reporting in SMEs: An analysis of owner-managers’ perceptions. International Journal of Sustainable Economy, 10(4), 405–420.CrossRefGoogle Scholar
Morsing, M., & Spence, L. J. (2019). Corporate social responsibility (CSR) communication and small and medium sized enterprises: The governmentality dilemma of explicit and implicit CSR communication. Human Relations, 72(12), 1920–1947.CrossRefGoogle Scholar
Mzembe, A. (2021). The psychological distance and construal level perspectives of sustainable value creation in SMEs. Sustainable Development, 29(2), 465–478.CrossRefGoogle Scholar
Nigri, G., & Del Baldo, M. (2018). Sustainability reporting and performance measurement systems: How do small-and medium-sized benefit corporations manage integration? Sustainability, 10(12), .CrossRefGoogle Scholar
Nooteboom, B. (1994). Innovation and diffusion in small firms: Theory and evidence. Small Business Economics, 6(5), 327–347.CrossRefGoogle Scholar
O’Dochartaigh, A. (2019). No more fairytales: A quest for alternative narratives of sustainable business. Accounting, Auditing & Accountability Journal, 32(5), 1384–1413.CrossRefGoogle Scholar
O’Dwyer, B. (2004). Qualitative data analysis: Illuminating a process for transforming a ‘messy’ but ‘attractive’ ‘nuisance. In The real life guide to accounting research (). Amsterdam: Elsevier.Google Scholar
OECD. (2023). SME and entrepreneurship outlook 2023 policy highlights. Retrieved October 10 , 2023, from https://www.oecd.org/publications/oecd-sme-and-entrepreneurship-outlook-8d707502-en.htm.CrossRefGoogle Scholar
Oldham, S., & Spence, L. J. (2022). A typology of small‐and medium‐sized supplier approaches to social responsibility. Business Ethics, the Environment & Responsibility, 31(1), 33–48.CrossRefGoogle Scholar
Ortiz-Martínez, E., & Marín-Hernández, S. (2020). European financial services SMEs: Language in their sustainability reporting. Sustainability, 12(20), .CrossRefGoogle Scholar
Ortiz-Martínez, E., & Marín-Hernández, S. (2022). European SMEs and non-financial information on sustainability. International Journal of Sustainable Development & World Ecology, 29(2), 112–124.CrossRefGoogle Scholar
Parker, L., Guthrie, J., & Gray, R. (1998). Accounting and management research: Passwords from the gatekeepers. Accounting, Auditing & Accountability Journal, 11(4), 371–406.CrossRefGoogle Scholar
Patton, M. Q. (1990). Qualitative evaluation and research methods. Thousand Oaks: SAGE Publications.Google Scholar
Patton, M. Q. (1999). Enhancing the quality and credibility of qualitative analysis. Health Services Research, 34(5 Pt 2), .Google ScholarPubMed
Patton, M. Q. (2002). Qualitative research and evaluation methods (). Thousand Oaks: Sage Publications.Google Scholar
Perrini, F., Russo, A., & Tencati, A. (2007). CSR strategies of SMEs and large firms. Evidence from Italy. Journal of Business Ethics, 74(3), 285–300.CrossRefGoogle Scholar
Pizzi, S., Caputo, A., Corvino, A., & Venturelli, A. (2020). Management research and the UN sustainable development goals (SDGs): A bibliometric investigation and systematic review. Journal of Cleaner Production, 276, .CrossRefGoogle Scholar
Pizzi, S., Corbo, L., & Caputo, A. (2021). Fintech and SMEs sustainable business models: Reflections and considerations for a circular economy. Journal of Cleaner Production, 281, .CrossRefGoogle Scholar
Robèrt, K. H., Schmidt-Bleek, B., De Larderel, J. A., Basile, G., Jansen, J. L., Kuehr, R., … Wackernagel, M. (2002). Strategic sustainable development – Selection, design and synergies of applied tools. Journal of Cleaner Production, 10(3), 197–214.CrossRefGoogle Scholar
Rodríguez-Gutiérrez, P., Guerrero-Baena, M. D., Luque-Vílchez, M., & Castilla-Polo, F. (2021). An approach to using the best-worst method for supporting sustainability reporting decision-making in SMEs. Journal of Environmental Planning and Management, 64(14), 2618–2640.CrossRefGoogle Scholar
Rossi, A., & Luque-Vílchez, M. (2021). The implementation of sustainability reporting in a small and medium enterprise and the emergence of integrated thinking. Meditari Accountancy Research, 29(4), 966–984.CrossRefGoogle Scholar
Ryan, B. (2002). Research methods and methodology in finance and accounting. Andover: Cengage Learning EMEA.Google Scholar
Santos, P. G. D., Albuquerque, F., Rodrigues, M. A. B., & Morais, A. I. (2022). The views of stakeholders on mandatory or voluntary use of a simplified standard on non-financial information for SMEs in the European Union. Sustainability, 14(5), .CrossRefGoogle Scholar
Scagnelli, S. D., Corazza, L., & Cisi, M. (2013). How SMEs disclose their sustainability performance. Which variables influence the choice of reporting guidelines?. In Accounting and control for sustainability (). Leeds: Emerald Group Publishing Limited.Google Scholar
Sciulli, N., & Adhariani, D. (2022). The use of integrated reports to enhance stakeholder engagement. Journal of Accounting & Organizational Change, 19(3), 447–473.CrossRefGoogle Scholar
Shields, J. F., & Shelleman, J. M. (2015). Integrating sustainability into SME strategy. Journal of Small Business Strategy, 25(2), 59–78.Google Scholar
Shields, J. F., & Shelleman, J. M. (2017). A method to launch sustainability reporting in SMEs: The B corp impact assessment framework. Journal of Strategic Innovation & Sustainability, 12(2), 10–19.Google Scholar
Shields, J. F., & Shelleman, J. M. (2020). SME sustainability dashboards: An aid to manage and report performance. Journal of Small Business Strategy, 30(2), 106–114.Google Scholar
Shields, J. F., Welsh, D. H., & Shelleman, J. M. (2018). Sustainability reporting and its implications for family firms. Journal of Small Business Strategy, 28(1), 66–71.Google Scholar
Singh, M. P., Chakraborty, A., Roy, M., & Tripathi, A. (2021). Developing SME sustainability disclosure index for Bombay Stock Exchange (BSE) listed manufacturing SMEs in India. Environment, Development and Sustainability, 23(1), 399–422.CrossRefGoogle Scholar
Somoza, A. (2023). Voluntary sustainability assurance in small and medium‐sized entities: The role of country origin in Europe. Business Strategy and the Environment, 32(1), 462–483.CrossRefGoogle Scholar
Spence, L. J. (2016). Small business social responsibility: Expanding core CSR theory. Business & Society, 55(1), 23–55.CrossRefGoogle Scholar
Steinhöfel, E., Galeitzke, M., Kohl, H., & Orth, R. (2019). Sustainability reporting in German manufacturing SMEs. Procedia Manufacturing, 33, 610–617.CrossRefGoogle Scholar
Stolowy, H., & Paugam, L. (2023). Sustainability reporting: Is convergence possible? Accounting in Europe, 20(2), 139–165.CrossRefGoogle Scholar
Suri, H. (2011). Purposeful sampling in qualitative research synthesis. Qualitative Research Journal, 11(2), 63–75.CrossRefGoogle Scholar
Webb, K. J., Hodge, T. G., & Thompson, J. H. (2012). Small business sustainability: What is the CPA’s role. International Journal of Business and Social Science, 3(12), 1–7.Google Scholar
Wickert, C., Scherer, A. G., & Spence, L. J. (2016). Walking and talking corporate social responsibility: Implications of firm size and organizational cost. Journal of Management Studies, 53(7), 1169–1196.CrossRefGoogle Scholar
Woiceshyn, J., & Daellenbach, U. (2018). Evaluating inductive vs deductive research in management studies: Implications for authors, editors, and reviewers. Qualitative Research in Organizations and Management: An International Journal, 13(2), 183–195.CrossRefGoogle Scholar