Globally there is mounting pressure for fi rms to assess their impact on the environment, and to modify their behaviour accordingly. The small and medium enterprise (SME) sector is often described as 'hard to reach' and lagging behind in terms of 'green business' due to management and resourcing issues characteristic of SMEs (e.g. resource poverty and a lack of management capability). This absence of resource slack then translates into an unwillingness and/or inability to commit to environmental improvements in any systematic and ongoing fashion, if at all. However, a lack of action in the context of the fi rm does not always refl ect the personal attitudes of the individual SME owner-managers. The link between attitude and action is explored in the paper through the examination of the interrelationship between awareness of environmental impact, attitude towards environmental issues, and environmental practice adoption.

Globally, the potential for small and medium-sized enterprises (SMEs) to collectively impact negatively on the environment is great. Therefore, the adoption, and maintenance, of environmentally responsible practices by this group of firms is especially critical. Studies of environmental practices successfully implemented by small firms have revealed that relationships with other firms, or other organizations, can contribute to greater awareness of the benefits of such activities and, therefore, enhance the possibility of environmental engagement. Collaborative relationships may provide opportunities for SMEs to overcome some of the barriers to implementing environmental initiatives associated with their size, and/or associated characteristics. This paper focuses on attitudes of SME owner-managers to a variety of environmental issues (including regulation and voluntary standards), and to collaborating with other firms (in either a formal or informal sense). The data this paper draws upon are from two waves of an ongoing longitudinal survey of New Zealand SMEs.

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