Barriers to adaptation of environmental sustainability in SMEs: A qualitative study

Abstract

This study examines the antecedents of environmental sustainability in small and medium enterprises (SMEs) of a developing country and explores the specific internal and external factors for environmental sustainability. The study focused on SMEs in Balochistan, Pakistan, utilizing convenience and purposive sampling techniques to select a sample size of 30 SMEs. In-depth qualitative interviews were conducted using a semi-structured questionnaire. The results of the study revealed that lack of finance and education are major barriers to recognizing and addressing environmental sustainability issues, along with the lack of government support and regulations to ensure compliance with environmental safety laws, hence leading to low concern for sustainability practices among SMEs. Awareness and attitude of SME owners/managers, along with customer demand and government policies, influence the adoption of environmental sustainability practices. Overcoming financial constraints and promoting cooperation among stakeholders are key to fostering sustainable practices in SMEs. This research makes an important contribution to the sustainable management literature by providing new and in-depth insights into the barriers that impede environmental sustainability in SMEs of developing countries.