Institutional Environment, Managerial Attitudes and Environmental Sustainability Orientation of Small Firms

Abstract

This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner-managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner-manager attitudes are likely to lead to a positive and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm\u27s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment-managerial attitudes-ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment-ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm\u27s overall ESO. Managerial attitudes play a mediating role in the institutional environment-ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed

Sustainable Entrepreneurial Orientation: A Business Strategic Approach for Sustainable Development

“…However, in this research SO is a construct that is defined at the firm level and is rooted in business philosophy [65]. Paraphrasing Roxas and Coetzer [90], we refer to SO as the organizational strategic orientation toward the integration of sustainable interests and practices into strategic, tactical and operational activities. Thus, a company develops and demonstrates its orientation towards sustainability by integrating sustainable interests into its culture, decision-making, strategy and business operations and through its interactions with stakeholders [91].…”

“…Corporate social responsibility [46] Corporate sustainable entrepreneurship [2,10] Ecopreneurship [30,95] Environmental corporate entrepreneurship [96] Environmental entrepreneurship [22,59] Enviropreneurial marketing [34] Enviropreneurship [96] Green entrepreneurship [22] Macro-entrepreneurship [97] Social entrepreneurship [22] Sustainability entrepreneur [47] Sustainable development innovation [98] Sustainable entrepreneurship [10,25,47,90,99] Sustainable intrapreneurship [100] Sustainopreneurship [47] All these terms have in common a unique, holistic view of the business context, conceived with a long-term horizon and a commitment to responding to current and future stakeholders [60,62,88,101] according to SEO fundamentals. In this sense, sustainably-and entrepreneurially-oriented firms actively contribute-together with other organizations, institutions and public and private associations from economic, social and political circles-to sustainable development [102] as stated in the Brundtland Report [4].…”

Sustainability in SMEs: Top Management Teams Behavioral Integration as Source of Innovativeness

“…Firm size contributes to TMT innovativeness [85] and sustainability orientation [86]. Larger firms tend to have more resources with which to enhance their innovation performance [87].…”

“…Firm age is a significant control variable because younger companies are more innovative than older companies [88]. Furthermore, firm age can explain variations in firms' adoption of sustainable environmental management practices [86]. Previous studies also considered the important role of environmental changes in the flourishing of innovation [89,90] and engagement with environmental sustainability [86].…”

“…Furthermore, firm age can explain variations in firms' adoption of sustainable environmental management practices [86]. Previous studies also considered the important role of environmental changes in the flourishing of innovation [89,90] and engagement with environmental sustainability [86]. We controlled the impact of environmental dynamism by using three items from [91].…”