Sustainability in Small and Medium-Sized Manufacturing Enterprises: An Empirical Study

Abstract

Abstract:The main goal of this paper is to analyze and investigate sustainable practices in small and medium-sized manufacturing enterprises (SMEs). A comprehensive analysis and a mathematical framework are used to assess the sustainability indexes (SDIs) of each aspect/issue and pillar/dimension, and of the whole manufacturing enterprise. Sustainability in the whole manufacturing enterprise is represented by the sustainable development index (SDI). The results show that there is a significant difference in SDIs between aspects and dimensions, with economic sustainability representing the highest percentage in the SDI. Also, the results show that industrial companies are adopting sustainable practices and applying them to most of the issues/aspects of the dimensions, and they can direct manufacturing companies in the industrial sector to develop strategies for sustainability. This paper introduces a new understanding of the practices and implementation of sustainability/sustainable development by SMEs through assessing the SDIs.

A Proposed Framework to Integrate Sustainability into Industrial Small to Medium Business Practices: Challenges and Expectations. A Field Study on Saudi Business Organization

“…Petrini and Pozzebon (2010) adds that it is the mechanisms which should be initiated at all levels, and not only at the operational level, while also encouraging employees to undertake sustainability initiatives. Studies have established that knowledge management and planning for sustainability, management focus, employee development, integration of objectives with processes, and environmental and social attention all lead to performance improvement (Quarshie, Salmi, and Leuschner, 2016; Garbie, 2016). Thus, the present study adds to the knowledge spectrum and provides a deeper understanding of sustainability integration and its relevance with organizational performance.…”

“…In recent times, the use of the term sustainability and sustainable development have escalated in the business world. As per the World Commission on Environment and Development (WCED), sustainability is defined as the development which meets the present development need without causing an adverse effect on the future generations to need (Garbie, 2016). From the business perspective, sustainability is considered a business approach that acts as a value creator for the stakeholders in the long run by exploiting business opportunities and managing risk in an effective manner in terms of economic, social as well as environmental dimensions (Dyllick, and Muff, 2016).…”

“…Scherer, Palazzo, and Seidl (2013) highlight that unsustainable management which neglects the social and environmental issues will impede the sustainability of organizations. One of the main contributors to the sustainable practices and economic and social development of the countries are manufacturing Small and medium-sized enterprises (SMEs), notably for the developing countries (Garbie, 2016). These enterprises assist in resolving the socio-economic problems in the economic countries, contributing to the development of the country's gross domestic product (GDP), despite these being vulnerable to uncertain market situations.…”

“…An increased number of SMEs is observed in Saudi Arabia, where these accounts for 1.97 million SMEs comprising of about 90 percent of the overall business enterprises, contributing 33 percent to the overall GDP (Jeddah Economic Gateway, 2016). Previous researches have acknowledged that various sustainable frameworks have been established till date (Garbie, 2016;Tan et al, 2015); however, their adaptation by SMEs is either too complex or too difficult in terms of practicality (Tan et al, 2015). In order to fill this devoid, a simple and effective sustainable practice framework is necessary that balances the SMEs need in terms of manageability as well as practicality.…”

Impact of Economic Sustainability in Apparel Factories on Economic Challenges in Saudi Arabia

“…As stated by the general manager of factory (SS-2), "A budget is issued according to the case of the study that we carry out during the year." The study and development help small and medium enterprises to compete and remain sustainable at the market level (Garbie, 2016). This is what apparel factories need during these years that are merited by economic fluctuations.…”