Understanding the drivers of sustainable entrepreneurial practices in Pakistan’s leather industry

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -The purpose of this paper is to analyse the drivers of sustainable entrepreneurial practices in SMEs operating in a developing economy. The secondary objectives are to explore the relationship between these drivers and to draw out the implications for policy and practice. Design/methodology/approach -The paper is informed by the literature on sustainable entrepreneurship, and on the drivers of pro-environmental practices in SMEs. It reports on the results of an intensive multi-level empirical study, which investigates the environmental practices of SMEs in Pakistan's leatherworking industry using a multiple case study design and grounded analysis, which draws on relevant institutional theory. Findings -The study identifies that coercive, normative and mimetic isomorphic pressures simultaneously drive sustainable entrepreneurial activity in the majority of sample SMEs. These pressures are exerted by specific micro-, meso-and macro-level factors, ranging from international customers' requirements to individual-level values of owners and managers. It also reveals the catalytic effect of the educational and awareness-raising activities of intermediary organisations, in tandem with the attraction of competitiveness gains, (international) environmental regulations, industrial dynamism and reputational factors. Practical implications -The evidence suggests that, in countries where formal institutional mechanisms have less of an impact, intermediary organisations can perform a proto-institutional role that helps to overcome pre-existing barriers to environmental improvement by sparking sustainable entrepreneurial activity in SME populations. Originality/value -The findings imply that the drivers of sustainable entrepreneurial activity do not operate in a "piecemeal" fashion, but that particular factors mediate the emergence and development of other sustainability drivers. This paper provides new insights into sustainable entrepreneurship and motivations for environmental practices in an under-researched developing economy context.

Drivers of Sustainability Practices and SMEs: A Systematic Literature Review

“…The personal commitment of managers of SMEs for pro-environmental attitude was key to their performance (Koe et al, 2015). SMEs perceive environmental sustainability as their moral and social responsibility towards their stakeholders as well as the natural environment (Wahga et al, 2017). As per Gandhi (2018), "top management commitment"…”

“…The social responsibility and ethical concerns of the top managers drive environmental practices (Johnson, 2015;Lee, 2009;Shields & Shelleman, 2015;. Organizational culture is one of the major drivers towards sustainability practices in SMEs (Cambra-Fierro & Ruiz-Benítez, 2011;Ghadge et al, 2017;Uhlaner et al, 2012;Wahga et al, 2017).…”

“…Many researchers consider corporate image to be a key driver for environmental performance of SMEs (Agan et al, 2013;Battisti & Perry, 2011;Gadenne et al, 2009;Ghazilla et al, 2015;Masurel, 2007;Sáez-Martínez et al, 2016;Studer et al, 2006;Yu, 2007). Social capital drives SMEs and thereby improving their reputation as an ecologically responsible firm in the market for economic gains, legitimising their existence, attracting customers, increasing their sales, and satisfying their external stakeholders (Wahga et al, 2017;Font et al, 2016). SMEs wish to improve their green public image, demonstrate environmental stewardship, and green brand image via environmental activities (Battisti & Perry, 2011;Cambra-Fierro & Ruiz-Benítez, 2011;Gandhi et al, 2018;Lee, 2009;Revell et al, 2010;Roy et al, 2013).…”

Normative Environmental Configuration of SMEs within the Sustainable Development Discourse in South Africa: An Empirical Study

“…It is argued that SMEs are the leading contributors towards carbon dioxide emissions, pollution and commercial wastes [41]. Comparatively, normative institutions have been found to impose enormous sway towards the embracing of sustainable environmental practices by various large corporations and their subsidiaries [42]. More specifically, a qualitative study in Pakistan established that normative forces had a strong influence towards the adoption of good environmental practices by SMEs within the leather industry [43].…”

Making ‘greener’ connections

“…This broad coverage is to be welcomed, given that contemporary environmental challenges are often experienced most acutely in the world's developing economies and by those with the most limited resources (e.g. Jamali et al 2017;Wahga et al, 2018). For example, the World Health Organisation has pointed out that the burden of outdoor air pollution is borne disproportionately by people in low-and middle-income countries, which account for more than 80% of the 3 million premature deaths attributed to this problem annually (WHO 2016).…”