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The Impact Of Sustainability Strategies On Small & Medium Enterprises 1

THE IMPACT OF SUSTAINABILITY STRATEGIES ON SMALL AND MEDIUM

ENTERPRISES

By

NAJEEB AI !IST"O #1$%'MA(I)A JAMI #1$%*+'

,ATIMA )A"OON -)AN #1$./0'

"AJES) -)EMANI #1$1+*'"A-ES) #1*1*.'

,"2AN S)A,I2 #1$%3'

A research rep4rt

Submitted in partial fulfillment 4f the re5uirements

,4r the degree 4f Bachel4r 4f Business Administrati4nT4I5ra ni6ersity "esearch 7enter #I"7'

At the I5ra ni6ersity8Main 7ampus8 -arachi

-arachi8 9a:istan

0 MA;8%1*

Acknowledgment



The Impact Of Sustainability Strategies On Small & Medium Enterprises %

This research pr4<ect is a mandat4ry c4urse at I2"A ni6ersity= >e than: AMI?)T;

AA) @h4 ga6e us the strength and p4@er @ith c4urage @hich helps us in enlightened

4ur 4@n capabilities=

>e @4uld li:e t4 than: 4ur instruct4r (r= A:if)asan and (r= ImtiaCSubhani f4r his

c4D4perati4n as @ell as his 6aluable time8 @h4se significance cann4t be under estimated

in any @ay= >ith4ut his guidance and assistance8 4ur rep4rt @4uld n4t ha6e been

c4mpleted=

A!t"#ct

The purp4se 4f this study is t4 analyCe the impact 4f sustainable strategies 4n small and

medium enterprises= By d4ing a sur6ey thr4ugh 5uesti4nnaire research sh4@s that



The Impact Of Sustainability Strategies On Small & Medium Enterprises +

sustainable strategies ha6e a direct relati4nship @ith small and medium enterprises=

Sustainability strategies are a main c4re 4f any business= By d4ing a sur6ey and

c4llecting the resp4nse 4f e6ery resp4ndent @e f4und 4ut that the sustainable strategies

ha6e a str4ng relati4nship @ith small and medium enterprises= In e6ery step8 enterprises

re5uired sustainability strategies @hether @e c4nsidered empl4yee engagement c4rp4rate

e6en mar:eting als4 needs sustainability strategies=

T#le o$ Content



The Impact Of Sustainability Strategies On Small & Medium Enterprises *

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The Impact Of Sustainability Strategies On Small & Medium Enterprises $

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C&#'te" () Int"od*ct%on

(+ O,e",%ew

This article analyCes the impact 4f sustainability strategies 4n Small and Medium

Enterprises affect in a p4siti6e @ay @hich may result in increase in pr4fitability and

@hich als4 affects p4siti6ely 4n ec4n4mic gr4@th in l4ng run= Sustainability strategies

helps t4 @4r: in @ay that Small and Medium Enterprises can achie6e their g4al8 because

n4rmally small and medium 4rganiCati4n d4nt implement any strategies s4 m4st 4f them

fail8 s4 f4r the gr4@th 4f Small and Medium Enterprises8 Small and Medium Enterprises

sh4uld implement strategies in a @ay s4 that they can run in l4ng term and can gr4@ fr4m

a Small and Medium Enterprises t4 a big enterprises=

This research has been d4ne t4 analyCe the p4tential 4f Sustainable Strategies 4n Small

and Medium Enterprises=



The Impact Of Sustainability Strategies On Small & Medium Enterprises .

-+ P"olem St#tement

T4 study the impact 4f Sustainable Strategies 4n Small and Medium Enterprises=

.+ B#ckg"o*nd

In all 46er @4rld8 t4tal firms are 3+ milli4n8 in @hich the 0$ milli4n are Small and

Medium Enterprises #SMEs' and this C4ne is gr4@ing further #J4hanss4n8 %%8 $1'= In

general the c4mpanies @hich has the sustainability strategy ha6e an ad6antage 46er

c4mpanies that ha6e n4t such a strategy #O8 "4u:e8 %%8 .'= The business strategy can

aligned @ith the sustainability strategies s4 that benefit can be ta:en because empl4yees

are busy and ha6e better 4pp4rtunity f4r success @hen the pers4nal and business 6alues

are aligned= The 4rganiCati4ns attract the pe4ple @ith similar 6alues @hen they implement

a sustainability strategy #Karlsson8 Berge and utr4pp8 %*8 $'= The sustainability 4f

Small and Medium Enterprise depends up4n Sustainable in6estment @hich can be

6aluable t4 c4mpete @ith larger firms8 Target the p4tential mar:ets @hich are less

4riented by large enterprises8 and practice l4ng term strategy t4 sustain in mar:et and

gr4@ #M44re8 Susan 8 Manring8 %/'= These fact4rs @4r:s l4cal8 nati4n@ide and

gl4bally and fact4rs li:e m4netary als4 affect the perf4rmance 4f Small and Medium

Enterprises sustainability and it is als4 suggested that Small and Medium Enterprises

sh4uld get m4re benefits by implementing EMS #En6ir4nmental management system'

#"uth )illary8%*'=

O/ect%,e o$ t&e !t*d0

The 4b<ecti6e 4f the study @as t4 find 4ut the :ey imp4rtance 4f Sustainability

Strategies 4n SMEs= Sustainability strategy basically helps 4rganiCati4n t4 gr4@ in l4ng

run8 by this Small and Medium Enterprises can increase their pr4fitability and can ma:e

http://www.sciencedirect.com/science/article/pii/S0959652603001549




The Impact Of Sustainability Strategies On Small & Medium Enterprises /

the perfect business m4del= Sustainability strategy helps business t4 l44: f4r 4pp4rtunity

and minimiCe the uncertainty and sustainability strategies helps t4 l44: f4r@ard f4r the

betterment 4f the 4rganiCati4n=

sually sustainability is m4re precisely re5uired @hen 4rganiCati4ns planned f4r l4ng

term g4als= N4@adays 4rganiCati4ns are 6ery curi4us t4@ards its sustainability in @hich8

sustainability in terms 4f c4rp4rate8 @hen mar:eting they are m4re c4ncerned @ith

attracti6e pr4m4ti4ns8 e6en empl4yee engagement is c4nsidered as imp4rtant c4ntent

@hile analyCing the sustainability perspecti6e= Acc4rding t4 g4al achie6ing perspecti6e8

empl4yee engagement is 6ery imp4rtant in 4rganiCati4ns= >hen 4rganiCati4ns @ant t4

meet their target efficiently8 they engage empl4yees @ithin their gr4up acti6ities8

meetings8 @hich increase empl4yees m4rale= Empl4yees get passi4nate t4@ards their

g4als8 they get internally m4ti6ated=

S%gn%$%c#nce o$ t&e St*d0

SMEs are rapidly g4ing t4 increase c4ntributi4n in 46erall @4rld@ide @ealth=

>hereas8 day by day Small and Medium Enterprises are facing pressure increasingly t4

measure and manage their crash 4n the en6ir4nment= It has been 4bser6ed that SMEs are

an essential part 4f a gr4@ing demand f4r sustainability 4rganiCati4n b4th fr4m suppliers

and cust4mers= Mean@hile8 SMEs are l44:ing t4 secure c4ntracts @ith g46ernments 4r

larger c4mpanies and they are trying their le6el best t4 use their res4urces that efficiently

that they can maintain and carry their 4ffer in the future=




1+ O*tl%ne o$ t&e St*d0

This study has eHamined the impact 4f Sustainable Strategies and their

c4nsiderable effect 4n Small and Medium Enterprises= The main f4cus @as 4n different

Sustainable Strategies as a baseline 4f e6aluati4n 4f Small and Medium Enterprises

perf4rmance= The f4ur main strategies has been ta:en int4 c4nsiderati4n are 74rp4rate

Sustainability Strategies8 Empl4yee Sustainability Strategies8 Mar:eting Sustainability

Strategies8 (e6el4pment Sustainability Strategies= These f4ur dimensi4ns 4f business has

been t4uched t4 :n4@ @hat can better ser6e and enhance the pr4fitability and

perf4rmance 4f Small and Medium Enterprises=

2+ De$%n%t%on!

Co"'o"#te S*!t#%n#%l%t0 St"#teg%e!

A strategy @hich c4nsiders business as a @h4le and plans f4r 4ng Term

Sustainability 4f a business=

Em'lo0ee S*!t#%n#%l%t0 St"#teg%e!

A strategy @hich f4cuses 4n empl4yees rati4nale 6ie@ and c4nsiders them as part

4f the business gr4@th=

M#"ket%ng S*!t#%n#%l%t0 St"#teg%e!

A strategy @hich @4r:s effecti6ely 4n their mar:eting channels t4 better e6aluate

the needs 4f the eHisting and p4tential cust4mers and create 6alue acc4rdingly

De,elo'ment S*!t#%n#%l%t0 St"#teg%e!

A strategy @hich c4nsiders business functi4ns as an eHpansi4n fact4r and @4r:

rig4r4usly t4 eHpand business 4r di6ers business 46er a peri4d 4f time=



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1%

C&#'te" -) L%te"#t*"e Re,%ew

Small and medium siCed enterprises #SMEs' ta:e effecti6e acti4ns in ec4n4mic

gr4@th= It helps 4rganiCati4ns in di6ersifying in c4mmunities= T4day 4rganiCati4ns are

m4re interested in sustainable de6el4pment #Or4Cc48 McElr4y and Simard8 %.'=

74mpanies deri6e s4cial resp4nsible beha6i4r by :n4@ing the past eHperiences= By

increasing the s4cial resp4nsible beha6i4r in enterprises8 its enhancing an enthusiasm

and de6el4ping the interest in c4mmunicati4n= ,4r this8 c4mpanies re5uire specific

guidelines f4r the dynamic c4nteHt in s4cial beha6i4r= At @4r:place beha6i4r is

c4nsidered as a :ey @hich helps in ma:ing en6ir4nment m4re fleHible f4r empl4yees t4

enhance their perf4rmance= S4cial resp4nsible beha6i4r is c4nsidered as a :ey m4ti6at4r

f4r empl4yees= Empl4yees m4ti6ati4n and satisfacti4n plays a 6ital r4le in 4rganiCati4n

sustainability #B4rga8 7itteri48 N4ci and 9iCCurn48 %/'=

En6ir4nmental perf4rmance is 6aluable @hile rec4gniCing the need 4f sustainability=

Managers are resp4nsible t4@ards n4rms8 attitudes8 learned beha6i4rs and

implementati4ns 4n strategies f4r 46erall 4rganiCati4ns the4ry in sustainability= T4

de6el4p sustainable en6ir4nment8 managers de6el4p relati4nships @ith empl4yees and

maintain them t4 apply strategies= Many 4rganiCati4ns d4 n4t f4ll4@ any sustainable

strategies theref4re they face pr4blems in future= Sustainable en6ir4nment n4t 4nly f4cus

4n impr46ing @4r: perf4rmance but als4 ta:e a th4r4ugh re6ie@ 4n the4ry management

@hich relates t4 :n4@ledge8 @4r: place8 en6ir4nment8 inn46ati4n= Inn46ati4n refers t4

techn4l4gy as researcher said in article inn46ati4n c4mes in the criteria 4f techn4l4gy=

>hen y4u ad6ance techn4l4gy8 y4u get better @4r:place @hich n4t 4nly satisfy

empl4yees but als4 helps t4 get c4mpetiti6e ad6antage= It als4 l4@ers the c4st and gi6es



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1+

the result in pr4fits by getting increments= 9r4fitability is a main :ey p4int in Small and

Medium Enterprises= Sustainability dri6en fr4m s4cially c4nstructed n4rm #74rdan48

Marshall and Sil6erman8 %1'=

,urtherm4re8 74llin and 94rras #1//*' p4inted 4ut that 4rganiCati4ns al@ays try t4 find

the elements t4 distinguish them fr4m their challengers8 because such elements c4uld be

c4n6erted int4 res4urces that pr4duce l4ngDterm sustainable c4mpetiti6e ad6antage=

Baumgartner #%1+' suggested that f4r success8 4rganiCati4ns sh4uld c4nsider three main

fact4rs @hich are sustainable de6el4pment8 pr4fitability and inn46ati4n and @hen

4rganiCati4ns adhere @ith these three fact4rs and c4nsider it as challenge and ma:e

strategies acc4rdingly8 they e6entually learn ab4ut upc4ming 4pp4rtunities and threats= It

helps the 4rganiCati4ns t4 plan8 impr46e8 implement and c4ntr4l acc4rding t4 c4rp4rate

sustainability=

Study sh4@s that s4me g46ernments implement m4re sustainability practices but n4t

4thers= A sur6ey in S cities ga6e a clear picture that @hy 4rganiCati4ns unable t4 reach

its sustainable de6el4pment= OneDthird 4f sustainable strategies are implementing in

4rganiCati4ns= In this paper8 Auth4r said there are m4derate le6els in 4rder t4 achie6e

sustainable en6ir4nment= ,irst le6el is capacity building @hich further m4re classified as

technical and financial supp4rt @ith managerial implicati4ns= Sec4nd le6el f4cuses 4n

managerial capacity8 @hich classified as establishing attainable g4als8 de6el4ping an

infrastructure f4r supp4rt= Third is8 in64l6ing sta:eh4lders in sustainable eff4rts= By these

le6els it is 4b6i4us h4@ t4 reach sustainable de6el4pment= M4stly 4rganiCati4ns d4 n4t

f4ll4@ these le6els and theref4re they are less interested in ad4pting sustainability=



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1*

OrganiCati4ns re5uired a c4nceptual frame@4r: @hich managers ma:e their empl4yees t4

implement acc4rdingly #>ang8 )a@:ins8 ebred4 and Berman8 %1%'=

If @e c4nsider sustainability in c4rp4rate8 there are many different techni5ues @hich

4rganiCati4ns are f4ll4@ing in 4rder t4 a64id uncertainty= Sustainability itself is a 6ast

termin4l4gy= T4 design a reliable sustainability in 4rganiCati4ns8 managers pursue a

frame@4r: in @hich they f4cus m4re 4n p4pular c4ncepts @hich 4rganiCati4ns are using

at @4r:place= OrganiCati4ns ga6e deep insights in hist4ry papers in regard 4f

sustainability #?"I8 %0'=

In the business ethics8 sustainable de6el4pment categ4riCed as a Kresp4nsibility t4@ards

s4ciety8 @hereas the term resp4nsibility in sustainable de6el4pment is eHplained as a need

in reducing the ad6erse effect 4f business territ4ry #7arpenter and >hite8 %*'=

In 4rganiCati4ns it is still 6ague h4@ #SMEs' miH en6ir4nment sustainability t4 their daily

practices= #SMEs' c4nsidered s4cial e5uality as an integral part 4f business but its

implementati4n is difficult in 4rganiCati4ns and due t4 this these issues are highlighting

m4re in p4litical as @ell as s4cietal re6ie@s #"e6el and Blac:burn8 %3 Seidel et al=8

%.'=

En6ir4nmental management in #SMEs' is an absurd= One side 4f the study 4f #SMEs'

tells that #SMEs' are 6ery fleHible in nature in c4ntrast t4 large enterprises= #SMEs'

c4nsidered as cl4ser t4 c4nsumers demand due t4 its fleHibility @hereas large enterprises

are n4t= By this study @e can relate that #SMEs' can better react t4 challenges in regard t4

en6ir4nment= The 4ther side 4f the study claims that #SMEs' are s4me@hat disinclined

t4@ards en6ir4nmental challenges in their practices= This is due t4 certain c4nditi4ns as

#SMEs' d4 n4t mainly f4cus 4n en6ir4nment= They ha6e less 6isibility 4f en6ir4nment=



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1$

They usually d4 n4t @4r: 4n en6ir4nmental management as c4nsumers are n4t interested

in en6ir4nmental impr46ement they generally c4ncerned @ith their re5uired need t4 be

fulfilled #>ehrmeyer8 %'=

Small and Medium Enterprises #SMEs' ha6ing less eHperiences d4 n4t prepare f4r the

c4ntingent situati4n because m4stly they are t4tally unfamiliar @ith the situati4n and

en6ir4nment 4f respecti6e c4untry 4r regi4n #SeHt4n and Au:en8 1/.$'=

The pr4ducti6ity 4f the c4mpany reacts as m4ti6ati4nal f4rce in the recital 4f the

c4mpany #Aram and 74@en8 1//'= The m4re the c4mpany has it assets8 m4re the

c4mpany @ill be stable and able t4 sur6i6e and bec4me successful and @ill be ha6ing

c4mpetiti6e ad6antage 4n its c4mpetit4rs and ma:e c4mpany t4 @4r: m4re effecti6e and

m4re efficiently and help them t4 run in a better @ay #Amit and Sh4ema:er8 1//+ 94rter8

1//1'=

S4me fact4rs that are n4t related t4 the ec4n4mics but s4metimes bec4me 6ery useful f4r

the success 4f 4rganiCati4n and the pr4ducti6ity 4f the c4mpany and h4@ empl4yees feel

ab4ut their ability and their attachment t4 the c4mpany #El:ingt4n8 1//3 ars4n8 %'=

Nunes8 ?4nLal6es and Serras5ueir4 #%1+' highlighted the 6ery imp4rtant p4int that

(4es age influences the t@4 main area 4f the study8 @hich is SMEs internal gr4@th and

determinants In6estigati4n sh4@s that age and siCe d4es matter in small and medium

siCed enterprises and they c4mmit that ne@ SMEs are m4re affected by age and siCe

@hereas f4r 4ld SMEs8 it is n4t c4nsiderable= They further eHplained that ne@ SMEs

sh4uld f4cus m4re t4@ards cash infl4@s and their current liabilities but in c4ntrast t4 4ld

SMEs8 they are m4re c4ncerned @ith their "&( department and pr4ducti6ity f4r gr4@th=




As 4ld SMEs are m4re in need 4f inn46ati4n and creati6ity @hereas ne@ SMEs ha6e

inn46ati4n and they are f4cusing t4@ards debt= SMEs are influenced by beha6i4r @ithin

the 4rganiCati4n #4rraine8 Marta8 "4nald and ?errit8 %1%'=

Beha6i4r plays a 6ital r4le in empl4yees m4ti6ati4n= sually 4rganiCati4ns f4ll4@

planned beha6i4r in @hich they treat their empl4yees as a family= They arranged meetings

in @hich empl4yees interact @ith their 4@ners= They 4rganiCed inn46ati6e 4rientati4ns

f4r empl4yees and ga6e financial benefits= They thin: that empl4yee engagement is the

better @ay t4@ards gr4@th= In 4rder t4 attain sustainability in 4rganiCati4n8 it is far 6ery

4b6i4us t4 ma:e en6ir4nment c44perati6e because if empl4yee satisfied @ith the

4rganiCati4n8 he @ill d4 pr4ducti6e @4r:= ab4r pr4ducti6ity @ill als4 increase because

4f fe@er turn46ers= Many researchers tal:ed ab4ut sustainability de6el4pment but still it

is 6ery difficult t4 eHplain @hat Sustainable (e6el4pment is #"emigi<us8 J4lita and

Br4nisl46as8 %/'=

The termin4l4gy eHplains that8 there is a c4mbinati4n 4f t@4 @4rds @hich c4mprises 4f

different attributes= In sustainable de6el4pment8 efficiency is needed in a 6ery high scale=

Sustainability c4mbines efficiency @ith e5uity and the en6ir4nment regarding p4litical8

s4cial8 ec4n4mic and ec4l4gical= En6ir4nmental sustainability is al@ays a critical issue in

4rganiCati4ns #N:4li8 %1+'=

It gi6es 4rganiCati4ns the a@areness 4f future climate crises @hich can affect the

4rganiCati4n in attaining the g4als due t4 uncertainty in en6ir4nment= In internal

en6ir4nment8 sustainability can be gained by impr46ing the lab4r res4urces8 technical

ad6ancement8 ma:ing up ne@ pr4ducts8 upDgrading s:ills by training and de6el4pment

sessi4ns8 gi6ing ne@ 4pp4rtunities8 inn46ati4n in pr4ducts and ser6ices8 c4nsidering the




demands 4f sub<ect and als4 reall4cati4n 4f capital and lab4r in 4rder t4 ac5uire m4re

efficiency= The ad6antage in small and medium siCed enterprises is their empl4yees are

4n l4@ capital c4st #Aremu and Mu:aila8 %11'=

Small and Medium Enterprises purp4se is t4 reduce p46erty8 creating m4re <4b

4pp4rtunities= Small and Medium SiCed Enterprises @4r:ed f4r @elfare 4f s4ciety= As a

gr4@ing c4ncern8 techn4l4gical ad6ancement n4t 4nly c4ntributes in success but als4

ma:ing efficient eff4rts= )ighDtechn4l4gy refers t4 l4@ empl4yment rate and this creates

m4re pe4ple unempl4yed= (ue t4 increasing p46erty rates8 literacy rate decreasing= Small

and Medium SiCed Enterprises are m4stly initiated by indi6iduals= They created chains8

added 6alue in chains8 transf4rm and ga6e a better eHperience t4 pe4ple= In SMEs8

sustainable de6el4pment eHplained by saying Ka 7hange in infrastructure= And Ka change

in 4rganiCati4n deri6ed by f4ll4@ing up strategies @hich c4ntributes in achie6ing the

sustainability= Strategies are @ay helpful in reaching t4 its desired p4siti4n but t4

implement in a c4rrect @ay is m4re imp4rtant= M4stly 4rganiCati4ns are successful in

ma:ing the strategies but study says8 4neDf4urth part 4f 4rganiCati4n f4ll4@ t4 it and

implement acc4rding t4 it= The 4rganiCati4n that d4es n4t able t4 implement 4n their

designed strategies faced l4sses= >hile eHplaining the sustainability auth4r said8 human

de6el4pment plays an imp4rtant r4le #"4bert8 Th4mas8 and Anth4ny8 %$'=

The business can get sustainable p4siti4n by pr4m4ting the @4r:ers empl4yability and 4n

their lab4r pr4ducti6ity= By increasing the tenure 4f empl4yability results in m4re le6el 4f

pr4ducti6ity @hich is m4re pr4fitable in Small and Medium Enterprises #Ar4cena 8 NuneC

and !illanue6a8 %3'=



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1.

The 4rganiCati4n ad4pt ne@ strategies t4 achie6e the sustainable p4siti4n in mar:et8 the

)" practices als4 ha6e the ma<4r r4le in SMEs t4 achie6e the sustainable en6ir4nment

@ithin the firm= O6er + ser6ice firms sh4@s that large 4rganiCati4ns that ha6e )"

department f4r recruiting empl4yees and this practice can be ideal f4r Small and Medium

Enterprises= )" (epartment in firms playing a ma<4r r4le 4n the pr4ducti6ity impact 4n

SMEs f4r their sustainable p4siti4n by managing the @h4le fl4@ chart 4f the firm=

#Th4mas Behrends8 %3'=

In #SMEs'8 pr4fitability in reference @ith high techn4l4gy determines by sustaining the

inn46ati6e place8 analysis 4f mar:et by d4ing research8 internaliCe and sur6ey 4f niche

has a g44d impact in increasing pr4fit rati4 4f these enterprises #2ian and i8 %+'=

,r4m the analysis 4f 30 c4untries8 the relati4nship bet@een SMEs sect4r and the

business en6ir4nment c4ncluded that these l4@er c4sts 4f entry and credit inf4rmati4n

sharing are interrelated @ith a large siCe 4f the Small and Medium Enterprises sect4r8

@hereas higher c4sts are related @ith a larger inf4rmal ec4n4my= #Ayyagari8 Bec: and

-unt8 %3'=

The :ey 4f pr4fitability 4f Small and Medium Enterprises is lin:ed @ith the relati4nship

bet@een firm siCe8 gr4@th and pr4ducti6ity @hich pr46e that firm gr4@ n4t by the large

siCe 4f firm but by their m4re pr4ducti6e nature8 m4re pr4ducti4n in c4mpanies ma:e the

firm m4re larger by m4re res4urces and inf4rmati4n= #BeeD;an8 %%'=

7hen and )uang #%*' emphasiCed that it still p4ssible f4r the Small and Medium

Enterprises t4 find @ays 4f dem4nstrating their gl4bal mar:eting acti6ities= ,4r that a

m4del is de6el4ped @hich ha6e t@4 stages sub<ecti6e and 4b<ecti6e c4nditi4ns t4 assess



The Impact Of Sustainability Strategies On Small & Medium Enterprises 1/

the SMEs f4r ma:ing the best ch4ices in the ?l4bal mar:et and generate pr4fitability and

sustainability in the mar:et=

The Small and Medium Enterprises in s4me c4untries are still unsuccessful because 4f

the unstable macr4ec4n4mic en6ir4nment and the basic infrastructure 4f the firms=

Empl4yees are n4t much s:ilful f4r managing these SMEs= #che and O<ia:4r8 %3'=

"ecently the eHpansi4n 4f Small and Medium Enterprises by f4cusing substantially 4n

gr4@th and trying t4 eHpand m4re in ?l4bal ec4n4my by the c4mpetiti6e ad6antage= N4@

the research is n4t 4nly f4cus 4n the 4ld large firms but the ne@ emerging Small and

Medium firms @hich are c4ntributing in gi6ing up uni5ue learning in the r4le 4f firms

structure and its siCe @ith age f4r the ec4n4mic de6el4pment #9aul (= "eyn4lds8 1//3'=

The ne@ techn4l4gy gi6e threats t4 these Small and Medium Enterprises but als4 ne@

4pp4rtunities8 the ass4ciate attributes pr46ide ne@ s4cial structure and 4rganiCati4n in

small scale 4f these Small and Medium Enterprises= #Bart N44te b44m8 1/..'=

Egbu8 )ari and "enu:appa discussed ab4ut -n4@ledge management f4r sustainable

c4mpetiti6eness in Small and Medium Enterprises sur6eying practices= The researched

f4cused 4n the internal :n4@ledge and als4 imp4rtance 4f the cust4mer capital that h4@

these might be imp4rtant f4r Small and Medium Enterprises sustainability= It has been

highlight that f4r the de6el4pment and sustainability 4f SMEs8 strategies are imp4rtant

but :n4@ledge management is als4 an asset f4r any 4rganiCati4n @hich helps in better

understanding 4f the difference 4f culture and techn4l4gy8 pe4ple8 finance and

4rganiCati4nal structure=

2ian and li #%+' precisely discussed up4n pr4fitability in high techn4l4gy firms8 rather

than traditi4nal industries that c4mpanies are engaging t4 de6el4pment 4f the pr4ducti4n8



The Impact Of Sustainability Strategies On Small & Medium Enterprises %

mar:eting 4f bi4tech pr4ducts= 9r4fitability may be eHplained as difference bet@een c4st

and sales8 the imp4rtant thing is get the highest 6alue in the mar:et that they can achie6e

their pr4fitability and this can help in ma:ing and de6el4ping the sustainability in #SMEs'

in highDtechn4l4gy firms= The firms @hich utiliCing the high techn4l4gy are facing sh4rt

term pr4duct cycle because techn4l4gy changes by the passage 4f time and c4mpanies

in6est a huge am4unt 4f capital in "&( research and de6el4pment f4r being

inn46ati6e8 that they can sur6i6e in c4mpetiti6e mar:et= ,4r SMEs in highDtech industries

face great 4pp4rtunities and threats= Thus8 it has a huge influence 4n pr4fitability=

M4re46er8 ituchy and "ail #%' tal:ed ab4ut the impact 4f techn4l4gy 4n the

gl4baliCati4n 4f the Small and Medium Enterprises @hich illustrated that internet help

SMEs t4 c4nnect @ith gl4bal and attain the gl4bal mar:et and it has been claimed that

techn4l4gy ad6ancement can be a useful t44ls f4r e6ery Small and Medium Enterprises8

research ha6e pr46ed that mar:eting thr4ugh internet is 6ery efficient and effecti6e=

Internet based mar:eting ha6e s4 many ad6antages It is easily reachable t4 cust4mers

and can easily appeals t4 all segments and this apply 4n b4th pr4ducti4n and ser6ices

sect4rs= Because @ith the help 4f internet Small and Medium Enterprises can reach in any

segment gl4bally that can be helpful f4r success 4f any Small and Medium Enterprises= It

als4 cut the c4st 4f ad6ertising and mar:eting @hich is p4siti6ely beneficial f4r Small and

Medium Enterprises all 46er the @4rld=

The success and pr4fitability 4f the c4mpany is depend up4n the segments 4f their

pr4ducts during ma:ing p4licies 4f sustainability= 74mpanies sh4uld be 6ery careful

during ma:ing strategies and they must analyCe the strengths8 @ea:nesses8 4pp4rtunities

and threats 4f each and e6ery step related t4 ma:ing these p4licies and p4licies sh4uld be



The Impact Of Sustainability Strategies On Small & Medium Enterprises %1

aligned ec4n4mical and financially supp4rti6e and sh4uld als4 c4nsider 7S" al4ng @ith=

Strategic management als4 played a 6ery imp4rtant r4le f4r e6ery c4mpany these p4licies

als4 indicate the sustainability 4f the firm and it als4 helps in eHplaining n4rmati6e

management and 4perati4nal management= The p4licies 4f the sustainability sh4uld be in

a pr4per @ay in 4rder t4 ma:e c4mpany ma:e m4re pr4fitable8 the sustainability p4licies

4f the firm sh4uld be implemented in a pr4per @ay8 OrganiCati4ns sh4uld f4ll4@ each and

e6ery step f4r the betterment 4f the firm8 the sustainability strategies li:e that play an

instrumental r4le t4 eHamine the perf4rmance and assessment 4f c4mpany #>iley8 %1+'=



The Impact Of Sustainability Strategies On Small & Medium Enterprises %%

C&#'te" .) Re!e#"c& Met&od!

This study is the c4mparati6e study ab4ut the Sustainability Strategies and their

impact 4n Small and Medium Enterprises= This study @ill f4cus 4n different strategies

74rp4rate Sustainability Strategies8 Empl4yee Sustainability Strategies8 Mar:eting

Sustainability Strategies8 (e6el4pment Sustainability Strategies8 and @ill analyCe @hich

strategy is getting m4re pr4fit and has a significant impact 4n Small and Medium

Enterprises=

.+( Met&od o$ D#t# Collect%on

The techni5ue @hich is being used is pers4nal sur6ey and instrument @hich is use

t4 c4llect that is 2uesti4nnaires and data has been c4llected by ta:ing app4intments and

fr4m different 4ffices and pers4nally 6isited 4ffice in 4rder t4 fill the 5uesti4nnaires=

.+- S#m'l%ng Tec&n%3*e

The techni5ue @hich is being used is 74n6enience Sampling techni5ue=

.+.S#m'le S%4e

Sample siCe used @as % resp4ndents=

.+1 In!t"*ment o$ D#t# Collect%on

The instrument 4f data c4llecti4n @as 4n i:ert Scale 5uesti4nnaires=

Str4ngly agree $ Agree * Neutral + (isagree % str4ngly disagree 1

.+1+( 5#l%d%t0 #nd Rel%#%l%t0 Te!t

The instrument @as preDtested in 4rder t4 identify if there are any pr4blems @ith

the t44l and @hether it @as simple t4 c4mprehend and understandable 5uesti4ns 4r n4t=

Thr4ugh pre testing it @as 4riginate that all resp4ndents felt at ease in resp4nding and

bring int4 being that 5uesti4nnaire is eHciting as @ell=



The Impact Of Sustainability Strategies On Small & Medium Enterprises %+

.+2 Re!e#"c& Model De,elo'ed

.+6 St#t%!t%c#l Tec&n%3*e

One sample test has been used in this research f4r )18 )%8 )+ and )*= The

m4ti6e 4f using this One sample test f4r )18 )%8 )+ and )* is ab4ut the Sustainability 4f

Small and Medium Enterprises regarding the impact 4f f4ur different Strategies @hich

has been c4mpared=

74rp4rate Sustainability Strategies

Sustainability 4f Small and

Medium Enterprises

Empl4yee Sustainability Strategies

Mar:eting Sustainability Strategies

(e6el4pment Sustainability Strategie



The Impact Of Sustainability Strategies On Small & Medium Enterprises %*

C&#'te" 1) Re!*lt!

1+( F%nd%ng! #nd Inte"'"et#t%on o$ t&e Re!*lt!

)1G There is a significant impact 4f 74rp4rate Sustainability Strategy 4n Small

and Medium Enterprises=

)%G There is a significant impact 4f Empl4yee Sustainability Strategy 4n Small and

Medium Enterprises=

)+G There is a significant impact 4f Mar:eting Sustainability Strategy 4n Small and

Medium Enterprises=

)*G There is a significant impact 4f (e6el4pment Sustainability Strategy 4n Small and

Medium Enterprises=

Re!*lt) )1 has n4t been accepted and )%8 )+ and )* has been accepted=

T#le 1+(

One7S#m'le St#t%!t%c!

N Me#n Std+ De,%#t%on Std+ E""o" Me#n

Co"'o"#te8S*!t#%n#%l%t08S

t"#teg0

200 3.6650 .73003 .05162

Em'lo0ee8S*!t#%n#%l%t08St

"#teg0

200 4.1783 .60694 .04292

M#"ket%ng8S*!t#%n#%l%t08S

t"#teg0

200 4.1075 .59916 .04237

De,elo'ment8S*!t#%n#%l%t0

8St"#teg0200 4.0375 .61378 .04340

T#le 1+-



The Impact Of Sustainability Strategies On Small & Medium Enterprises %$

One7S#m'le Te!t

Te!t 5#l*e 9 1

:2; Con$%dence Inte",#l o$ t&e

D%$$e"ence

t d$ S%g+ <-7t#%led=

Me#n

D%$$e"ence Lowe" U''e"

Co"'o"#te8S*!t

#%n#%l%t08St"#t

eg0

-

6.490

199 .000 -.33500 -.4368 -.2332

Em'lo0ee8S*!t

#%n#%l%t08St"#t

eg0

4.155 199 .000 .17833 .0937 .2630

M#"ket%ng8S*!t

#%n#%l%t08St"#t

eg0

2.537 199 .012 .10750 .0240 .1910

De,elo'ment8S

*!t#%n#%l%t08St

"#teg0

.864 199 .389 .03750 -.0481 .1231

Inte"'"et#t%on

)1 sig 6alue is = @hich is less than =$ but mean difference is negati6e8

@hich is D=++$ s4 it is resulted that there is n4 any impact 4f 74rp4rate Sustainability

Strategy 4n SMEs= )% sig 6alue is =1% @hich is less than =$ and mean difference is

als4 p4siti6e this is =13.++ s4 it is resulted that there is an impact 4f Empl4yee

Sustainability Strategy 4n SMEs= )+ sig 6alue is = @hich is less than =$ and mean

difference is als4 p4siti6e this is =13$ s4 it is resulted that there is an impact 4f




Mar:eting Sustainability Strategy 4n SMEs= )* sig 6alue is =+./ @hich is greater than

=$ but mean difference is p4siti6e8 this is =+3$ s4 it is resulted that there is an impact

4f (e6el4pment Sustainability Strategy 4n SMEs=

1+- H0'ot&e!e! A!!e!!ment S*mm#"0




)yp4thesis

t d$

S%g+ <-7

t#%led=

Me#n

D%$$e"ence

Empirical

74nclusi4nStatement

)1

There is a

significant impact

4f 74rp4rate

Sustainability

Strategy 4n Small

and Medium

Enterprises=

-6.490 199 .000 -.33500 "e<ected

)%

There is a

significant impact

4f Empl4yee

Sustainability

Strategy 4n Small

and Medium

Enterprises=

4.155 199 .000 .17833 Accepted

)+

There is a

significant impact

4f Mar:eting

Sustainability

Strategy 4n Small

and Medium

Enterprises=

2.537 199 .012 .10750 Accepted

)*

There is a

significant impact

4f (e6el4pment

Sustainability

Strategy 4n Small

and Medium

Enterprises=

.864 199 .389 .03750 Accepted



The Impact Of Sustainability Strategies On Small & Medium Enterprises %.

C&#'te" 2) D%!c*!!%on!> Concl*!%on> Pol%c0 Im'l%c#t%on! #nd F*t*"e

Re!e#"c&

2+( D%!c*!!%on ? Im'l%c#t%on!

The result 4f the study has three dimensi4ns @hich says that SMEs sh4uld

enc4urage empl4yee engagement and de6el4p ne@ pr4ducts and start eHpanding their

business because it creates a trust@4rthy en6ir4nment in the 4rganiCati4n8 a better

4ffering t4 the eHisting and p4tential cust4mers and a di6ersified p4rtf4li4 t4 mitigate

ris:=

The m4st imp4rtant is 6isualiCing future 4pp4rtunities and threats time t4 time t4 get an

eye 46er ne@ pr4duct 4fferings8 ne@ mar:ets and rapid changing en6ir4nment= >hereas8

emp4@ering empl4yees @ill lead t4 a str4nger )uman "es4urce @hich can play a 6ital

r4le in 4rganiCati4nal success=

2+- Concl*!%on

The study clearly depicts that Small and Medium Enterprises sh4uld rely 4n

Sustainable Strategies 4r start planning f4r l4ng term gr4@th= SMEs are less reliable f4r

l4ng term pr4<ects and assessment @hich is a barrier t4 their sustainability in the mar:et=

As @ell as SMEs rely c4mpletely 4n sh4rt term g4als this is a huge bac: 4ut and results

in less p4tential t4@ards gr4@th and de6el4pment=

There are many :ey challenges @hich are faced by SMEs and less p4tential t4 c4pe up

@ith these= As SMEs ha6e a higher turn46er 4f empl4yees and capacity t4 bear ris: l4sses

is small @hich ultimately gi6e a m4mentum t4 large 4rganiCati4ns t4 gain a c4mpetiti6e

ad6antage=



The Impact Of Sustainability Strategies On Small & Medium Enterprises %/

2+. Recommend#t%on! #nd F*t*"e Re!e#"c&

A fe@ rec4mmendati4ns that can be measured and d4ne f4r future researchG

1= The sample sh4uld be selected @idely n4t f4cus 4n single area=

%= Se6eral 4ther 6ariables sh4uld be ta:en in c4nsiderati4n f4r m4re appr4priati4n=

,4r eHample8 future research can be d4ne t4 chec: the impact 4f f4ll4@ing different areas

4n Small and Medium Enterprises SustainabilityG

• Internal and eHternal incenti6es

• Internati4nal Mar:et

• "esearch and (e6el4pment



The Impact Of Sustainability Strategies On Small & Medium Enterprises +

Re$e"ence!

J4hanns4n8 yn= %%= ISO 1*1G One ,4r All8 Or Just ,4r S4me ISO Management

Systems8 SeptemberDOct4berG $1

O’Rouke, Anastasia and Malthouse, Jacob.2002. “Sustainable VentureFinance, An

!"ert #orksho" on Sustainabilit$ Oriented, Venture %a"italand

ntre"reneurshi"&

Karlsson Reine, Ola 'er(e) and %onrad *uttro"". 200+. “Mobilit$ o Ke$-ersons or

-rootion o 'usiness Rene/al and Sustainable ro/th, 1rdnt. %on. on

S$stes 3hinkin( in Mana(eent 4%S3M 200+5, 3ransorin(Or(ani6ations to Achie7e Sustainable Success.

-hiladel"hia,8SA&, Ma$ 9: ; 29

Nsdnl ?anapathy S= Natara<an and (a6id A= >yric:8 Members8 IAEN? 9r4ceedings 4f

The >4rld 74ngress 4n Engineering %11 !4l I >7E %118 July 0 D .8 %1184nd4n8 =-

Samuel B M44re and Susan 8 Manring in #%/'=!4lume 138 Issue %8 January %/8

Strategy de6el4pment in small and medium siCed enterprises f4r sustainability

and increased 6alue creati4n

Ruth <illar$ in 4200+5 Journal o %leaner -roduction, n7ironentalana(eent

s$stes and the saller enter"rise, !4lume, Au(ust 200+,-a(es

=>9 =>:

%ol O’oran, 420095 ?3he sustainabilit$ o (ro/th in sall@ andediu@si6ed

enter"rises?, nternational Journal o ntre"reneurial 'eha7ior Research,

Vol. B ssC 2, "".>0 @ B=

http://www.sciencedirect.com/science/journal/09596526/17/2


http://www.sciencedirect.com/science/journal/09596526

http://www.sciencedirect.com/science/journal/09596526/17/2


http://www.sciencedirect.com/science/journal/09596526



The Impact Of Sustainability Strategies On Small & Medium Enterprises +1

9aul4 MaLPs Nunes8 Marc4 ?4nLal6es and QRlia Serras5ueir4=%1+= The influence 4f age 4n SMEs gr4@th determinantsG empirical e6idence=

"emigi<us 7iegis1

8 J4lita "amanaus:iene%

8 Br4nisl46as Martin:us=%/= T)EE7ONOMI7 7ON(ITIONS O, ENTE"9"ISE ,N7TIONIN?G The

74ncept 4f Sustainable (e6el4pment and its se f4r Sustainability Scenari4s=

N:4li Augustina 7hend4= %1+= Managers 9ercepti4n 4f En6ir4nmental Sustainability in

Small and Medium Scale Enterprises #SMEs'G Implicati4n f4r74mpetiti6e Mar:eting Ad6antages f4r Sachet >ater Manufacturers in

Anambra State8 Nigeria=

(r= Aremu8 Mu:aila Ayanda= %11= Small and Medium Scale Enterprises as A Sur6i6alStrategy f4r Empl4yment ?enerati4n in Nigeria=

"4bert >= -ates8 Th4mas M= 9arris8 and Anth4ny A= eiser4@itC8 %$ = >hat is

sustainable de6el4pment ?4als8 indicat4rs8 6alues and practice=

Q4ltan J= Acs and ee 9rest4n Small Business Economics !4l= /8 N4= 18 Special Issue 4nSmall and MediumDSiCed Enterprises in the ?l4bal Ec4n4my #,eb=8 1//3'8 pp=

1D0 9ublished byG Springer

9= Ar4cena8 Iman4l NUeC and Mi:el !illanue6a Small Business Economics !4l= %/8 N4=

1V% #Jun=8 %3'8 pp= 1/1D%1 9ublished byG Springer

Mar: 74rdan48 "= Sc4tt Marshall and Murray Sil6erman Journal of Business Ethics !4l= /%8 N4= + #Mar=8 %1'8 pp= *0+D*3. 9ublished byG Springer

Th4mas Behrends Management Revue !4l= 1.8 N4= 1 #%3'8 pp= $$D3* 9ublished byG

"ainer )ampp !erlag

?4ngming 2ian and ee i Strategic Management Journal !4l= %*8 N4= / #Sep=8 %+'8

pp= ..1D..3 9ublished byG >iley

Meghana Ayyagari8 Th4rsten Bec: and Asli (emirgucD-unt Small Business Economics

!4l= %/8 N4= * #(ec=8 %3'8 pp= *1$D*+* 9ublished byG Springer

http://www.jstor.org/action/showPublisher?publisherCode=springer



http://www.jstor.org/action/showPublisher?publisherCode=hamppverlag

http://www.jstor.org/action/showPublisher?publisherCode=black





http://www.jstor.org/action/showPublisher?publisherCode=hamppverlag

http://www.jstor.org/action/showPublisher?publisherCode=black




The Impact Of Sustainability Strategies On Small & Medium Enterprises +%

BeeD;an A@ Small Business Economics !4l= 1.8 N4= 1V+8 Special IssueG Small ,irm(ynamism in East Asia #,eb= D May8 %%'8 pp= 0/D.* 9ublished byG Springer

)siuDi 7hen and ;4phy )uang Small Business Economics !4l= %%8 N4= $ #Jun=8 %*'8 pp= +0$D +33 9ublished byG Springer

7hibui:e che and 7hide O<ia:4r African Review of Money Finance and Banking

#%3'8 pp= //D11. 9ublished byG "esearch 7enter 4n Internati4nal

744perati4n 4f the ni6ersity 4f Bergam4

9aul (= "eyn4lds Small Business Economics !4l= /8 N4= 18 Special Issue 4n Small andMediumDSiCed Enterprises in the ?l4bal Ec4n4my #,eb=8 1//3'8 pp= 3/D.*

9ublished byG Springer

Bart N44teb44m The American Journal of Economics and Sociology !4l= *38 N4= + #Jul=8

1/..'8 pp= %//D+1* 9ublished byG American J4urnal 4f Ec4n4mics and

S4ci4l4gy8 Inc=



http://www.jstor.org/action/showPublisher?publisherCode=rcicbergamo



http://www.jstor.org/action/showPublisher?publisherCode=ajesi











The Impact Of Sustainability Strategies On Small & Medium Enterprises ++

A''end%@



The Impact Of Sustainability Strategies On Small & Medium Enterprises +*



The Impact Of Sustainability Strategies On Small & Medium Enterprises +$

21G ?i6en bel4@ are s4me statements= ,4r each statement :indly specify y4ur le6el 4f

agreement and disagreement by putting a chec: mar: in the appr4priate b4H= #Tic: 4nly

4ne f4r each statement'

STATEMENTS

STRONG

LY

AGREE

AGREE

NIETHER

AGREE

NOR

DISAGRE

E

DISAGR

EE

STRO

Y

DISA

1=1

Sustainable (e6el4pment Strategy

increases pr4fitability 4f SMEs=

1=%

It is imp4rtant f4r SMEs t4 ha6e

sustainability strategies in

acc4mplishing their g4als=

1=+

Empl4yee Engagement Strategy


1=*

Empl4yee Engagement Strategy

increases the m4rale 4f empl4yees

and enhances perf4rmance in SMEs=

1=$

Sustainable Mar:eting Strategy


1=0

Sustainable Mar:eting Strategy

helps SMEs in increasing their sales

4n a larger scale rig4r4usly=

1=3

74rp4rate Sustainable Strategy


1=.

SMEs are less reliable due t4 their

l4@ capacity 4f analyCing pr4<ects

and less turn 46er=




1=/

SMEs face unfair c4mpetiti4n fr4m

Multinati4nal Enterprises in

c4mpeting f4r ban: credits=

1=1

M4st 4f the SMEs pr4acti6ely

identify future challenges and

4pp4rtunities=

1=11

MNEs ha6e c4mpetiti6e ad6antage

t4 h4ld and attract m4re mar:et than

SMEs=

1=1

%

SMEs ha6e higher turn46er 4f

empl4yees @hich has a negati6e

impact 4n their sustainability in the

mar:et=

2%= ;4ur gender male female

2+= ;4ur age less than % years %1D+

years




+1D* years *1D$

$1D0 years m4re than 0

years

2*=;4ur 4rganiCati4n WWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

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