The Effects of Governmental Factors on Sustainable Technology Implementation Among Small and Medium Enterprises in Tonga

Abstract

This study intends to examine the effects of governmental factors on sustainable technology implementation (STI) among SMEs in the Kingdom of Tonga. These factors are crucial to investigate because many private institutions working for emerging markets have limited resources that delay implementing technologies, particularly sustainability-based technologies integrated with enterprise management. On the other hand, governments have the resources and power to affect STI significantly. Hence, the research investigates the role of government as an influential determinant in attaining efficient and effective implementation. This study uses the SEM-PLS and fsQCA methods to analyze the data gathered from 251 SMEs in Tonga. The findings show that government subsidies and policies significantly and positively affect firms' morals and attitudes regarding STI in Tonga. Also, perceived benefit and perceived cost significantly affect STI in Tongan SMEs. The research is an initial effort to examine such effects in the SMEs of a Pacific Island country.