Closing the Gap Between Stakeholder Pressure and SME Owner-Managers’ Commitment to Sustainability: Does the Business Case Logic Matter?

Abstract

Taking the lead from stakeholder management theory, this study seeks to shed light on the association between the stakeholder pressure and the involvement of small- and medium-sized enterprises (SMEs) in sustainable actions. The study also proposes a moderating role of the business case for corporate sustainability on this relationship. Questionnaire responses from 135 French SMEs were analysed, confirming the positive effect of various stakeholders on the commitment to sustainable business practices among SMEs. The empirical results show that this effect differs according to the three pillars of sustainable development. Empirical results also suggest that a business case for sustainability is the overwhelming driver for the adoption of more responsibility-oriented practices. These results are consistent with the instrumental approach of stakeholder theory, which reveals that incorporating stakeholders’ concerns into a firm’s sustainability strategy depends on the owner-manager’s perception of the economic-financial advantage of such practices.