IDEAS home Printed from https://ideas.repec.org/a/bla/devpol/v41y2023i5ne12698.html
   My bibliography  Save this article

Exploring SME environmental behaviour and practice: The case of Malaysia

Author

Listed:
  • Angathevar Baskaran
  • V. G. R. Chandran
  • Divyaasiny Rajaghantham

Abstract

Motivation A better understanding of the dynamics of the factors that influence the environmental behaviour of small and medium‐sized enterprises (SMEs) in Malaysia is crucial for new policy experiments. Purpose We examine the drivers, barriers, and incentives of SMEs in adopting environmental practices and reporting, as well as the dynamics driving SME decision‐making in Malaysia. Methods and approach This article uses multiple case studies and semi‐structured interviews as the qualitative methodology is best suited to gain an in‐depth understanding of SME experiences and perceptions. Findings SMEs have adopted several environmental practices, and few have already engaged in environmental reporting, albeit at varying levels. The perceived reputation‐enhancing and knowledge‐disseminating results are a strong incentive for SMEs. Interestingly, SMEs' decision to adopt environmental practices and reporting is driven by multiple factors, leaving more room for policy experimentation, as our dynamic interaction matrix shows. Policy implications Comprehensive environmental practices and reporting by SMEs is feasible if policy design considers the dynamics of regulatory pressures, key drivers, and perceived incentives.

Suggested Citation

  • Angathevar Baskaran & V. G. R. Chandran & Divyaasiny Rajaghantham, 2023. "Exploring SME environmental behaviour and practice: The case of Malaysia," Development Policy Review, Overseas Development Institute, vol. 41(5), September.
    • Handle: RePEc:bla:devpol:v:41:y:2023:i:5:n:e12698
    DOI: 10.1111/dpr.12698
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/dpr.12698
    Download Restriction: no
    File URL: https://libkey.io/10.1111/dpr.12698?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Williamson & Gary Lynch-Wood & John Ramsay, 2006. "Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR," Journal of Business Ethics, Springer, vol. 67(3), pages 317-330, September.
    2. Clemens, Bruce, 2006. "Economic incentives and small firms: Does it pay to be green?," Journal of Business Research, Elsevier, vol. 59(4), pages 492-500, April.
    3. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.
    4. Mark Cordano & R. Marshall & Murray Silverman, 2010. "How do Small and Medium Enterprises Go “Green”? A Study of Environmental Management Programs in the U.S. Wine Industry," Journal of Business Ethics, Springer, vol. 92(3), pages 463-478, March.
    5. Handgraaf, Michel J.J. & Van Lidth de Jeude, Margriet A. & Appelt, Kirstin C., 2013. "Public praise vs. private pay: Effects of rewards on energy conservation in the workplace," Ecological Economics, Elsevier, vol. 86(C), pages 86-92.
    6. David Gadenne & Jessica Kennedy & Catherine McKeiver, 2009. "An Empirical Study of Environmental Awareness and Practices in SMEs," Journal of Business Ethics, Springer, vol. 84(1), pages 45-63, January.
    7. Sonja Studer & Stephen Tsang & Richard Welford & Peter Hills, 2008. "SMEs and voluntary environmental initiatives: a study of stakeholders' perspectives in Hong Kong," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(2), pages 285-301.
    8. Sue Cassells & Kate Lewis, 2011. "SMEs and environmental responsibility: do actions reflect attitudes?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(3), pages 186-199, May.
    9. Barile, Lory & Cullis, John & Jones, Philip, 2015. "Will one size fit all? Incentives designed to nurture prosocial behaviour," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 9-16.
    10. Hui Situ & Carol Tilt, 2018. "Mandatory? Voluntary? A Discussion of Corporate Environmental Disclosure Requirements in China," Social and Environmental Accountability Journal, Taylor & Francis Journals, vol. 38(2), pages 131-144, May.
    11. Gary Lynch-Wood & David Williamson, 2014. "Civil Regulation, the Environment and the Compliance Orientations of SMEs," Journal of Business Ethics, Springer, vol. 125(3), pages 467-480, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zezhong Li & Qian Zhou, 2024. "Does Corporate Behavior Related to the Overseas Market Promote Enterprises’ Green Transformation?—Evidence from China," Sustainability, MDPI, vol. 16(11), pages 1-21, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Silvia Cantele & Alessandro Zardini, 2020. "What drives small and medium enterprises towards sustainability? Role of interactions between pressures, barriers, and benefits," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 126-136, January.
    2. Silvia Cantele & Silvia Vernizzi & Bettina Campedelli, 2020. "Untangling the Origins of Sustainable Commitment: New Insights on the Small vs. Large Firms’ Debate," Sustainability, MDPI, vol. 12(2), pages 1-12, January.
    3. Johan Graafland & Hugo Smid, 2016. "Environmental Impacts of SMEs and the Effects of Formal Management Tools: Evidence from EU's Largest Survey," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(5), pages 297-307, September.
    4. Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2020. "Environmental management systems, practices and outcomes: Differences in resource allocation between small and large firms," International Journal of Production Economics, Elsevier, vol. 228(C).
    5. Henning Madsen & John P. Ulhøi, 2016. "Corporate Environmental Initiatives in Small and Medium Sized Enterprises and Their Outcomes: A Longitudinal Study," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 92-101, February.
    6. Juan Felipe Reyes‐Rodríguez & John P. Ulhøi & Henning Madsen, 2016. "Corporate Environmental Sustainability in Danish SMEs: A Longitudinal Study of Motivators, Initiatives, and Strategic Effects," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(4), pages 193-212, July.
    7. Gabriel Eweje, 2020. "Proactive environmental and social strategies in a small‐ to medium‐sized company: A case study of a Japanese SME," Business Strategy and the Environment, Wiley Blackwell, vol. 29(7), pages 2927-2938, November.
    8. Leon Guillén & Afcha Sergio & Chu Manuel, 2022. "Research on social responsibility of small and medium enterprises: a bibliometric analysis," Management Review Quarterly, Springer, vol. 72(3), pages 857-909, September.
    9. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    10. Denise Baden & Swarna Prasad, 2016. "Applying Behavioural Theory to the Challenge of Sustainable Development: Using Hairdressers as Diffusers of More Sustainable Hair-Care Practices," Journal of Business Ethics, Springer, vol. 133(2), pages 335-349, January.
    11. Kate V. Lewis & Sue Cassells & Hernan Roxas, 2015. "SMEs and the Potential for A Collaborative Path to Environmental Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 750-764, December.
    12. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    13. Sarah Williams & Anja Schaefer, 2013. "Small and Medium‐Sized Enterprises and Sustainability: Managers' Values and Engagement with Environmental and Climate Change Issues," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 173-186, March.
    14. Elisabeth Albertini, 2019. "The Contribution of Management Control Systems to Environmental Capabilities," Post-Print halshs-02007194, HAL.
    15. Veronica, Scuotto & Alexeis, Garcia-Perez & Valentina, Cillo & Elisa, Giacosa, 2020. "Do stakeholder capabilities promote sustainable business innovation in small and medium-sized enterprises? Evidence from Italy," Journal of Business Research, Elsevier, vol. 119(C), pages 131-141.
    16. Chieh-Yu Lin & Yi-Hui Ho, 2011. "Determinants of Green Practice Adoption for Logistics Companies in China," Journal of Business Ethics, Springer, vol. 98(1), pages 67-83, January.
    17. Agnès Paradas & Christophe Revelli & Caroline Debray & Jean-Marie Courrent & Martine Spence, 2017. "Pratiques responsables des dirigeants de PME : influence du profil du dirigeant," Post-Print hal-02425528, HAL.
    18. Maria Jesus Bonilla‐Priego & Juan‐José Nájera‐Sánchez & Xavier Font, 2022. "Beyond ethics: The transformational power of overlapping motivations in implementing strategic sustainability actions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 685-697, March.
    19. Ana-Maria Zamfir & Cristina Mocanu & Adriana Grigorescu, 2017. "Circular Economy and Decision Models among European SMEs," Sustainability, MDPI, vol. 9(9), pages 1-15, August.
    20. Polina Baranova & Fred Paterson, 2017. "Environmental capabilities of small and medium sized enterprises: Towards transition to a low carbon economy in the East Midlands," Local Economy, London South Bank University, vol. 32(8), pages 835-853, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:devpol:v:41:y:2023:i:5:n:e12698. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/odioruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.