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Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Author

Listed:
  • Banjo Roxas
  • Doren Chadee

Abstract

Purpose - This study aims to challenge the conventional view that resources determine the extent of the environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms. Design/methodology/approach - The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO. Findings - The results indicate that ESO is a multi‐dimensional construct with three facets – i.e. awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources‐ESO proposition. Research limitations/implications - A proactive ESO is not necessarily beyond the reach of resource‐constrained small firms. The generalisability of the findings, however, is limited to small manufacturing firms in The Philippines. Practical implications - This study informs owner‐managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should focus not just on financial forms of assistance. Originality/value - To date, this is the only Philippines‐based study and one of the scarce small firm‐focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource constraints.

Suggested Citation

  • Banjo Roxas & Doren Chadee, 2012. "Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(2), pages 208-226, June.
    • Handle: RePEc:eme:srjpps:v:8:y:2012:i:2:p:208-226
    DOI: 10.1108/17471111211234842
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    Citations

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    Cited by:

    1. Muhammad Imran Qureshi & Nohman Khan & Shazia Qayyum & Subha Malik & Sanil S Hishan & Thurasamy Ramayah, 2020. "Classifications of Sustainable Manufacturing Practices in ASEAN Region: A Systematic Review and Bibliometric Analysis of the Past Decade of Research," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    2. Parisa Salimzadeh & Jerry Courvisanos, 2015. "A Conceptual Framework for Assessing Sustainable Development in Regional SMEs," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-17, December.
    3. Muhammad Jawad Iqbal & Hafiz Muhammad Usman Khizar, 2022. "The Epistemology of Entrepreneurial Responsible Orientation (ERO): Theory, Conceptualization, and Future Research," SAGE Open, , vol. 12(2), pages 21582440221, April.
    4. María Carmen García-Cortijo & Juan R. Ferrer & Juan Sebastián Castillo-Valero & Vicente Pinilla, 2021. "The Drivers of the Sustainability of Spanish Wineries: Resources and Capabilities," Sustainability, MDPI, vol. 13(18), pages 1-12, September.
    5. Radityo Putro Handrito & Hendrik Slabbinck & Johanna Vanderstraeten, 2021. "Being pro‐environmentally oriented SMEs: Understanding the entrepreneur's explicit and implicit power motives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2241-2254, July.
    6. Farid Ullah & Ma Degong & Muhammad Anwar & Saddam Hussain & Rizwan Ullah, 2021. "Supportive tactics for innovative and sustainability performance in emerging SMEs," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-31, December.
    7. Usman Khizar, Hafiz Muhammad & Iqbal, Muhammad Jawad & Khalid, Junaid & Adomako, Samuel, 2022. "Addressing the conceptualization and measurement challenges of sustainability orientation: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 142(C), pages 718-743.
    8. Hafiz Muhammad Usman Khizar & Muhammad Jawad Iqbal & Muhammad Imran Rasheed, 2021. "Business orientation and sustainable development: A systematic review of sustainability orientation literature and future research avenues," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 1001-1017, September.
    9. Farida Saleem & Saiqa Saddiqa Qureshi & Muhammad Imran Malik, 2021. "Impact of Environmental Orientation on Proactive and Reactive Environmental Strategies: Mediating Role of Business Environmental Commitment," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    10. Samuel Adomako & Joseph Amankwah‐Amoah & Albert Danso & Renata Konadu & Samuel Owusu‐Agyei, 2019. "Environmental sustainability orientation and performance of family and nonfamily firms," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1250-1259, September.
    11. Ricky Y.K. Chan & Katherine H.Y. Ma, 2021. "How and when environmental orientation drives corporate sustainable development in a cross‐national buyer–supplier dyad," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 109-121, January.
    12. Ricky Y. K. Chan & Katherine H. Y. Ma, 2016. "Environmental Orientation of Exporting SMEs from an Emerging Economy: Its Antecedents and Consequences," Management International Review, Springer, vol. 56(5), pages 597-632, October.
    13. Joseph Amankwah‐Amoah & Albert Danso & Samuel Adomako, 2019. "Entrepreneurial orientation, environmental sustainability and new venture performance: Does stakeholder integration matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 79-87, January.

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