Predictors of Implementation of ESG Principles in the Small and Medium-Sized Enterprises in the Lublin Region

Purpose: The purpose of this article is an attempt to identify predictors of ESG implementation in micro-enterprises and SMEs in the Lublin region, whose development trends are characteristic of the EU regions with significant developmental delays and yet showing significant developmental potential. This paper is a specific continuation of the authors' research in the area of identifying barriers to the implementation of innovation and factors affecting the formation of regional leadership. Design/Methodology/Approach: In order to isolate the predictors of ESG implementation in micro-enterprises and SMEs in the Lublin region, a questionnaire survey was conducted on a group of entrepreneurs representing the Lublin region's entrepreneurs representing this business sector using a specially developed and previously validated research tool. The next step was to extract aggregate variables and propose a conceptual model and then develop a predictive model using SEM and validate it. Findings: The impact weights of the three extracted aggregate predictors corresponding to the basic pillars of ESG were identified and determined, and an attempt was made to decompose these aggregate predictors into 11 basic predictors specific to the studied group of companies. An assessment of the mapping goodness of the identification of predictors of ESG implementation in the proposed model was also made. Practical Implications: The proposed model and the identified predictors may serve as a basis for further extended research, as well as a premise for the development of a local ESG implementation policy for the microenterprise and SME sector of the Lublin region, and above all for interventions in these sections, whose importance seems to be crucial for the success of ESG implementation. Originality/Value: The results of the research presented in this publication are based on the authors' current original research carried out in the microenterprise and SME sector, the importance of which seems to be essential for the overall success of ESG implementation among the enterprises of Lublin Region and may be an interesting comparative study for other EU regions with a similar structure.