IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v32y2025i2p2147-2170.html
   My bibliography  Save this article

Exploring the barriers and drivers of ESG in the German Mittelstand: A qualitative analysis of mechanical and plant engineering companies

Author

Listed:
  • Marsela Bebic
  • Natálie Bruder Badie
  • Ladislav Tyll
  • Mohit Srivastava

Abstract

This qualitative study investigates the adoption of Environmental, Social, and Governance (ESG) among German Mittelstand mechanical and plant engineering firms. Through semi‐structured interviews, the research identifies key barriers to ESG implementation, including human resource challenges, conceptual ambiguity, legal complexities, standardization gaps and rapid implementation pressures. Simultaneously, it uncovers driving forces such as customer demands, talent attraction, rating agency influence, intrinsic motivation, executive commitment, and regulatory compliance. Notably, profit and loss (P&L) impact emerge as a dual force, influencing both barriers and drivers. The study proposes a best practice model featuring clear responsibilities, centralization, and ESG integration in processes. Additional recommendations include developing a business case for ESG, engaging in industry‐specific networks, and aligning with prominent rating agencies. This research offers strategic insights for sustainable business practices within the Mittelstand context. It presents implications for governments and businesses, suggesting targeted policies to mitigate barriers and reinforce drivers of ESG adoption.

Suggested Citation

  • Marsela Bebic & Natálie Bruder Badie & Ladislav Tyll & Mohit Srivastava, 2025. "Exploring the barriers and drivers of ESG in the German Mittelstand: A qualitative analysis of mechanical and plant engineering companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 2147-2170, March.
    • Handle: RePEc:wly:corsem:v:32:y:2025:i:2:p:2147-2170
    DOI: 10.1002/csr.3054
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.3054
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.3054?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
    ---><---

    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:wly:corsem:v:32:y:2025:i:2:p:2147-2170. 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.

    We have no bibliographic references for this item. You can help adding them by using 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://doi.org/10.1002/(ISSN)1535-3966 .

    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.