Examining the influence of customers, suppliers, and regulators on environmental practices of SMEs: Evidence from the United Arab Emirates

Sawang, Sukanlaya; Ng, Poh Yen; Kivits, Robbert Anton; Dsilva, Jacinta; Locke, Jasmina

Abstract

This study explores which stakeholders have more substantial influence than others and which combinations of stakeholders will have the greatest impact on small‐ and medium‐sized enterprises' environmental practices. A quantitative survey of 150 manager‐owners of SMEs found that while customers and suppliers significantly influence SMEs' sustainability behaviors, the demands and expectations set by regulatory bodies have a more substantial impact on how SMEs shape their environmental practices. Further, the presence of regulatory pressures does more than directly influence SMEs. Pressure from regulatory bodies also amplifies the effect of other forces on SMEs' environmental practices. In other words, when regulatory pressures exist, the impact of customer and supplier pressures on SMEs' sustainability behaviors becomes even more substantial. This synergistic effect underscores the pivotal role of regulatory pressures in shaping and enhancing SMEs' commitment to environmental sustainability.

Citation

Sawang, S., Ng, P. Y., Kivits, R. A., Dsilva, J., & Locke, J. (online). Examining the influence of customers, suppliers, and regulators on environmental practices of SMEs: Evidence from the United Arab Emirates. Business Strategy and the Environment, https://doi.org/10.1002/bse.3831

• Journal Article Type: Article
• Acceptance Date: May 18, 2024
• Online Publication Date: Jun 2, 2024
• Deposit Date: Jun 11, 2024
• Publicly Available Date: Jun 11, 2024
• Journal: Business Strategy and the Environment
• Print ISSN: 0964-4733
• Electronic ISSN: 1099-0836
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1002/bse.3831
• Keywords: environmental sustainability, regulatory, institutional theory, stakeholder pressure, SMEs