Firm resources and the development of environmental sustainability among small and medium‐sized enterprises: Evidence from the Australian wine industry

Hanne Knight, Phil Megicks, Sheela Agarwal and M.A.A.M. Leenders

Business Strategy and the Environment, 2019, vol. 28, issue 1, 25-39

Abstract: Scholars and industry professionals want clarification of the specific firm resources that influence the adoption and development of environmentally sustainable strategies. This paper, set in the context of the Australian wine industry, explores different firm resources that are beneficial for environmentally sustainable development and examines the role of management attitudes and norms in moderating this relationship. It establishes which resources small and medium‐sized enterprises (SMEs) should invest in to be more successful in following environmental principles. The findings of a survey of the owner‐managers of Australian wine‐producing SMEs are reported, and partial least squares structural equation modelling is utilized to analyze the data. Results clearly indicate that successful firms that manage their resources more effectively influence the application of environmental behaviour, with one distinct resource significantly influencing the disclosure of such behaviour. A moderating effect is established which supports the notion that pro‐environmental decision‐making in SMEs is heavily influenced by the attitudes and norms held by management.

Date: 2019
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