Performance and Effort Expectations in Implementing ESG Practices in Bosnian and Herzegovinian SMEs: An Application of the Technology Acceptance Model

Edin Hrnjica and Ljiljan Veselinović
Additional contact information
Edin Hrnjica: School of Economics and Buisness, University of Sarajevo
Ljiljan Veselinović: School of Economics and Buisness, University of Sarajevo

Ekonomski pregled, 2025, vol. 76, issue 2, 161-174

Abstract: This paper explores the impact of performance expectancy (PE) and effort expectancy (EE) on the behavioral intention (BI) of managers to implement environmental, social, and governance (ESG) practices in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina. Using the Technology Acceptance Model (TAM), the study analyzes how these factors influence decision-makers’ engagement in sustainable business activities. A survey of 247 managers was conducted to assess their BI, PE, and EE for each ESG component. The collected data were analyzed using structural equation modeling (SEM) to construct a second-order latent model that measures the combined effects of these factors. The study fills a gap in the literature by examining sector-specific differences in the factors influencing ESG implementation. The results reveal that both PE and EE significantly affect an organization’s intention to adopt ESG practices, with varying impacts between the manufacturing and service industries. The findings highlight the different challenges and complexities each industry faces in implementing ESG practices. While focusing on PE and EE, it is acknowledged that other factors such as organizational culture, stakeholder pressure, and industry-specific dynamics also play roles in ESG adoption. The main contribution of this work is the use of a second-order latent construct within the TAM model for ESG practices, offering a unique perspective on understanding behavioral intention.

Keywords: Environmental practices; Social practices; Governance practices; ESG; Small and medium-sized businesses; Structural equation modelling; SEM; Bosnia and Herzegovina. (search for similar items in EconPapers)
JEL-codes: L25 L26 M14 Q58 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.32910/ep.76.2.5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hde:epregl:v:76:y:2025:i:2:p:161-174

Ordering information: This journal article can be ordered from
Ekonomski pregled, Hrvatsko društvo ekonomista, Heinzelova 4a, 10000 Zagreb, Croatia
http://www.hde.hr/pregled_en.aspx

Access Statistics for this article

Ekonomski pregled is currently edited by Josip Tica

More articles in Ekonomski pregled from Hrvatsko društvo ekonomista (Croatian Society of Economists) Contact information at EDIRC.
Bibliographic data for series maintained by Josip Tica ().