Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Banjo Roxas () and Doren Chadee

Social Responsibility Journal, 2012, vol. 8, issue 2, 208-226

Abstract: Purpose - This study aims to challenge the conventional view that resources determine the extent of the environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms. Design/methodology/approach - The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO. Findings - The results indicate that ESO is a multi‐dimensional construct with three facets – i.e. awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources‐ESO proposition. Research limitations/implications - A proactive ESO is not necessarily beyond the reach of resource‐constrained small firms. The generalisability of the findings, however, is limited to small manufacturing firms in The Philippines. Practical implications - This study informs owner‐managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should focus not just on financial forms of assistance. Originality/value - To date, this is the only Philippines‐based study and one of the scarce small firm‐focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource constraints.

Keywords: Environmental sustainability orientation; Small firms; Small business; Manufacturing firms; Small to medium‐sized enterprises; Philippines (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:v:8:y:2012:i:2:p:208-226

DOI: 10.1108/17471111211234842

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