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Sustainable Leadership and Strategic Management in SMEs

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: 31 March 2025 | Viewed by 3929

Special Issue Editors

Surrey Business School, University of Surrey, Guildford GU2 7XH, UK
Interests: digital innovation management; sustainability development; entrepreneurship
Special Issues, Collections and Topics in MDPI journals

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School of Public Policy and Management, Tsinghua University, 100084, Beijing, China
Interests: innovation management; sustainable development; disruptive technology
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Guest Editor
Intellectual Property School, Chongqing University of Technology, Chongqing 400054, China
Interests: innovation and intellectual property law; cyber law
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The Faculty of Business, Computing and Digital Industries, Leeds Trinity University, Brownberrie Lane, Horsforth, Leeds, LS18 5HD, UK
Interests: innovation management; strategic management; entrepreneurship management
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The need for sustainable business practices is driven by global challenges such as climate change, resource depletion, and social inequalities, emphasizing the importance of integrating sustainability into the SME sector (Gadenne et al., 2009; Jenkins, 2009; Steurer, 2010). SMEs are central to many economies and pivotal in adopting sustainable practices due to their significant economic and social impact (Spence, 2007; Jenkins, 2009). However, they face unique challenges, including limited resources and lower levels of regulatory oversight compared to larger corporations, affecting their ability to engage in sustainability initiatives (Revell and Blackburn, 2007; Gadenne et al., 2009). This Special Issue on “Sustainable Leadership and Strategic Management in SMEs” explores how SMEs can integrate sustainability into their strategies and leadership. It aims to understand the role of leadership in promoting sustainability and how strategic management practices can incorporate sustainability within SME operations, while seeking to identify both barriers and solutions to aligning SMEs with viable and environmentally friendly practices.

The scope of this Special Issue aims to generate actionable insights for SMEs. It welcomes submissions on innovative sustainable strategies, their impact on SME performance, and the influence of leadership in cultivating a sustainability-oriented culture. Contributions may include empirical research, theoretical insights, and case studies that illustrate both successes and the specific challenges faced by SMEs. This Special Issue intends to deepen the understanding of how sustainable leadership and strategic management are implemented in SMEs, contributing to a sustainable development discourse and equipping SMEs with the tools for sustainable transformations. By incorporating diverse perspectives, the aim is to enhance the understanding and application of sustainable practices across various global SME contexts, significantly benefiting both academic fields and practical applications.

Indicative topics

The following topics represent a non-exhaustive list of suggested directions:

Leadership and Culture for Sustainability in SMEs: This topic invites studies that examine how leadership styles and organizational culture influence the adoption and effectiveness of sustainable practices within SMEs. Considering the pivotal role of leaders in shaping organizational culture, submissions may explore how transformational leadership can foster a sustainability-oriented culture within SMEs. Research could also delve into the challenges leaders face in balancing economic performance with environmental and social responsibilities, providing insights into how SMEs can overcome these barriers to achieve sustainable growth.

Innovative Business Models for SME Sustainability: We welcome papers that discuss innovative business models that integrate sustainability into the core strategy of SMEs. Studies might focus on how business model innovation (BMI) can be a strategic tool for sustainability, exploring the internal and external factors that drive BMI in the context of SMEs. Contributions could provide a holistic understanding of how SMEs can redesign their business models to be both sustainable and economically viable, drawing on recent advancements in the field.

Regulatory Challenges and Strategic Compliance in SMEs: This area seeks contributions that analyze the impact of regulatory environments on the sustainability efforts of SMEs. Papers may explore how SMEs navigate complex and diverse regulatory landscapes and how these regulations influence their strategic decisions related to sustainability. Research could examine strategies for compliance and innovation within regulatory frameworks, and how these strategies enable SMEs to contribute to wider sustainability goals.

Stakeholder Engagement and Value Co-Creation in SMEs: Under this topic, we invite studies on how SMEs manage stakeholder relationships and engage in value co-creation to enhance their sustainability. Contributions might focus on the processes and strategies used by SMEs to align the interests of diverse stakeholders, including customers, suppliers, and local communities, and how these efforts contribute to sustainable development.

Technological Innovations and Sustainability in SMEs: Papers in this area could investigate how SMEs leverage technological innovations to improve their sustainability performance. Topics might include the adoption of green technologies, the use of digital tools to enhance environmental management, and how technology influences the sustainability strategies of SMEs. Research could also explore the barriers to technology adoption and strategies to overcome these challenges.

References

Gadenne, D., Kennedy, J., & McKeiver, C. (2009). An empirical study of environmental awareness and practices in SMEs. Journal of Business Ethics, 84(1), 45-63.

Jenkins, H. (2009). A ‘business opportunity’ model of corporate social responsibility for small- and medium-sized enterprises. Business Ethics: A European Review, 18(1), 21-36.

Steurer, R. (2010). The role of governments in corporate social responsibility: Characterising public policies on CSR in Europe. Policy Sciences, 43(1), 49-72.

Revell, A., & Blackburn, R. (2007). The business case for sustainability: An examination of small firms in the UK’s construction and restaurant sectors. Environment and Planning C: Government and Policy, 25(6), 998-1012.

Spence, L. J. (2007). Social and environmental reporting and its role in maintaining or creating organizational legitimacy in SMEs. Accounting, Auditing & Accountability Journal, 20(3), 411-434.

Dr. Senmao Xia
Dr. Zhaoxing Wang
Prof. Dr. Peiyu He
Prof. Yanguo Jing
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • SME
  • sustainable leadership
  • strategic management
  • sustainability practices
  • regulatory impact
  • technological innovation
  • environmental impact

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Published Papers (3 papers)

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Research

24 pages, 502 KiB  
Article
How Do Startups Drive Innovations Towards Sustainability?
by Jihee Jung, Haengjin Ko and Young Jun Kim
Sustainability 2025, 17(4), 1693; https://doi.org/10.3390/su17041693 - 18 Feb 2025
Viewed by 233
Abstract
Startups face significant challenges in balancing survival with sustainability, as approximately 90% of them fail. Sustainability is often perceived as a short-term cost, yet turbulent business environments—driven by climate change, environmental regulations, and evolving social expectations—are compelling startups to align their innovations with [...] Read more.
Startups face significant challenges in balancing survival with sustainability, as approximately 90% of them fail. Sustainability is often perceived as a short-term cost, yet turbulent business environments—driven by climate change, environmental regulations, and evolving social expectations—are compelling startups to align their innovations with Environmental, Social, and Governance (ESG) principles. These efforts aim to attract investors, customers, and other stakeholders. Despite resource constraints and the liabilities of smallness and newness, understanding how startups leverage innovation to achieve sustainability performance is of both theoretical and practical importance, particularly within the framework of triple bottom line theory. This study empirically examines the roles of absorptive capacity, appropriability, and openness in mediating and moderating the relationship between innovation activities and sustainability performance in startups. Using data from the Korean Innovation Survey 2018—a structured tool aligned with global standards for tracking innovation activities—we analyze 278 young manufacturing firms. Regression analyses reveal that product innovation and organizational innovation are significantly associated with sustainability performance. Furthermore, absorptive capacity mediates the relationship between these types of innovation and sustainability performance. To explore the contingencies influencing these relationships, we test appropriability (measured by protection mechanisms) and openness (quantified by external partnerships). Moderated mediation analysis indicates that openness strengthens the direct relationship between product innovation and sustainability performance up to a threshold but weakens it beyond this point. Organizational innovation’s impact on sustainability performance is fully mediated by absorptive capacity, while appropriability moderates this mediation by enhancing absorptive capacity’s effectiveness when limited protection mechanisms are used. These findings contribute to sustainability research by highlighting that startups’ sustainability efforts are driven by innovation activities mediated by absorptive capacity and contingent upon specific factors such as appropriability and openness. The study confirms the paradox of openness in startup contexts pursuing triple bottom line objectives. Practically, this research provides actionable insights for corporate leaders and policymakers on fostering absorptive capacity through external knowledge acquisition while carefully managing appropriability mechanisms and collaboration strategies to enhance sustainability outcomes. Full article
(This article belongs to the Special Issue Sustainable Leadership and Strategic Management in SMEs)
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<p>A research model.</p>
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15 pages, 543 KiB  
Article
The Impact of Informatization Leadership of CEOs and Executives in SMEs on Business Performance: A Balanced Scorecard Perspective for Sustainable Management
by So-Hyun Park and Changhoon Jung
Sustainability 2025, 17(1), 32; https://doi.org/10.3390/su17010032 - 25 Dec 2024
Viewed by 653
Abstract
Informatization is an essential component of becoming a sustainable and competitive SMEs in a rapidly changing society. Previous studies suggest that the informatization leadership of CEOs and executives, especially in SMEs, can have a significant impact on business performance. To empirically analyze this [...] Read more.
Informatization is an essential component of becoming a sustainable and competitive SMEs in a rapidly changing society. Previous studies suggest that the informatization leadership of CEOs and executives, especially in SMEs, can have a significant impact on business performance. To empirically analyze this possibility, this study analyzes the impact of CEOs’ and executives’ informatization leadership on business performance using data from 4000 SMEs in Korea in 2020. In particular, we also examine it from the perspective of BSC business performance, which includes non-financial indicators along with financial performance, which is a short-term indicator. In this study, exploratory factor analysis was conducted to extract variables based on secondary data. And multiple regression analysis was conducted to examine the relative importance and direction of the influence of independent variables on dependent variables. The results show that informatization leadership does not have a statistically significant impact on financial performance. In other words, informatization leadership does not affect short-term financial performance. However, there is a statistically significant positive impact on BSC business performance. This means that the higher the informatization leadership, the higher the BSC business performance, including non-financial performance. Therefore, it implies that the CEOs and executives of SMEs should have informatization leadership for long-term performance. This study reveals the importance of informatization leadership of CEOs and executives in SMEs and suggests that CEOs and executives should strive to improve their informatization leadership for sustainable management in the future. This study also provides policy implications for improving informatization leadership. Full article
(This article belongs to the Special Issue Sustainable Leadership and Strategic Management in SMEs)
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<p>Research Model.</p>
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23 pages, 7028 KiB  
Article
The Interlink between Stakeholder Influence and Sustainable Practices: A Case Study of Thai Agriculture Enterprise
by Ruethai Onbhuddha, Bingying Ma, Chavatip Chindavijak and Seiichi Ogata
Sustainability 2024, 16(20), 8804; https://doi.org/10.3390/su16208804 - 11 Oct 2024
Viewed by 2167
Abstract
Nowadays, agriculture businesses have been significantly impacted by rapid global changes, compelling the agro-industry to adopt sustainable development practices to remain resilient. Moreover, the application of stakeholder theory has become essential in business management to achieve inclusive growth and fulfill sustainable business. Understanding [...] Read more.
Nowadays, agriculture businesses have been significantly impacted by rapid global changes, compelling the agro-industry to adopt sustainable development practices to remain resilient. Moreover, the application of stakeholder theory has become essential in business management to achieve inclusive growth and fulfill sustainable business. Understanding the interlink between stakeholder pressure and the motivation to transform an enterprise’s practices into sustainable development is imperative. Therefore, this study aims to evaluate the direct pressure of stakeholder groups on sustainable practices in agriculture enterprises in Thailand through a questionnaire survey. This paper focused on the influence of primary and secondary stakeholders and evaluated the weighting of sustainability practices. The survey was conducted on employees who work in enterprises that apply Thailand’s Sufficiency Economy Philosophy (SEP). The research adopted the regression and information entropy methods for result analysis. The results showed that employees, shareholders, and competitors are significant stakeholder groups that drive sustainable capital covering economics, nature, society, and human capital. Last, stakeholder management is an outstanding practice in a SEP thinking enterprise. Concurrently, human capital is the highest priority to fulfill this alternative pathway to be successful in enterprise sustainability. Full article
(This article belongs to the Special Issue Sustainable Leadership and Strategic Management in SMEs)
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<p>The Daly pyramid from capitals to the ultimate quality of life [<a href="#B48-sustainability-16-08804" class="html-bibr">48</a>].</p>
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<p>The construction of hypotheses for the agriculture enterprise sustainability framework.</p>
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<p>The research methodology.</p>
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<p>The average scores of sustainable practices.</p>
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<p>The average scores of stakeholders’ importance.</p>
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<p>The correlation metric among practices in four dimensions. Remark: Pearson correlation coefficient [<a href="#B66-sustainability-16-08804" class="html-bibr">66</a>]. <span class="html-fig-inline" id="sustainability-16-08804-i001"><img alt="Sustainability 16 08804 i001" src="/sustainability/sustainability-16-08804/article_deploy/html/images/sustainability-16-08804-i001.png"/></span> −1–0 Negative correlation, <span class="html-fig-inline" id="sustainability-16-08804-i002"><img alt="Sustainability 16 08804 i002" src="/sustainability/sustainability-16-08804/article_deploy/html/images/sustainability-16-08804-i002.png"/></span> &lt;0.3 Almost no correlation, <span class="html-fig-inline" id="sustainability-16-08804-i003"><img alt="Sustainability 16 08804 i003" src="/sustainability/sustainability-16-08804/article_deploy/html/images/sustainability-16-08804-i003.png"/></span> 0.3–0.5 Weak correlation, <span class="html-fig-inline" id="sustainability-16-08804-i004"><img alt="Sustainability 16 08804 i004" src="/sustainability/sustainability-16-08804/article_deploy/html/images/sustainability-16-08804-i004.png"/></span> 0.5–0.8 Moderate correlation, <span class="html-fig-inline" id="sustainability-16-08804-i005"><img alt="Sustainability 16 08804 i005" src="/sustainability/sustainability-16-08804/article_deploy/html/images/sustainability-16-08804-i005.png"/></span> &gt;0.8 High correlation.</p>
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<p>The Spearman’s ρ rank correlation metric among stakeholders and four dimensions. Remark: X indicates the <span class="html-italic">p</span>-value over 0.05; Spearman’s ρ result below 0 indicates a negative correlation, 0 to 0.20 is negligible, 0.21 to 0.40 is weak, 0.41 to 0.60 is moderate, 0.61 to 0.80 is strong, and 0.81 to 1.00 is considered very strong [<a href="#B67-sustainability-16-08804" class="html-bibr">67</a>].</p>
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<p>The sustainability weighting contribution by the entropy method. Remark: the <span style="color:red">------</span> indicates the average weighting score.</p>
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<p>Quadruple framework for assessing company sustainability. Remark: ( ) after the theme indicates the number of sustainable practices for each theme.</p>
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<p>Two SEP enterprises in the agricultural sector.</p>
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