Does the size of the firm matter in determining the adoption of green economy practices in India?

Jabir Ali · Sarbjit Singh

7 citations0/0 files storedInternational Journal of Social Economics

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Environmental Sustainability in Business Sustainable Supply Chain Management Sustainability and Innovation in Business

Abstract

Purpose This article aims at analysing the factors influencing the adoption of green economy practices across different sizes of firms in India. Design/methodology/approach This study is based on the World Bank Enterprise Survey 2022, covering 9,376 firms in India. The Poisson Count Regression Model has been used to analyse the factors affecting the adoption of green economy practices. Findings About 83 % of firms reported adopting at least one green practice in their business related to energy conservation, water management, pollution control and waste management and recycling. Research results reveal a significant association between the size of the firm and adoption of green economy practices. The impact of enterprise characteristics varies by firm size. For instance, female ownership positively affects adoption in large firms but negatively in small and medium-sized enterprises (SMEs). However, lean operations, research and development (R&D) spending and international quality certification positively influence green practices adoption for both SMEs and large firms. Perceived business obstacles show similar implications on green practices adoption by size of firms except access to finance, business licencing, tax rate and law and order affect SMEs while labour regulations, tax administration and political instability affect large firms. Practical implications This paper suggests implications for strengthening the adoption of green economy practices across firm sizes and provides opportunities for future research. Originality/value This study is based on a unique dataset derived from the World Bank Enterprise Survey 2022, which has included green economy indicators for the first time. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2023-0918 .

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References

1995Toward a New Conception of the Environment-Competitiveness Relationship 2008Does It Pay to Be Green? A Systematic Overview 2017Green Innovation, Managerial Concern and Firm Performance: An Empirical Study 2001Design for the Environment: A Quality-Based Model for Green Product Development 2010Determinants of Green Practice Adoption for Logistics Companies in China 2014Environmental innovations and profitability: how does it pay to be green? An empirical analysis on the German innovation survey 2019Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review 2015Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces

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