Sustainable strategy: encouraging implementation in small enterprises

Abstract

Purpose Prioritising economic, environmental and social requirements of society has become imperative for attaining a competitive edge in the global marketplace. This study examines how internal and external factors influence sustainable strategic orientations of Chinese small technology enterprises. It uses an initial framework grounded in institutional theory and resource-based view (RBV). Design/methodology/approach The study surveyed small technology enterprises using quantitative techniques. A combination of partial least squares structural equation modelling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA) was used to analyse 402 valid samples with statistical significance. Findings The PLS-SEM results show that absorptive capacity, innovation culture and coercive pressure positively influence small enterprises’ sustainability orientation. Additionally, the fsQCA method identifies five complex combinations of causal antecedents that can facilitate small enterprises’ adoption of sustainability orientation. Practical implications The findings reaffirm the importance of maintaining ideal environmental cognition and external institutional pressure. Specifically, enterprises need to strategically allocate their limited resources to optimal levels and combinations to achieve sustainability orientation. Originality/value This study enhances the understanding of sustainability orientation by integrating the RBV and institutional theory, highlighting various factors that promote sustainability at the firm level. Furthermore, asymmetric research perspectives show the triggers of sustainability orientation from both symmetrical and asymmetrical perspectives. Set theory approaches represent a pioneering approach that captures the intricacies of sustainability orientation, advancing beyond previous variance-based findings by providing optimal mix solutions.

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