Effectiveness of green entrepreneurship practices in driving the growth of Indian small and medium-sized enterprises
Keywords:
Green entrepreneurship, Small and medium-sized enterprises, Sustainability, Organizational performanceAbstract
Purpose: The present study investigates the effectiveness of green entrepreneurship practices in shaping the growth trajectory of small and medium-sized enterprise (SMEs) in India. The present study intends to evaluate the green entrepreneurship practices adopted by Indian SMEs and its impact on the performance of the organizations. Problem: The current research work explores the awareness and implementation of eco-friendly initiatives, the demographic profiles of participants, and the relationship between green entrepreneurship factors and organizational performance. Methodology: This cross-sectional survey used a survey instrument and 60 SMEs participated in the survey. Before the full-scale survey, a pilot test with a small group of SME representatives was conducted to ensure the questionnaire’s clarity and relevance. Findings: The study findings indicate a notable level of awareness and dedication to green activities among SMEs, with a substantial percentage holding green certifications. While a positive correlation exists between green cognition, entrepreneurial culture, entrepreneurship education, and organizational performance, financial support demonstrates a weak association. Recommendations: Recommendations include enhancing awareness of government incentives, promoting green entrepreneurship education, and fostering collaboration among SMEs and certification bodies. These insights provide valuable guidance for policymakers, industry stakeholders, and SMEs aiming to integrate sustainable practices into their operations for long-term growth and environmental stewardship.
References
Alraja, M. N., Imran, R., Khashab, B. M., and Shah, M. (2022). Technological innovation, sustainable green practices and SMEs sustainable performance in times of crisis (COVID-19 pandemic). Information Systems Frontiers, 24, 1081-1105. doi: 10.1007/s10796-022-10250-z
Audretsch, D. B., Segarra, A., and Teruel, M. (2014). Why don’t all young firms invest in RandD? Small Business Economics, 43(4), 751-766. doi: 10.1007/s11187-014-9561-9
Ball, C., and Kittler, M. (2017). Removing environmental market failure through support mechanisms: Insights from green start-ups in the British, French and German energy sectors. Small Business Economics, 52(4), 831-844. doi: 10.1007/s11187-017-9937-8
Benzidia, S., and Makaoui, N. (2020). Improving SMEs performance through supply chain flexibility and market agility: IT orchestration perspective. Supply Chain Forum: An International Journal, 21(3), 173-184. doi: 10.1080/16258312.2020.1801108
Broccardo, L., and Zicari, A. (2020). Sustainability as a driver for value creation: A business model analysis of small and medium entreprises in the Italian wine sector. Journal of Cleaner Production, 259, 120852. doi: 10.1016/j.jclepro.2020.120852
Cai, W., and Li, G. (2018). The drivers of eco-innovation and its impact on performance: Evidence from China. Journal of Cleaner Production, 176, 110-118. doi: 10.1016/j.jclepro.2017.12.109
Cano, Francisco & Sánchez-Gómez, David & Rodríguez-Calcerrada, Jesús & Warren, Charles & Gil, Luis & Aranda, Ismael. (2013). Cano et al. 2013. Effects of drought on mesophyll conductance at different tree canopy levels. Supplementary Mat. PCE.
Cavallo, A., Ghezzi, A., and Balocco, R. (2018). Entrepreneurial ecosystem research: Present debates and future directions. International Entrepreneurship and Management Journal, 15(4), 1291-1321. doi: 10.1007/s11365-018-0526-3
Chatterjee, S., Chaudhuri, R., Vrontis, D., and Thrassou, A. (2022). SME entrepreneurship and digitalization-the potentialities and moderating role of demographic factors. Technological Forecasting and Social Change, 179, 121648. doi: 10.1016/j.techfore.2022.121648
De Medeiros, J. F., Vidor, G., and Ribeiro, J. L. D. (2015). Driving factors for the success of the green innovation market: A relationship system proposal. Journal of Business Ethics, 147(2), 327-341. doi: 10.1007/s10551-015-2927-3
Demirel, P., Li, Q. C., Rentocchini, F., and Tamvada, J. P. (2017). Born to be green: New insights into the economics and management of green entrepreneurship. Small Business Economics, 52(4), 759-771. doi: 10.1007/s11187-017-9933-z
Endris, E., Kassegn, A. (2022). The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia. J Innov Entrep 11, 20 https://doi.org/10.1186/s13731-022-00221-8
Fahad, S., Alnori, F., Su, F., and Deng, J. (2022). Adoption of green innovation practices in SMEs sector: Evidence from an emerging economy. Economic Research-Ekonomska Istraživanja, 35, 5486-5501. doi: 10.1080/1331677x.2022.2029713
Fok, L., Zee, S., and Morgan, Y. C. T. (2022). Green practices and sustainability performance: The exploratory links of organizational culture and quality improvement practices. Journal of Manufacturing Technology Management, 33(5), 913-933. doi: 10.1108/jmtm-11-2021-0439
Gregory-Smith, D., Wells, V.K., Manika, D. et al. (1 more author) (2017) An environmental social marketing intervention in cultural heritage tourism: a realist evaluation. Journal of Sustainable Tourism, 25 (7). pp. 1042-1059. ISSN 0966-9582
Gupta, M., and Dharwal, M. (2021). Green entrepreneurship and sustainable development: A conceptual framework. Materials Today: Proceedings, 49, 3603-3606. doi: 10.1016/j.matpr.2021.08.148
Hojnik, J., and Ruzzier, M. (2016). The driving forces of process eco-innovation and its impact on performance: Insights from Slovenia. Journal of Cleaner Production, 133, 812-825. doi: 10.1016/j.jclepro.2016.06.002
Hoogendoorn, B., Guerra, D., and Van der Zwan, P. (2015). What drives environmental practices of SMEs? Small Business Economics, 44(4), 759-781. doi: 10.1007/s11187-014-9618-9
Hörisch, J., Kollat, J., and Brieger, S. A. (2016). What influences environmental entrepreneurship? A multilevel analysis of the determinants of entrepreneurs’ environmental orientation. Small Business Economics, 48(1), 47-69. doi: 10.1007/s11187-016-9765-2
Kahle, J. H., Marcon, É., Ghezzi, A., and Frank, A. G. (2020). Smart products value creation in SMEs innovation ecosystems. Technological Forecasting and Social Change, 156, 120024. doi: 10.1016/j.techfore.2020.120024
Kesidou, E., and Demirel, P. (2012). On the drivers of eco-innovations: Empirical evidence from the UK. Research Policy, 41(5), 862-870. doi: 10.1016/j.respol.2012.01.005
Klofsten, M., Fayolle, A., Guerrero, M., Mian, S., Urbano, D., and Wright, M. (2019). The entrepreneurial university as driver for economic growth and social change-key strategic challenges. Technological Forecasting and Social Change, 141(1), 149-158. doi: 10.1016/j.techfore.2018.12.004
Koe, W. L., Alias, N. E., and Othman, R. (2019). Factors influencing the intention towards sustainable entrepreneurship among university students. International Journal of Academic Research in Business and Social Sciences, 9(9), 210-218. doi: 10.6007/ijarbss/v9-i9/6283
Koirala, S. (2019). SMEs: Key Drivers of Green and Inclusive Growth. OECD Green Growth Papers. Berlin: OECD Publishing. doi: 10.1787/8a51fc0c-en
Lei, X., Wang, Y., Zhao, D., and Chen, Q. (2021). The local-neighborhood effect of green credit on green economy: A spatial econometric investigation. Environmental Science and Pollution Research, 28(46), 65776-65790. doi: 10.1007/s11356-021-15419-8
Namkung, Y. and Jang, S., (2017). Are consumers willing to pay more for green practices at restaurants?. Journal of Hospitality & Tourism Research, 41(3), pp.329-356. doi: 10.1177/1096348014525632
Newman, L., Shah, D., Vaughn, C. and Javed, F. (2020) Cover Song Identification - A Novel Stem-Based Approach to Improve Song-To-Song Similarity Measurements. SMU Data Science Review, 3(2)
ONeill, K. J., and Gibbs, D. C. (2013). Towards a sustainable economy? Socio-technical transitions in the green building sector. Local Environment, 19(6), 572-590. doi: 10.1080/13549839.2013.818954
Purwandani, J. A., and Michaud, G. (2021). What are the drivers and barriers for green business practice adoption for SMEs? Environment Systems and Decisions, 41, 577-593. doi: 10.1007/s10669-021-09821-3
Ribau, C. P., Moreira, A. C., and Raposo, M. (2016). SME internationalization research: Mapping the state of the art. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 35(2), 280-303. doi: 10.1002/cjas.1419
Saari, U. A., and Joensuu-Salo, S. (2020). Green entrepreneurship. In: Encyclopedia of the UN Sustainable Development Goals. Cham: Springer. p302-312. doi: 10.1007/978-3-319-95726-5_6
Scarpellini, S., Marín-Vinuesa, L. M., Portillo-Tarragona, P., and Moneva, J. M. (2018). Defining and measuring different dimensions of financial resources for business eco-innovation and the influence of the firms’ capabilities. Journal of Cleaner Production, 204, 258-269. doi: 10.1016/j.jclepro.2018.08.320
Silajdžić, I., Kurtagić, S. M., and Vučijak, B. (2015). Green entrepreneurship in transition economies: A case study of Bosnia and Herzegovina. Journal of Cleaner Production, 88, 376-384. doi: 10.1016/j.jclepro.2014.07.004
SME Chamber of India. (2019). About SME in India-SME Chamber of India. Retrieved from: https://www.smechamberofindia.com/about-msme-in-india.php
Tambe, N. (2023). MSME Statistics Of 2023. Forbes Advisor INDIA. Retrieved from: https://www.forbes.com/advisor/in/business/msme-statistics
Topleva, S. A., and Prokopov, T. V. (2020). Integrated business model for sustainability of small and medium-sized enterprises in the food industry: Creating value added through ecodesign. British Food Journal, 122(5), 1463-1483. doi: 10.1108/bfj-03-2019-0208
Urbano, D., Aparicio, S., and Audretsch, D. (2018). Twenty-five years of research on institutions, entrepreneurship, and economic growth: What has been learned? Small Business Economics, 53, 21-49. doi: 10.1007/s11187-018-0038-0
Zhang, L., Fan, Y., Zhang, W., and Zhang, S. (2019). Extending the theory of planned behavior to explain the effects of cognitive factors across different kinds of green products. Sustainability, 11(15), 4222. doi: 10.3390/su11154222
