An empirical analysis of SMES’ triple bottom line practices

Abstract

PurposeThis study aims to examine the determinants of small and medium enterprises (SMEs) sustainability practices in New Zealand from the triple bottom line (3BL) perspective. Unlike large companies and government agencies whose sustainability practices are driven by regulations and attempts to legitimise business operations, little is known about the drivers of SMEs’ sustainability practices.Design/methodology/approachA cross-sectional survey approach was adopted for the data collection. The analysis was mainly descriptive, while the covariates’ effects were measured based on partial least squares structural equation modelling.FindingsThis paper identified that SMEs’ 3BL practices are significantly influenced by local bylaws, voluntary adoption of 3BL operational policies and company size. This paper finds that the SMEs’ industry type is not statistically significant as a determinant of their 3BL practices. This implies that regulation and operational policies increase sustainability practices in the SME sector.Practical implicationsThese findings provide insights to SMEs’ managers on the importance of sustainability policies adoption and bylaws. Government departments and local government councils could adopt the findings in developing regulatory policies that support SMEs’ 3BL.Social implicationsThis study provides support for economically, environmentally and socially sustainable business practices amongst SMEs.Originality/valueA dearth of studies on SMEs sustainability practices exists in the extant literature, particularly in New Zealand. The study focusses on SMEs sustainability in the viewpoint of 3BL practices based on an empirical analysis.