Abstract
This paper explores the characteristic type and use of sustainability control in small to medium sized enterprises (SMEs) through the implementation of an environmental management system, formally certified to ISO 14001. Through a qualitative study of 18 SMEs and seven auditors operating in Northern Europe, the paper draws on the theoretical framework of sustainability control as an analytical tool to explore the interplay between the formal design of control instruments and the operational use of these in practice for the studied SMEs. The study finds that both the formalised control instrument design and operational use of these controls by employees are characteristically formal and procedure based for ISO 14001 certification. Nevertheless, environmental management in daily tasks is also achieved by engaging non-managerial employees through their passionate interests and intrinsic motivations. In extension to previous sustainability control research, the findings emphasise that local level operator knowledge is not only the product of formalised control system design, and that external factors are also important for guiding employee behaviour in situ. This proposes that daily working tasks are achieved through a combination of organisational and extra-organisational individual values and beliefs about sustainability. Particularly, engaging non-managerial employees in SMEs through a combination of extrinsic and intrinsic rewards appears valuable for sustainable futures. Therefore, in addition to compliance-driven controls, SME owner-managers should ensure supportive structures where employees are given the autonomy to be creative and innovative.
Highlights
As the biggest sector of society, small to medium enterprises (SMEs) contribute to most of Europe’s pollution (Kearins et al, 2010), and their negative impact on a global scale is great (Lewis et al, 2015)
While control over and control in situ are framed ‘within’ the intra-organisational boundaries, operator action is connected to both organisational beliefs systems and values, as well as individual ones regarding the sustainability as an extra-organisational discourse
External factors are embedded into the findings through the analytical framework which recognises that management control for sustainability is the product of internally designed systems
Summary
As the biggest sector of society, small to medium enterprises (SMEs) contribute to most of Europe’s pollution (Kearins et al, 2010), and their negative impact on a global scale is great (Lewis et al, 2015). Beyond the management control literature, SMEs are presented as having distinct characteristics in terms of concentrated ownership, flatter organisational structures and limited resources, among others (Hillary, 2004; Stubblefield Loucks et al, 2010). These unique characteristics arguably effect their approach to sustainability initiatives (Fassin, 2008). Others present sustainability initiatives in SMEs as tied to the values of owner-managers that guide internal action through proactive strategies (see Spence, 2016; Stubblefield Loucks et al, 2010)
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