Green information systems efforts and SMEs’ environmental and financial performance: how do eco-management practices shape the story?

Abstract

Little is known about the effect of using green information systems (green IS) in small and medium‐sized enterprises (SMEs). While a tendency for limited resources already constrains the integration of green IS for SMEs, understanding how green IS can help SMEs achieve better environmental and financial performance is critical to implement circular economy. This study examines the effect of green IS on Turkish SMEs’ environmental and financial performance and the moderator effect of eco-management practices on the indirect impact of green IS on a firm’s financial performance via the firm’s environmental performance. To examine the various elements forming this study, a model was developed based on the natural resource-based view of a company. The data was collected from Turkish SMEs. Results show that green IS practices can help SMEs’ environmental and financial performance. Furthermore, results indicate the importance of eco-management practices in the success of green IS integration.