Abstract
Orientation: Embracement of triple bottom line reporting as a driver of a firm’s sustainability is a paradox puzzling most contemporary business executives.Research purpose: The purpose of this research is to examine how effective alignment of the triple bottom line business model with building and construction operational activities leverages effective market performance of the small and medium-sized enterprises (SMEs) in the building and construction industry, so as to identify major paradoxes and the remedial business model that can be suggested.Research design, approach and method: The study uses interpretivist research paradigm and exploratory qualitative research method to explore the opinions and perceptions of 30 judgementally drawn participants comprising managers and supervisors from 30 building and construction SMEs in Gauteng and KwaZulu-Natal provinces. Thematic analysis was used in the evaluation and interpretation of the interview data collected using a semi-structured interview guide.Main findings: A seemingly greater preponderance to pursue profitability at the expense of people and planet bottom lines was found to be common among most of the SMEs during the initial stages of their establishments and growth because of the need to attain the usually essential initial financial sustainability. Even though on attaining financial sustainability, some of the SMEs strive to achieve all the three bottom lines, most of the undertaken initiatives are often only aimed at improving compliance with relevant building and construction legislations.Managerial implications: The study suggests a modified triple bottom line business model that the SMEs in the building and construction industry can replicate to effectively apply triple bottom line reporting as an edifier for effective market performance.Contributions: The study offers a new theory for measuring the leveraging effects of the triple bottom line business model on the building and construction SMEs’ effective market performance.
Highlights
Triple bottom line is an integral accounting framework emphasising interactive evaluation of people, planet and profits as three critical dimensions for measuring and improving a firm’s performance (Ho & Taylor 2007:123; Hubbard 2009:177; Schulz & Flanigan 2016:449)
South African building and construction industry are often linked to subthemes encompassing avoidance of costly incidents and accidents that delay the completion of projects as scheduled, fear of the damaging reputational implications that often arise from negligence causing incidents and accidents and fear of hefty costs of fines and compensations that arise from failure to comply with critical regulations in the South African building and construction industry
Effective embracement of the triple bottom line business model is a driver of the sustainability of the small and mediumsized enterprises (SMEs) in the increasingly precarious contemporary construction industry (Aimee et al 2011:55)
Summary
Triple bottom line is an integral accounting framework emphasising interactive evaluation of people, planet and profits as three critical dimensions for measuring and improving a firm’s performance (Ho & Taylor 2007:123; Hubbard 2009:177; Schulz & Flanigan 2016:449). In the accomplishment of such evaluations, it edifies conceptualisation and application of a combination of reactive and proactive measures that create a favourable work environment, improve employees’ welfare and minimise ecological damages. These ignite employees’ job satisfaction and productivity (Gordon & Reddy 2010:19). It enhances minimisation of operational costs often induced by significant reduction of hefty costs associated with fines and compensation for incidents and accidents causing injuries to the employees or the communities (Etzion & Ferraro 2009:109). Reduced operational costs enlarge a construction firm’s overall profitability margin (Etzion & Ferraro 2009:109)
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