Normative Environmental Configuration of SMEs within the Sustainable Development Discourse in South Africa: An Empirical Study

Reginald Masocha

doi:10.3390/su11236537

Abstract

This paper investigates the role of normative environmental configuration forces on small and medium-sized enterprises (SMEs) adopting sustainable development practices in South Africa. A research survey was performed, and data were gathered from SMEs utilizing owners and managers as respondents. Non-probability sampling at the hand of the convenience method was utilised and 220 respondents constituted the final sample. The analysis of data constituted factor analysis and hypotheses were tested through the structural equation modelling technique. The study hypothesised that normative forces have an impact on the participation of SMEs in the extents of sustainability practices, namely social, environmental and economic. The results led to the supporting of all the hypotheses postulated in the study. Thus, the major recommendation was to support the training, networking and professional affiliations of SMEs in sustainable development issues in order to ensure proliferation of sustainable development amongst these firms.

Highlights

The World Bank has acknowledged that there are more than 60 ways in which small and medium-sized enterprises (SMEs) are defined in 75 countries [1]
The study investigated the extent of normative configuration in sustainable development practices of SMEs in South Africa
The empirical results established that normative forces have a significant and positive relationship with economic, environmental and social sustainability practices

Summary

Introduction

The World Bank has acknowledged that there are more than 60 ways in which small and medium-sized enterprises (SMEs) are defined in 75 countries [1]. According to Asamoah [2], the most prevalent and broadly quoted definition of SMEs is the one provided by the European Union (EU). The EU definition provides for a headcount classification of SMEs utilising the number of employees and turnover. In the European Union an SME is defined as a business with a total number of employees which is less than 250, with a maximum annual turnover of £50 million and a balance sheet amounting to £43 million. Asamoah [2] states that the financial maximum amount of turnover and the balance sheet total for SMEs were increased to these recent levels after considering the increased productivity within the Union [3]. It is urged that researchers need to utilise definitions of SMEs that are relevant to their target group (operational definition) [4]

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Conclusion