Responsible entrepreneurship, social innovation, and value creation for grand challenges

In this study, we investigate the effect of responsible entrepreneurship on entrepreneurial performance through the mediating mechanism of social innovation. Further, we explore the moderating role of a firm's degree of sustainable development goals (SDGs) commitment on the relationship between social innovation and entrepreneurial performance. Data were collected from 220 firms in Ghana using a time‐lagged design. Our results show that responsible entrepreneurship has an indirect effect on entrepreneurial performance through social innovation. Moreover, the effect of social innovation on entrepreneurial performance is amplified when a firm's degree of SDGs commitment is higher. These findings contribute to the responsible entrepreneurship and social innovation literature.

PurposeNot all innovative ideas or approaches commonly implemented by larger companies apply to smaller firms in all regions. Innovation that does not imply company achievements might exhaust their limited resources and cause the market to be uncompetitive. This paper aims to answer two research questions: (1) Do innovation strategies, such as process, marketing and social innovation, affect the performance of small- and medium-sized enterprises (SMEs)? (2) Does company size moderate the relationship between social and marketing innovations with SMEs' performance?Design/methodology/approachThis paper proposed three innovation strategies (i.e. social, marketing and process innovations) influencing Malaysian SMEs' performance. There were 123 valid respondents from SMEs, and the data were analysed using a structural equation modelling partial least square (SEM-PLS) technique.FindingsThe research findings advocate that process innovation directly impacts SMEs' performance, not marketing innovation. Interestingly, the influence of social innovation on organisation performance is only significant when the company size becomes more prominent. Companies can provide consistent and continuous social enhancement that arouses public trust and reputation with more resources and capabilities. Also, smaller companies might concentrate their scarce resources on process innovation with instant beneficial potential instead of a sophisticated marketing strategy.Originality/valueThere is limited empirical research examining how different innovation strategies, especially social innovation, affect SMEs' performance in developing countries. Furthermore, the second-generation analysis (PLS-SEM) technique provides more systematic and comprehensive results.

Digital social innovation: An overview and research framework

PurposeThe paper aims to understand the stages of the social innovation process and how it can be used for sustainable development.Design/methodology/approachThis single case study used multiple sources, especially data from extensive field visits and selective in-depth interviews. Direct observation, web content analysis, journals, annual reports and news articles were also used.FindingsThe findings show that BRAC institute of skills development (BISD) adopted a unique formula for the social innovation process: problem identification, new idea, design prototype, pilot, perfect and scale up. This study also finds that BISD has a significant socio-economic impact in Bangladesh. The impacts of BISD are associated with several United Nations (UN) Sustainable Development Goals (SDGs), including SDG 1 on poverty, SDG 4 on inclusive learning, SDG 5 on gender equality and women empowerment, SDG 8 on decent work and economic growth and SDG 16 on social inclusion.Practical implicationsThe discussions of this study ultimately pave a clear roadmap for policymakers, practitioners and academics to improve mechanisms for sustainable development through social innovations in emerging countries.Originality/valueThis paper provides a practical application of the social inclusive innovation process theory by which vocational training institutes can scale their sustainable impact. More knowledge is needed on how organisations can implement social innovation projects in emerging countries. This paper provides exploratory evidence to fill this gap. It demands a promising area of interest to investigate further research on the compatibility of social innovation in skills development programmes to gear up the status of an underprivileged community.

PurposeWith the increasing awareness of sustainability and its importance around the world, corporate social responsibility (CSR) in Africa also requires attention. Based on the stakeholder theory, this study aims to determine the relationship between CSR information received by small and medium-sized enterprises (SMEs) and CSR's diffusion and the mediating role of environmental awareness in Angola as a country representative of the African context.Design/methodology/approachThe empirical study analyzes managers' perceptions of 131 SMEs in Angola. The partial least squares structural equation modeling (PLS-SEM) is the method to assess the relationship between CSR information and its diffusion and the mediating role of environmental awareness SMEs in Angola.FindingsThe authors found strong evidence that CSR diffusion, and disclosure as one of CSR's related actions, heavily depends on the information received and managed by the firm. The authors also confirmed that environmental awareness puts pressure on SMEs to increase the SMEs' diffusion efforts.Practical implicationsThe study points out the role of managers in promoting a responsible orientation of businesses in Angola for preserving the environment and improving the competitive success of SMEs.Social implicationsThe social, economic and legal contexts of Angola are vulnerable. The findings raise concerns about whether governments and regulatory efforts improve the development of the strategies toward social responsibility of African firms and whether these firms also increase the role of SMEs in producing positive outcomes through CSR.Originality/valueThe results of this study contribute to a better understanding of the features of the strategic orientation of SMEs in Angola, necessary to enhance CSR and protect the environment. The conclusions highlight the potential role of managers in promoting a culture of ethics, social innovation and successful competition change in businesses.

There is increasing focus on sustainable energy in developing countries as part of their transition to low carbon economy. Approximately, 40% of the world’s population, mostly in low- and middle-income countries, do not have access to modern energy. Developing countries including Nigeria are facing energy poverty. Small and medium-sized enterprises (SMEs) have a role in achieving the United Nations’ (UN) Sustainable Development Goals (SDGs). Absence of sustainable energy is hindering the growth of SMEs in the Global South with impacts on society. In Nigeria, inaccessibility and regular outages of power from the national grid compels SMEs to rely on fossil-fuel based energy which exacerbate pollution and carbon footprint having environmental, social and economic consequences. This project evaluates the potential of sustainable energy in SMEs for minimizing carbon footprint and accelerating the energy transition in a local community of Wula, Nigeria. This exploratory investigation conducted semi-structured interviews with 16 SMEs to obtain data on energy consumption including energy type, quantity consumed and annual cost to estimate carbon footprint and identify sustainable energy needs. The study found that there is significant potential for sustainable energy in the local community and joined-up approach in interventions cannot only address environmental issues but social issues in the local community. The analysis indicates that SMEs spend $13,563.4 annually on fossil fuel-based energy and consume 33,215 litres of petrol/annum; and an estimated carbon footprint of 76,891.0642 KgCO2e (equivalent of 76.89106 tCO2e) per annum. The project helps to understand state of the problem and plans to reduce CO2 emissions and sustain SMEs by installing sustainable energy systems based on the community needs and contribute towards the SDGs. This could open new markets and business opportunities for the poor in the rural area, hence lift families out of poverty and transform lives as a contribution towards SDGs.

PurposeThis study aims to identify the structural relationship among social capital, knowledge sharing, innovation and performance of small- and medium-sized enterprises (SMEs) in a tourism cluster.Design/methodology/approachA total of 199 valid questionnaires are collected from SMEs in the Bomun tourism cluster in South Korea. A structural equation modeling approach is used to test the research hypotheses.FindingsThe findings suggest that social capital constructs, including network density of structural capital, relational capital and cognitive capital, all positively influence knowledge sharing among SMEs in the cluster. This implies that creating social capital is critical to enhancing the competitiveness of SMEs. This study confirms that knowledge sharing positively affects SME performance through innovation.Research limitations/implicationsThis study suggests that social capital, consisting of structural, cognitive and relational capital, facilitates increased knowledge sharing and innovation in a tourism cluster, which in turn enhances SME business performance.Practical/implicationsThis study suggests that tourism cluster policies should focus on how to create a friendly operational climate to build social capital and support SME innovation.Originality/valueThis study contributes to the literature on social capital and innovation as well as the discourse on tourism clusters by addressing knowledge sharing among SMEs in a tourism cluster. It also expands the knowledge sharing and innovation literature by focusing on inter-organizational social networking among SMEs.

PurposeThe authors have recently been seeing a rising trend towards sustainability and innovation among small- and medium-sized enterprises (SMEs) in Kuwait, especially through the use of the Sustainable Development Goals (SDGs) that were introduced by United Nations in 2015. In Kuwait, corporations such as Zain and NBK have already implemented the SDGs as part of their main objective to create a better future for their companies. This research attempts to explore the reasons why entrepreneurs in SMEs are implementing the SDGs and specifically goal number 12 (SDG 12).Design/methodology/approachWith this research drawing on a qualitative approach, a sample of 20 participants who operated at the executive level of the SMEs were chosen randomly using the “snowball” sampling from different industries, including the food and beverage and beauty and service sectors, and were interviewed.FindingsThe results revealed that most SMEs in Kuwait are considering their approach to sustainability. Although these SMEs are following a global trend, the Kuwait government does not support them in adopting sustainability rules and regulations.Practical implicationsThis research contributes to the existing literature by presenting new knowledge about SMEs in Kuwait implementing the SDGs. It also makes an empirical contribution to the SME and entrepreneurship literature by exploring the reasons for adopting these goals. This study is one of very few that have explored the SDGs in Kuwait, and it can provide grounds for future research on SMEs' adoption in Kuwait of future SGDs. Recommendations and future directions are presented.Originality/valueThe findings add to the empirical literature by revealing the reasons why entrepreneurs in SMEs are implementing SDG 12. Furthermore, the findings will open doors for future research in this field.

Due to a shortage of funding and other market challenges, Small and Medium-sized Enterprises (SMEs) face difficulties in adopting new technologies. Numerous technological obstacles negatively impact the long-term commercial achievement of SMEs. The deployment of Industry 4.0hopes to resolve these technological challenges. A sustainable city is a complex structure where economic, societal, and ecological components interact and compete. There is a scarcity of l methodologies for measuring interactions in this complex structure. Industry 4.0 aims to obtain higher performance effectiveness, profitability, and automation. The main goal is to develop a reliable method of evaluating small and medium-sized enterprises (SMEs) adopting Industry 4.0 technologies, particularly concerning smart city applications. This paper aims to determine the influence of Industry 4.0 in fostering economic efficiency and sustainability amongst these SMEs. The study introduces a multi-criteria decision-making (SC-MCDM) system designed to test an SME’s achievement of their targeted sustainable developmental goals. A technique for computing the interaction between various standards, i.e., (static interactions and dynamical pattern resemblance), as well as the weightage of variables of every indicator generated by the connection, is included within SC-MCDM. Furthermore, applying the suggested technique is validated by assessing the sustainable development goals of twelve Chinese cities within the Triple Bottom Line (TBL) paradigm. From a geographic-temporal viewpoint, spatial variations in city sustainability reveal regional sustainable inequalities. Indicator scores suggest that the most significant factors for most communities are the lack of research spending, falling financing in stationary assets, shortage of financial development, and inadequate shared transit. Furthermore, the growth of tertiary industries, improvement of energy performance, expansion of green areas, and reduction of pollution emissions are key driving forces for enhancing sustainability. Compared to other methodologies, Multi-Criteria Decision Making (MCDM) considers the interplay between conditions. This is why it is an excellent approach to assess the sustainability of any city. Our experimental findings highlight the impact of MCDM and sustainability towards achieving a city’s sustainable development goals. Compared to other methods, the SC-MCDM system is more successful rate of 89.7%, a more sustainable rate of 92.1%, a more precise ratio 93%), more accurate (95%), and a less mean absolute error, and mean squared error rate of 8.3% while trying to achieve sustainable city development goals. Doi: 10.28991/HIJ-2024-05-04-018 Full Text: PDF

This article examines how social innovations influence the economic growth orientation of small- and medium-sized enterprises (SMEs) in mountain regions. Social innovations can help mountain regions solve local challenges by creating novel ideas to improve the situation. This, in turn, can have various effects on the mountain economy. However, there is still no consensus on the ways in which social innovations create economic impulses such as economic growth or even economic growth independence. This article aims to improve our understanding of social innovations and their impact on the local mountain economy. We examine the 100% Valposchiavo initiative, which aims to close regional value chains by bringing together economic actors in agriculture, production, and hospitality in a Swiss mountain region. In particular, the article examines the evolution of the initiative and its impact on local SMEs. We employed the novel method of innovation biographies and conducted narrative and guided interviews to examine the ways in which the initiative evolved and what its effects are on participating SMEs. The results show that 100% Valposchiavo induced potential growth effects through its focus on increased collaboration, whereas (re)localization created growth-independent effects. Some companies are growth dependent because of higher demand, junior management, modernization efforts, or a fast-growing market. The growth-independent companies pursue this strategy through personal contacts, their corporate philosophy, their management age, or their business form. Our study adds a postgrowth perspective to the discussion around the role of social innovations in mountain economies.

Even though many small and medium-sized enterprises (SMEs) realize the importance of the Sustainable Development Goals (SDGs) for their sustainable business development, they face difficulties when individually pursuing this target. This paper aims to provide cluster-based SMEs with a framework to facilitate the uptake of the SDGs through a cluster network model. By focusing on the case study of a furniture production Cluster Management Organization (CMO Habic a network-based approach to sustainability management is analyzed in order to integrate the SDGs framework into SMEs’ everyday language and day-to-day operations. Through a cluster model approach, industry-specific sustainability material issues are tackled jointly and with the aim of applying a common solution to a similar challenge, Lehi-ODS, an online sustainability management tool for SME self-evaluation, has been developed wherein the participating SMEs can gain an overarching knowledge about the UN 2030 Agenda, assess their own alignment with the SDGs and with respect to that of their peers, and prioritize initiatives to correctly deliver them. The main conclusion derived from the paper is that a CMO is deemed to be a valuable driver in identifying common sector-specific challenges of corporate sustainability and in addressing collectively the question of contributing to the SDGs.

This study addresses the problems attributed to the implementation process of Sustainable Development Goals (SDGs) in relation to the SME sector in Germany and Poland. The initial part of this study discusses the theoretical aspects of sustainable development, with particular emphasis on the adoption of the 2030 Agenda for Sustainable Development, including 17 SDGs. The importance of the contribution made by small and medium sized enterprises (SMEs) to the development of today’s economies, based on the example of OECD countries, was also highlighted. Regarding methodology, to answer the research questions, empirical data were obtained using a simplified online questionnaire based on a pre-established questionnaire. The target group consisted of experts on SMEs, not the SMEs themselves, in order to obtain an external view of the SME sector. As part of the general conclusions, it can be stated that the current contribution of SMEs to the implementation of the SDGs presents, on average, an upward tendency. Certainly, a greater involvement of entrepreneurs and a better understanding of the specificity of sustainable development processes would be advisable. In addition, it is noticeable that the national context is significant in the implementation of the SDGs. For example, German enterprises pay more attention to the environmental dimension of sustainable development, whereas Polish enterprises pay more attention to supply chain management. Overall, most of the respondents stated that the absence of financial resources remains the primary obstacle to the implementation of sustainable development goals in enterprises, while motivation results from cost reduction and increase in turnover.

Grand challenges in developing countries: Context, relationships, and logics

Social innovation in SMEs: Examining the role of artificial intelligence and social and environmental sustainability.

Purpose – This study aims to analyze how the implementation of the Global Reporting Initiative (GRI) and the achievement of Sustainable Development Goals (SDGs) by Micro, Small, and Medium Enterprises (MSMEs) affects their sustainability reporting, as well as to understand the factors underlying the success or challenges in applying these sustainability principles to MSMEs. Design/methodology/approach – This study uses a qualitative approach with a case study method. Data were collected through semi-structured interviews with owners or managers of MSMEs in Indonesia. A total of 12 MSMEs from various sectors on the island of Java were selected as research samples. Data analysis was conducted using a scoring method to identify and interpret the GRI and SDGs practices implemented by MSMEs Findings – The study results indicate that the level of GRI disclosure and SDGs implementation in MSMEs in Indonesia varies. Most MSMEs have an understanding of the importance of sustainability, but their implementation is still limited to basic aspects such as energy efficiency and waste management. The main challenges faced by MSMEs are limited resources, lack of understanding of reporting standards, and cost pressures. Research limitations/implications – This research has an impact on the development of theories regarding the implementation of GRI and the achievement of SDGs in the context of MSMEs. This study has limitations in the relatively small sample size and focus on MSMEs in Java, so the results may not be generalizable to all MSMEs in Indonesia. Future research can involve larger and more diverse samples Keywords: GRI, Sustainability Report, SDGs, MSMEs