What motivates small-and medium-sized enterprises (SMEs) to engage in environmental practices? Existing studies mainly distinguish between internal and external economic drivers of firms’ green behaviour. However, economic factors alone may provide only a partial explanation, as firms’ environmental decisions are also shaped by the broader social context in which they operate. In this paper, we examine how three key contextual actors – state, market, and community – influence SMEs’ provision of green products and services, and whether their interaction reflects the existence of a Green Social Contract between firms and society from a neo-institutionalist perspective. Using Eurobarometer survey data on SMEs combined with datasets on citizens’ eco-social attitudes and countries’ institutional and economic characteristics, the analysis shows that SMEs’ green behaviour is strongly shaped by contextual factors. Formal institutional quality has a positive and significant effect, while peer market pressure and community engagement promote firms’ green behaviour and can also partially compensate for weaker formal institutions. These findings highlight the importance of policies that encourage competition and transparency among firms and strengthen citizens’ environmental and social awareness to promote the provision of green products and services by SMEs.

Theory supports two opposing trajectories regarding the effects of trade provisions on micro, small, and medium-sized enterprises (MSMEs) and on their integration into the global value chain (GVC). On the one hand, provisions such as increased competitiveness, networking support, and cooperation provisions enhance firms’ GVC participation. On the other hand, provisions that establish common standards and regulations that increase compliance costs can be burdensome for small enterprises. This paper examines the effect of such MSME-related provisions on participation in GVCs. By merging the World Trade Organization trade agreements and the World Bank Enterprise Surveys datasets, we contribute to the literature in two ways. First, we distinguish between trade-related and non-trade-related provisions. Second, we scrutinize the heterogeneity across sectors, income levels, and regions. Our results show a particularly positive effect of MSME-related provisions, with a larger effect of non-trade-related provisions compared with trade-related ones. In addition, this effect is particularly relevant to low-technology-intensive sectors, low-income countries, and Asian economies. Our results remain consistent when using alternative variables, sample characteristics, and estimation methods.

This study examines how managerial competencies shape performance within the Portuguese hairdressing sector, a vital yet under-researched micro–small and medium-sized enterprise context. Grounded in the competing values framework, the research explores how these small structures navigate the persistent tension between internal stability and external flexibility. Our mixed-methods approach combined qualitative insights from industry leaders with a quantitative survey of 361 owner-managers and employees. Results confirm a strong link between competencies and performance, especially in social dimensions. However, profiles lean heavily toward the Human Relations Model, leaving significant gaps in the Rational Goal and Internal Process quadrants. Crucially, a perceptual dissonance emerged, as employees consistently rate managerial competence lower than owner-managers’ self-assessments suggest. By extending the competing values framework theory to fragmented service industries, this research suggests that behavioral complexity is an important factor for operational adaptability. These findings signal an urgent need for hybrid training that bridges the gap between technical craft and strategic management.

This study investigates how resource-constrained small and medium-sized enterprises (SMEs) develop and apply digital capabilities across value chain activities for internationalization, addressing a gap in the existing literature. Using six Taiwanese manufacturing SME case studies, and an integrated theoretical lens (Uppsala Internationalization Model, Porter’s Value Chain Framework, and Resource Orchestration Theory), the study explores how digital capabilities embedded in primary and support activities shape internationalization outcomes. Findings show that SMEs prioritize digital investments in primary and downstream activities to enhance foreign market delivery, responsiveness, trust, and visibility. Digital upgrades in support functions primarily enable internal coordination and subsidiary replication. The study identifies three mechanisms – inter-firm value enhancement, inter-firm relationship enhancement, and intra-firm management enhancement – that explain how activity-specific digital capabilities facilitate international expansion. This research offers a detailed understanding of digital capabilities deployment in SMEs and provides practical implications for leaders and policymakers on strategic, phased digital internationalization approaches.

Learning orientation emphasizes the importance of learning from any experience. It is grounded on commitment to learn, shared vision, open‐mindedness, and knowledge sharing. Organizational knowledge management literature based on social complexity theory posits that learning orientation makes companies generate new knowledge through spontaneous multi-level iterations and self-organization. Challenges related to the current business environment requires companies to constantly adjust to remain competitive. Still, the mechanisms making learning-oriented companies more capable to develop innovative product have been scantly explored. Pertinent literature actually conjectures this relationship as spontaneous, directed, and unmediated. Moreover, Small and Medium Enterprises (SMEs)rarely represent the context of analysis of research on this topic. Frequently lacking resources to systematically pursue product innovation, SMEs rely on solutions deriving from the combination of internal knowledge and external sources; thus, these companies depend on learning orientation principles to remain innovative. In this vein, the research aims to understand how learning orientation allows product innovation in SMEs through the achievement of strategic flexibility. Structural equation modelling was used to analyse data from 300 British SMEs. The results demonstrate the mediating role of strategic flexibility in the relationships between learning orientation and product innovation. The importance of innovation culture also emerged.

This research aims to unpack how digital technologies can facilitate the flourishing of circular business practices in small- and medium-sized enterprises by structuring a detailed going circular path that explains businesses’ evolution toward circularity. In doing so, it outlines how the observed organizations have adopted – or are adopting – circular economy principles thanks to business digitalization. Following an inductive approach based on a multiple case study methodology, we investigated 16 small- and medium-sized enterprises operating in industries that put considerable pressure on the environment (e.g., manufacturing, chemical, construction, fashion, food, and beverage). Our findings confirm how digital technologies, as well as Industry 4.0 structures, play a fundamental role in shaping, enabling, enhancing, and refining circular products and processes development. Accordingly, we outline a generalizable step-by-step process to pursue circular economy by employing digital technologies. The present study represents a practical handout for guiding companies through their going circular path.

An increasing number of small and medium enterprises (SMEs) are focusing on sustainable development and on embracing sustainable business models (SBMs). Despite the growing interest of academics and practitioners in SBMs, and the benefits for stakeholders, there is limited knowledge regarding the factors enabling SME transition toward SBMs, leading them to integrate sustainable principles in their BMs. This study explores the enabling factors for SBM adoption by SMEs and provides an improved understanding of this recent phenomenon. Understanding what factors enable adoption of SBMs is crucial for both SMEs and policymakers. The research uses an inductive qualitative research design approach focused on multiple case studies. The findings reveal that both internal and external factors play a key role in enabling SME transition toward SBM adoption. The internal factors that emerged include openness, change of mindset, problemistic search, social exchange, and resource valorization, while external factors included markets change, technological innovation, stakeholders’ influences, policy and institutions.

This research aims to analyse the links and potential limiting and supporting factors between sustainability actions and sustainability reporting. Comparing companies involved in sustainability actions and those whose reporting practices lack a formal reporting system, this analysis focuses on Italian small and medium-sized enterprises (SMEs) in the meat and cured meat industry, identifying the perspective (formative) that links sustainability action to communication in these SMEs. The qualitative interpretative approach, based on semistructured interviews, highlights the relevant strengths and weaknesses concerning substantive sustainability actions and the effect of communication on them, providing implications for international and sectoral policies and management choices. Filling a gap in the SME literature concerning their approaches to sustainability reporting and action (and the relationship thereof), this study also introduces, as a widely used practice, ‘greenhushing’, i.e., the deliberate absence of or limited communication on effectively implemented sustainability practices or their salient results.

This paper addresses an important knowledge gap regarding the internationalization of family businesses. To understand the specific factors that influence the internationalization of these firms, this paper investigates the role and articulation of entrepreneurial orientation (EO) and family social capital (FSC) on internationalization performance. Our findings reveal that the more entrepreneurial the family business, the higher the likelihood of identifying and exploiting business opportunities in foreign markets. The moderating effect that FSC can have on the dynamics between EO and internationalization indicates that this relational family specific asset facilitates organizational stability and performance enhancement.

The bursting of the “bubble economy” in 1989–1990 brought decades of challenge for Japanese Small and Medium-Sized Enterprises (SMEs), which had assumed the role of subcontractor within production networks dominated by large companies. This article explores the impact of a rapidly altered business environment, due to economic crisis, the decline of relational subcontracting, and technological change, on the management and organization of firms. It provides a needed historical account of Japanese SMEs striving to avoid “hollowing out,” and detailed case studies explain what gaining greater independence as a flexible specialist meant in practice. A focus on the immediate advantages of computerized tools could not bring about the intended strategic objectives, whereas the systemizing of new and existing resources in skills and equipment enabled sustainable competitive differentiation in production and products. The case studies map out the internal competence transformations of SMEs over time, and indicate the value of historical approaches to exploring strategic and organizational change.

In this study, we investigate the mediating effect of institutional networking on the relationship between perceived corruption and the growth of small and medium-sized enterprises (SMEs). We also examine the moderating impact of financial slack on the relationship between perceived corruption and institutional networking. We test our moderated mediation model using data from 212 SMEs operating in Ghana. The findings from the study show that perceived corruption is positively related to institutional networking and this relationship is amplified when levels of financial slack are greater. The findings also show that institutional networking positively mediates the relationship between perceived corruption and SME growth. Theoretical and practical implications are discussed.

Across the United Kingdom public (and private) resources have been targeted on improving broadband infrastructure. While this has served to provide new opportunities for households and firms, there has been some debate around the ability of firms to take full advantage of the opportunities that arise through this evolving infrastructure. In this respect, there has been particular debate on how far small- and medium-sized enterprises (SMEs) have taken up the challenge of effectively engaging with the resource. Drawing on the case of Wales, this paper explores the digital maturity of a sample of Welsh SMEs. The paper provides evidence of how far SMEs are successfully engaging with the new opportunities available through broadband, and develops a typology of firms according to their engagement. The paper then explores how these differences produce policy implications.

Entrepreneurial orientation (EO) is a key factor in the creation and development of companies. This study examines the CEO's personal background (personality, proactivity and resistance to change) and its influence on the EO of the organization to determine which factors enhance or weaken EO. We achieve this goal through quantitative research, developing a structural equations model with partial least squares to analyse a sample of 358 Spanish SMEs from different sectors. The results suggest that specific personality dimensions exert substantial influence on the organization's EO. We also analyse individual proactivity and resistance to change as conduits for the effect of personality dimensions on the company's EO.

Researchers have extensively studied how large firms and SMEs use business and political ties to obtain tangible and intangible resources in transition economies. However, how SMEs establish these ties in the context of power-imbalanced dependence by using unethical and illegal “strategic practice” such as bribery remains underexplored. Furthermore, how SMEs deploy strategies to mitigate such risky actions in the process of resource acquisition is also given limited attention in the literature. Lack of exploration of these issues leaves significant gaps in our understanding of how SMEs are able to initiate and operate their ties for survival and growth despite enormous institutional constraints. We analyze the negative and positive effects of power dependence on business resource acquisition via regression analysis using survey data drawn from 232 Chinese SMEs. The findings indicate that power-imbalanced dependence among SMEs is associated with their use of bribery to establish political ties with officials for access to resources. The moderating effect of power-mutual dependence on this relationship is also examined. Theoretical significance and managerial implications of these findings for SMEs in transition economies are discussed.

Collective entrepreneurship (CE) is the ability of several individuals to jointly innovate and create within organisations. In this exploratory study, we investigate whether the relationship between some specific leadership styles and more effective CE is affected by moderator variables. The unit of analysis were staff members of a Portuguese group of small- and medium-sized enterprises (SMEs). A total of 204 questionnaires were returned, representing almost half the employee population we approached. For measurement, we employed 19 items to gather the six latent variables related to our model. For data analysis, we used partial least squares. We found that participative leadership style had the highest joint and indirect effect on more effective CE. Job satisfaction appears to be an important moderator for the occurrence of CE. The impact of employees’ organisational commitment and collaboration on CE is rather weak. Our study contributes to advancing knowledge in the fields of organisational psychology and entrepreneurship. We combine and extend previous research, which allows us to reconcile the sometimes contradictory findings so far concerning leadership and CE in the realm of small- and medium-sized enterprises.

Existing research on certifiable management standards (CMS) and corporate social responsibility (CSR) tends to focus on large companies and is characterised by disagreement about the role of these standards as drivers of CSR. We contribute to the literature by shifting the analytical focus to the behaviour of small and medium-sized enterprises (SMEs) that subscribe to multiple CSR related standards. We argue that, in respect of motive and commitment, SMEs are not as different from large companies as the literature suggests, as they are guided by similar institutional and economic motives. Results, based on ISO 9001, ISO 14001 and OHSAS 18001 certified SMEs in Greece, demonstrate that later adopters are more susceptible to coercive and mimetic motives and are less likely to commit fully to the CMS requirements, while earlier adopters react to normative motives and considerations of internal efficiency gains and tend to carry out CMS requirements with greater diligence.