PurposeThe purpose of this paper is to analyse the relationship between economic performance in terms of labour productivity of small- and medium-sized enterprises (SMEs) and their corporate ...sustainability in association with the driving forces of internationalization process and enterprise networks.Design/methodology/approachThe paper develops an innovative theoretical–conceptual approach and applied unique empirical survey to investigate the simultaneous causalities between labour productivity and corporate sustainability, in the context of the set of relationships controlled with two other set of variables for mediating role of the internationalization process and enterprise networks focusing on business collaborations between SMEs. Four hypotheses are tested by the developed structural equation model for the unique in-depth survey data of Slovenian SMEs.FindingsThe results highlight significant positive correlations between the studied variables and their constructs, which indicate scientific justification to variables as factors. The results confirmed that internationalization process and enterprise networks are positively associated in improving corporate sustainability, which drives labour productivity.Practical implicationsThe implications of this research are for managers regarding strategies and approaches aiming at sustainable development of SMEs, and for policy-makers regarding appropriate policies for practices encouraging internalization processes and enterprise networks as important drivers of corporate sustainability and labour productivity of SMEs.Originality/valueThe main scientific value added of this research is that combines and empirically examines driving forces of corporate sustainability in SMEs based on related studies, to develop more comprehensive structural equation model for better understanding of the corporate sustainability behaviour in SMEs.
Various studies have investigated drivers of corporate sustainability, however only a few attempts have been made to link corporate sustainability and economic performance of enterprises by measuring ...labour productivity in new European Union member states that have transitioned from socialism. This paper analyses the link between corporate sustainability and economic performance, by simultaneously using the following control variables: human capital, the innovation process, leadership, and European Union policy for small and medium sized enterprises. Findings from a sample of 645 Slovenian small and medium sized enterprises reveal that the corporate sustainability and economic performance of enterprises represent complementary performances. Thus, enterprises should constantly balance their economic performance with social responsibility and environmental protection to maintain successful sustainable operations in the highly competitive markets. It was also shown that leadership has a significant positive effect on corporate sustainability. Additionally, leadership should create a favourable and collaborative environment for the innovation process and invest in human capital. Human capital causes innovation, which has a significant positive influence on corporate sustainability, which in turn has an effect on the economic performance of enterprises. Small and medium sized enterprises could improve corporate sustainability also by familiarising themselves with European Union policy support mechanisms that target their growth, development and competitiveness. The findings helped to develop an original structural equation model on simultaneous causalities between corporate sustainability and economic performance with selected control variables.
•Corporate sustainability and economic performance are complementary performances.•A positive link between leadership, human capital, and innovation is confirmed.•Leadership and innovation positively affect corporate sustainability.•EU policies represent a source for achieving corporate sustainability.
Purpose
The purpose of this paper is to analyse the relationship between economic performance in terms of labour productivity of small- and medium-sized enterprises (SMEs) and their corporate ...sustainability in association with the driving forces of internationalization process and enterprise networks.
Design/methodology/approach
The paper develops an innovative theoretical–conceptual approach and applied unique empirical survey to investigate the simultaneous causalities between labour productivity and corporate sustainability, in the context of the set of relationships controlled with two other set of variables for mediating role of the internationalization process and enterprise networks focusing on business collaborations between SMEs. Four hypotheses are tested by the developed structural equation model for the unique in-depth survey data of Slovenian SMEs.
Findings
The results highlight significant positive correlations between the studied variables and their constructs, which indicate scientific justification to variables as factors. The results confirmed that internationalization process and enterprise networks are positively associated in improving corporate sustainability, which drives labour productivity.
Practical implications
The implications of this research are for managers regarding strategies and approaches aiming at sustainable development of SMEs, and for policy-makers regarding appropriate policies for practices encouraging internalization processes and enterprise networks as important drivers of corporate sustainability and labour productivity of SMEs.
Originality/value
The main scientific value added of this research is that combines and empirically examines driving forces of corporate sustainability in SMEs based on related studies, to develop more comprehensive structural equation model for better understanding of the corporate sustainability behaviour in SMEs.
Top managers have a key role in implementing the environmental component of sustainable development in the organization. This paper presents the results of the unique research that was conducted ...among top managers from a variety of large Slovenian organizations, in order to determine the dominant leadership factors that positively influence the implementation of the environmental component of sustainable development (the iso 14001 standard) in the organization. The research involved 321 large Slovenian organizations. It was found that vision, credibility, collaboration, accountability and action orientation are the dominant leadership factors to be considered by top managers in achieving sustainable development.
