An empirical analysis of SMES’ triple bottom line practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jude Edeigba ◽  
Chris Arasanmi
Keyword(s):  
New Zealand ◽  
Empirical Analysis ◽  
Structural Equation ◽  
Triple Bottom Line ◽  
Business Practices ◽  
Bottom Line ◽  
Content Type ◽  
Regulatory Policies ◽  
Operational Policies ◽  
Sustainability Practices

Purpose This study aims to examine the determinants of small and medium enterprises (SMEs) sustainability practices in New Zealand from the triple bottom line (3BL) perspective. Unlike large companies and government agencies whose sustainability practices are driven by regulations and attempts to legitimise business operations, little is known about the drivers of SMEs’ sustainability practices. Design/methodology/approach A cross-sectional survey approach was adopted for the data collection. The analysis was mainly descriptive, while the covariates’ effects were measured based on partial least squares structural equation modelling. Findings This paper identified that SMEs’ 3BL practices are significantly influenced by local bylaws, voluntary adoption of 3BL operational policies and company size. This paper finds that the SMEs’ industry type is not statistically significant as a determinant of their 3BL practices. This implies that regulation and operational policies increase sustainability practices in the SME sector. Practical implications These findings provide insights to SMEs’ managers on the importance of sustainability policies adoption and bylaws. Government departments and local government councils could adopt the findings in developing regulatory policies that support SMEs’ 3BL. Social implications This study provides support for economically, environmentally and socially sustainable business practices amongst SMEs. Originality/value A dearth of studies on SMEs sustainability practices exists in the extant literature, particularly in New Zealand. The study focusses on SMEs sustainability in the viewpoint of 3BL practices based on an empirical analysis.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

Relationships among triple bottom line elements

2015 ◽  
Vol 6 (2) ◽  
pp. 195-214 ◽  
Author(s):  
Sitalakshmi Venkatraman ◽  
Raveendranath Ravi Nayak
Keyword(s):  
Empirical Study ◽  
Financial Performance ◽  
Corporate Sustainability ◽  
Triple Bottom Line ◽  
Performance Outcomes ◽  
Business Practices ◽  
Sustainable Business ◽  
Bottom Line ◽  
Content Type ◽  
Performance Outcome

Purpose – The purpose of this paper is to gain more insight of the nature and strength of relationships among the three triple bottom line (TBL) outcomes, namely corporate environmental performance outcome (CEPO), corporate social performance outcome (CSPO) and corporate financial performance outcome (CFPO) and to evolve a roadmap for integrating sustainable business practices that facilitates in managing and improving their sustainable performance. Literature reports that currently businesses try to achieve economic, social and ecological goals independently resulting in silos. The interrelationships of TBL elements have not been explored and integrated. The literature has already pointed out that to achieve corporate sustainability, managers need to integrate TBL goals in all their business decisions. However, the question remains – how to integrate these three competing goals and this paper attempts to answer this question. Design/methodology/approach – In the research design, the authors use a quantitative research methodology with data collected by means of a survey questionnaire that included both descriptive and exploratory flavour. The empirical study examines the relationships of TBL elements as perceived by 85 different Australian-based large, medium, as well as small business organisations. The data collected were analysed by performing factor analysis on 21 items resulting in three latent factors that were aligned to TBL outcomes and the correlations among them were analysed to assess their interrelationships. Findings – The results of the study report weak, positive relationships existing between the TBL. This result has useful implications well-supported by the qualitative feedback. The paper argues that Australian managers do not see any strategic advantage in pursuing “beyond compliance” sustainable business practices, as they perceive no added value to their organisations’ financial performance outcomes. Integrating economic, social and ecological performances is seen as an additional management burden. Originality/value – While most of the TBL studies conducted worldwide focus on predominantly assessing large organisations toward responsible and sustainable business practices, this paper considers large, medium as well as small businesses. Also, economic, social and environmental issues are explored by organisations individually, while this study investigates their inter-connections. Through the empirical study, this paper provides recommendations and proposes a four-step roadmap with the participation of quality circles that would facilitate the integration of the social responsibility and environment protection practices into the core business operations paving way towards achieving corporate sustainability.

scholarly journals Innovativeness and lean practices for triple bottom line: testing of fit-as-mediation versus fit-as-moderation models

2020 ◽  
Vol 40 (10) ◽  
pp. 1623-1647 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong
Keyword(s):  
Structural Equation ◽  
Triple Bottom Line ◽  
Mediation Model ◽  
Bottom Line ◽  
Content Type ◽  
Equation Modelling ◽  
Lean Practices ◽  
Operational Excellence ◽  
Directing Attention ◽  
Practical Implications

PurposeThe purpose of this paper is to examine whether the fit between innovativeness and lean practices (LPs) can affect triple bottom line (TBL) performance. Two types of fit are tested: fit-as-mediation in which innovativeness creates TBL performance through the mediation of LPs and fit-as-moderation whereby the effects of innovativeness on TBL performance are moderated by LPs.Design/methodology/approachStructural equation modelling and moderated regression are used to test the fit-as-mediation and fit-as-moderation models using survey data collected from 241 manufacturers in China.FindingsThe results show that innovativeness is positively associated with LPs that emphasize operational excellence. Innovativeness indirectly affects all three TBL dimensions through the mediation of LPs, and LPs do not moderate the effects of innovativeness. The applicability of fit-as-mediation model suggests directing attention towards integrating innovation and LPs within same organizational units to achieve improved TBL performance.Practical implicationsThe findings suggest manufacturers should involve employees within the same organizational unit embrace an integrated culture of innovativeness and LPs and avoid separate attention to innovativeness and LPs.Originality/valueThis is the first study of which the authors are aware developing and empirically testing both fit-as-mediation and fit-as-moderation models within the same study to understand how innovativeness and LPs work together to influence TBL performance. This study extends the boundaries of current understanding by examining how, when and why the innovativeness – LPs–TBL relationship arises between constructs central to our theories.

Sustainability and company attractiveness

2018 ◽  
Vol 9 (4) ◽  
pp. 470-489 ◽  
Author(s):  
Adrien Presley ◽  
Theresa Presley ◽  
Michael Blum
Keyword(s):  
Triple Bottom Line ◽  
The Body ◽  
Job Choice ◽  
Bottom Line ◽  
Content Type ◽  
Sustainability Performance ◽  
Potential Employer ◽  
Work Related ◽  
Sustainability Practices ◽  
A Company

Purpose The purpose of this study is to examine whether a company’s sustainability practices affect job seekers’ perceptions of the attractiveness of the company as a potential employer. Design/methodology/approach A survey completed by 259 university students assessed the respondents’ attitudes toward sustainability. Participants were then presented a series of scenarios describing the sustainable practices of hypothetical companies using the triple bottom line factors of sustainability (economic, environmental and social) and were asked how attractive they found the company to be and the likelihood that they would accept a job offer from the company. Findings The findings indicate that sustainability as a single concept and each sustainability factor individually influenced the attractiveness of a company to potential employees. Research limitations/implications The results of the study add to the body of job choice research, specifically as related to sustainability practices of companies. It furthers the body of work related to signaling theory and job attractiveness. Practical implications The results of this study indicate that sustainability performance is an important factor in determining the attractiveness of a company to potential applicants. Social implications The research highlights the importance of sustainability to potential job applicants. Companies should be aware that positive sustainability performance can make it more attractive to these applicants. The results reported from this research provides additional motivation for companies to pursue efforts in sustainability. Originality/value The research builds upon existing research in the fields of sustainability and job choice. While previous research has looked at many factors regarding applicants and job choice including, no other research was found which explicitly considered the triple bottom line factors of sustainability.

scholarly journals Triple bottom line and sustainable performance measurement in industrial companies

2018 ◽  
Vol 25 (4) ◽  
pp. 413-429 ◽  
Author(s):  
Flavio Hourneaux Jr ◽  
Marcelo Luiz da Silva Gabriel ◽  
Dolores Amalia Gallardo-Vázquez
Keyword(s):  
Structural Equation ◽  
Social Indicators ◽  
Triple Bottom Line ◽  
Measurement Model ◽  
Environmental Indicators ◽  
Three Dimensions ◽  
Bottom Line ◽  
Content Type ◽  
Industrial Companies ◽  
Sustainable Performance

Purpose The purpose of this paper is to propose a minimum set of indicators to be measured by industrial companies to represent the triple bottom line (TBL) approach. Design/methodology/approach The research is both descriptive and quantitative. Three hypotheses establish associations among the degrees of use of TBL indicators and their different degrees of use in firms. The authors used confirmatory factor analysis (CFA) to validate the scale and structural equation modelling to represent the final measurement model. The survey gathered 149 industrial companies. Findings The results pointed out that there are positive associations among the degree of use of environmental indicators and social indicators, economic, environmental and social indicators have different degrees of use in firms, a positive association between the degree of use of environmental and social indicators and the use of economic indicators was not confirmed. The findings suggest how to measure sustainable performance for industrial companies and highlight the differences in the degree of use for the three dimensions of TBL. Research limitations/implications The limitations refer to the non-probabilistic sample, applied in a specific context, industrial companies. Practical implications This set of indicators is intended to be used by industrial companies as a reliable instrument to sustainable performance assessment of the current stage of the TBL deployment and provide alternative approaches to address specific issues related to the environmental, social and economic sustainability. Social implications The results offer tangible results for measuring and reporting firm’s social and environmental performance. Originality/value This paper intends to offer an integrated and consistent way of measuring sustainability in industrial companies.

scholarly journals A triple bottom line construct and reasons for implementing sustainable business practices in companies and their business networks

2015 ◽  
Vol 15 (4) ◽  
pp. 427-443 ◽  
Author(s):  
Nils M. Høgevold ◽  
Göran Svensson ◽  
H.B. Klopper ◽  
Beverly Wagner ◽  
Juan Carlos Sosa Valera ◽  
...  
Keyword(s):  
Environmental Sustainability ◽  
Triple Bottom Line ◽  
Business Practices ◽  
Business Networks ◽  
Sustainable Business ◽  
Bottom Line ◽  
Sustainable Practices ◽  
Content Type ◽  
Survey Results ◽  
A Company

Purpose – The purpose of this study is to test a Triple Bottom Line (TBL)-construct as well as to describe the TBL-reasons for implementing sustainable business practices in companies and their business networks. This study explores how linking these seemingly disparate pillars of sustainability may be facilitated through a TBL construct. The notion of sustainable business practices has been evolving and is increasingly understood to encompass considerations of economic viability, as well as environmental sustainability and social responsibility. Design/methodology/approach – The research is quantitative in nature, exploring and analysing how companies in different Norwegian industries implement and manage sustainable business practices based on TBL. The survey results are reported here. Findings – The relevance of TBL to different aspects of sustainable business practices is outlined. The study generally supports the view that a heightened propensity for sustainable business practices ensures that organisations are better equipped for meeting the challenge of integrating TBL in companies and their business networks. Research limitations/implications – The study tested a construct of TBL in the context of sustainable business practices. It may be incorporated in further research in relation to other constructs. Suggestions for further research are proposed. Practical implications – Useful for practitioners to get insights into TBL-reasons for implementing business-sustainable practices in companies and their business networks. It may also be valuable to assess the general status of business-sustainable practices in a company and their business networks. Originality/value – Linking two traditionally separate and encapsulated areas of research, namely, the area of business sustainable practices and the area of TBL. The current study has contributed to a TBL-construct in relation to other constructs in measurement and structural models. It has also contributed to provide insights of priority into the main reasons to implement the elements of TBL within companies and their business networks.

Responsible leadership and triple-bottom-line performance—do corporate reputation and innovation mediate this relationship?

2020 ◽  
Vol 41 (4) ◽  
pp. 501-517
Author(s):  
Muzhar Javed ◽  
Hafiz Yasir Ali ◽  
Muhammad Asrar-ul-Haq ◽  
Moazzam Ali ◽  
Syed Ali Ashiq Kirmani
Keyword(s):  
Corporate Reputation ◽  
Structural Equation ◽  
Contingency Theory ◽  
Triple Bottom Line ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Responsible Leadership ◽  
Bottom Line ◽  
Content Type ◽  
The Relationship

PurposeDrawing on stakeholder theory and contingency theory, this study empirically investigates the relationship between responsible leadership (RL) and each dimension of triple-bottom-line (TBL) performance. Moreover, we tested the mediating effect of corporate reputation (CR) and innovation between RL and TBL performance.Design/methodology/approachPerceptual data were collected from 227 senior-level Pakistani managers using a questionnaire survey. Structural equation modeling (SEM) was used to test the direct and mediating effect hypotheses.FindingsThe results revealed that RL significantly and positively affects each dimension of TBL performance. Further, innovation mediated the relationship between RL and each dimension of TBL performance. However, CR did not mediate the relationship between RL and environmental performance.Originality/valueThis is maiden study to empirically investigate the effect of RL on meso-level outcome. Further, this study would be among the few ones to use TBL as a measure of corporate performance. Moreover, it will be the first study to test the mediating role of CR and innovation in the above-mentioned relationship and will also validate contingency theory.

Competencies for sustainability in hotels: insights from Brazil

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anete Alberton ◽  
Ana Paula Kieling ◽  
Franciane Reinert Lyra ◽  
Estela Maria Hoffmann ◽  
Mariana Pires Vidal Lopez ◽  
...  
Keyword(s):  
Hotel Industry ◽  
Triple Bottom Line ◽  
Business Practices ◽  
Negative Externalities ◽  
Bottom Line ◽  
Environmental Practices ◽  
Content Type ◽  
Hotel Managers ◽  
Practical Implications

PurposeThis study analyzes the competencies toward sustainability in hotel facilities in order to identify the level of implementation of sustainability practices, as well as individual competencies for sustainability in the hospitality companies.Design/methodology/approachInterviews and a survey with hotel employees were conducted in two important touristic Brazilian cities, Florianopolis, and Rio de Janeiro, considering the TBL (triple bottom line) dimensions. The data were analyzed with content analysis and descriptive statistics and conjoint analysis.FindingsPreventive competencies in the companies' management were identified. The research also revealed that competencies for sustainability are fairly present in the hospitality context yet, which demonstrates the urgency to discuss the theme in both academic and business practices.Research limitations/implicationsThe access to the hotel managers impaired the performing of a robust statistical analysis; the study provided new insights about the topics investigated and generated information for the theoretical framework about competencies for sustainability.Practical implicationsThe research results emphasized the need for the hotel industry to invest in sustainable strategies to meet its target audience, but also to raise the level of its staff and reduce costs in the long term, offering benefits to society, the environment, and, to their businesses.Social implicationsThe research socially contributes through promoting discussion on sustainability, which is one of the most challenging and relevant issues for society. Besides, it can assist the diffusion of the competencies for sustainability in the hotel industry, as an attempt to decrease their negative externalities on the environment and primary audiences.Originality/valueIt was identified a distance between practice and the triple bottom line concept, which is linked only to environmental practices. Besides, it was found limited knowledge about the concepts of competencies in the companies.

Validating a triple bottom line construct and reasons for implementing sustainable business practices in companies and their business networks

2016 ◽  
Vol 16 (5) ◽  
pp. 849-865 ◽  
Author(s):  
Carmen Padin ◽  
Carlos Ferro ◽  
Beverly Wagner ◽  
Juan Carlos Sosa Valera ◽  
Nils M. Høgevold ◽  
...  
Keyword(s):  
Environmental Sustainability ◽  
Design Methodology ◽  
Triple Bottom Line ◽  
Business Practices ◽  
Business Networks ◽  
Sustainable Business ◽  
Bottom Line ◽  
Content Type ◽  
Business Sustainability ◽  
Practical Implications

Purpose The purpose of this paper is to validate a triple bottom line (TBL) construct, as well as to describe the TBL reasons for implementing sustainable business practices in companies and their business networks. Design/methodology/approach This study reports on the validation of a TBL construct, in a Spanish context, of a study originally conducted in Norway. In this validation study, 230 companies were selected for participation. A total of 89 usable questionnaires were returned, generating a response rate of 38.5 per cent. Findings The empirical findings indicate major similarities and minor differences between organizations in Spain and Norway across two studies. By extension, the empirical findings appear to be valid and reliable across contexts and through time. Research limitations/implications This study explains the structural properties of the main reasons for business sustainability (economic, social and environmental) and business sustainability efforts in companies and the supply chains or business networks. Practical implications Business sustainability efforts need to be assessed in a systematic manner, and the validated TBL construct offers a foundation for doing this, though it needs to be complemented with other elements and details in connection with business sustainability. Originality/value Business sustainability efforts have been evolving over time and are increasingly seen to consider economic viability, as well as environmental sustainability and social responsibility. This study deals with how these elements of TBL are interrelated with respect to business sustainability.

A “fivefold bottom line” approach of implementing and reporting corporate efforts in sustainable business practices

2014 ◽  
Vol 25 (4) ◽  
pp. 421-430 ◽  
Author(s):  
Maria A.O. Dos Santos ◽  
Göran Svensson ◽  
Carmen Padin
Keyword(s):  
South African ◽  
Cultural Context ◽  
Triple Bottom Line ◽  
Business Practices ◽  
Press Releases ◽  
Sustainable Business ◽  
Bottom Line ◽  
Content Type ◽  
Retail Chain ◽  
Western Perspective

Purpose – The purpose of this paper is to describe a “fivefold bottom line” approach in implementing and reporting corporate efforts of sustainable business practices. Design/methodology/approach – This viewpoint from industry is based on the content analysis of the South African retail chain Woolworths. The data are gathered and derived from the company's comprehensive annual and sustainability reports from 2008 to 2011 and the company's press releases for this period focusing on their efforts of implementing and reporting sustainable business practices. Findings – A lesson learned from the presented “fivefold bottom line” approach to implement and report their corporate efforts of sustainable business practices is that it is adapted to fit and make sense in a specific market and society. The triple bottom line approach is usually derived from, or commonly based upon, a western perspective on the market and society in literature. Research limitations/implications – The authors argues that insights from industry of implementing and reporting sustainable business practices based upon different corporate “bottom line” approaches are required in literature. Practical implications – The authors propose that the “triple bottom line” approach may need to be commonly adapted to the country and cultural context in focus, which is not normally done, but templates are used. Originality/value – Triple bottom line reporting tends to follow common approaches how it is done. There is rarely seen adapted or modified “bottom line” approaches to specific market and societal characteristics in literature.

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