Motivational and Enabling Factors of Environmental Engagement in the SMEs of Developing Economies: Perceptions From the Leather Industry in Pakistan

Wahga, Aqueel Imtiaz (2014). Motivational and Enabling Factors of Environmental Engagement in the SMEs of Developing Economies: Perceptions From the Leather Industry in Pakistan. MRes thesis The Open University.

DOI: https://doi.org/10.21954/ou.ro.0000f09a

Abstract

Globally small and medium-sized enterprises (SMEs) are under constant pressure of different stakeholders to adopt environmentally responsible business practices. It has also inspired researchers, who have identified different internal and external drivers of and barriers to environmental engagement of SMEs. Crucially, the research on factors that might enable the environmental practices of SMEs is limited indeed. At the same time, much of the prior literature represents the context of developed economies. Consequently, little is known about the environmental practices of SMEs in developing economies. This qualitative study research has tried to address this gap in literature by exploring the influence of human capital- as an enabling factor- on environmental engagement of SMEs in the leather industry in Pakistan, which is a developing economy. Also the motivations for adopting environmental practices are explored. The thematic analysis of 8 Skype-based interviews has revealed that SMEs in the leather industry develop links with environmentally responsible suppliers to get environment friendly inputs, get environmental certifications and adopt different resource saving and pollution prevention measures to reduce their environmental impacts. Considerably, contrary to the earlier studies that often regard compliance with regulation as a primary motivation for SMEs to adopt environmental practices in developed economies, this research has identified that for the SMEs in leather industry in Pakistan the pressure from customers (mainly international buyers) is the leading motivation for environmental engagement. This study also asserts that human capital does enable the environmental practices of SMEs but it is hard to explain its exact impact. Significantly, this study highlights that often the investment in environmental initiatives is pre-dominantly informed by the economic rationale and willingness of owner-mangers to invest in such measures and less by the academic qualification and environmental-awareness of owner-managers and the sustainability rationale.

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