Can a SME Understand Its Sustainable Practices?– A Case Analysis from the Combined Perspective ofNudging Theory and Sustainable Business Practicesin A Small Retailing Business in Australia

Abstract

Sustainable business practices have been under a long-lasting and fierce debate about whether a business shouldpursue SDGs or make money. Several efforts have been made to answer this question, and the Nudging Theory, a newdevelopment in behavioral economics, has been introduced. However, research seldom emphasizes how to assist SMEsto fully understand the nudges and their related effectiveness to achieve SDGs, nor does it address the moral dilemmaspotentially involved. To fill this gap, the paper, by combining two theoretical models, develops a new framework tohelp SMEs comprehend their sustainable nudges in a moral and cost-effective approach so that SMEs’ potential mightbe fully stretched out. Also, a real-world case will be related to the theoretical Framework to assist with understandingwhich SMEs should place their emphasis on, coupled with descriptive and predictive analysis. The Process and theOutcomes of sustainable nudges are summarised as two crucial elements contributing to the effectiveness of suchsustainable nudges.