SME social performance: a four‐cell typology of key drivers and barriers on social issues and their implications for stakeholder theory

Abstract

PurposeSmall and medium enterprises (SMEs) are often neglected in the context of business and society theory building. The purpose of this article is to build a model of why SMEs address social issues by integrating internal and external drivers and barriers to social performance (SP).Design/methodology/approachUsing thematic analysis, barriers and drivers to SME social performance are clustered along key stakeholders and presented in a theoretical model. The analysis dates from 1973 until 2006 and is grounded in an extensive literature review that represents a total of 83 countries. It includes academic and practitioner accounts stemming from theoretical and empirical work, as well as conference proceedings. A total of 80 drivers and 96 barriers to SME high social performance are identified.FindingsThis paper develops an SME four‐cell ideal type of social issues management (SIM) response typology based on drivers and barriers of social performance.Practical implicationsThe importance of understanding barriers and drivers to social responsibility (SR) of SIM for stakeholder theory, policy makers, and practitioners is discussed, concluding with implications for further SME‐SR research.Originality/valueThe four‐cell typology considers the theoretical claims of stakeholder theory within the context of SMEs and proposes a heteronomy of stakeholder salience.

Learning to practice social responsibility in small business: challenges and conflicts

“…Numerous studies have shown a similar distinct pattern among SMEs involved in business SR. SME managers are highly committed at a personal level to principles of public responsibility, concern for social issues, and a sense of reciprocity or 'giving back' to society (Jamali et al 2008, Fuller and Tian 2006, Jenkins 2006, Kusyk and Lozano 2007. Perceived benefits among SME owners and managers are far more aligned with altruistic dimensions such as participation, a sense of pride and integrity (Jenkins 2006) than with economic benefits.…”

“…Indeed small business owners have distanced themselves perhaps understandably from association with the 'corporate' in CSR 1 , suggesting that current language and debates for business SR as well as its understandings and prescription may require reconceptualization for small business (Lange and Fenwick 2007;Jamali et al 2008, Jenkins 2004. Finally, analysts of CSR in SMEs agree that, particularly given the importance of SMEs to most national economies, the area requires further empirical research on several dimensions (Jenkins 2006, Lepoutre and Heene 2006, Kusyk and Lozano 2007, Murillo and Lozano 2006, Spence 2007). …”

“…However, Kusyk and Lozano's (2007) large review show clearly how these 'champions' and values are always subject to the firm's multiple stakeholders, the power of their relative demands, and their different pressures in particular contexts. Nonetheless, SMEs may enjoy distinct advantages over larger businesses in implementing SR practices, which Jenkins (2006) lists as more open and fluid communications enabling diffusion of SR values and information, less hierarchy and structure to work through in implementing SR initiatives, and flexibility allowing SMEs to respond quickly to SR-related opportunities.…”

“…Some evidence suggests that SMEs rely on these relationships because their business legitimacy is directly accountable to the local community: a major motivation for SR behavior may be customer loyalty and local business reputation (Fuller andTian 2006, Kusyk andLozano 2007).…”

Criteria for Responsible Business Practice in SMEs: An Exploratory Case of U.K. Fair Trade Organisations

“…Within the current SME literature itself the groupings identified are recognised but as separate areas. For instance, concerning governance and SMEs, see Abor & Biekpe (2007) and Gray (2006); for employees, see Devins et al (2004) and Bacon & Hoque (2005); for stakeholder relationships, see Kusyk & Lozano (2007); and for reporting, see Fassin (2008). Drawing these previously discrete groupings together provides a suggested framework with a holistic view of RBP in SMEs.…”