Sustainability standards in rural entrepreneurships: the case of banana producers in Magdalena (Colombia)

Abstract

Purpose This study aims to evaluate how the criteria of sustainability standards (SS) ensure the social dimension of corporate sustainability (CS) in rural entrepreneurships using the case of banana agribusinesses in Magdalena (Colombia). Design/methodology/approach The methodological design was quantitative, explanatory and cross-sectional, where a sample of banana producers from Magdalena (Colombia) was selected. A structural equation model (SEM) was developed to evaluate the hypotheses. The SEM goodness-of-fit and fit indices were all acceptable. Findings There is a strong and statistically significant correlation between SS criteria and the social dimension of CS. In particular, local development is the most influential factor in shaping CS in the context of banana agribusinesses in Magdalena, Colombia, operating as rural entrepreneurship. Meanwhile, working conditions and human rights show moderate effects, while labor rights do not have a perceptible impact. Research limitations/implications Only the SS criteria that ensure the social dimension of CS in the banana agribusinesses of Magdalena (Colombia) were considered. It is important to note that other variables may be involved in ensuring CS. Future research to identify these possible variables is recommended. Originality/value This investigation explores an understudied issue within the CS sphere, explicitly focusing on rural entrepreneurship in developing countries, notably Colombia. The study scrutinizes the impact of SS on the social dimension of CS in rural environments, using banana cooperatives as a case study and highlighting the value of developing strategies to help improve the CS performance of this type of organization.

Guest editorial: Sustainable entrepreneurship: a new approach in Latin America and the Caribbean

“…These approaches empower rural communities to improve living standards and create sustainable business ventures. Lizcano-Prada et al (2024) underscore the importance of local development initiatives, adequate working conditions and respect for human rights in promoting social sustainability through rural entrepreneurship, ensuring long-term benefits for both communities and the environment.…”

“…Future research should focus on innovative approaches to sustainable entrepreneurship that cater to LAC's unique social and environmental contexts. Lizcano-Prada et al (2024) emphasize the effectiveness of sustainability standards in banana agribusinesses to address rural sustainability challenges, highlighting the need for context-specific strategies. Grisales et al (2020) demonstrate the significant role of green innovation in driving financial outcomes for emerging market multinationals, providing insights into developing tailored sustainable entrepreneurship strategies.…”

“…In the second special issue article, Lizcano-Prada et al (2024) explore the impact of sustainability standards on rural entrepreneurship, focusing on banana producers in Colombia. The study highlights the crucial role of these standards in upholding the social dimension of corporate sustainability in rural businesses, emphasizing their importance for long-term success and positive social impact.…”

“…In LAC, where rural entrepreneurship is a vital economic activity, the work of Lizcano-Prada et al (2024) underscores the importance of such entrepreneurship in improving livelihoods and promoting sustainable practices within rural communities (Tabares et al , 2022; Prado et al , 2022). These studies emphasize the need to balance the environmental impacts of human activities to enhance the well-being of rural populations (Valbuena et al , 2021).…”

“…Further regional research highlights the link between entrepreneurship and competitiveness (Ács and Amorós, 2008; Amorós et al , 2011; Lizcano-Prada et al , 2024) suggest that adherence to sustainability standards can enhance the competitive edge of rural entrepreneurs, contributing to broader economic development objectives.…”