Sustainable SMEs network utilization: the case of food enterprises

Abstract

PurposeThis paper seeks to examine how sustainable SMEs utilize their networks. Here utilization refers to activities SMEs perform in network and how the SMEs are influenced by and influence networks. While the importance of networks has been acknowledged in SME marketing research, linking sustainability to SME networking has been a more neglected area of research.Design/methodology/approachA multiple case study of two Finnish SMEs operating in the food sector was conducted for this study. The main methods applied to gather the research data were group and individual interviews.FindingsThis study shows that SMEs utilize their networks as a source of opportunities and resources and their networks can serve as an avenue for change towards sustainability. Moreover, learning in the network was identified as a key process through which the enterprises and the network evolve.Research limitations/implicationsThe main limitation of this paper is that the case study interviews were conducted at a single point in time and thus the study is based on historical instead of follow‐up data.Practical implicationsSMEs are encouraged to develop skills (e.g. willingness to solve problems), which on the one hand, help them to utilize the network as a source of opportunities and resources and, on the other hand, influence the network to develop it further.Originality/valueThis paper demonstrates that SMEs utilized their networks to bring about enhanced sustainability, a perspective less understood in previous research. Moreover, the study connects sustainability to SME networking, which is also less studied, but a highly valuable way for resource‐constrained SMEs to enhance social and ecologic sustainability.

Two Decades of Sustainability Management Tools for SMEs: How Far Have We Come?

“…; Halila ; Hammann, Habisch, and Pechlaner ; Jämsä et al. ; Lawrence et al. ; Moore and Manring ; Murillo and Lozano )…”

“…Given the limited coverage of sustainability management tools in SME journals (exceptions are, for example, Jämsä et al 2011), it is not surprising that the sustainability-minded scholars provide a more normative discussion why SMEs should implement these methods. The main reasons suggested in the literature are:…”

“…Furthermore, small business networks are opening their agendas to sustainability issues, which allow their SME members to share knowledge and resources that otherwise might not have been directly available to them (Ammenberg and Hjelm 2003;Collins et al 2007;Halila 2007;Jämsä et al 2011;Jenkins 2006;Lawrence et al 2006). More formally, strategic alliances may allow members to implement and maintain sustainability management tools, such as a cooperative business approach to implementing an EMS (Seiffert 2008) and a community-based approach to CSR (Niehm, Swinney, and Miller 2008).…”

Sustainability Management and Small and Medium‐Sized Enterprises: Managers' Awareness and Implementation of Innovative Tools

“…On one hand, advocating scholars offer various reasons for implementation of tools in SMEs, such as the owner-manager's willingness to engage in sustainability activities (Revell et al, 2010;Cassells and Lewis, 2011;Hsu and Cheng, 2012). improved social and/or environmental performance, in Ammenberg and Hjelm, 2003;Halila, 2007;Battaglia et al, 2010;Jämsä et al, 2011;Steward and Gapp, 2012). The implementation of tools can also be fostered through local support programs and small business networks, allowing members to implement tools under the consultation of experts and with other firms' acting as cooperative peers pursuing a common goal (e.g.…”

Norms and Trust-Shaping Relationships among Food-Exporting SMEs in Ghana

“…SMEs have distinctive characteristics which set them apart from large firms which render them resourceconstrained (Brinkmann et al, 2014). SMEs may therefore use networks as sources of both opportunities and complementary resources (Ferrary and Granovetter, 2009;Jämsä et al, 2011). SME entrepreneurial networks may be developed based on social relations such as religion, family, friends and acquaintances, as well as links with suppliers, customers and distributors (Drakopoulou-Dodd, 2011;Amoako and Lyon, 2014).…”