The enabling role of formalized corporate networks to drive small and medium‐sized enterprises toward sustainability

Abstract

The global economy's transition toward more sustainable development models is undoubtedly grounded on small and medium-sized enterprises (SMEs). However, SMEs, individual entrepreneurs, and microenterprises have always encountered barriers to implementing social responsibility and sustainability concepts. The paper investigates the enabling role of formalized corporate networks to drive SMEs toward sustainable behaviors. A quantitative nonlinear regression approach is applied to a content analysis of a sample of network contracts coded. The content analysis is applied to analyze the declared objectives, the purpose of the contract, and sustainability areas. An ordered logistic regression is applied on variables related to the behavior of SMEs before entering in the contract and post-adhesion phases. Data demonstrates how networks of SMEs can be used as enabling factors to boost sustainability among them. Specifically, the study is based on a sample of 96 formalized network contracts (FNCs), including 1486 Italian SMEs in that sustainability-oriented networks. It offers an evidence-based perspective on how networks of companies can play a fundamental role in the development of policies aimed at bringing small companies closer to the concept of sustainability (such as eco-innovations, eco-efficiency, environmental performance, and social innovations, among others) and its practical implementation. This paper has two significant strengths. The first is that it uses as a sample a set of 1486 companies, including individual entrepreneurs and microenterprises, whose data are usually difficult to collect. The second is that it demonstrates the efficacy of a contractual form that could be scalable to different countries.

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“…Del mismo modo, se encuentran barreras hacia el conocimiento cuando las pequeñas empresas quieren orientar sus procesos hacia la sostenibilidad y se encuentran con poca orientación, y no se cuenta con las habilidades ni el conocimiento para implementarlo (Corazza et al, 2022); dicha barrera también afecta a nuevos emprendimientos para los migrantes. Para estas personas emprender es todo un reto pues muchas veces no tienen los saberes necesarios ni mucho menos los recursos para hacerlo (Pugalia y Cetindamar, 2022).…”

“…Las pymes siempre encuentran barreras al hacer transición a una responsabilidad social y sostenible; en cuanto a conceptos de sostenibilidad, implementación y práctica, las alianzas pueden ser extremadamente útiles al momento de superar las barreras de la sostenibilidad. Las pymes declaran que están poco capacitadas en el desarrollo de productos y procesos orientados a la sostenibilidad (Corazza et al, 2022). En las grandes empresas, una barrera común es de conocimiento, pero referente a su cultura organizacional y trabajo en equipo, como la estructura de recursos humanos jerarquizada, cargos muy operativos donde no están planteadas estrategias de innovación en la gestión (Maliqueo Pérez et al, 2021), donde se debe trabajar en estos aspectos para así conseguir más afinidad con la gestión y la aplicación de nuevas ideas que fomenten procesos de innovación (Khan, 2021).…”

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“…Second, we find a positive average effect of being part of a network, although it is not significant. The case of the Italian Network Contract has been analyzed by several scholars (Burlina, 2020; Cisi et al ., 2020; Corazza et al ., 2022; Fabrizi et al ., 2020; Leoncini et al ., 2020), who, however, do not distinguish between FFs and their non-FF counterparts and use measures of firm performance other than TFP. There are at least two advantages of referring to TFP.…”

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“…For the existing sustainability certification B‐Corp, deficits of sector‐specificity and support for SMEs are discussed by Carvalho et al (2021). If direct support is not possible, another way of a support system battling a lack of knowledge is through a network between different SMEs because ‘the network becomes the place where through collaborations and partnerships, an SME can start developing awareness and a practical approach toward sustainability’ (Corazza et al, 2021, p. 3). Contributing to the need for support while compensating for a lack of resources and knowledge, the findings of Journeault et al (2021) emphasise the importance of collaboration of SMEs with external stakeholders.…”