Transformation or Retaining the Status Quo

Abstract

This chapter focuses on the dynamics of MHC-SME collaboration on sustainability in an emerging country context. The findings show that MHC sustainability policy is generally driven from headquarters and that economic sustainability has priority over environmental and social sustainability. By contrast, SMEs appear to be able to initiate fully sustainable strategies based on the culture, tradition, family history, industry, and ethical standing of the owners. The interaction of MHCs and SMEs in relation to sustainability involves varying factors at the macro, meso, and micro levels. However, the micro level factor (i.e., human agency) seems to be the determining factor of the relationship. The authors provide rich contextual data by adopting a qualitative research method (case study) based on primary data, which is rare in international business literature.