A PRACTICE-BASED TYPOLOGY OF SUSTAINABLE SMEs: DEVELOPMENT OF A SUSTAINABILITY COMPASS

Abstract

This paper proposes a typology of SMEs in terms of sustainable behaviours, based on scales that take into account the extent to which SMEs use sustainable practices in their operations and their level of entrepreneurial orientation. The scales are tested on approximately 800 SMEs in two countries. The results of the analysis provide a two by two matrix, the Sustainability Compass, along the axes of Entrepreneurial Orientation (EO) and Engagement in Sustainable Practices (ESP). The four profiles derived from the analyses are then tested for coherence with theoretical motivational profiles, that is the reasons that draw SMEs to get involved in sustainable practices. The Sustainability Compass has practical implications. It may be used as a benchmarking tool for SMEs willing to understand their CSR profile and the underlying practices that could strengthen it. It could also help public policy makers to adjust their responses to SMEs by acknowledging their heterogeneity and their particular needs and expectations.