Influence of strategic orientations and management values in small and medium-sized enterprises on commitment to sustainability in South Africa

Abstract

The business case for sustainability is already strong and conducting business as usual, is no longer an option. Larger companies have already begun incorporating the Sustainability Development Goals (SDGs) into their corporate objectives, however, small and medium-size enterprises (SMEs) lag behind in implementing these sustainable practices. The main purpose of this study is to examine the relationship between the strategic orientations, market orientation (MO), entrepreneurial orientation (EO), technology orientation (TO), and learning orientation (LO) concerning commitment to sustainability. Furthermore, the study examines management values, and sustainability practices in relation to commitment to sustainability in SMEs in South Africa. Survey responses from SMEs in Gauteng province were analysed and agree with the Swedish study concerning the influence of MO, EO, and sustainability practices in relation to commitment to sustainability, which implies that companies see both market and entrepreneurial advantages of sustainability. Furthermore, the results confirm the influence of TO, LO, and environmental-friendly values among management on commitment to sustainability, implying that companies see both technology and learning advantages of sustainability. Different parts of the strategic orientations also influence commitment to sustainability in South African SMEs. The results also show that LO has a mediating effect on the relationship between EO, TO and commitment to sustainability. The implications are that companies can work on sustainability issues using both internal and external perspectives.