Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines

Roxas, Banjo and Chadee, Doren (2012) Environmental sustainability orientation and financial resources of small manufacturing firms in the Philippines. Social Responsibility Journal, 8 (2). pp. 208-226. ISSN 1747-1117


Purpose – This study aims to challenge the conventional view that resources determine the extent of the environmental sustainability orientation (ESO) of small firms in a developing Southeast Asian country context. First, this study attempts to develop a measurement model of ESO of small firms in the manufacturing sector in the Philippines. Second, the study explores the impact of the financial resources on the ESO of firms.

Design/methodology/approach – The study uses survey data from 166 small manufacturing firms in three Philippine cities. Multiple regression modelling is used to estimate the relationships between firm resources and ESO.

Findings – The results indicate that ESO is a multi-dimensional construct with three facets – i.e. awareness of, actions for, and appreciation of environmental sustainability. The empirical evidence does not support the conventional firm resources-ESO proposition.

Research limitations/implications – A proactive ESO is not necessarily beyond the reach of resource-constrained small firms. The generalisability of the findings, however, is limited to small manufacturing firms in The Philippines.

Practical implications – This study informs owner-managers of small firms that a proactive ESO does not largely depend on financial resources. Government policies and programs to encourage small firms to become sustainable should focus not just on financial forms of assistance.

Originality/value – To date, this is the only Philippines-based study and one of the scarce small firm-focused studies that examine the proposition that small firms are unable to pursue a proactive ESO due to resource constraints

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to published version due to publisher copyright policy (Emerald)
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Management and Marketing
Date Deposited: 13 Sep 2012 10:53
Last Modified: 22 Jul 2014 04:27
Uncontrolled Keywords: environmental sustainability orientation; manufacturing firms; Philippines; small business; small firms; small to medium-sized enterprises
Fields of Research : 22 Philosophy and Religious Studies > 2201 Applied Ethics > 220102 Business Ethics
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
14 Economics > 1499 Other Economics > 149902 Ecological Economics
Socio-Economic Objective: B Economic Development > 86 Manufacturing > 8698 Environmentally Sustainable Manufacturing > 869899 Environmentally Sustainable Manufacturing not elsewhere classified
Identification Number or DOI: 10.1108/17471111211234842
URI: http://eprints.usq.edu.au/id/eprint/21927

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