An exploratory study of sustainability and firm performance for Indian manufacturing small and medium enterprises

Abstract

In this paper, an exploratory study of the drivers of sustainability, sustainable environmental and social practices, and firm performance for Indian manufacturing SMEs is presented. Exploratory/confirmatory factor analysis and structural equation modelling have been employed for data analysis. Some of the major findings of the study are as follows. The leadership and ethical orientation of owners/managers and employees has a strong positive impact on sustainable waste management and human resource management (HRM) practices, environmental benefits and firm performance. A positive association has been found between sustainable HRM practices and waste management. Although no direct relationship has been found between sustainable HRM practices and firm performance, sustainable HRM practices have an indirect positive impact on firm performance through the mediating role of environmental benefits. Further, the effects of moderating variables on the structural relationships have been explored. The study highlights the managerial implications and concludes with possible directions for future research.