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

Article

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. https://doi.org/10.1108/17471111211234842
Article Title

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

ERA Journal ID40462
Article CategoryArticle
AuthorsRoxas, Banjo (Author) and Chadee, Doren (Author)
Journal TitleSocial Responsibility Journal
Journal Citation8 (2), pp. 208-226
Number of Pages19
Year2012
PublisherEmerald
Place of PublicationBingley, W Yorks. United Kingdom
ISSN1747-1117
Digital Object Identifier (DOI)https://doi.org/10.1108/17471111211234842
Web Address (URL)http://www.emeraldinsight.com/journals.htm?articleid=17036391&show=abstract
Abstract

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

Keywordsenvironmental sustainability orientation; manufacturing firms; Philippines; small business; small firms; small to medium-sized enterprises
ANZSRC Field of Research 2020500102. Business ethics
350107. Sustainability accounting and reporting
389902. Ecological economics
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Byline AffiliationsSchool of Management and Marketing
Deakin University
Institution of OriginUniversity of Southern Queensland
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