PhD-project: Sustainability and Responsibility in SMEs in Baden-Württemberg: An Exploratory Examination

Transcription

1 PhD-project: in Baden-Württemberg: An Exploratory Examination Patrick Kraus University of Chester, UK/ Pforzheim University, Germany

2 Agenda 1. Introduction 2. Terminology 3. Overview on the Research Project 4. Research Design 5. Selected Findings 6. Conclusions 2

3 Introduction Friedman (1970): The social responsibility of business is to increase its profits Environmental and social challenges seem to be oppressive Sustainability has become a widely discussed topic in business research, media etc. Decades of research have produced a vast amount of theoretical concepts, frameworks and empirical studies There is a considerable lack of research with regard to SMEs, especially in Germany Spence & Perrini (2010): building a solid body of evidence could be a major contribution to furthering uptake of social responsibility among small businesses. 3

4 Terminology Sustainability (and related terms) are very vague concepts Sustainability as a normative term: impossible to define undisputably (e.g. democracy, freedom, social justice) Working definition: In this research sustainability and responsibility of a firm, shall be understood as a mindset and approach that includes a balanced consideration of economic, environmental and social issues. The very core of sustainability contains the postulate of a long-term perspective usually over several generations. Moreover, individuals or institutions adhering to the principle of sustainability attach high importance to act in a moral and ethical way. This goes beyond legal obligations and is informed by a respect of the moral values of a community, region or country in which the individual or institution is acting. 4

5 Overview on the Research Project The overall aim of the research project is to increase our understanding of how SMEs consider sustainability and responsibility issues: Awareness and motivation Their understanding of what is seen as sustainable and responsible Practices and management approach Drivers and barriers Given the heterogeneous character of the SME sector it is intended to examine a specific phenomenon (manufacturing SMEs in Baden-Württemberg) Theoretical lens: stakeholder theory, social capital 5

6 Research Design Parts of the research project Systematic analysis of the literature Narrative literature review Qualitative fieldwork: Semi-structured interviews Contribution to the body of knowledge Mapping the small business and entrepreneurship literature Identification of key themes/combination of German and international literature Providing an in-depth analysis of ownermanagers of manufacturing SMEs in BW Interpretivist/social constructionist philosophical worldview: Normative issues, values and beliefs hardly can be measured In-depth examination of phenomena Exploratory development of theory rather than deductively testing theory Sustainability is a sensitive issue, so personal contact is seen as essential 6

7 Selected Findings Main Themes in Data Thematic coding revealed the following themes: 1. General personal attitudes of participants (mentality, large enterprises) 2. Characteristics of Mittelstand -firms (long-term view) 3. Societal embeddedness and networks (local environment, practices) 4. Employees (employee-oriented culture, practices) 5. Ecological dimension (importance, practices) 6. Motivational aspects 7. Business practices and principles (inter-sme relationship, value framework) 8. Management approach 7

8 Selected Findings Baden-Württemberg Context We do not want to grow and expand with might and main, but the orientation is traditionally Swabian. I tend to say: Do always what you can. Be careful to not overstrain yourself. This also equals the principle of sustainability (Ownermanager, male, 50 employees) People are associated with a number of characteristics: diligence, endurance, thriftiness, innovativeness Strong industrial economy (mechanical and electrical engineering, automotive) Very little information on the influence of the region during fieldwork Regional cultural background mainly not an issue in literature 8

9 Selected Findings Long-term Perspective Long-term perspective: Developing the firm Growth Passing down generations Economic success Long-term perspective of SMEs Ownership issues Relationship to customers Relationship to suppliers Employee fluctuation Source: own illustration 9

10 Selected Findings Long-term Perspective Well, another example that comes to my mind is that of course we can really think in a long-term view also regarding our investments. These do not have to amortise, as it is required by some others, within two years or so. I can also say: Hey, four, five or sometimes even ten years are enough, but someday it will pay off in the long run. (Owner-manager, male, 140 employees) Typical characteristics of SMEs: - Fire-fighting, short-term orientation - Ad-hoc, informal - Focus on ensuring survival - Lack of resources 10

11 Selected Findings Moral World Moral world of participants: Objectives of a firm Norms and values Corruption Critical working conditions Moral and ethical aspects Subsidies Arms industry Management remuneration Source: own illustration 11

12 Selected Findings Moral World Values such as fairness, trustworthiness, honesty, reliability play an important role for participants Mentality of the honourable businessman Romanticise the business relationship with other SMEs Participants tend to have a very negative view on large corporations (price pressure, short-term focus, arrogance, impersonal, profit maximisation) Owner-managers vs. external managers of large corporations Principally, and this is my vision, companies should be like lighthouses of trustworthiness, of identification. If there are many lighthouses, consequently more people identify with the whole economic system. This is the logical consequence. Well, each company is an ambassador for the market economic system. (Former owner-manager, chairman of the advisory board, male, 1,300 employees) 12

13 Selected Findings - Employees Focus on employees: - Employees as success factor - Shortage of qualified labour - Valuing employees more generally Identified by participants as most important stakeholder group Developing an employee oriented firm culture: Close relationship to employees Equality of chances Job security Employee oriented firm culture in SMEs Pressure and workload Treating employees in a fair manner Supporting employees in difficult situations Source: own illustration 13

14 Selected Findings - Employees Participants refer to several practices Developing a positive climate rather than offering financial benefits Economic motivation (attractive employer, keep employees etc.) Building internal social capital as some kind of insurance (e.g. for crisis situations, phases of transformation) These are such things that are useful in a long-term perspective and also sustainably useful, but this also means that it is not irrelevant to me what happens to the people here and this is true for my colleagues. And we get that back. So, from a business perspective it is indeed a useful story to deal with such issues. (Ownermanager, male, 80 employees) 14

15 Conclusions Participants indicate an implicit approach towards sustainability and responsibility Engagement varies considerably, but a special climate (long-term view, value orientation) is indicated in most participating firms Overall, environmental issues seem to play a subordinate role and are seen as a business issue Pressure of large corporations may reduce the potential of SMEs to engage in sustainability and responsibility Can SMEs considered to be sustainable? 15

16 Many thanks for your attention! Any Questions? 16