Drivers of Sustainable Entrepreneurship Among SMEs in Pakistan: Does Entrepreneurial Knowledge Matter?

Authors

  • Abdul Hanan National College of Business Administration & Economics Multan, Pakistan
  • Anis Shahira School of Business and Economics, Universiti Putra Malaysia, Malaysia
  • Mohsin Ali Department of Commerce, Bahauddin Zakariya University Multan, Pakistan

DOI:

https://doi.org/10.47540/ijias.v1i2.257

Keywords:

Entrepreneurial Bricolage, Entrepreneurial Orientation, Structural Equation Modelling (SEM), Sustainable Entrepreneurship, Sustainability Orientation

Abstract

Developing the concept of sustainable entrepreneurship from upper echelons theory and resource-based view theory, this research explores the impact of sustainable entrepreneurship among small and medium-sized enterprises. Sustainable entrepreneurship pursues a motivating approach to the economic, social, and environmental objectives of the society. The purpose of the study is to delve into the influencing factors of sustainable entrepreneurship among SMEs. The research is based on a quantitative approach via survey to address the sustainable entrepreneurship among SMEs (e.g., Punjab) in Pakistan. Data were obtained from 330 employees working in manufacturing SME’s. Additionally, structural equation modelling (SEM) was tested to examining the hypothesized relationship. The results confirm a positive effect of sustainability orientation and entrepreneurial orientation on sustainable entrepreneurship and the moderating effect of entrepreneurial knowledge was found significant. Moreover, the results confirm a negative effect of entrepreneurial bricolage on sustainable entrepreneurship, and the moderating effect of the entrepreneurial knowledge was found to be insignificant. However, these researches carry-out the context of entrepreneurial bricolage acts as a moderator in sustainable entrepreneurship research. Based on the findings, this research provides implications for the policymakers to promote sustainable entrepreneurship to facilitate new markets and getting the foremost advantage of sustainable development in SME’s.

References

Anbarasan, P. (2018). Stakeholder engagement in sustainable enterprise: Evolving a conceptual framework, and a case study of ITC. Business Strategy and the Environment, 27 (1), 282-299.

Avkiran, N. and Ringle, C. (2018). Partial least squares structural equation modeling. Handbook of Market Research 267.

Balabanis, G. I. and Katsikea, E. S. J. I. B. R. (2003). Being an entrepreneurial exporter: does it pay?. International Business Review, 12 (2), 233-252.

Belz, F. M. & Binder, J. K. (2017). Sustainable entrepreneurship: A convergent process model. Business Strategy and the Environment, 26 (1), 1-17.

Bonfanti, A., Battisti, E. and Pasqualino, L. J. M. D. (2016). Social entrepreneurship and corporate architecture: evidence from Italy. Management Decision, 54 (2), 390-417.

Cervelló-Royo, R., Moya-Clemente, I., Perelló-Marín, M. and Ribes-Giner, G. (2019). Sustainable development, economic and financial factors, that influence the opportunity-driven entrepreneurship, An fsQCA approach. Journal of Business Research, 115 (1), 393-402.

Cincera, J., Biberhofer, P., Binka, B., Boman, J., Mindt, L. and Rieckmann, M. (2018). Designing a sustainability-driven entrepreneur-ship curriculum as a social learning process: A case study from an international knowledge alliance project. Journal of Cleaner Production, 172 (1), 4357-4366.

Davies, I. A. and Doherty, B. (2019). Balancing a hybrid business model: The search for equilibrium at Cafédirect. Journal of Business Ethics, 157 (4), 1043-1066.

De Coning, T., Goosen, C. and Smit, E. D. M. J. S. A. J. O. B. M. (2002). Corporate entrepreneurship and financial performance: The role of management. South African Journal of Business Management, 33 (4), 21-27.

Drolet, A. L. and Morrison, D. G. (2001). Do we really need multiple-item measures in service research?. Journal of service research, 3 (3), 196-204.

Dwyer, R., Lamond, D. and Lee, K. H. J. M. D. (2009). Why and how to adopt green management into business organizations?. Management Decision, 47 (7), 1101-1121.

Eller, F. J., Gielnik, M. M., Wimmer, H., Thölke, C., Holzapfel, S., Tegtmeier, S. and Halberstadt, J. (2020). Identifying business opportunities for sustainable development: Longitudinal and experimental evidence contributing to the field of sustainable entrepreneurship. Business Strategy and the Environment, 29 (3), 1387-1403.

Etchebarne, M. S., Geldres, V. V. and García Cruz, R. (2010). El impacto de la orientación emprendedora en el desempeño exportador de la firma, 137 (1), 193-220.

Fichter, K. and Tiemann, I. (2018). Factors influencing university support for sustainable entrepreneurship: Insights from explorative case studies. Journal of Cleaner Production, 175 (1), 512-524.

Fornell, C. and Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics, SAGE Publications Sage CA: Los Angeles, CA. Journal of Marketing Research (JMR), 18 (3).

Fossen, F. M. and Sorgner, A. (2019). Digitalization of work and entry into entrepreneurship. Journal of Business Research.

Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S. (2019). A stakeholder theory perspective on business models: Value creation for sustainability. Journal of Business Ethics, 1-16.

Geisser, S. (1974). A predictive approach to the random effect model. Biometrika, 61 (1), 101-107.

Gundry, L. K., Kickul, J. R., Griffiths, M. D. and Bacq, S. C. (2011). Entrepreneurial bricolage and innovation ecology: Precursors to social innovation?. Frontiers of Entrepreneurship Research, 31 (19) 3.

Hair, J. F., Ringle, C. M. and Sarstedt, M. (2012). Partial least squares: the better approach to structural equation modeling?. Long Range Planning, 45 (5-6), 312-319.

Hair, J. F., Risher, J. J., Sarstedt, M. and Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31 (1), 2-24.

Hair Jr, J. F., Hult, G. T. M., Ringle, C. and Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.

Hair Jr, J. F., Sarstedt, M., Ringle, C. M. and Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. Sage Publications.

He, J., Nazari, M., Zhang, Y. and Cai, N. (2020). Opportunity-based entrepreneurship and environmental quality of sustainable development: A resource and institutional perspective. Journal of Cleaner Production, 256 (1), 120390.

Henseler, I., Falkai, P. and Gruber, O. (2010). Disturbed functional connectivity within brain networks subserving domain-specific subcomponents of working memory in schizophrenia: relation to performance and clinical symptoms. Journal of Psychiatric Research, 44 (6), 364-372.

Henseler, J. and Dijkstra, T. (2015). Adanco 2.0. Kleve, Germany: Composite Modeling.

Hockerts, K. and Wüstenhagen, R. (2010). Greening Goliaths versus emerging Davids—Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship. Journal of Business Venturing, 25 (5), 481-492.

Kibler, E., Fink, M., Lang, R. and Muñoz, P. (2015). Place attachment and social legitimacy: Revisiting the sustainable entrepreneurship journey. Journal of Business Venturing Insights, 3 (1), 24-29.

Knight, G. A. (1997). Cross-cultural reliability and validity of a scale to measure firm entrepreneurial orientation. Journal of Business Venturing, 12 (3), 213-225.

Kuckertz, A. and Wagner, M. (2010). The influence of sustainability orientation on entrepreneurial intentions - Investigating the role of business experience. Journal of Business Venturing, 25 (5), 524-539.

Lans, T., Blok, V. and Wesselink, R. (2014). Learning apart and together: towards an integrated competence framework for sustainable entrepreneurship in higher education. Journal of Cleaner Production, 62 (1), 37-47.

Latif, B., Mahmood, Z., Tze San, O., Mohd Said, R. and Bakhsh, A. J. S. (2020). Coercive, Normative and Mimetic Pressures as Drivers of Environmental Management Accounting Adoption. Sustainability, 12 (11), 4506.

Lüdeke‐Freund, F. (2020). Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research. Business Strategy and the Environment, 29 (2), 665-681.

Lumpkin, G. T. and Dess, G. G. J. A. O. M. R. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review, 21 (1), 135-172.

Luo, X., Zhou, L. and Liu, S. S. J. J. O. B. R. (2005). Entrepreneurial firms in the context of China's transition economy: an integrative framework and empirical examination. Journal of Business Research, 58 (3), 277-284.

Michailova, S., Mccarthy, D. J., Puffer, S. M., Shirokova, G., Vega, G. and Sokolova, L. J. C. P. O. I. B. (2013). Performance of Russian SMEs: Exploration, exploitation and strategic entrepreneurship. Critical Perspectives on International Business. 9 (1-2), 173-203.

Muneeb, F. M., Yazdi, A. K., Wanke, P., Yiyin, C. and Chughtai, M. J. M. D. (2020). Critical success factors for sustainable entrepreneurship in Pakistani Telecommunications industry: a hybrid grey systems theory/best-worst method approach. Management Decision.

Muñoz, P. and Cohen, B. (2018). Sustainable entrepreneurship research: Taking stock and looking ahead. Business Strategy and the Environment, 27, 300-322.

Nave, A. and Franco, M. (2019). University-Firm cooperation as a way to promote sustainability practices: A sustainable entrepreneurship perspective. Journal of Cleaner Production, 230 (1), 1188-1196.

Nitzl, C., Roldan, J. L. and Cepeda, G. (2016). Mediation analysis in partial least squares path modeling. Industrial Management & Data Systems, 116 (9), 1849-1864.

Pieroni, M. P., Mcaloone, T. C. and Pigosso, D. C. (2019). Business model innovation for circular economy and sustainability: A review of approaches. Journal of Cleaner Production, 215 (1), 198-216.

Ramayah, T., Ling, N. S., Taghizadeh, S. K. and Rahman, S. A. (2016). Factors influencing SMEs website continuance intention in Malaysia. Telematics and Informatics, 33 (1), 150-164.

Razmdoost, K., Alinaghian, L. and Linder, C. (2019). New venture formation: A capability configurational approach. Journal of Business Research, 113 (1), 290-302

Real, J. C., Roldán, J. L. and Leal, A. J. B. J. O. M. (2014). From entrepreneurial orientation and learning orientation to business performance: analysing the mediating role of organizational learning and the moderating effects of organizational size, British Journal of Management, 25 (2), 186-208.

Rigdon, E. E. (2012). Rethinking partial least squares path modeling: In praise of simple methods. Long Range Planning, 45 (5-6), 341-358.

Roxas, B., Battisti, M. and Deakins, D. (2014). Learning, innovation and firm performance: knowledge management in small firms. Knowledge Management Research & Practice, 12 (4), 443-453.

Roy, K. and Karna, A. J. M. D. (2015). Doing social good on a sustainable basis: competitive advantage of social businesses. Management Decision, 53 (6), 1355-1374.

Sannino, G., Di Carlo, F. and Lucchese, M. J. M. D. (2020). CEO characteristics and sustainability business model in financial technologies firms. Management Decision, https://doi.org/10.1108/MD-10-2019-1360.

Sarstedt, M., Ringle, C. M. and Hair, J. F. (2017). Partial least squares structural equation modeling. Handbook of Market Research, 26 (1), 1-40.

Schaltegger, S. and Burritt, R. (2018). Business cases and corporate engagement with sustainability: Differentiating ethical motivations. Journal of Business Ethics, 147 (1), 241-259.

Schaltegger, S., Hansen, E. G. and Lüdeke-Freund, F. (2016a). Business models for sustainability: Origins, present research, and future avenues. Organization & Environment, Sage Publications Sage CA: Los Angeles, CA, 29 (1), 3-10

Schaltegger, S., Hörisch, J. and Freeman, R. E. (2019). Business cases for sustainability: a stakeholder theory perspective. Organization & Environment, 32 (1), 191-212.

Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G. (2016b). Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation. Organization & Environment, 29 (1), 264-289.

Schaltegger, S. and Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: categories and interactions. Business Strategy and the Environment, 20 (4), 222-237.

Shams, S. R. and Kaufmann, H. R. J. M. D. (2016). Entrepreneurial co-creation: a research vision to be materialised. Management Decision, 54 (6), 1250-1268.

Shmueli, G. and Koppius, O. R. (2011). Predictive analytics in information systems research. MIS quarterly, 35 (3), 553-572.

Shmueli, G., Ray, S., Estrada, J. M. V. and Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models, Journal of Business Research, 69 (10), 4552-4564.

Stubbs, W. (2017). Sustainable entrepreneur-ship and B corps. Business Strategy and the Environment, 26 (3), 331-344.

Tiba, S., Van Rijnsoever, F. J. and Hekkert, M. P. (2019). Firms with benefits: A systematic review of responsible entrepreneurship and corporate social responsibility literature. Corporate Social Responsibility and Environmental Management, 26 (2), 265-284.

Turker, D. and Selcuk, S. S. (2009). Which factors affect entrepreneurial intention of university students?. Journal of European Industrial Training, 33 (2), 142-159.

Van Doorn, S., Jansen, J. J., Van Den Bosch, F. A. and Volberda, H. W. J. J. O. P. I. M. (2013). Entrepreneurial orientation and firm performance: Drawing attention to the senior team. Journal of Product Innovation Management, 30 (5), 821-836.

Voorhees, C. M., Brady, M. K., Calantone, R. and Ramirez, E. (2016). Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing Science, 44 (1), 119-134.

Wales, W. J., Parida, V. and Patel, P. C. J. S. M. J. (2013). Too much of a good thing? Absorptive capacity, firm performance, and the moderating role of entrepreneurial orientation. Strategic Management Journal, 34 (4), 622-633.

Yang, M. G. M., Roh, J. J. and Kang, M. J. M. D. (2020). The role of strategic environmental orientation in environmental design practices. Management Decision.

Zhu, Q., Jia, R. and Lin, X. J. M. D. (2019). Building sustainable circular agriculture in China: economic viability and entrepreneur-ship. Management Decision, 57 (4), 1108-1122.

Published

2021-06-19

How to Cite

Hanan, A., Shahira, A. ., & Ali, M. . (2021). Drivers of Sustainable Entrepreneurship Among SMEs in Pakistan: Does Entrepreneurial Knowledge Matter?. Indonesian Journal of Innovation and Applied Sciences (IJIAS), 1(2), 161-176. https://doi.org/10.47540/ijias.v1i2.257