Rethinking 21st-Century Businesses: An Approach to Fourth Sector SMEs in Their Transition to a Sustainable Model Committed to SDGs

Implementing and Monitoring Circular Business Models: An Analysis of Italian SMEs

The transition from a linear to a circular economy (CE) is at the center of the debate among institutions, enterprises, practitioners, and scholars. Small- and medium-sized enterprises (SMEs), with their high presence in the business environment, play a pivotal role in the successful implementation of CE principles. Therefore, this paper aims to understand the state of the CE among Italian SMEs, considering both their different sizes and sectors. This study investigates CE knowledge and application, strategic relevance, benefits from and barriers to the transition towards circular business models, and the use of CE-related performance indicators in management control and external reporting. Through an online survey carried out in cooperation with the Italian Confederation of Craft Trades and Small- and Medium-Sized Enterprises (CNA), we collected primary data from 623 respondents. Findings revealed the existence of cultural, technological, market and financial barriers, which have hampered the adoption of circular practices among Italian SMEs. Poor understanding of CE potential, combined with difficulty in raising public and private funds to finance the transition from linear to circular, are the greatest problems. To overcome such issues, we recommend serious intervention by public institutions, trade and consumer associations, and the higher education system to develop a climate more favorable to the CE.

Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

How Small and Medium-Sized Enterprises Can Uptake the Sustainable Development Goals through a Cluster Management Organization: A Case Study

Even though many small and medium-sized enterprises (SMEs) realize the importance of the Sustainable Development Goals (SDGs) for their sustainable business development, they face difficulties when individually pursuing this target. This paper aims to provide cluster-based SMEs with a framework to facilitate the uptake of the SDGs through a cluster network model. By focusing on the case study of a furniture production Cluster Management Organization (CMO Habic a network-based approach to sustainability management is analyzed in order to integrate the SDGs framework into SMEs’ everyday language and day-to-day operations. Through a cluster model approach, industry-specific sustainability material issues are tackled jointly and with the aim of applying a common solution to a similar challenge, Lehi-ODS, an online sustainability management tool for SME self-evaluation, has been developed wherein the participating SMEs can gain an overarching knowledge about the UN 2030 Agenda, assess their own alignment with the SDGs and with respect to that of their peers, and prioritize initiatives to correctly deliver them. The main conclusion derived from the paper is that a CMO is deemed to be a valuable driver in identifying common sector-specific challenges of corporate sustainability and in addressing collectively the question of contributing to the SDGs.

A Review of Corporate Purpose: An Approach to Actioning the Sustainable Development Goals (SDGs)

This journal article explores Corporate Purpose as an approach to action the Sustainable Development Goals (SDGs). It achieves this objective by presenting a review of existing literature on Corporate Purpose and SDGs from the disciplines of business ethics, management studies, economics and psychology. The review showcases contributions exploring whether and how Corporate Purpose-led strategy facilitates the operationalization of the SDGs and proposes an emerging research agenda. This article employed an inductive approach methodology through grounded theory to develop a critical analysis of scientific evidence-based work for theory construction on Corporate Purpose. One of the major findings of this review is that to achieve the SDGs companies need to shift found from the “business as usual” approach, which perceives sustainability as an externality, to incorporating sustainability factors in the company’s underlying purpose. The article also (1) identifies trends in research outputs and reveals five major antecedents of the phenomenon (drivers to purpose), (2) identifies key gaps within the existing literature, (3) distinguishes three current approaches to Corporate Purpose and (4) elaborates on current theories of Corporate Purpose and SDGs linkages to identify opportunities and aid future research. In summary, this article unpacks Corporate Purpose mechanisms to action the SDGs and stimulates academic discussion of business transformational approaches to long-standing sustainability challenges.

Sustainable Strategic Management Model for Hotel Companies: A Multi-Stakeholder Proposal to “Walk the Talk” toward SDGs

As we reach the fifth anniversary of the Declaration of the United Nations 2030 Agenda for Sustainable Development, the tourism sector responsible for over 10% of the world’s GDP still does not have an open-source, sustainable management criteria that would enable and empower them to “walk the talk” to contribute to the Sustainable Development Goals (SDGs). The purpose of this paper is to fill the gap in the social sciences and business management literature by providing a theoretical Sustainable Strategic Management Model (SSMM) proposal for the Fourth Sector (4S), Small- and Medium-sized (SMEs) Hotel companies (4S-SM-HCs), which are committed and have the will to contribute firmly to the 2030 Agenda. Based on their corporate purpose and aligned with the SDGs, this article provides a holistic proposal with a multi-stakeholder approach, adding the SDG perspective. Through a qualitative research methodology based on two focus groups in which the main stakeholders and the management team of the 4S-SM-HC under examination took part, a theoretical SSMM is co-defined so that the hotel company can make significant contributions to the five areas of the SDGs. Basing their structure on the internationally recognized Global Sustainable Tourism Council (GSTC) Criteria and co-created through social learning, this SSMM proposes four strategic management axis and develops ten principles of ethical performance (PEP). The main contributions of this article are two: (1) to provide an ecosystemic SSMM proposal to the 4S-SM-HCs to allow them to make significant contributions to the SDGs, and (2) to facilitate a methodological framework with a multi-stakeholder approach and SDG perspective to enable them to contribute to the wellbeing of people, the community and the planet.

Application of Ecosophical Perspective to Advance to the SDGs: Theoretical Approach on Values for Sustainability in a 4S Hotel Company

Fourth Sector Small and Medium-sized Hotel companies (4S-SM-HCs) that already have a purpose and wish to contribute effectively to the Sustainable Development Goals (SDGs) need to base their sustainability policies on universal values that deepen the individual-society-planet interrelations. “The Three Ecologies” essay (Guattari, 1989) provides a suitable theoretical approach to reflect on which values for sustainability are implicit in the purpose of the 4S-SM-HCs under study. This conceptual paper proposes an ecosophical reflection about the relationships between the mental, social, and environmental ecologies, and the company’s values for sustainability, establishing direct interrelations between the company’s purpose and the five dimensions of the United Nations Agenda 2030 for Sustainable Development (UN2030A), bringing a holistic vision to hotel management and, as a result, to the entire ecosystem, something which has not been addressed by the social sciences and business management literature yet. Through qualitative research methodology consisting of a focus group discussion in which the board of directors of a 4S-SM-HC took part, they delved into the ecosophical values for sustainability that moves them to create economic benefits while contributing to a better quality of life and a better environment. The contribution of this paper is twofold: firstly, to provide an in-depth reflection with an ecosophical approach on which company’s values are meaningful to sustainability, and secondly, to propose a theoretical framework with an ecosophical approach for 4S-SM-HCs to advance from their purpose to the SDGs and thus, to contribute to a Triple Wellbeing of people, the community and the planet.