An Exploratory Analysis of Sustainability Indicators in Turkish Small- and Medium-Sized Industrial Enterprises

Abstract

Significant differences exist between the sustainability practices of large businesses and those of small- and medium-sized enterprises in the industrial sector. Small- and medium-sized enterprises have restricted access to capital resources and experience. Most sustainable manufacturing strategies are based on indicators and evaluation models developed for large firms. This study aims to identify sustainability indicators for small- and medium-sized industrial firms. The sustainability indicators are generated from the G4-specific standard disclosures of the Global Reporting Initiative which provide a triple-bottom-line approach. A total of 142 senior and middle sustainability-focused managers and partners participated in the survey. An exploratory factor analysis was performed in the first step and 12 key factors were found. The Best–Worst Method (BWM) was employed in the second step to rank the criteria in order of priority. As a theoretical contribution this study introduces human rights and economic impact on society as two additional sustainability indicators for small- and medium-sized enterprises. The two most significant aspects of sustainability for Turkish small- and medium-sized businesses are labor rights and energy saving. This study provides empirical evidence from a broad range of stakeholders for the conceptually addressed challenges of sustainability in prior studies. The results demonstrate empirically that the sustainability-based value creation for stakeholder interests such as employees at the core of business activities is greater in small and medium enterprises than for other stakeholders. This study’s findings will give managers a framework for establishing key sustainability indicators for allocating the limited resources of small- and medium-sized enterprises. © 2023 Elsevier B.V. All rights reserved.