| dc.description.abstract | Companies' aggregated harm and benefits within ESG aspects, both externally to society and internally in firms have become increasingly important in recent years. Small and medium-sized firms (SMEs) make up for 90% of the world's businesses (World Bank, n.d.) Much of the research attention has been given to large companies, and less so to SMEs.In this article we investigate Norwegian SMEs to see if they differentiate against the current literature, and if they are able to generate additional value through Norwegian sustainability guidelines and policies. Data is generated through qualitative research by interviewing 10 Norwegian SMEs. External drivers causing SMEs to pursue sustainability are stakeholder demands, environmental impact, financial pressure, and regulatory pressure. The internal drivers for firms are financial, social, or strategic benefits from sustainability implementation. However, time and resources, liability of smallness, bureaucracy, price, and measurement problems are some of the barriers facing SMEs when trying to implement sustainability initiatives. Here are some of our main findings; Financial ability to invest more than the minimum policy requirement is one way of creating additional value. A one-size fits all regulatory sustainability approach is a drawback leading to not suitable regulations for firms. Measurement problems cause firms to question if their sustainable initiatives provide value and to what extent. Changes in policies, regulation and incentives will be important tools for a successful transition toward sustainability for Norwegian SMEs. | |
