Strategic management in SMEs: Innovation and sustainability

Abstract

Small and Medium Enterprises' demand for innovative and sustainable business practices has been increasing due to the returns in terms of organisational performance and the positive social and environmental impacts generated. This study aims to analyse the impact of sustainable strategic management on Portuguese small and medium-sized enterprises. We use a qualitative methodology based on multiple case studies of companies collected through interviews with small and medium-sized enterprises. The results show that the interviewed small and medium-sized enterprises adopt incremental and defensive innovation strategies and accommodative sustainable strategies, integrating only sustainable practices in their business models without involving stakeholders for a greater generation of benefits for all. This study is original because it is based on a multiple company case study and contributes to the literature on sustainable business strategies in SMEs. They are further recommended that companies adopt a set of practical implications to monetise their sustainability-based strategic decision.