Evaluating the pro-environmental strategies of ethnic minority retail SMEs

Abstract

Purpose Despite increasing pressure to adopt pro-environmental behaviour (PEB), limited research acknowledges the sustainability efforts of ethnic minority retail small and medium-sized enterprises (SMEs). This is despite forming over half of all UK SMEs. Consequently, this research aims to advance our understanding of if, how and to what extent commercial gains (CG) (i.e. profit) and social embeddedness (SE) (i.e. people) impact ethnic minority retail SME'sdecisions to adopt pro-environmental behaviours (i.e. planet). Design/methodology/approach Drawing on the theoretical lens of the value-beliefs-norm theory, this research uses survey data from 352 owner-managers. The hypothesised model is tested in a structural equation model (SEM) using maximum likelihood estimation. Findings Our results indicate that SE and CG have a positive direct impact on PEB. However, in contrast to previous studies, results reveal an insignificant indirect relationship between CG and values. Similar to previous studies, our results confirm that values influence PEB indirectly and directly through general beliefs to activate personal norms (PN) to predict PEB. Practical implications Theoretical and practical implications are discussed to assist retail owner/managers and policy makers. Originality/value This research provides a nuanced insight into the under-researched, PEB of ethnic minority retail SMEs. By incorporating SE and CG as two important antecedent constructs, we reveal that profit objectives are prioritised over both people and planet. Subsequently, we envisage that voluntary opt-in, net-zero policies towards environmental targets are unlikely to be adopted at the pace necessary to meet either industry or policy targets by 2040 and 2050, respectively.