SME Environmental Management Practices: The Role of National and Sub-national Institutions

Ranasinghe Hewage, Udish Chalana (2025) SME Environmental Management Practices: The Role of National and Sub-national Institutions. Doctoral thesis, University of East Anglia.

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Abstract

The use of environmental management practices by businesses is critical to mitigate ecological and climate-related challenges. Given their vast numbers and economic significance, small and medium sized enterprises (SMEs) can play a key role in advancing sustainability. Although prior research has identified antecedents of environmental management practice use in SMEs, it often pays limited attention to the broader institutional contexts in which SMEs operate. Hence, this thesis addresses this gap by examining the use of environmental management practices by SMEs, focusing on the role of national and regional institutions. To do so, the thesis adopts a quantitative approach based on publicly available datasets, primarily the World Bank Enterprise Surveys.

Firstly, given that institutional environments comprise not only formal structures but also non-state actors, this thesis examines whether improvements in institutional quality, supported by the actions of non-state actors, collectively shape the context for SMEs to use environmental management practices. In essence, this study argues that higher-quality national institutional environments foster conditions that encourage SMEs to use environmental management practices.

Secondly, the thesis explores pressures that arise beyond national borders, specifically when SMEs participate in global value chains (GVCs). Given the interest of national governments in integrating SMEs into GVCs, this study examines how both participation in and exit from GVCs are associated with the use of environmental practices. Furthermore, it evaluates whether this relationship is conditioned by national institutions, particularly trade facilitation policies.

Thirdly, building on the idea that institutional, non-state actors often interact with firm behaviour, the thesis considers how SMEs’ respond to large peer referents such as large firms. This study shifts its focus from national to regional institutions and scrutinises how both formal and informal regional institutions shape SMEs’ responsiveness to these larger peers. It also evaluates whether the decision making of SMEs, is conditioned by their origin.

Item Type:	Thesis (Doctoral)
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Depositing User:	Bethany Turner
Date Deposited:	02 Sep 2026 10:25
Last Modified:	02 Sep 2026 10:28
URI:	https://ueaeprints.uea.ac.uk/id/eprint/104391
DOI:

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