Determinants of SMEs' Sustainable Practise : A case study of a Swedish financial firm

Abstract: Purpose – To find out what factors hinder and promote SMEs to practice sustainable business. Methodology – Qualitative case study based on interviews and archival data. Findings – This research resulted in five different propositions. 1. Corporate reputation plays a role in contributing to  SMEs’ sustainable practices. 2. The scarce resources of SMEs induce difficulties to maintain a balance between short-term financial goals and long-term sustainability goals, which hinders SMEs to undertake sustainable practices. 3. The scarce resources of SMEs induce internal misalignments in expectations between different stakeholders, which hinders SMEs to undertake sustainable practices. 4. Affiliations and social networks of top managers play a role in contributing to their SMEs’ sustainable practices. played a vital role in promoting the sustainability practices of their SMEs. 5. Less diversity in the top management team hinders SMEs’ sustainable practices. Contributions - This thesis enhances understanding of the factors influencing the implementation of sustainable practices in SMEs from a manager's perspective, filling a knowledge gap in the financial sector. It also provides insights into the complex relationship between subsidiaries and headquarters, highlighting the dynamic balance between sustainability, financial goals, and directives from the headquarters.