Navigating the green transition: A qualitative study of sustainable development of SMEs in Viken

Abstract

The urgency of the green transition is undeniable. As the global climate crisis looms, businesses face mounting pressure to address sustainability. Efforts to promote sustainable development have been steadily increasing since the Brundtland report in 1987. In Norway, companies are coping with new regulations and heightened expectations from stakeholders. Among these businesses, small and medium-sized Enterprises (SMEs) play a crucial role in realizing national sustainability goals. However, despite their significance, SMEs still struggle to fully integrate environmental and social considerations into their operations.

The objective of this study is to explore the strategies employed by SMEs in Viken to overcome sustainability-related barriers and, more specifically, to focus on identifying those that surpass mere compliance. It aims to address the following research question:

How do SMEs in Viken currently respond to the changing regulatory environment and increased demand from stakeholders, and what are the implications of these responses?

To achieve this, an inductive qualitative method was employed, based on an exploratory research design. Eight semi-structed, in-depth interviews were conducted with sustainability officers in SMEs and sustainability advisors in Viken county.

The findings indicate that the main barriers that SMEs in Viken face are a lack of specialized expertise in sustainability, as well as a general lack of awareness and understanding throughout the organization. In addition, all the SMEs experience challenges with the regulations due to a perceived lack of standardization and framework. Nevertheless, SMEs are adopting strategies beyond mere compliance, focusing on internal measures such as organizational involvement, collaboration, and investing in sustainability expertise. The role of a dedicated Sustainability Officer emerges as crucial, but challenges remain in securing management support and avoiding unrealistic expectations. Proactive approaches, including sustainable innovation, are highlighted as valuable for SMEs to differentiate themselves and achieve long-term sustainability goals. The study underscores the importance of prioritizing internal measures as a foundation for successful sustainability integration.

The urgency of the green transition is undeniable. As the global climate crisis looms, businesses face mounting pressure to address sustainability. Efforts to promote sustainable development have been steadily increasing since the Brundtland report in 1987. In Norway, companies are coping with new regulations and heightened expectations from stakeholders. Among these businesses, small and medium-sized Enterprises (SMEs) play a crucial role in realizing national sustainability goals. However, despite their significance, SMEs still struggle to fully integrate environmental and social considerations into their operations.

The objective of this study is to explore the strategies employed by SMEs in Viken to overcome sustainability-related barriers and, more specifically, to focus on identifying those that surpass mere compliance. It aims to address the following research question:

How do SMEs in Viken currently respond to the changing regulatory environment and increased demand from stakeholders, and what are the implications of these responses?

To achieve this, an inductive qualitative method was employed, based on an exploratory research design. Eight semi-structed, in-depth interviews were conducted with sustainability officers in SMEs and sustainability advisors in Viken county.

The findings indicate that the main barriers that SMEs in Viken face are a lack of specialized expertise in sustainability, as well as a general lack of awareness and understanding throughout the organization. In addition, all the SMEs experience challenges with the regulations due to a perceived lack of standardization and framework. Nevertheless, SMEs are adopting strategies beyond mere compliance, focusing on internal measures such as organizational involvement, collaboration, and investing in sustainability expertise. The role of a dedicated Sustainability Officer emerges as crucial, but challenges remain in securing management support and avoiding unrealistic expectations. Proactive approaches, including sustainable innovation, are highlighted as valuable for SMEs to differentiate themselves and achieve long-term sustainability goals. The study underscores the importance of prioritizing internal measures as a foundation for successful sustainability integration.