The enabling role of formalized corporate networks to drive small and medium-sized enterprises toward sustainability

The global economy's transition toward more sustainable development models isundoubtedly grounded on small and medium-sized enterprises (SMEs). However,SMEs, individual entrepreneurs, and microenterprises have always encounteredbarriers to implementing social responsibility and sustainability concepts. The paperinvestigates the enabling role of formalized corporate networks to drive SMEstoward sustainable behaviors. A quantitative nonlinear regression approach is appliedto a content analysis of a sample of network contracts coded. The content analysis isapplied to analyze the declared objectives, the purpose of the contract, and sustainability areas. An ordered logistic regression is applied on variables related to thebehavior of SMEs before entering in the contract and post-adhesion phases. Datademonstrates how networks of SMEs can be used as enabling factors to boost sustainability among them. Specifically, the study is based on a sample of 96 formalizednetwork contracts (FNCs), including 1486 Italian SMEs in that sustainability-orientednetworks. It offers an evidence-based perspective on how networks of companiescan play a fundamental role in the development of policies aimed at bringing smallcompanies closer to the concept of sustainability (such as eco-innovations, eco-efficiency, environmental performance, and social innovations, among others) and itspractical implementation. This paper has two significant strengths. The first is that ituses as a sample a set of 1486 companies, including individual entrepreneurs andmicroenterprises, whose data are usually difficult to collect. The second is that itdemonstrates the efficacy of a contractual form that could be scalable to differentcountries.