Drivers of sustainable entrepreneurship intention: Insights from managers of small and medium enterprises

Abstract

This study aimed to examine the factors influencing sustainable entrepreneurship intention among managers of small and medium enterprises (SMEs) within the manufacturing sector in Malaysia. Specifically, it investigated the relationships between sustainable attitude, social norms and opportunity recognition and, sustainable entrepreneurship intention. It employed a quantitative research design using questionnaire survey. The target population consisted of decision makers of SMEs such as owners, managers or top management. The sample was selected using proportionate stratified random sampling. A total of 342 usable responses were collected for analyses using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings revealed that social norms and opportunity recognition had significant and positive relationships with sustainable entrepreneurship intention. Social norms emerged as a vital predictor, implied that societal expectations and peer influence were crucial in shaping sustainable entrepreneurship intention. Meanwhile, opportunity recognition was also significant in motivating decision makers of manufacturing SMEs to pursue sustainable entrepreneurship. However, sustainable attitude was found to have no significant relationship with sustainable entrepreneurship intention. The findings implied that encouraging sustainable entrepreneurship among manufacturing SMEs requires interventions that go beyond attitudinal development. As such, policymakers, academicians and industry stakeholders should strengthen social support systems among manufacturing SMEs to make sustainable business socially desirable. Moreover, they should also provide various supportive platforms that enhance opportunity recognition for making sustainable business commercially attractive.  Thus, sustainability recognition programmes, peer-learning networks and SME cluster collaborations are some of the possible efforts in accelerating sustainable entrepreneurship intention. This study contributed to both literature and practical aspects. Literally, it extended the understanding of formation process of sustainable entrepreneurship intention from Malaysian manufacturing SMEs perspectives. It also provided valuable insights from the actual decision makers of SMEs who are directly involved in business operations. In practical terms, it offered valuable information and strategies to policymakers, academicians and industry stakeholders in stimulating sustainable entrepreneurship intention. Most importantly, it highlighted the importance of social influence and opportunity recognition in encouraging sustainable entrepreneurship intention towards the achievement of national sustainability agenda.