Collaborative Approach of Operation
For SMEs considering their resource constraint, collaboration is the
only way to their sustenance and also the best way to realise their
sustainability goals. Santos (2014) mentioned that challenges like
resource constraints can be overcome through collaboration. However
alliances and networks can only be leveraged to solve common problems
and share best practice CSRs if the SMEs are willing, able and prepared
for disclosing and sharing of environmental information which is the
precondition for decreasing the information asymmetry in this field
(Jozica, 2004). Literature has suggested that through collaborative
operations SMEs can become instrumental in transmitting sustainability
requirements of their customers and thus effectively diffuse the
sustainability practices across the supply chain (Silvia et al, 2013).
Being a part of the social network, proximity and reciprocity with local
communities help them to address the resource and capacity challenges to
implement effective sustainability practices. Individuals with very
positive attitudes about their local communities were more likely to
serve in leadership positions and make financial and technical
contributions to the community (Margaret et al, 2010).
A shift from auditing and monitoring to more open dialogue among
different stakeholders especially suppliers and customers will prevent
the SMEs to resort to unethical practices of mock compliance (Huq et al,
2014). Growth through proper communication to all stakeholders including
the internal stakeholders like employees and external stakeholders like
supplier, customer and local community is necessary for sustainable
development (Cader and Leatherman, 2011). These views put together form
the basis of our second research proposition that collaborative
operations help to improve sustainability performance.
In line with the recommendations available in the literature we develop
the construct ‘Collaborative Approach of Operations’ considering the
factors like firm’s registration with SME association and trade
promotion councils, formation of cluster and sharing data related to
sustainability best practices within the SME cluster, following any
sustainability practice requirements from customers, inclusion of
sustainability practices in supplier selection criteria, sharing of
sustainability performance data externally through websites or reports
to customers. High value of factor loading and Cronbach Alpha
(> 0.8) establishes the validity of our construct (Ref
Table 1)