Sustainability reporting capabilities in Finnish SMEs : the role of institutional pressures, managerial beliefs and market outcomes
Zahin, Sumaya (2026)
Pro gradu -tutkielma
2026
School of Business and Management, Kauppatieteet
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe20260724112452
https://urn.fi/URN:NBN:fi-fe20260724112452
Tiivistelmä
This study investigates the drivers, processes and consequences of sustainability reporting by small and medium sized enterprises (SMEs) from an institutional, managerial and capability perspective. Building on previous theories such as institutional, upper Echelons and dynamic capabilities theory, an integrated framework is constructed to explain how external pressures of regulators and stakeholders become internal pressures of strategic responses and disclosure practices. The accompanying dynamics of digital transformation, corporate governance setups and organizational culture are also included.
The analysis, based on an extensive literature review from state of the art academic studies, pinpoints the diverse spectrum of drivers and barriers which hinder SMEs in integrating sustainability reporting practices. But these pressures are subject to be interpreted and operationalized depending on internal factors like managerial attitudes, competencies in sustainability and availability of resources. Results also suggest that digitalisation and data analytics capabilities are significant enablers in readiness for and transparency of reporting but financing is also still a challenge and limited technical expertise.
The study also reveals that sustainability reporting is becoming more connected to general business results, environmental performance, innovation ability and financial results. However, comparability and credibility are still hampered by reporting practices inconsistencies, greenwashing risks and the maturity of institutions in each region.
Overall, the findings of this research exercise contribute to increased insights into the topic of SME sustainability reporting by bringing together disjointed viewpoints and analysing these in a single structure. It has policy, management and practice implications for policymakers, managers and practitioners who seek to enhance the quality of reporting and encourage sustainable business that will be more strongly reflected in the reporting of SMEs.
The analysis, based on an extensive literature review from state of the art academic studies, pinpoints the diverse spectrum of drivers and barriers which hinder SMEs in integrating sustainability reporting practices. But these pressures are subject to be interpreted and operationalized depending on internal factors like managerial attitudes, competencies in sustainability and availability of resources. Results also suggest that digitalisation and data analytics capabilities are significant enablers in readiness for and transparency of reporting but financing is also still a challenge and limited technical expertise.
The study also reveals that sustainability reporting is becoming more connected to general business results, environmental performance, innovation ability and financial results. However, comparability and credibility are still hampered by reporting practices inconsistencies, greenwashing risks and the maturity of institutions in each region.
Overall, the findings of this research exercise contribute to increased insights into the topic of SME sustainability reporting by bringing together disjointed viewpoints and analysing these in a single structure. It has policy, management and practice implications for policymakers, managers and practitioners who seek to enhance the quality of reporting and encourage sustainable business that will be more strongly reflected in the reporting of SMEs.