Adoption of Eco-Efficiency in Strategic and Operational Management of Industrial Small and Medium Size Enterprises

Abstract

Climate change, smelting glaciers, lack of fresh water, polluted soil and energy consumption are major issues of our time. These phenomena are often considered to be related to industrial activities and their ecological consequences. Sustainable development has become a widely quoted policy in this context as it combines social, economic and environmental/ecological development. Economic and ecological efficiency, eco-efficiency, has a key role in sustainable development. Small and medium size enterprises (SMEs) play an increasingly important role in economic growth, employment and local development. Several methods for adopting eco-efficiency, as well as various models for evaluating eco-efficiency in enterprises, have been developed. Common frameworks to differentiate these methods and thus promote the use of them in SMEs have so far been modest.

The aim of this dissertation is to increase knowledge on the applicability and adoption of eco-efficiency into strategic and operational management of industrial SMEs. The focus is on the role of eco-efficiency in strategic and operational management, adoption of managerial methods, and use of methods for adopting eco-efficiency, use of methods for evaluating eco-efficiency and on the role of material flow management as a link to eco-efficiency in industrial SMEs. The research methodology chosen is action research, and the research methods are case studies and a survey.

The main outcomes of the research are summarised as follows: • a recommendation for common frameworks to help in adopting sustainability and eco-efficiency in strategic and operational management • a recommendation for common frameworks to recognize a suitable method for adopting as well as for evaluating eco-efficiency. The frameworks will help enterprises to manage the adoption of eco-efficiency and to demonstrate and communicate eco-efficient improvements both internally and externally • descriptions and recommendations for some common methods for adopting eco-efficiency • descriptions and recommendations for some common methods for evaluating eco-efficiency • use of material flow management as a link to eco-efficiency in SMEs

This study gives new empirical knowledge on the adoption of eco-efficiency and the factors behind the adoption decisions.