1. SME-DE: CONTEXT, GOALS AND FRAMEWORK Lugano, 09.03.16 Luca Brusati SME LEADERS AND SUSTAINABILITY Deliberative Engagement

2. “Wicked problems” = complex, intractable issues that are never wholly solved or reconciled –Climate change as a paradigmatic example of a global wicked problem –EU2020 strategy = climate change mitigation as a key issue Many large firms incorporate sustainability issues in their strategies and play an active role in shaping EU policy SMEs = largest EU employer, but little say in policy debates –Focus on core business activities  they often overlook the risks related to climate change, both for overall sustainability and competitive advantage (and hence growth) –Difficult to engage SME leaders in issues seen as “too difficult”, deferrable, outside their reach or not of immediate benefit / threat Context

3. Difficult to build capacity among SMEs on an individual basis; SME intermediaries can be engaged instead –“Organizations interacting in a way separate from - or in addition to - standard customer-supplier relationships”; e.g. trade associations, governmental bodies, higher education institutions, nonprofits, larger firms –Key function = provide knowledge and advice to SMEs Project focus = how can intermediaries engage SMEs on wicked problems such as climate change? (exemplar for broader sustainability issues)  basis for capacity building Intermediaries can use collaborative approaches such as DE to trigger the involvement of SMEs on wicked problems What role for SME intermediaries?

4. Analytical framework: “realist evaluation” Communication measures Initiating and supporting the formation of a relationship Confidence building measures Short term wins Networking measures Motivation and problem solving Effective engagement of SMEs on climate change issues Context Independent variables that cannot be modified or influenced, if not with great difficulty Mechanisms Independent variables that can be modified or influenced Outcomes Dependent variables Policy context (e.g., EU, national, administrative tradition, regulation / voluntarism) Market factors (e.g., consumer preferences, supply chain) Heterogeneity of SMEs (e.g., industry sector, size, strategy, SME owner value) Nature of pre-existing SME- intermediary relationship (e.g., membership vs. non- membership bodies, social capital) Information asymmetries / deficits (e.g., existing knowledge of SME / intermediary, complexity of issues) Sustainability

5. Goal = understand upon what conditions intermediaries can use DE to engage SMEs and discuss climate change issues –Can DE help SMEs work collaboratively on climate change issues? –How do organizational arrangements impact engagement? –What is the mediating effect of contextual variables? Up to 10 case studies leading possibly to a DE event –Involvement of an SME intermediary –Identification of a climate change issue to engage SMEs on –Organisation of a DE event targeted to SMEs –Engagement of SMEs before, during and after the event –Analysis and dissemination of results Five EU countries: Bulgaria, Croatia, Denmark, Italy, UK Method: action research

6. Prof. Luca G. Brusati, Ph.D. LAREM University of Udine e-mail: luca.brusati@uniud.it Contact

7. Laboratory for Research in Economics and Management Department of Economics and Statistics University of Udine Via Diaz 5 34170 Gorizia, Italy WWW. SME-ENGAGEMENT.EU FACEBOOK.COM/ SMENGAGE TWITTER.COM/ SMENGAGE Thank you for your attention! The SME-DE project has been funded with support from the European Commission. This presentation reflects the views only of the authors, and the Commission cannot be held responsible for any use, which may be made of the information contained therein.