1. Presenter Zeeshan Iqbal Bahauddin Zakariya University Multan-Pakistan
Entrepreneurial Orientation and Engagement of Pakistani SMEs in Sustainable Development Practices: Mediating Role of Knowledge Management
Presenter
Zeeshan Iqbal
Bahauddin Zakariya University Multan-Pakistan
Co-Author
Maimoona Malik
Bahauddin Zakariya University, Multan-Pakistan

2. Introduction
After the emergence of the concept of Sustainable Development (SD) more than 20 years ago, when the World Commission on Environment and Development published its report to the United Nations (WCED, 1987), it remains a valid concept in the current political, economic, and social world scenario.
Specifically to the business world, SD implies the adoption of those strategies and activities that meet both companies’ needs and current and future societal expectations.
This means that it should not compromise future generations’ ability to meet their needs.

3. Introduction
Sustainable development is a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.
Generally, the mechanism of SD has been seen in the large firms, however, SMEs are also considered to engage in the practices of SD.
This is because, individually, SMEs have relatively small environmental and social impacts. However, as a group the impacts are much larger; SMEs account for about 90% of all businesses. This raises the importance of SD practices in the context of SMEs.

4. Theoretical Framework
Engagement in SD Practices
Entrepreneurial Orientation
Knowledge Management
Environment
Human Resource Management
Community and Local Development

5. Methodology Positivist Research Approach
Research Questionnaire was used for data collection
First part of questionnaire: Demographic Information
Second part of questionnaire: Data about latent variables on five points Likert scale.
The measurement scales were adapted from prior studies (as shown in next slide).
Respondents: Senior Management of SMEs
Targeted Population: Major Cities of Pakistan i.e. Karachi, Faisalabad, Lahore, Sialkot, Multan etc.
The researcher distributed 500 questionnaires, from which 435 were correctly responded.

6. Methodology Measurement Scales Construct No. of Items Adapted from:
Entrepreneurial Orientation 9
Covin and Slevin (1989); Miller (1983)
Knowledge Management 12
Gold et al. (2001); Lin and Lee (2005)
Environmental Practices
Courrent et al. (2013)
HRM Practices
Community Practices 8

7. Results Results of Direct Effects Relationships Path Coefficients
T Statistics
P Values
EO  KM
0.664
9.547
< 0.001
KM  ENV
0.369
4.778
KM  HRM
0.532
4.955
KM  CLD
0.812
12.518
Note: EO= entrepreneurial orientation, KM= knowledge management, ENV= environment, HRM= human resource management, CLD= community & local development

8. Indirect effects (a x b)
Results
Results of the Mediating Effects
Total Effects
Direct Effects (c’)
Indirect effects (a x b)
Relationships
Path Coefficients
Hypothesis No.
Point Estimate
VAF (%)
EO  ENV
0.696
0.448
H3a
0.245
35.203
EO  HRM
0.621
0.269
H3b
0.353
56.884
EO  CLD
0.631
0.089
H3c
0.539
85.447
Note: EO= entrepreneurial orientation, KM= knowledge management, ENV= environment, HRM= human resource management, CLD= community & local development

9. Findings
The empirical results revealed that EO exerts a positive influence on KM (β= 0.664, t= 9.547, p< 0.001).
Furthermore, KM is positively associated with each dimension of SD (1) environment (β= 0.369, t= 4.778, p< 0.001), (2) human resource management (β= 0.532, t= 4.955, p< 0.001) and (3) community and local development (β= 0.812, t= , p< 0.001).
Moreover, the results indicated that KM powerfully mediates the relationship between EO and each dimension of engagement of SMEs in SD (1) environment (VAF= percent), (2) human resource management (VAF= percent) and community and local development (VAF= percent).

10. Findings
The overall findings of research concluded that proposed research model has strong explanatory power such as: KM (R-square= 44.2 percent), dimensions of SD practices viz., (1) environment (R-square= 55.7 percent), (2) human resource management (R-square= 54.5 percent) and (3) community and local development (R-square= 76.3 percent).

11. Graphical Representation

12. Recommendations
For SMEs’ managers, our findings suggest that they should promote the culture of SD by encouraging the mechanism of EO and KM, rather than adhering to formal CSR strategies.
SMEs are closely attached with their customers, employees, business partners and local community (Johnson, 2015; Ayuso and Navarrete‐Báez, 2018) and they have less formalized business structure, therefore, SMEs’ managers should try to identify and handle the issues relevant to environment, human resource management and community & local development.
The managers of SMEs should attend awareness seminars regarding SD practices and should train and encourage their employees towards SD.

13. Recommendations
From a policy viewpoint, the government of Pakistan, with the collaboration of other regulatory bodies such as Small and Medium Enterprises Development Authority (SMEDA), Chamber of Commerce, Corporate Social Responsibility Centre Pakistan (CSRCP) etc., should take measures for promoting the culture of SD and should offer guidelines, training seminars and benefits of engaging in SD practices.

14. Recommendations
Furthermore, it appears that an effective way to increase SD engagement in SMEs is by encouraging EO and KM. Thus, public policies should focus on promoting a proactive way of dealing with sustainability related challenges, more than formulating regulations and bureaucracy burdens that force companies to consider social and environmental sustainability issues.
Policy-makers and other actors interested in fostering sustainable business practices should develop context specific tools to help companies spot sustainable business opportunities relevant to their operations.

15. Recommendations End of Presentation
For example, this could be done by focusing on potential market trends linked to sustainability or providing appropriate support, training, and networking possibilities to SMEs
End of Presentation