The impact of social embeddedness on SMEs' proactive environmental sustainability: a comparison between Italy and Russia

Purpose: The paper analyzes socially embedded antecedents of sustainability and compares the results between two distinct contexts of Russia and Italy. Specifically, the paper identifies which forms of embeddedness (network, family and virtual) are associated with proactive environmental sustainability in SMEs. Design/methodology/approach: The data for the study were gathered from the World Bank Enterprise Survey dataset and include observations of 1,106 Russian SMEs and 663 Italian SMEs. Given the dichotomous nature of the dependent variable “proactive environmental sustainability”, the study utilizes a binary logistic regression and test regression models on the Russian and Italian data. Findings: Network embeddedness positively influences proactive environmental sustainability among SMEs in Italy, but not in Russia. Value chain environmental pressure positively impacts proactive environmental sustainability among SMEs in Russia and Italy. Network embeddedness negatively moderates the relationship between value chain environmental pressure and proactive sustainability in Russia, but not in Italy. Virtual embeddedness positively impacts proactive environmental sustainability practices among SMEs in Russia but not in Italy, while family embeddedness positively impacts proactive environmental sustainability practices in Italy, but not in Russia. Originality/value: We employ social embeddedness theory to determine to what extent certain forms of embeddedness contribute to proactive environmental sustainability among SMEs originating from two very distinct national contexts, a developed economy and a transition (emerging) economy. Our comparative approach allows us to challenge the “traditional” assumptions about SMEs’ sustainability antecedents, by showing the key role of different forms of social embeddedness.