The psychological distance and construal level perspectives of sustainable value creation in SMEs. (23rd November 2020)

• Record Type: Journal Article
• Authors: Mzembe, Andrew
• Is Part Of: Sustainable development. Volume 29:Number 2(2021)
• Page Start: 465
• Page End: 478
• Publication Date: 2020-11-23
• Subjects: construal level -- external antecedents -- hypothetical distance -- internal organizational factors -- psychological distance -- SMEs -- spatial distance -- sustainable development -- sustainable value creation -- temporal distance; Sustainable development -- Periodicals; Economic development -- Environmental aspects -- Periodicals; 330.9
• DOI: 10.1002/sd.2150
• Languages: English
• ISSNs: 0968-0802

Abstract

Abstract: This article examines internal organizational factors and external antecedents of sustainable value creation by small medium enterprises (SMEs) and constructs a framework that integrates, at both levels, the theories of psychological distance and construal level from the field of psychology. This research provides an explanation as to why sustainable value creation remains a complex issue, and why many SMEs' engage with sustainable value creation to varying degrees. This paper particularly highlights how owner/managers of SME may construe different dimensions of psychological distance and apply their understanding to their response to different antecedents of sustainable value creation. Finally, by adopting the psychological distance perspective, this paper highlights the conditions under which internal and external organizational and factors can affect SMEs' propensity to create sustainable value. It further concludes by highlighting areas for further research.