Exploring the sustainability of SMEs: the Puerto Rican case
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Exploring the sustainability of SMEs: the Puerto Rican case Arleen Hernández‑Díaz1 · Theany Calderón‑Abreu1 · Segundo Castro‑Gonzáles1 · Luis Portales‑Derbez2 Received: 20 February 2019 / Accepted: 19 August 2020 © Springer Nature B.V. 2020
Abstract This study aimed to contribute to the establishment of a paradigm for the sustainability of SMEs through a diagnosis of the current sustainability level of Puerto Rican’s SMEs as well as an analysis of the areas that must be strengthened to achieve a high level of sustainability. This exploratory study shows that Puerto Rico has SMEs that seek to incorporate the best corporate practices to be sustainable in the long term. The analysis of the pentadimensional model indicates that 51% of the companies in the sample are already at an intermediate stage of sustainability (level 3 of 5). The findings also showed that the dimensions having a higher level of sustainability were global management, impacts, and competitiveness, while the dimensions that achieved lower scaling values were relationships and transparency. Based on findings, it is suggested that SMEs take forward steps toward the modification of nascent and ongoing business models, increase the ability to compete, adapt to change, enhance the creation of innovative products and services, and work together with public and private organizations to create more efficient business ecosystems. Keywords Small and medium enterprises · Sustainability · Puerto Rico · Pentadimensional model · Corporate sustainability
* Segundo Castro‑Gonzáles [email protected] Arleen Hernández‑Díaz [email protected] Theany Calderón‑Abreu [email protected] Luis Portales‑Derbez [email protected] 1
University of Puerto Rico, Dr. José N. Gándara Av. Rio Piedras Campus, San Juan 00931, Puerto Rico
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University of Monterrey, México, 4500 Ignacio Morones Prieto Av., Jesús M. Garza, 66238 San Pedro Garza García, NL, Mexico
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1 Introduction The issue of sustainability in Puerto Rican companies has recently acquired great importance due to the persistent economic recession in Puerto Rico (PR). In this sense, the government, the private sector and the civil society look at the establishment of small and medium enterprises (SMEs) as a path that can significantly contribute to the economic development of the island. This is largely because SMEs represent around 95% of all private establishments in Puerto Rico (CCEPR 2016) and generate about 80% of employment (Congressional Task Force 2016). However, according to the Global Entrepreneurship Monitor, which is the main source of empirical information about PR’ entrepreneurial level, there are difficulties in transitioning new businesses into established ones. In this context of SMEs high mortality, the study and development of tools that favor the permanence and evolution of these entities must be continuous. With this objective in mind, this research focus on the application of the Penta-Dimensional Model of Corporate
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