Sustainable practices in manufacturing SMEs: the importance of technological collaboration between supply chain partners

Abstract

The development of new technologies within Industry 4.0 (I4.0) may serve as a catalyst in the development of sustainable practices (SP), particularly in the case of small and medium enterprises (SMEs). This paper contributes to the literature by examining the development of technological collaboration agreements between supply chain partners as an influence factor that may impact the environmental commitment of SMEs. Specifically, we study whether the type of partner within the supply chain impacts a firm’s spending or its investment decision toward SP. To that end, we propose an analysis model that considers supplier and customer relationships separately, and the SP measure to be taken distinguishing between expenses and investments. Additionally, empirical research comprising descriptive statistics and econometrics using the regression technique has been conducted on a sample of 1808 Spanish industrial firms. Our results confirm that there are significant differences between SMEs and large companies when developing SP, and that these SP in SMEs depend on the chosen partner and measure. Finally, we offer our main conclusions, as well as relevant recommendations for managers, public administrators, suppliers, and customers, who are essential players in the I4.0 revolution and are under social pressure to promote sustainable development.