The Effects of Governmental Factors on Sustainable Technology Implementation Among Small and Medium Enterprises in Tonga

The Effects of Governmental Factors on Sustainable Technology Implementation Among Small and Medium Enterprises in Tonga

Malia Benedine Faasolo, Eli Sumarliah, Stefan Szegedi
Copyright: © 2022 |Pages: 27
DOI: 10.4018/IJISSS.302881
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Abstract

This study intends to examine the effects of governmental factors on sustainable technology implementation (STI) among SMEs in the Kingdom of Tonga. These factors are crucial to investigate because many private institutions working for emerging markets have limited resources that delay implementing technologies, particularly sustainability-based technologies integrated with enterprise management. On the other hand, governments have the resources and power to affect STI significantly. Hence, the research investigates the role of government as an influential determinant in attaining efficient and effective implementation. This study uses the SEM-PLS and fsQCA methods to analyze the data gathered from 251 SMEs in Tonga. The findings show that government subsidies and policies significantly and positively affect firms' morals and attitudes regarding STI in Tonga. Also, perceived benefit and perceived cost significantly affect STI in Tongan SMEs. The research is an initial effort to examine such effects in the SMEs of a Pacific Island country.
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Introduction

The competition and increasing demands of goods and services caused by the growing global population have forced organizations and businesses to adopt efficient, productive, and sustainable technologies (Klewitz and Hansen, 2014). Sustainable technology (ST) means “tools or service that possess the ability to fundamentally lessen the usage of natural resources” (Heiskanen et al., 2005). Vacchi et al. (2021) proposed the definition of ST in manufacture activity as a scheme that incorporates operational processes, process design, and product design, and at the same time, maximizes resource usage efficiency. Through a minimum life cycle usage of natural resources, the ST can improve people’s life quality (Noppers et al., 2014; Singh et al., 2020). The ST aims at creating unpolluted and ecologically welcoming manufacturing approaches of products, services, and materials with the efficient usage of energy and resources and minimum emissions and waste (Koltun, 2010). The ST subscribes to save from the harm of environmental degradation and lessen the reliance on non-continual energy supplies (Noppers et al., 2014). Besides, the ST can enhance organizational image and working conditions and enhance effectiveness to bring the greatest prospects (McMurray et al., 2014).

Nevertheless, ST implementation (STI) involves expensive investments regarding human resources and monetary resources, bringing numerous risks (Henriques and Catarino, 2015). Regardless of the risks, enterprises are progressively keen on adopting ST, and their intentions are significantly increasing quicker because of the growth of global and local environmental regulations, standards, and consumers’ hopes (Fargnoli et al., 2014). Consumers favor buying and consuming goods that meet sustainability standards, are more durable, and are less toxic (Achabou and Dekhili, 2013). Previously published works related to ST generally concentrated on how extensive enterprises use this technology. Though, SMEs also play a big role regarding responsibility and sustainability to create an eco-friendly ecosystem for their society and the broader community (Bocken et al., 2014).

SMEs are the biggest sector in the Kingdom of Tonga (Faasolo and Sumarliah, 2021). However, despite the latent environmental, societal, and economic advantages, Tongan SMEs remain in their infant stage regarding technology implementation (Faasolo and Sumarliah, 2021), including ST. Therefore, the government of Tonga has made the Tonga Strategic Development Framework II (TSDF II) 2015-2025. It is an attempt from the government to develop sustainable technology/innovation that can ensure two things:

  • (1)

    The more sustainable, inclusive, equitable, and proper management in using continual and non-continual environmental reserves to uphold a constant long-standing stream of advantages instead of surges ensued with lengthy periods of recovery (as stated in the TSDF II, Organisational Outcome 5.2); and

  • (2)

    Cleaner ecosystem, reduced contamination produced by business activities and households, better waste management, reutilizing and minimalization, and building a nicer, healthier, and safer environment for citizens and tourists (as stated in the TSDF II, Organisational Outcome 5.3). These concepts make ST a vital innovation to be implemented in Tongan civilization (CTCN, 2018) and the nation’s incursion to sustainable systems can bring profits to SMEs.

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