Sustainability Strategies for SME Business Development Applying ESG Concepts to Create Competitive Advantage
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Abstract
This study aims to 1) examine approaches for applying sustainability strategies based on the ESG framework in SMEs' business, 2) analyze the relationship between ESG implementation and competitive advantage of SMEs, and 3) develop an appropriate ESG integration framework for SMEs in Thailand. This mixed-method research employed questionnaires to collect data from 384 SME entrepreneurs in Bangkok and surrounding areas, and conducted in-depth interviews with 15 SME entrepreneurs who demonstrated outstanding ESG practices. Data analysis employed descriptive and inferential statistics, as well as content analysis and thematic analysis. The research findings revealed that 1) SMEs can apply ESG principles across all dimensions, with the most popular strategies being energy and resource reduction, employee capacity development, and transparent business operations, 2) ESG implementation has a positive relationship with competitive advantage, with the highest correlation found in corporate image (r = 0.768, p < 0.01), access to funding sources (r = 0.721, p < 0.01), and operational efficiency (r = 0.695, p < 0.01) respectively, and 3) an appropriate ESG integration framework should begin with current status assessment, clear goal setting, and gradual implementation according to size and available resources, emphasizing the creation of an organizational culture for sustainability. The research results can be applied to formulate ESG support policies by government agencies, develop sustainable financial products by financial institutions, and design business strategies to create a competitive advantage through sustainable operations for SME entrepreneurs.
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