SME social performance: a four‐cell typology of key drivers and barriers on social issues and their implications for stakeholder theory

Small and medium enterprises (SMEs) are often neglected in the context of business and society theory building. The purpose of this article is to build a model of why SMEs address social issues by integrating internal and external drivers and barriers to social performance (SP).

Using thematic analysis, barriers and drivers to SME social performance are clustered along key stakeholders and presented in a theoretical model. The analysis dates from 1973 until 2006 and is grounded in an extensive literature review that represents a total of 83 countries. It includes academic and practitioner accounts stemming from theoretical and empirical work, as well as conference proceedings. A total of 80 drivers and 96 barriers to SME high social performance are identified.

This paper develops an SME four‐cell ideal type of social issues management (SIM) response typology based on drivers and barriers of social performance.

The importance of understanding barriers and drivers to social responsibility (SR) of SIM for stakeholder theory, policy makers, and practitioners is discussed, concluding with implications for further SME‐SR research.

The four‐cell typology considers the theoretical claims of stakeholder theory within the context of SMEs and proposes a heteronomy of stakeholder salience.