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The sustainability behaviour of small firms in tourism: the role of self-efficacy and contextual constraints

TLDR
In this article, the authors present a grounded theory to explain why some small businesses in tourism adopt sustainable business practices while others do not, even when they share environmental and wider sustainability concerns.
Abstract
This article presents a grounded theory to explain why some small businesses in tourism adopt sustainable business practices while others do not, even when they share environmental and wider sustainability concerns. It does so based on research undertaken among business owners in Crete. The paper starts by considering studies on sustainability awareness, knowledge and the mechanisms for accepting responsibility. Secondly, it summarises the influence of task difficulty and effort on sustainability self-efficacy. Thirdly, it focuses on social comparisons and vicarious experiences, as a way of learning what is important. Finally, it examines powerlessness due to perceived situational constraints. In so doing, the study finds that self-efficacy helps to explain sustainable attitude formation and the attitude-behaviour gap; it partly shifts the locus of responsibility for an inability to act sustainably away from the individual and towards their context. The paper contributes to the theoretical literature on small businesses and sustainability, and leads to new avenues for policy interventions.

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Citation:
Kornilaki, M and Font, X and Thomas, R (2019) The sustainability behaviour of small firms in tourism:
the role of self-efficacy and contextual constraints. Journal of Sustainable Tourism, 27 (1). pp.
97-117. ISSN 0966-9582 DOI: https://doi.org/10.1080/09669582.2018.1561706
Link to Leeds Beckett Repository record:
https://eprints.leedsbeckett.ac.uk/id/eprint/5589/
Document Version:
Article (Accepted Version)
This is an Accepted Manuscript of an article published by Taylor & Fran-
cis in Journal of Sustainable Tourism on 31 January 2019, available online:
http://www.tandfonline.com/10.1080/09669582.2018.1561706
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Kornilaki, M., Font, X. & Thomas, R. (accepted) The sustainability behaviour of small firms in tourism:
the role of self-efficacy and contextual constraints, Journal of Sustainable Tourism
Abstract
This article presents a grounded theory to explain why some small businesses in tourism
adopt sustainable business practices while others do not, even when they share environmental
and wider sustainability concerns. It does so based on research undertaken among business
owners in Crete. The paper starts by considering studies on sustainability awareness,
knowledge and the mechanisms for accepting responsibility. Secondly, it summarises the
influence of task difficulty and effort on sustainability self-efficacy. Thirdly, it focuses on
social comparisons and vicarious experiences, as a way of learning what is important. Finally,
it examines powerlessness due to perceived situational constraints. In so doing, the study
finds that self-efficacy helps to explain sustainable attitude formation and the attitude-
behaviour gap; it partly shifts the locus of responsibility for an inability to act sustainably
away from the individual and towards their context. The paper contributes to the theoretical
literature on small businesses and sustainability, and leads to new avenues for policy
interventions.
Keywords: self-efficacy, sustainability, small tourism firms, responsibility, constraints
Introduction
Although wider political, academic and professional communities acknowledge the
significant role of Small and Medium Enterprises (SMEs) for both economies and social
structures, academic research on SMEs in tourism is limited (Ateljevic, Pritchard and Morgan
2007; Thomas, Shaw and Page, 2011). Moreover, by one estimate, less than 5% of the
collective research output in this area examines pro-environmental practices (Lepoutre and
Heene, 2006), despite the importance of the cumulative environmental impact of these kinds
of businesses (Coles, Zschiegner and Dinan, 2014; Sampaio et al., 2012a; Tilley, 2000;
Vernon et al., 2003).

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The limited literature that does exist points to low engagement by SMEs in sustainability
initiatives. This is somewhat paradoxical because owner-managers often perceive the
environment to be an important issue affecting their business (Coles et al., 2014; Tilley,
2000). Contemporary research exploring the gap between environmental attitudes and
behaviour has yet to reveal how contextual factors influence SME behaviour in relation to
sustainability (Garay et al., 2018, Sadianou et al., 2016; Williams and Schaefer 2013).
Several commentators have made a persuasive case for greater investment of research effort
in studies that are grounded in the realities and lived experiences of small-business owners
(e.g. Carlsen et al., 2001; Dewhurst and Thomas, 2003). Such approaches offer the potential
for opening up new ways of understanding by providing deep and nuanced insight into their
beliefs and business practices. In the context of this paper, deep engagement with owner-
managers may uncover the reasons for some adopting sustainability practices while others do
not, even when the latter espouse support for such actions.
This article uses the concept of self-efficacy to explain the attitude-behaviour gap in acting
sustainably, and explains how this gap between emotions, moral principles and actual
behaviour is not simply a result of a lack of logic, but is the product of a complex and
dynamic environment. The outcome is a nuanced understanding of the importance of self-
efficacy in relation to sustainable behaviour. Many factors, including situational constraints,
institutional forces, organisational structures, the socio-economic context that shapes the
moral choice, and psychological variables may force individuals to ignore their potential
initial sustainability intentions (Armitage and Conner, 2001; Klockner and Blobaum, 2010;
Tabernero and Hernandez, 2011).
This research suggests that although owner-managers of small tourism enterprises might have
little direct control over the social and business environment they operate within, they do

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have a choice regarding how they interpret and respond to it. The higher their self-efficacy,
the more willing they will be to overcome difficulties and to take control of situations in
order to behave in more responsible ways, such as protecting the local natural or cultural
environments (Bandura, 1997; Geva, 2000; Sampaio, Thomas and Font, 2012a).
In this article, we briefly review the literature on small business behaviour and sustainability
practices , and introduce the premise that self-efficacy has explanatory value for behaviour
choices. This is followed by a discussion of methodology and the methods used to gather
data. Finally, a grounded theory is presented to explain why some owner-managers adopt
sustainability practices while others do not even when operating within similar contexts and,
often, share similar concerns. The theory is based upon an analysis of data gathered from the
owner-managers of tourism enterprises in Crete.
Literature review
One of the recurring themes of the literature on small firms in tourism is the challenge they
face when seeking to behave sustainably (e.g. Tilley, 2000; Vernon et al, 2003, Battisti and
Perruy, 2011). Indeed, reviews of small business research have for some time called for an
orientation towards studies that not only recognise their distinctiveness but also address key
questions relating to the adoption of sustainability practices by some but not others (e.g.
Thomas, Shaw and Page, 2011; Thomas and Ormerod, 2018). There are three broad strands
to the literature that are helpful when trying to understand the reasons for small business
engagement and each is discussed in turn.
Tourism SMEs form strong, if informal, relationships with their stakeholders, mainly built on
trust and legitimacy (Perrini, 2006). This means that they evaluate business ethics differently
from their larger counterparts (Crane and Matten, 2007; Thomas, 2015). Some have argued
that SMEs are more likely to feel social obligations and duties because they are part of a local

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community with shared or common norms (Darnall, Henriques and Sadorsky, 2010). Due to
the embeddedness of small firms in their locality, business owners often choose to conform
with, even mimic, the behaviour of important stakeholders, especially in situations where
little information exists and there is high uncertainty e.g. about the market (Lepoutre and
Heene, 2006). There is some evidence to suggest that SMEs conform to normative
behaviours and mimic others in order to avoid social sanctions. However, empirical research
has thus far failed to yield conclusive results on how the pressure to conform or mimic can
influence the pro-sustainability practices of SMEs (Bansal and Roth, 2000; Bansal, 2005).
Smaller firms may fall under the public radar due to their lower visibility (Gonzalez-Benito
and Gonzalez-Benito, 2006). However, even when they are asked to change their impactful
behaviours, smaller firms arguably have less power to deflect stakeholders’ concerns and
demands for sustainability (Bastakis, Buhalis and Butler, 2004; Buhalis, 2000; Darnall et al.,
2010; Sigala, 2008).Nevertheless, they seem generally less prepared to meet sustainability
regulatory control (Lewis and Cassells, 2011; Williamson, Lynch-Wood and Ramsay, 2006).
Documented internal factors for pro-sustainability behaviour amongst SMEs are varied.
Among them, cost-oriented environmental practices are the most common (Font, Garay and
Jones, 2016a; Lewis and Cassells, 2011; Sampaio et al., 2012a). A business case is often used
to justify the worthiness of sustainability, as SMEs will save money and increase their
competitiveness while “doing the right thing” for the environment (EU, 2011; Revell and
Blackburn, 2007). However, Tilley (2000) some time ago found that basing decisions purely
on a business case may be a flawed approach that leads to shallow eco-friendly behaviour.
This is because the approach is based on the mistaken assumption that all the SMEs
sustainability actions are motivated by profit and competitiveness alone (Spence, 2007)and
even if their motivation for action is financial, business owners tend to seek easier routes to
increase profits and reduce costs than sustainability actions (Fineman, 2000). Hence, this

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