Culture Assessment in Relation to Smes Sustainability: A Case Study in Malaysia

Abstract

This paper aims to explore the current control culture practices by small and medium enterprises (SMEs) concerning sustainability in Malaysia. The data were collected through an in-depth interview with nine SME owners and top-level management. Thematic analysis was used to analyze semi-structured interviews with word-based and code-based approaches and several analytical strategies adopted for the interviews. The study identified the similarities and differences of control culture practices in SMEs that can support the sustainability of SMEs. The study found that these SMEs do not put much effort into addressing deviations in a timely manner due to the lack of resources in terms of human capital, which is costly and time-consuming. Ultimately, it is hoped that the cultural domain can purposely be embedded in integrity and ethical values in the organization’s Top of the Tone. By aligning control culture with sustainability objectives, SMEs can create more resilient, ethical, and efficient businesses that contribute positively to society and the environment. However, this study laid the groundwork for several strands of future research on cultural explanations of SME sustainability.