The Influence of Sustainable Investment on Guizhou SME Performance Based on ESG Standards


  • Chengwei Wen North Bangkok University



Sustainable Investment, SME Performance, ESG Standards


This study investigates the connection between Environmental, Social, and Governance (ESG) factors that can impact a company's financial and operational performance. The research looks at how stakeholder and legitimacy theories can help explain the effects of the variables used in the study. Additionally, the study makes a unique contribution to the existing research on ESG and performance by examining the link between ESG and firm performance over ten years. Furthermore, the study explores the relationship between ESG and operational performance in SMEs in Guizhou. This provides valuable insights into how ESG can impact the performance of SMEs. ESG provides a comprehensive framework for businesses and investors to address environmental, social, and corporate governance issues. It promotes integrating economic and social benefits for sustainable corporate management and financial investment development. The number of respondents for this study was 380 enterprises from Guizhou. The results of this study show that parents’ purchase intention on training courses for their children would be impacted by their transformational leadership, organizational innovation, and social capital.


A.B. Bakker, E. Demerouti. (2018). Multiple levels in job demands-resources theory: Implications for employee well-being and performance. E. Diener, S. Oishi, L. Tay (Eds.), Handbook of well-being, DEF Publishers.

Amor, A. M., Abeal J., Vazquez, P., Faina, J. A. (2020). Transformational leadership and work engagement: Exploring the mediating role of structural empowerment. European Management Journal, Vol 38, pp.169-178.

Anggadwita, G., & Mustafid, Q.Y. (2014). Identifying factors influencing the performance of small and medium enterprises (SMEs). Procedia, Social and Behavioral Sciences, Vol 115, pp.415-423.

Bakker, A. B., & Leiter, M. (2017). Strategic and proactive approaches to work engagement.

Organizational dynamics, Vol 46(2), pp.67-75.

Bakker, A. B., Hetland, J., Kjellevold Olsen, O., & Espevik, R. (2023). Daily transformational leadership: A source of inspiration for follower performance? European Management Journal, Vol 41(5), pp.700-708.

Berzina, K. (2011). Enterprise-related social capital: Different levels of social capital accumulation. Economics & Sociology, Vol 4(2), pp.66-83, DOI:10.14254/2071- 789X.2011/4-2/7

Boonlert, J. (2016). Reform priorities for corporate sustainability: Environmental, social, governance, or economic performance? Management Decision, Vol 54, pp.1497–521.

Breevaart, K., Bakker, A. B., Hetland, J., Demerouti, E., Olsen, O. K., & Espevik, R. (2014). Daily transactional and transformational leadership and daily employee engagement. Journal of Occupational and Organizational Psychology, Vol 87, pp. 138-157.

Candi, M., Roberts, L. D., Tucker, J. M., & Barczak, G. (2018). Social strategy as a means to gain knowledge for innovation. Br. J. Manag, Vol 29, pp.731–749. doi: 10.1111/1467- 8551.12280

Chen, M. Y. (2013). “Adjustments in managerial ownership and changes in firm value.” International Review of Economics and Finance, Vol. 25 (C), pp. 1–12.

Cherry, S., Raj, M., & Sascha, K. (2020). Technological innovation, firm performance, and institutional context: a meta-analysis. IEEE Trans. Eng. Manag., pp.1–11. doi: 10.1109/TEM.2020.3021378

Ciambotti, M., & Palazzi, F. (2015). Social capital and SMEs: An exploratory case study.

Journal of International Business and Economics, Vol 15(2), pp.3-64.

Coleman J. S. (2020). Social capital in the creation of human capital. Knowl. Soc. Cap. 2000 (Suppl. 1), pp.17–41. 10.1016/B978-0-7506-7222-1.50005-2

Dai W., Mao Z., Zhao X., & Mattila A. S. (2015). How does social capital influence the hospitality firm's financial performance? The moderating role of entrepreneurial activities. Int. J. Hosp. Manage. Vol 51, pp.42–55. 10.1016/j.ijhm.2015.08.011

Damanpour, F. (2010). An integration of research findings of effects of firm size and market competition on product and process innovations. British Journal of Management, Vol 21, pp.996–1010.

Etikan, I. & Babatope, O. (2019). A Basic Approach in Sampling Methodology and Sample Size Calculation, Medtext Publications, Vol 1, pp.50-54.

Feldman M. P. (2021). The entrepreneurial event revisited: firm formation in a regional context.

Indust. Corp. Change, Vol 10, pp.861–891. 10.1093/ICC/10.4.861

Forcadell, F.J., Aracil, E. (2017). European Banks’ Reputation for Corporate Social Responsibility. Corp. Soc. Responsib. Environ. Manag, Vol 24, pp.1.

Francesco, C., Enrico, B., Olof, L., & Simone, G. (2020). Supporting innovation against antibiotic resistance: exploring the impact of public incentives on firm performance and entrepreneurial orientation. J. Bus. Res. Vol 112, pp.271–280. doi: 10.1016/j.jbusres.2019.12.021

Gholami, A., Murray, P. A., & Sands, J. (2022). Environmental, Social, Governance & Financial Performance Disclosure for Large Firms: Is This Different for SME Firms? Sustainability, Vol 14, pp.1–21.

Goncharuk, A. G., (2014). Enterprise Performance Management: Conception, Model, and Mechanism. Polish Journal of Management Studies, Vol 4, pp.78–95.

Katrin, H. & Schlick, C. (2016). The Relationship between Sustainability Performance and Disclosure—Reconciling Voluntary Disclosure Theory and Legitimacy Theory. Journal of Accounting and Public Policy, Vol 35, pp.455–476.

Kodden, B. (2020). The Art of Sustainable Performance, SpringerBriefs in Business, pp.67–73,

Li, B., Yang, K., Axenov, K, E., & Zhou, L. (2023). Trade-Offs, Adaptation and Adaptive Governance of Urban Regeneration in Guangzhou, China (2009–2019). Land, Vol 12(1), pp.1-23,

Li, Y., & Han, Y. (2022). Self-Organization, Dynamic Meta-governance, and Value Creation in Megaprojects. Research on Project, Programme and Portfolio Management, pp.243– 265.

Limkriangkrai, M.; Koh, S.; & Durand, R.B. (2017). Environmental, social, and governance (ESG) profiles, stock returns, and financial policy: Australian evidence. Int. Rev. Financ, Vol 17, pp.461–471.

Lokuwaduge, C.S.D.S.; & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for sustainable development: An Australian study. Bus. Strategy Environ, Vol 26, pp.438–450.

Mielke, K. (2022). Calculated Informality in Governing (Non)return: An Evolutionary Governance Perspective. Geopolitics, Vol 28(3), pp.1-24, doi:10.1080/14650045.2022.2052854

Mike, Bourne., Steven, A., Melnyk., & Umit, Bititci. (2018). Performance measurement and management: theory and practice. International Journal of Operations & Production Management, Vol 38(11), pp.2010-2021. doi: 10.1108/IJOPM-11-2018-784.

Mohapatra, S., & Verma, P. (2018). Tata as a Sustainable Enterprise: The Causal Role of Spirituality. Journal of Human Values, Vol 24(3), pp.153-165.

Shao, L. (2019). "Dynamic study of corporate governance structure and firm performance in China: Evidence from 2001-2015", Chinese Management Studies, Vol. 13 No. 2, pp. 299–317.

Skokan, K., Pawliczek, A., Piszczur, R. (2013). Strategic Planning and Business Performance of Micro, Small and Medium-Sized Enterprises. Journal of Competitiveness, Vol 5(4), pp.57-72.

Srivastava, S. K. (2007). Green supply‐chain management: A state‐of‐the‐art literature review. International Journal of Management Reviews, Vol 9(1), pp.53–80. doi: 10.1111/J.1468-2370.2007. 00202.X

Sumedrea, S. (2016). Gender diversity and firm performance in seeking for sustainable development. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, Vol 9(2), pp.369–384.

Van-Assche, K., Beunen, R., & Verweij, S., & Evans, J. (2022). No time for nonsense! The organization of learning and its limits in evolving governance. Administration & Society, Vol 54(7), pp.1211-1225.

Walker, R. M., Damanpour, F., & Devece, C. A. (2011). Management innovation and organizational performance: Mediating role of planning and control. Journal of Public Administration Research and Theory, Vol 21, pp.367–386.

Wang, J., Lin S., & Yao, S. (2013). The Determinants of corporate social responsibility disclosure: Evidence from China. Journal of Applied Business Research, Vol 29, pp.1833–47.

Xu, Y., Chen, W., & Ow, T. T. (2022). How Does an Enterprise Use Social Media Posts to Acquire Online Social Capital? A Measurement Perspective Based on Wechat Users’ Digital Footprints. Journal of Organizational Computing and Electronic Commerce, Vol 32(3–4), pp.175–195.

Zhao, C., Guo, Y., Yuan, J., Wu, M., Li, D., Zhou, Y. & Kang, J. (2018). ESG and corporate financial performance: Empirical evidence from China’s listed power generation companies. Sustainability, Vol 10, pp.2607.

Zhu, C., Isaac, A., & Kwame, N. N. (2022). Innovation and organizational performance: A perspective among Chinese enterprises. Front Psycho, Vol 13,

Zhu, J., & Huang, F. (2023). Transformational Leadership, Organizational Innovation, and ESG Performance: Evidence from SMEs in China. Sustainability, Vol15(7), pp.5756.



How to Cite

Chengwei Wen. (2024). The Influence of Sustainable Investment on Guizhou SME Performance Based on ESG Standards. International Journal of Economics, Management and Accounting, 1(2), 67–81.