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The psychological distance and construal level perspectives of sustainable value creation in SMEs
Author(s) -
Mzembe Andrew
Publication year - 2020
Publication title -
sustainable development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.115
H-Index - 64
eISSN - 1099-1719
pISSN - 0968-0802
DOI - 10.1002/sd.2150
Subject(s) - construal level theory , perspective (graphical) , value (mathematics) , business , knowledge management , value creation , field (mathematics) , affect (linguistics) , marketing , psychology , social psychology , industrial organization , computer science , mathematics , communication , machine learning , pure mathematics , artificial intelligence
This article examine s internal organizational factors and external antecedents of sustainable value creation by small medium enterprises (SMEs) and constructs a framework that integrates, at both levels, the theories of psychological distance and construal level from the field of psychology. This research provides an explanation as to why sustainable value creation remains a complex issue, and why many SMEs' engage with sustainable value creation to varying degrees. This paper particularly highlights how owner/managers of SME may construe different dimensions of psychological distance and apply their understanding to their response to different antecedents of sustainable value creation. Finally, by adopting the psychological distance perspective, this paper highlights the conditions under which internal and external organizational and factors can affect SMEs' propensity to create sustainable value. It further concludes by highlighting areas for further research.