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Advances in Social Sciences Research Journal – Vol. 11, No. 2.2

Publication Date: February 25, 2024

DOI:10.14738/assrj.112.2.16401.

Naharuddin, N. S., Rahim, R. A., & Ngah, R. (2024). Determinants Impacting the Triple Bottom Line Sustainability Performance in

SMEs: A Systematic Literature Analysis and Future Research Agenda. Advances in Social Sciences Research Journal, 11(2.2). 66-77.

Services for Science and Education – United Kingdom

Determinants Impacting the Triple Bottom Line Sustainability

Performance in SMEs: A Systematic Literature Analysis and

Future Research Agenda

Nur Syahirah Naharuddin

nursyahirahnahar@gmail.com.my,

Department of Postgraduate and Professional Studies,

Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia

Ramita Abdul Rahim

*Corresponding Author: ramita@uitm.edu.my

Institute of Continuing Education & Professional Studies (iCEPS), UiTM-MTDC

Technopreneur Centre, Universiti Teknologi MARA (UiTM), Malaysia and

Department of Technology and Supply Chain Management Studies, Faculty

of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia

Rohana Ngah

rohanangah@uitm.edu.my

Department of Entrepreneurship and Marketing Studies,

Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia

ABSTRACT

Identifying the factors that influence sustainable performance in Small and Medium

Enterprises (SMEs) is crucial. However, few studies have comprehensively

examined the Triple Bottom Line (TBL) which are economic, social, and

environmental aspects of sustainable performance within a single research

framework. A systematic review of articles published from 2019-2023 analysed 45

out of 358 papers from 8 databases. The in-depth reading results reveal three

clusters representing the main research topics: green and environmental

management issues; social and cultural issues; and the necessary values, skills, and

capabilities. The findings suggest that future research could focus on green and

environmental management issues which adopting sustainable supply chain

management, green innovation, and sustainable manufacturing practices, as well as

the attributes and competencies SMEs need for sustainability, including the role of

training, leadership, and organisational culture in sustainability initiatives.

Keywords: Triple Bottom Line (TBL), Economic, Social, Environmental, Sustainability

Performance, Small and Medium-sized Enterprise (SMEs)

INTRODUCTION

Sustainability has emerged as a key objective for businesses, nonprofits, and government

entities over the past decade. It represents an organisation’s commitment to enduring and

thriving in the long term, balancing economic success with social responsibility and

environmental stewardship [1]. However, assessing an organisation’s commitment to

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Naharuddin, N. S., Rahim, R. A., & Ngah, R. (2024). Determinants Impacting the Triple Bottom Line Sustainability Performance in SMEs: A Systematic

Literature Analysis and Future Research Agenda. Advances in Social Sciences Research Journal, 11(2.2). 66-77.

URL: http://dx.doi.org/10.14738/assrj.112.2.16401

sustainability or its efforts towards sustainable growth remains a complex task. This

complexity arises from the challenges of defining sustainability, setting clear and achievable

goals, and developing a strategy for their attainment. In response to this complexity, an

established framework has been adopted to guide the approach to sustainability. The Triple

Bottom Line (TBL) is a commonly employed framework for evaluating a business’s

sustainability initiatives. It assesses three dimensions: economic, social, and environmental

impacts. Economic sustainability focuses on a business's profitability and competitiveness,

aiming to foster a robust and sustainable economy through actions like innovation,

infrastructure investment, and job creation [2]. Social sustainability emphasises a business's

role in creating inclusive and equitable societies. It prioritises the well-being of individuals and

communities by addressing issues such as healthcare access, gender equality, and poverty

reduction [3]. Environmental sustainability involves responsible resource management and

reducing ecological harm. It aims to safeguard the environment and natural resources through

practices like using sustainable materials, reducing pollution, and conserving energy [4].

Recognizing the importance of these three dimensions, many businesses worldwide have

changed their operational approaches. This change is driven by a dual motivation: to comply

with environmental rules and to meet increased customer demand for sustainable products

and services [5]. In Malaysia, government entities andbusinesses are actively integrating

sustainability into their long-term development plans. The Eleventh Malaysia Plan (2016-2020)

emphasised a capital- and people-based economy with a core objective of "Pursuing green

growth for sustainability and resilience" [6]. Building on this, the government is now

formulating the Twelfth Malaysia Plan (12MP) for 2021-2025, with a strong focus on

"Advancing Sustainability" [7]. This exemplifies Malaysia's dedication to achieving a balance

between economic prosperity and environmental preservation. However, Small and Medium

Enterprises (SMEs) may find achieving sustainability to be more challenging than large

businesses, due to their limited resources and expertise in areas such as technology, financial

and human capital [8]. Despite these challenges, SMEs play a crucial role in this context [9].

According to a report from [10], SMEs make up 97.4% of all businesses in Malaysia and

contribute 38.4% to the country's GDP. These SMEs span various sectors, with 84.7% in

services, 7.9% in construction, and 5.6% in manufacturing, while the rest operate in agriculture,

mining, and quarrying. The adoption of sustainable practices by these SMEs can lead to a

substantial positive impact on the country’s overall sustainability. As SMEs continue to thrive,

their role in creating jobs, driving innovation, and fortifying economic resilience becomes

increasingly evident. Thus, SMEs are essential in advancing economic development and

sustainability.

Therefore, this systematic review of the literature (SLR) concentrates on the Triple Bottom Line

(economic, social, and environmental) dimensions to thoroughly evaluate the factors impacting

the sustainability of businesses in SMEs. The intention is to offer insights applicable to SMEs in

Malaysia in the future. To achieve this goal, the paper is structured as follows: Section 2 outlines

the methodology for the systematic review, including research questions, review procedures,

inclusion/exclusion criteria, and data collection/analysis. Section 3 presents the key findings

from the reviewed literature, addressing research questions. Lastly, Section 4 summarizes

limitations and provides directions for further study in the area of SME sustainability in

Malaysia.

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 11, Issue 2.2, February-2024

Services for Science and Education – United Kingdom

METHODOLOGY

A systematic literature review is a method to examine existing research on a topic, as indicated

by [11]. Its purpose is to establish the current state of knowledge, highlight areas lacking

research, and identify topics requiring further investigation. To ensure the comprehensiveness

and impartiality of an SLR, six stages should be reviewed, with some stages potentially

requiring revisiting. Adapted from [12], the steps outlined in Figure 1 are significant and offer

guidance for conducting the review.

Research Questions

The initial step in the systematic literature review process involves formulating the research

questions (RQs), which function as the framework for the search and data extraction

procedures. Finding the topic of interest and conducting a preliminary study on it are the first

steps in creating a research question. Upon assessing the initial questions, the researcher then

determines what is still uncertain in that specific field. Subsequently, the researcher constructs

an RQ, examines it, and then narrows the emphasis and depth of the study topic. RQs must be

clear, narrowed, and arguable, thus, can be effective RQs. A good RQ promotes the creation of a

focused, debatable topic and a rational defence [13]. Among the methodologies and frameworks

used to structure RQs, the PICOC framework stands out for its comprehensiveness and

effectiveness. These PICOC are structured to include five essential elements as described in

Table 1 below.

Figure SEQ Figure \* ARABIC 1: Stages in Systematic Review Process

Table 1: Research Questions as structured by the PICOC criteria

Criteria Description

P: Population SMEs

I: Intervention The factors that contribute to the overall sustainability. This could include various

internal and external factors.

C: Comparison Null

O: Outcomes The overall sustainability of the SMEs encompasses economic, social, and environmental

aspects.

C: Context Malaysia

Ratan et al. [13]

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Naharuddin, N. S., Rahim, R. A., & Ngah, R. (2024). Determinants Impacting the Triple Bottom Line Sustainability Performance in SMEs: A Systematic

Literature Analysis and Future Research Agenda. Advances in Social Sciences Research Journal, 11(2.2). 66-77.

URL: http://dx.doi.org/10.14738/assrj.112.2.16401

Based on the PICOC criteria mentioned in Table 1, this paper will report on the two main RQs,

to identify and evaluate all the available research on sustainability (economic, social and

environmental) among SMEs. The following research questions are formulated:

• RQ1: What are the factors that contribute to the overall sustainability (economic,

social, and environmental aspects) of SMEs?

By addressing this question, the study aims to uncover the contributing factors and their

impact on the overall sustainability of SMEs.

• RQ2: What gaps or areas of further research emerge from the systematic

literature analysis that require additional exploration?

Addressing this question helps guide the development of a future research agenda,

ensuring that emerging issues and unexplored areas in SME sustainability are

recognized and considered for further investigation.

Conducting the Review

Creating a systematic search strategy and choosing relevant databases to compile valuable

information were the main goals of this phase. Developing a successful search string and

identifying the databases that have pertinent information depends heavily on the search

technique [14]. The selection of databases for SLR can be customized to the particular study

topic, with the number of databases required substantially depending on the topic area [15].

Consequently, the search string formulation should align with the terminology established for

the population under investigation within the SLR application, following the PICOC framework

(Table 1).

A set of keywords was identified for use in the systematic literature review and the search

protocol. The definition of SME was drawn from various studies by other organisations

[16][17][18]. It encompasses terms like ‘small firms’, ‘small companies’, ‘small businesses’,

‘small and medium enterprises’, and ‘small and medium-sized enterprises. Using these

keywords, we constructed a broad search string: ‘triple bottom line sustainability performance’

AND ‘SME’ OR ‘small firms’ OR ‘small and medium-sized enterprises’ OR ‘small and medium

enterprise’ OR ‘small businesses’ OR ‘small companies. This search string led to the

identification of a total of 358 publications across the eight selected databases.

The selected databases for conducting the search included Scopus, ScienceDirect, ACM Digital

Library, Emerald Insight, IEEE Xplore, ProQuest, Web of Science and Google Scholar. These

databases host peer-reviewed journals and offer access to a wide array of literature sources.

Each of these databases was chosen to ensure a thorough and comprehensive search, covering

a wide spectrum of research areas. By leveraging the strengths of these platforms, the study

aimed to access a diverse set of peer-reviewed literature sources and provide a more holistic

view of the research landscape.

The scope of our article search was confined to publications from 2019 to 2023. This timeframe

selection was made based on the understanding that research findings have a shelf life and that

relying on outdated sources can lead to inaccuracies and gaps in information [19]. Setting a

more recent time frame ensures that the literature review remains current and pertinent to the

current state of knowledge in the field [20].

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 11, Issue 2.2, February-2024

Services for Science and Education – United Kingdom

Inclusion and Exclusion Criteria

Following the initial gathering of articles, we implemented a set of criteria for including or

excluding publications. As suggested by [21], the criteria for inclusion and exclusion are

contingent upon the research objectives andencompass aspects related to content,

methodology, and publication quality. In order to achieve a comprehensive selection of papers,

we adopted the inclusion and exclusion criteria proposed by [22].

Table 2: Systematic literature review study selection of literature using inclusion and

exclusion criteria.

Criteria Decision

When the predefined keywords exist as a whole or at least in the title, keywords

or abstract section of the paper

Inclusion

The paper was published in a scientific peer-reviewed journal Inclusion

The paper should be written in the English language Inclusion

Studies that present pieces of evidence on synergic/trade-off studies Inclusion

When the articles address at least one Sustainability Performance indicator Inclusion

Papers that are duplicated within the search documents Exclusion

Papers that are not accessible, review papers and meta-data Exclusion

Papers that are not primary/original research Exclusion

Papers that were published before 2019 Exclusion

Mengist et al. [22]

The overall process of screening and selecting relevant literature is depicted in Figure 2 by

using a PRISMA flow diagram adapted from [22][23]. The researcher began by identifying the

articles through database searching and discovered a total of 358 papers published between

2019 and 2023. These articles were identified from 8 different databases.

After removing 22 duplicate papers, 336 articles remained. Following this, the 336 articles were

assessed against eligibility criteria for further reading of titles and abstracts. Articles that did

not align with the research topic and those meeting specific exclusion criteria (such as chapters,

books, conference papers, review papers, or articles not in English) were marked for potential

removal, leaving 87 articles for in-depth reading of their main content. Of these 87, those that

did not clearly address sustainability performance (economic, social, and environmental)

among SMEs and inaccessible publications were manually eliminated. In the end, 45

publications met all the inclusion criteria specified in this systematic literature review work.

Quality Assessment

A structured form was developed to systematically gather data relevant to the research

questions and assess the quality of the primary study. This checklist, covers key aspects of a

study including its design, conduct, analysis, and conclusion, adapted from previous studies

[12][24][25]. Each category in Table 3 below contains specific questions related to the

individual study under consideration. The initial three criteria serve as a baseline to filter out

papers that don’t align with the SLR objective. The next seven criteria (4-10) address aspects of

methodology, data collection, and the tools employed for discovery. The last two criteria (11

and 12) assess the credibility of the papers, ensuring the validity and relevance of each study.

By assigning point values to each question within the checklist, the researchers can objectively

assess the quality of both quantitative and qualitative studies, with higher scores indicating

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Naharuddin, N. S., Rahim, R. A., & Ngah, R. (2024). Determinants Impacting the Triple Bottom Line Sustainability Performance in SMEs: A Systematic

Literature Analysis and Future Research Agenda. Advances in Social Sciences Research Journal, 11(2.2). 66-77.

URL: http://dx.doi.org/10.14738/assrj.112.2.16401

higher quality. A ratio scale is applied to each question, with “Yes” scoring 1 point, “No” 0 points,

and “Partially” 0.5 points. The total points give a quality score ranging from 0 (very poor) to 7

(very good). This method ensures a standardized and less biased evaluation of research articles.

Figure SEQ Figure \* ARABIC 2: Selection process based on PRISMA flow diagram (Adapted

from REF _Ref154513350 \r \h [22] REF _Ref154513369 \r \h [23])

Table 3: Quality Assessment Criteria

Item Answer

Design

Was the article referred to? Yes/No/Partially

Is/Are the aim(s) of the study clearly stated? Yes/No/Partially

What population was being studied? Yes/No/Partially

How was the sample obtained? Yes/No/Partially

Is/Are the measure(s) used in the study fully defined? Yes/No/Partially

Conduct

Is the data collection adequately described? Yes/No/Partially

Is the purpose of the data analysis clear? Yes/No/Partially

Analysis

What was the response rate? Yes/No/Partially

Was the population size reported? Yes/No/Partially

Record identified through

database searching: Total:

(n = 358)

Identification Screening Eligibility Included

Articles excluded: (n = 249)

Articles excluded: (n = 42) Full text articles assessed for

eligibility: (n = 87)

Title and abstract screening:

(n = 336)

Duplicates excluded

(n = 22)

Studies included in qualitative

synthesis: (n = 45)

Studies included in qualitative

synthesis (meta-analysis):

(n = 45)