GREEN CULTURE AND ENVIRONMENTAL SUSTAINABILITY OF BUSINESS ORGANIZATIONS IN ONDO STATE SMES

Abstract

This study investigates the relationship between green culture and environmental sustainability among small and medium-sized enterprises (SMEs) in Ondo State, Nigeria. Anchored in stakeholder theory, the resource-based view (RBV), and institutional theory, the study employs a descriptive survey research design using primary data from 340 respondents across selected SME clusters in Akure, Ondo, and Ore. Green culture is conceptualized along four dimensions: green values and norms, green leadership commitment, green employee involvement, and green communication and awareness. Environmental sustainability is operationalized through waste management and recycling, energy efficiency and conservation, pollution prevention, and sustainable resource utilization. Data were collected through a structured questionnaire and analyzed using descriptive statistics (frequencies, percentages, means, standard deviations) and inferential statistics (Pearson correlation, multiple linear regression, ANOVA) via SPSS v27.0. Findings reveal that green culture exists at a moderate extent (Grand Mean = 3.24, SD = 1.08), with green leadership commitment most pronounced (Mean = 3.51) and green employee involvement least developed (Mean = 2.89). Environmental sustainability registers at a moderate level (Grand Mean = 3.01, SD = 1.12), with waste management and recycling most practiced (Mean = 3.18) and sustainable resource utilization least practiced (Mean = 2.78). Pearson correlation confirms a statistically significant positive relationship between overall green culture and overall environmental sustainability (r = 0.542, p < 0.01). Multiple regression analysis further confirms significant positive relationships between green culture dimensions and environmental sustainability (R = 0.602, p < 0.001, R² = 0.362), indicating that the four dimensions jointly explain 36.2% of the variance in environmental sustainability. The study concludes that cultivating green culture significantly relates to enhanced environmental sustainability among Ondo State SMEs by embedding ecological values into organizational routines, leadership behaviors, and employee practices. Recommendations include institutionalizing green reward systems, developing sector-specific environmental guidelines for SMEs, and strengthening government–private sector partnerships to finance green transitions in the SME sector.