Analysis of ESG Dimensions in Terms of Sustainable Competition in Companies: A Research on SMEs in Turkey

Abstract

Objective: In this research, it was aimed to analyze ESG dimensions in terms of sustainable competition by using firm agility.

Method: 524 SME managers selected by simple random sampling method were subjected to the survey. A survey form consisting of four stages: demographic information form, company information form, ESG scales and Company Agility Scale was used as a data collection tool in the research.

Findings: There is a statistically significant and positive relationship between the governance dimension and flexible production and performance. There is a statistically significant and positive relationship between the social dimension and flexible production and performance. There is a statistically significant and positive relationship between the environmental dimension and flexible production and performance. The effects of flexible production and performance dimensions of firm agility on governance performance are statistically significant and positive. The effects of flexible production and performance dimensions of firm agility on social performance are statistically significant and positive. The effects of flexible production and performance dimensions of company agility on environmental performance are statistically significant and positive.

Originality: The firm agility levels of companies, especially SMEs, and among the firm agility dimensions, the flexible production dimension is very important in terms of companies' competitive advantage and adaptation to the new and changing market structure. In this regard, companies having higher ESG values ​​may give them greater competitive advantage and power.