The impact of business associations on SMEs’ green transformation

Purpose Small and medium-sized enterprises (SMEs) are critical for achieving a green economy. This study aims to empirically explore business associations’ impacts on SMEs’ green transformation in China. Design/methodology/approach This study uses a multiple-case study approach. The authors collect data from four Chinese business associations and their members. Findings This study finds that business associations promote SMEs’ green transformation by providing individual and collective services. SMEs conduct green transformation by developing a green mindset and adopting green operations. The results show that individual services directly enhance members’ green mindset and green operations. Collective services promote members’ green mindset and green operations both directly and indirectly by building relational capital. Originality/value This study contributes to the literature by revealing that business associations play critical roles in assisting SMEs’ green transformation. In addition, this study suggests that SMEs may adopt different practices compared with large companies. The findings enhance the current understanding of how SMEs conduct green transformation and how business associations assist SMEs.