Firm Size and Corporate Sustainability: A comparative study of Indonesia’s Vegetable Seed Industry

Nur Fajrina; Felina C. Young; Rosita Widya Putri

doi:10.59890/ijbmp.v4i2.237

Authors

Nur Fajrina Business Administration Studies, Philippine Women’s University, Philipppine
Felina C. Young Conrando Benitez of Business Education, Philippine Women’s University, Philipppine
Rosita Widya Putri Agribusiness Studies, Agriculture Faculty, Widya Gama University, Malang, Indonesia

DOI:

https://doi.org/10.59890/ijbmp.v4i2.237

Keywords:

Corporate Sustainability, Firm Size, Measurement Invariance, Vegetable Seed Industry.

Abstract

Firm size is commonly associated with differences in organizational resources, yet its implications for sustainability implementation remain context dependent. This study compares social, economic, and environmental sustainability between SMEs and large firms in Indonesia’s vegetable seed industry. Survey data were collected from 262 organizational respondents and analyzed in R using ordinal confirmatory factor analysis, measurement invariance testing, and latent mean comparison. The three-dimensional measurement model demonstrated satisfactory reliability and validity, while scalar invariance supported meaningful comparisons across firm-size groups. Large firms reported slightly higher social and economic sustainability, but the differences were not statistically significant. Environmental sustainability was nearly identical across the groups. Welch and permutation tests confirmed the robustness of these findings. The results refine Contingency Theory by showing that greater organizational scale does not necessarily produce stronger sustainability implementation. Different configurations of resources, flexibility, managerial proximity, and stakeholder relationships may enable firms of different sizes to achieve comparable outcomes. Sustainability policies should therefore address firm-specific capabilities rather than assume that SMEs consistently underperform large firms.

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