Advances in Management and Applied Economics

Proactive Carbon Management in Asian Manufacturing SMEs: Insights from a Dual-Driver Case Study in Taiwan

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• Abstract

   

  This study examines why resource-constrained Asian manufacturing SMEs initiate proactive carbon management before direct regulatory enforcement and how internal strategic intent interacts with external institutional pressures. A qualitative-dominant mixed-methods case study of an export-oriented Taiwanese powder metallurgy SME combines a 2024 ISO 14064-1:2018 organizational greenhouse gas inventory with three semi-structured executive interviews. Managerial assessment preceded domestic enforcement, while customer ESG requirements, evolving carbon policy, and ISO 14064-1 provided legitimacy and an operational framework. Total 2024 emissions were 3,074.026 tCO₂e, with Scope 2 accounting for 87.40%, making energy efficiency and renewable energy the priorities of a three-phase decarbonization pathway. Interviews identified inconsistent regulatory guidance, limited supplier support, and regulatory knowledge gaps. Integrating the natural resource-based view and institutional theory, the dual-driver model shows that proactive strategic intent initiates carbon action, while institutional frameworks enable systematic and legitimate implementation. The findings qualify portrayals of Asian SMEs as passive compliance seekers, demonstrate the value of triangulating standardized inventory and managerial evidence, and identify potential spillover implications across firm, industry, and societal levels. Practically, the study highlights regulatory guidance, supplier capability development, and industry-academia collaboration as priorities for SME decarbonization support.

   

  JEL classification numbers: M14, M21, Q56, Q58.

  Keywords: Carbon management, Small and medium-sized enterprises, Natural resource-based view, Proactive environmental strategy, Institutional theory.