Can a SME Understand Its Sustainable Practices?– A Case Analysis from the Combined Perspective ofNudging Theory and Sustainable Business Practicesin A Small Retailing Business in Australia

Abstract

Sustainable business practices have been under a long-lasting and fierce debate about whether a business should
pursue SDGs or make money. Several efforts have been made to answer this question, and the Nudging Theory, a new
development in behavioral economics, has been introduced. However, research seldom emphasizes how to assist SMEs
to fully understand the nudges and their related effectiveness to achieve SDGs, nor does it address the moral dilemmas
potentially involved. To fill this gap, the paper, by combining two theoretical models, develops a new framework to
help SMEs comprehend their sustainable nudges in a moral and cost-effective approach so that SMEs’ potential might
be fully stretched out. Also, a real-world case will be related to the theoretical Framework to assist with understanding
which SMEs should place their emphasis on, coupled with descriptive and predictive analysis. The Process and the
Outcomes of sustainable nudges are summarised as two crucial elements contributing to the effectiveness of such
sustainable nudges.