Challenges of the CSRD Implementation for SMEs in the Supply Chain

Abstract

The study explores the operational challenges faced by small and medium-sized enterprises (SMEs) within the supply chain in adapting to the new Corporate Sustainability Reporting Directive (CSRD) requirements. By employing the Resource-Based View (RBV) and the Extended Resource-Based View (ERBV) frameworks, the study identifies critical resources and strategic needs essential for SME compliance. The research investigates how internal resources and external collaborations influence the ability of SMEs to meet CSRD requirements, highlighting the importance of partnerships with larger companies. The analysis is grounded in qualitative data collected from interviews with four companies, providing insights into the specific challenges SMEs encounter, such as financial constraints, human resource limitations, and data management difficulties. The study underscores the necessity of effective communication and strategic collaboration to mitigate these challenges, proposing that SMEs leverage both internal capabilities and external networks to achieve compliance and gain a competitive edge. This study contributes to the theoretical discourse on supply chain sustainability and offers practical guidelines for SMEs navigating the CSRD landscape, laying the groundwork for future research and policy development aimed at supporting SME sustainability initiatives.