Sustainable business models of Hungarian medium-sized enterprises in the light of PLS-SEM

Abstract

The paper seeks to answer the question of what kind of sustainable business models (SBMs) the Hungarian medium enterprises can be characterized by. The author first reviews the theoretical background of sustainable enterprises and SBMs, then conducts research using the method of partial least squares structural equation modelling (PLS-SEM). Based on the results, medium-sized enterprises in Hungary interpret sustainability in a rather narrow way, identifying it only as environmental protection instead of a concept of economic and social development and environmental protection. As a result, their SBMs are fragmented, lacking many important connections and feedback points, so they cannot be interpreted as ‘holistic’ SBMs