Enabling factors for the shift from ESG scores to ESG performance management system in SMEs: an interventionist approach

Environmental, Social, and Governance (ESG) issues are increasingly central to corporate practice, yet in small and medium-sized enterprises (SMEs) they are often operationalized through disclosure scores rather than integrated into performance management systems (PMS). This paper examines how SMEs can transition from symbolic compliance to substantive ESG management by adopting a hybrid methodology that combines Participatory Action Research (PAR) and interventionist research within the Apuan-Versilian Stone Industrial District. The study identifies five enabling factors underpinning this transition: institutional pressures, the collective structure of the industrial district, the role of qualified intermediaries, participation in funded sustainability projects, and the orchestrating role of culture. Findings highlight that external pressure alone is insufficient, becoming effective only when mediated by relational, organizational, and cultural mechanisms. The paper contributes to ESG and management control literature by reframing ESG performance as a dynamic process embedded in PMS and offers practical insights for SMEs, intermediaries, and policy-makers.