Open Access

Kay Hendrik Hofmann, Gregory Theyel

• Purpose: The purpose of this paper is to investigate the adoption of sustainability practices by small and medium-sized manufacturing (SMM) firms, the ways these firms work with their stakeholders for social and environmental purposes, and the relationships between the adoption of sustainability practices, stakeholder interaction, and product and process innovation. Design/methodology/approach: This paper uses data from telephone interviews with 296 companies, a sustainability typology, and descriptive and statistical regression analysis. Findings: The majority of the firms are adopting sustainability practices at least to some degree,stakeholders such as community advocacy groups, employees, suppliers, customers, and the localmedia are influencing the adoption of sustainability practices, and firms with high adoption rates of environmental practices are more successful in product and process innovation.Practical implications– The results of this research can help firms and stakeholder groups with their joint efforts to develop sustainability strategies. Community advocacy groups, employees,suppliers, customers, and the local media are capable of motivating firms to give something back tothe communities in which they conduct their business. Originality/value: This paper contributes new understanding of the adoption of sustainabilitypractices by SMM firms, the ways these firms work with their stakeholders for social and environmental purposes, and the relationships between the adoption of sustainability practices,stakeholder interaction, and product and process innovation.