Institutionalizing ESG in SMEs : Insights From Transformational Leadership and Institutional Theory

ABSTRACT This study investigates how small and medium‐sized enterprises (SMEs) can proactively institutionalize environmental, social, and governance (ESG) practices despite limited resources and weak regulatory pressures. Drawing on transformational leadership and institutional theory, we conducted a qualitative case study of Yuren Industrial Technology, a Taiwanese manufacturing firm. Data from in‐depth interviews and document analysis were coded thematically around four institutionalization stages: void recognition, strategic framing, top management accountability, and data‐driven institutionalization. The findings show that visionary leadership reframed institutional gaps as strategic opportunities,…