IntroductionEnvironmental practices among small and medium-sized enterprises (SMEs) are increasingly advocated as vital approaches needed to shape and sustain the environment (Schaper 2002; Hillary 2004; Redmond, Walker et to 2008; Rasi, Abdekhodaee et al. 2010; Many large organizations have taken considerable steps to reduce or eliminate pollution that may arise from their operations environmental management issues (Melton 1999). While some SMEs are generally aware of the substantial impact of their activities on the environment (Williamson and Lynch-Wood 2001), most SMEs believe that environmental initiatives are peripheral issues and may not be important to the survival of the organization (Redmond, Walker et al. 2008) It is vital to ensure that SMEs realize and achieve their environmental objectives. The idea that SMEs are not yet engaged in environmental practices is intimidating since most environmental pollution comes from SMEs. An earlier study by Smith and Kemp (1998) identifies that 70% of manufacturing pollution is created by SMEs. The Marshall Report (1998) estimates that SMEs generate 60% of carbon emissions. More recently, a report for the European Commission, Directorate-General for Environment, indicates that more than 50% of commercial and industrial waste is produced by SMEs (Berends, Morère et al. 2000), while the UK Environment Agency estimates that UK SMEs are responsible for 60% of commercial waste and 80% of pollution incidents (Netreg 2003). Once again, the work of the Wales Environment Center in rural Wales indicates... at the heart of the document... activity. Strategy requires a structural investment in operations that involve process- or product-based changes in an attempt to gain competitive advantage (Klassen and Whybark 1999). Compared to previous strategies, proactive strategies involve creative problem solving and collaborative exchanges with stakeholders (Sharma and Vredenburg 1998). For example, organizations that implement proactive approaches can improve various management aspects by continuously monitoring their activities and learning to optimize and utilize their green technology investments (Biondi, Frey et al. 1998). Furthermore, strategic collaboration with stakeholders allows SMEs to share tacit knowledge useful for making a successful transition to new environmental technologies. Table 1 illustrates the differences between a reactive approach and a proactive approach as discussed above.