Reputational capital and conscious business practices of small- and medium-sized enterprises in Western Mexico: comparison between millennials and generation X

Purpose – The study aims to explore the influence of conscious business practices (CBPs) on the reputational capital (RC) of SMEs with the generation of the manager (X/Y) as a moderator of such relationships. Design/methodology/approach – The authors conducted empirical research based on a cross- sectional survey on 115 Western Mexican SME managers using PLS structural equation modeling to test the proposed hypotheses. Findings – SMEs RC is nurtured by adopting two CBPs. The effect on RC may differ according to managers’ generation. In Western Mexican SMEs, Gen X managers perceive that a higher purpose is more important for building RC, while conscious culture comes first for millennials. Research limitations/implications – The generalisability of the findings is decreased, given that the study relied on convenience and non-probabilistic sampling in one economy. The lack of previous studies on SMEs, and the difficulty in conducting research in an emerging economy, gives the findings an importance in furthering research. Practical implications – It contributes to strengthen SMEs’ RC through CBPs. Social implications – It broadens the perspective of SMEs in emerging economies to adopt CBPs for increasing their RC. This relationship varies depending on the managers’ generation. Originality/value – The study used the quantitative approach to explore the perception of Mexican Gen X managers and millennials on the relationship between CBPs and their effects on RC.