AbstractSmall and medium sized enterprises (SMEs) are able to react very quickly to changes in the market environment due to their size and flexible governance structure (Condon, 2004; Verhees et al., 2010). Unlike large corporations, SMEs are more easily inclined to switch to and/or invest in sustainable production systems (SPSs). Such systems entail the creation of goods and services using processes and systems that eliminate waste and pollution, conserve energy and natural resources, promote economic viability, ensure safety and health conditions for workers, communities, and consumers, and achieve social and creative benefits for all working people. SPSs have become a new norm in business in response to the increasing consumer, societal, and governmental concerns (Kotler, 2011; Grittenden et al., 2011). Nowadays, an increasing number of SMEs such as farmers, restaurants, and hotels world-wide raise their incomes through the premium generated from the sale of differentiated (e.g., sustainable) food products and alternative energy-based accommodation services. On the onehand, SMEs may differentiate their produce (e.g., opt for using sustainable materials, re-used materials, recycled materials, eliminate waste and pollution, and use alternative energy sources in their production processes) to better respond to the increasing demand for healthy food, to increase their production capabilities and volume, to improve the quality aspects of their products andservices’ operations, to alleviate poverty, and to promote regional development initiatives. Since 1990s there has been improved access of agri-food and hospitality firms to remunerative sustainable markets worldwide (Costa Pindo, 2009; Gardetti & Torres, 2017). On the other hand, while many SMEs are leading in the implementation of sustainable and circular practices, many others lack a long-term strategic mind-set and relevant information regarding their switching to SPSs (Condon, 2004).Despite the policy initiatives aimed to gain professionalization of the ...