Entrepreneurial orientation and engagement of Pakistani small and medium enterprises in sustainable development practices: Mediating role of knowledge management

Abstract

AbstractThis research aims to shed light on the association between entrepreneurial behavior of small and medium enterprises (SMEs) and their engagement in sustainable development (SD) practices with the mediation of knowledge management (KM). In order to examine the engagement of SMEs in SD, researchers used resource‐based view of the firm as theoretical lens and specifically, analyzed the effects of entrepreneurial orientation (EO) and KM. The self‐administrated research questionnaires were distributed among the senior management of SMEs, located in major cities of Pakistan, by using convenient sampling technique. The Partial least squares‐structural equation modeling (PLS‐SEM) approach was applied, by using SmartPLS software, to test the formulated hypotheses. The study results revealed that EO is positively associated with the KM. Furthermore, KM is positively and significantly associated with the engagement of SMEs in SD practices, particularly regarding the environment, human resource management, and community and local development. Finally, the KM powerfully mediates the associations between EO and engagement of SMEs in SD practices. The overall findings concluded that entrepreneurial‐oriented firms are more likely to engage in the mechanism of KM and SD. The research implications, limitations, and directions for future research were also discussed.