Small And Medium-sized Enterprises Managers Research Articles

Industry 4.0 and global value chains: what implications for circular economy in SME?

PurposeDrawing on the resource-based view (RBV), this paper aims to analyse the relevance of Industry 4.0 (I4.0) technologies and participation in global value chains (GVC) and the effects of the complementarity between both in the adoption of circular economy (CE) actions by small and medium-sized enterprises (SME).Design/methodology/approachThis paper analysed a large-scale international sample by employing logistic and linear regression models to test the research hypotheses on the effects of I4.0 technologies, GVC participation, and the interaction on CE actions (recycling or reusing materials, reducing the consumption and impact of natural resources, saving energy and/or switching to sustainable energy sources, developing sustainable products or services).FindingsThe evidence suggests that I4.0 technologies already represent important resources for CE adoption and SME participating in GVC display a greater likelihood of adopting CE actions. From the perspective of resource complementarity, by interacting the two factors viewed as resources in this article, results may report that adopting I4.0 technologies and simultaneously participating in GVC may turn out detrimental to SME undertaking CE actions, specifically as regards recycling and reusing materials, saving energy or switching to sustainable energy sources and in cases of widely adopting CE practices.Originality/valueThe paper returns novel insights into the adoption of CE practices by presenting evidence that I4.0 technologies and participation in GVC may be successful means for SME seeking to implement CE actions but must be combined carefully. This paper also provides theoretical and practical implications for SME managers, firms participating in GVCs and policy makers, and shedding light on new research avenues.

Role of open innovation and strategy on SMEs in Dubai: review and theoretical framework

PurposeThis study aims to examine and discuss the importance and benefits of Open Innovation (OI), Transformational Leadership (TL), Innovation Strategy (IS), Creative Climate (CC), Radical Innovation (RI) and Sustainable Competitive Advantage (SCA) for small and medium-sized enterprises (SMEs) in Dubai. This work also examines the mediating impact of future foresight drivers (FFD) on SMEs' SCA. The study provides a theoretical framework for enhancing SMEs' organizational performance and highlights the need for future empirical research.Design/methodology/approachThe study uses a systematic literature review (SLR) approach and a bibliometric analysis approach to collect, examine and analyze data from previous research on OI, TL, IS, CC, RI and SCA. This work evaluated 110 publications from separate scholarly databases, Scopus and Web of Science (WoS).FindingsThe study finds a positive relationship between OI, TL, IS, CC, RI and SCA and that future empirical research is needed. While there is limited information on the impact of these concepts on SMEs in the Middle East and especially in Dubai, the study presents new concepts to be debated. The study provides a vital tool for businesses to improve their performance by adopting OI, TL and IS and analyzing their present competitive status to develop new strategies and build competitiveness.Originality/valueThe originality of this study lies in its contribution to understanding the relationships among OI, TL, IS, CC and RI and their impact on SMEs' SCA in Dubai. By emphasizing the importance of OI, TL and IS in improving SMEs' performance and competitiveness, this study provides valuable insights for SME managers seeking to enhance their organizations' sustainability and long-term success. The review also identifies a gap in the literature regarding the impact of these concepts on SMEs in the Middle East, emphasizing the need for further research in this area.

Nexus between accounting and information systems and SMEs` operational efficiency in South Africa

Accounting information systems are critical to any business but especially important to small and medium-sized enterprises (SMEs). Such systems are vital to their performance and success. Unfortunately, SMEs make poor decisions, leading to a shortage of accounting information. Hence, this study aims to investigate the impact of accounting information systems on SME operational efficiency in South Africa. Using purposive sampling, data were collected from 109 out of 150 retail SME owners or other appropriate representatives. A quantitative research design that falls under the positivist paradigm was used. The Statistical Package for Social Sciences (SPPS) software version 20.0 was utilized to analyze the collected data, specifically through descriptive and regression analysis. The study found a significant positive correlation between accounting information systems and SME operational efficiency (r-value = 0.579), which had a p-value of 0.0005, according to the intensity of the association with r-value. The study recommends that SME management implement excellent accounting principles into their operations. Furthermore, because SMEs may be unable to afford complicated accounting systems, SMEs functioning in the same region should implement a resource-sharing strategy to reduce expenses.

Does fintech innovation and green transformational leadership improve green innovation and corporate environmental performance? A hybrid SEM–ANN approach

This study uses the ecological modernization theory (EMT) and ability-motivation-opportunity (AMO) perspectives to determine the roles of fintech innovation and green transformational leadership (GTL) in enhancing corporate environmental performance (ENP). Additionally, we explore the mediating role of firms’ green innovation among these associations. We analyze our conceptual model using survey data from 286 Bangladeshi manufacturing small and medium-sized enterprises (SME) managers. This study employs a two-staged hybrid structural equation modeling-artificial neural network (SEM–ANN) technique to assess the hypotheses. Our empirical findings suggest that fintech adoption has a positive linkage with SMEs’ green innovation and ENP. We also observe that GTL substantially affects organizations’ green innovation and ENP. Green innovation was found to enhance ENP in manufacturing SMEs. Our findings reveal that green innovation mediates the linkages between fintech adoption and ENP and between GTL and ENP. These novel findings contribute to fintech, GTL, and environmental literature and expand the scope of the EMT and AMO theory. Our research provides SME managers and policymakers with a constructive model for implementing fintech and managers’ GTL to enhance green innovation and performance. The results may assist manufacturing firms’ managers in integrating technological advancements and human capital to alleviate adverse environmental concerns.

Interactive assistance via eHealth for small- and medium-sized enterprises’ employer and health care manager teams on tobacco control (eSMART-TC): protocol for a cluster randomized hybrid type II trial (N-EQUITY2101/J-SUPPORT2102)

BackgroundTobacco control should be a higher public health priority in Japan. Some workplaces provide smoking cessation support and connect employees to effective smoking cessation treatments such as outpatient clinics. However, tobacco control measures have not been sufficiently implemented in Japan, especially in small- and medium-sized enterprises (SMEs), where resources are limited. Organizational commitment and consistent leadership are crucial to facilitate implementation, but research on whether supporting organizational leaders leads to health behavior changes among employees is limited.MethodsThis hybrid type II cluster randomized effectiveness implementation trial (eSMART-TC) aims to examine the effects of interactive assistance for SME management on health and implementation outcomes. We will provide interactive assistance to employers and health managers for 6 months, aiming to promote the utilization of reimbursed smoking cessation treatments by public health insurance and to implement smoke-free workplaces. The intervention will consist of three strategies: supporting employees through campaigns, tailored ongoing facilitation, and ensuring executive engagement and support. The primary health and implementation outcomes will be salivary cotinine-validated 7-day point-prevalence abstinence rate, and the adoption of two recommended measures (promoting utilization of smoking cessation treatment and implementing smoke-free workplaces) 6 months after the initial session, respectively. Other outcomes for implementation (e.g., penetration of smoking cessation clinic visits), health (e.g., salivary cotinine-validated 7-day point-prevalence abstinence rate at 12 months), and process (e.g., adherence and potential moderating factors) will be collected via questionnaires, interviews, logbooks, and interventionists’ notes at 6 and 12 months. An economic analysis will be undertaken to assess the cost-effectiveness of the implementation interventions at 12 months.DiscussionThis will be the first cluster randomized controlled trial to evaluate the effectiveness of an implementation intervention with interactive assistance for employers and health managers in SMEs on smoking cessation and implementation of evidence-based tobacco control measures in SMEs. The findings of this trial targeting management in SMEs have the potential to accelerate the implementation of evidence-based smoking cessation methods as well as abstinence rates among employees in SMEs across Japan.Trial registrationThe study protocol has been registered in the UMIN Clinical Trials Registry (UMIN-CTR; ID: UMIN000044526). Registered on 06/14/2021.

Collaboration strategies and SME innovation performance

There is a growing recognition that collaboration is a key source of new knowledge and innovation in small and medium-sized enterprises (SMEs). Bridging the gap in the open innovation in SMEs literature on returns to open innovation our study demonstrates that a type of partner and its geographical proximity predict innovation performance in SMEs. Controlling for selection bias and endogeneity and using the panel data on 9,213 SMEs in the United Kingdom (UK) during 2002–2014, we found that collaboration with suppliers and customers domestically and internationally, collaboration with universities domestically and competitors internationally facilitate innovation in SMEs. The results offer implications for policymakers, scholars, entrepreneurs and SME managers.

Analysis of factors affecting cross-boundary knowledge mobilization in agri-food supply chains: An integrated approach

Agri-food supply chains (AFSCs) link produce from farm-to-fork. Over 80% of businesses operating in AFSCs are small and medium-sized enterprises (SMEs) that lack the necessary resources to make knowledge accessible and usable to other stakeholders. To enhance AFSCs’ performance, we adopt an integrated approach to analyze factors affecting knowledge mobilization (KMob) across boundaries. Thematic analysis of data collected from interviews reveals 11 KMob factors. We apply total interpretive structural modeling (TISM) to identify influential relationships among these factors, and fuzzy cross-impact matrix multiplication applied to classification (MICMAC) to distinguish each factor’s role in the system. Our results complement previous studies in showing that power and national culture are critical KMob factors with the greatest ability to elicit other factors. Our study has implications for SME management teams, focal companies of AFSCs and governments.

Market development strategy and process performance of knowledge-intensive SMEs in the epidemic era: a process-oriented perspective

PurposeThis study analyzes in-depth how knowledge-intensive small and medium-sized enterprises (SMEs) can achieve higher new product development (NPD) process performance in the epidemic era and examine the internal development mechanism of knowledge-intensive SMEs in the process of continuous digital transformation.Design/methodology/approachThis issue is tested with partial least squares on data collected via a survey conducted from November 2021 to February 2022. The sample comprises 487 knowledge-intensive SMEs operating in China.FindingsThe results indicate that one form of cross-functional ambidexterity, market development strategy (MDS), plays an important role in process performance from an inside-out financial perspective and an outside-in customer perspective. Simultaneously, product innovation efficiency (PIE) mediates the relationship between MDS and the above results. Big data analytics capabilities (BDACs) positively regulate the relationship between MDS and PIE.Research limitations/implicationsThe authors do not consider other contingency factors. Future research should introduce influential factors such as leadership and competitive intensity to further distinguish the effects of MDS on NPD process performance.Practical implicationsThe study findings offer suggestions to help knowledge-intensive SME managers better manage their NPD process by making better use of their limited resources in developing countries such as China.Originality/valueThis study is one of only a few to adopt a process-oriented perspective to specifically examine how one form of cross-functional ambidexterity, MDS, impacts knowledge-intensive SME process performance in the epidemic era. This study also extends the theoretical framework of cross-functional ambidexterity to BDAC research.

Determinants of cloud computing integration and its impact on sustainable performance in SMEs: An empirical investigation using the SEM-ANN approach

Although extant literature has thoroughly investigated the incorporation of cloud computing services, examining their influence on sustainable performance, particularly at the organizational level, is insufficient. Consequently, the present research aims to assess the factors that impact the integration of cloud computing within small and medium-sized enterprises (SMEs) and its subsequent effects on environmental, financial, and social performance. The data were collected from 415 SMEs and were analyzed using a hybrid SEM-ANN approach. PLS-SEM results indicate that relative advantage, complexity, compatibility, top management support, cost reduction, and government support significantly affect cloud computing integration. This study also empirically demonstrated that SMEs could improve their financial, environmental, and social performance by integrating cloud computing services. ANN results show that complexity, with a normalized importance (NI) of 89.14%, is ranked the first among other factors affecting cloud computing integration in SMEs. This is followed by cost reduction (NI = 82.67%), government support (NI = 73.37%), compatibility (NI = 70.02%), top management support (NI = 52.43%), and relative advantage (NI = 48.72%). Theoretically, this study goes beyond examining the determinants affecting cloud computing integration by examining their impact on SMEs’ environmental, financial, and social performance in a comprehensive manner. The study also provides several practical implications for policymakers, SME managers, and cloud computing service providers.

Measuring the Success of Digital Transformation in German SMEs

The pace of digital disruption in firms is omnipresent and has been accelerated by the emergence of COVID-19. Using digital technologies requires financial resources to create value. As these resources are limited in small and medium-sized enterprises (SMEs) and digital use cases and best practices are not well known, the purpose of this qualitative study is to investigate how SME managers are adding value and achieving a measurable return on investment (ROI) by using digital technologies. The study reviews a range of literature and models relating to digitisation impacts within SMEs. Further, it entails in-depth qualitative research on digital transformation in SMEs to explore the usage of digitisation and measurements of the added value and return. By inductively performing a multiple-case study of eight German SMEs, the researchers provide evidence to determine the usefulness of data analytics in SMEs. The study delivers a rich overview of added value, benefits and ways SMEs can use various ROI opportunities. Five benefits are revealed: increased revenue, improved customer satisfaction, improved employee satisfaction, efficiency and productivity. In addition, the case studies yield 25 significant positive ROIs in numerous use cases where data analytics solutions are implemented to improve revenue or cut costs. The weighted ROI average in this study is 13.44. Thus, most of the investments are highly worthwhile.

How Generational Differences Influence Leadership Styles: The Case Study of SMEs in Vietnam

Leadership styles inevitably determine the success or failure of enterprises, especially the motivation, trust, willingness, and enthusiasm of employees. The efficiency of styles employed by leaders is greatly impacted by many factors, including their typical features related to generation. The main objective of this paper is to investigate the perceptions of 54 managers of small-and medium-sized enterprises (SMEs) in Vietnam regarding the influences of generational differences on leadership styles. It is revealed that generational characteristics shape the personalities as well as the methods that leaders employ to instruct their followers, therefore impacting their styles. Generally, older leaders tend to be more autocratic while younger ones are more democratic. Nevertheless, there are differences among leaders in the same generation regarding their styles. This study contributes to the extant literature on behavioral science and leadership styles in the emerging economy of Vietnam. The results are beneficial for SME managers and training/consulting institutions in assisting these leaders to adjust appropriate leadership behaviors in consideration of influential factors, particularly their generational differences.

Layoffs in SMEs: The Role of Social Proximity.

Abundant research exists on the restructuring operations of large, publicly listed firms. However, little is known about the antecedents of layoffs in small and medium-sized enterprises (SMEs). Building on the stakeholder salience theory and arguments on social proximity, this study posits that SMEs are less likely to dismiss employees than large firms. We argue that the existence of strong interpersonal ties between employees and managers makes it hard for SME owners and managers to dismiss employees. Empirically analyzing a large sample of European Union firms, the results confirm that the likelihood of layoffs is lower in SMEs than in large firms, even when performance declines.

A STUDY ON THE IMPACT OF E-COMMERCE ADOPTION FOR ENHANCING SUPPLY CHAIN EFFICIENCY IN BANGLADESH SMES

This study examines the impact of e-commerce adoption on supply chain efficiency in small and medium-sized enterprises (SMEs) in Bangladesh. The research aims to identify the factors influencing the adoption of e-commerce in SMEs’ supply chain operations, understand the challenges and barriers faced by SMEs in adopting e-commerce, and analyze the impact of e-commerce adoption on supply chain efficiency. A qualitative research design is employed, utilizing semi-structured interviews with SME owners and managers who have adopted e-commerce for their supply chain operations. The study highlights the importance of SMEs in Bangladesh’s economy and the growing significance of e-commerce in supply chain operations. Despite the rapid growth of Bangladesh’s e-commerce industry, the integration of e-commerce into SMEs’ supply chain operations is still in its early stages. Factors such as technological readiness, infrastructure availability, organizational culture, and external influences affect the pace of e-commerce adoption. The findings reveal that increased efficiency, cost savings, and improved customer experience are the primary drivers for e-commerce adoption. However, resistance to change, lack of technical skills, and security concerns pose challenges to adoption. Participants recommend training programs to enhance technical skills and foster a culture of change. Additionally, organizations should conduct thorough market research, seek customer feedback, and engage in discussions with supply chain partners to make informed decisions regarding e-commerce adoption. Investing in cybersecurity measures is crucial to address security risks. The study contributes to the existing literature on e-commerce adoption in supply chain operations, particularly in the context of developing nations like Bangladesh. It provides valuable insights for SMEs, policymakers, and researchers, emphasizing the need to carefully evaluate the benefits, costs, and risks associated with e-commerce adoption. Enhancing supply chain efficiency through e-commerce adoption can lead to improved competitiveness, cost reduction, and increased profitability for SMEs in Bangladesh.

Social Media Content Creation: A Study of SMEs in Malaysia

In recent years, social media has taken the world by storm in the digital society. Initially, social media was created to eliminate the barriers of time difference and physical distance between individuals. Taking advantage of the situation, especially with the recent COVID-19 pandemic where the physical world was suddenly halted and everything goes online, organisations perceived an opening to exploit the benefits of social media for the advantage of their online businesses. Unfortunately, many Malaysian SMEs (small and medium-sized enterprises) still lack in awareness of the advantages to be gained from social media adoption and engagement. Given the growing significance of social media in contemporary marketing tactics, it is essential for SMEs to comprehend how to produce compelling content that appeals to their target market. The study intends to investigate the kinds of material Malaysian SMEs should produce for social media, the methods they employ to produce and disseminate information, and the difficulties they encounter along the way. In-depth interviews with SME owners and managers will be used to gather data through qualitative study, and non-probability sampling which is snowball sampling will be used to gather participants. Therefore, this concept paper seeks to comprehend what constitutes good content for social media and how social media content creation impacts a firm’s overall performance.

Relationship Quality Between Small and Medium-Sized Enterprise Partners During Threatening Times: The Role of Contact Frequency and Social Exchanges

ABSTRACT Purpose The United Kingdom’s European Union membership referendum, which marked the end of UK membership in the European Union, created much uncertainty amongst those British and European business practitioners who were accustomed to conducting trade with partners across The North Sea. This exogenous threat to business was subsequently compounded by another serious threat: the COVID-19 pandemic. Knowing that business-to-business (B2B) relationships are particularly important for the success of small- and medium-sized enterprises (SMEs), and that exogenous threats in the business environment can threaten these relationships, the purpose of this study is to examine whether frequent contact and social exchanges between partners on a range of topics, during threatening times, are positively linked to the relationship qualities of trust, satisfaction, and commitment. Methodology/approach Guided by an explorative, expert interview with a Danish SME owner-manager (OM) who has a great deal of experience conducting business with UK partners, a questionnaire was developed to examine two variables which seemingly play central roles with regard to supporting business relationships during threatening times: contact frequency (how often partners are in contact), and contact scope (how often B2B partners talk together about topics which are social in nature). The questionnaire was administered to 193 Danish SME owners and managers who had British business partners at the time of the BREXIT referendum and the COVID-19 pandemic. Findings The questionnaire revealed a positive relationship between contact frequency and relationship satisfaction and commitment, as well as a positive relationship between contact scope and relationship commitment. However, no significant relationships were found between contact frequency nor contact scope, on the one hand, and the level of trust between business partners on the other. Research implications This study has underscored the usefulness of studying social exchanges, and not just information exchanges, as they are an important, relationship-strengthening aspect of B2B communication. Indeed, while the central role played by informational exchanges in building quality relationships, including trusting relationships, is well-documented, this study increases our understanding of the value of social exchanges to business relationship quality; in particular, their noteworthy link to B2B partners’ willingness to go to great lengths to maintain relationships during challenging times. Practical implications Our findings indicate that simply being in contact with B2B partners and speaking about topics that are not directly related to business is not, on its own, a sufficient means of establishing trusting relationships; however, it is nonetheless worthwhile to take the time to nurture personal relationships with B2B partners. Just a modest amount of contact is positively related to relationship satisfaction, as well as relationship commitment, which can be crucial when unforeseen and threatening times inevitably arise in the business environment. Contribution of the paper Besides enhancing our understanding of the value of frequent and social exchanges in terms of relationship quality, this paper also illustrates a useful means of studying social aspects of business relationships, which are notoriously difficult to study. This is accomplished via a questionnaire study in which respondents are asked to concretely reflect upon and report on the frequency and nature of their contact with specific B2B partners.

Entrepreneurial orientation, company performance, and competitive advantage in Indonesian culinary SMEs

This study examines the impact of entrepreneurial orientation on company performance and competitive advantage in the context of small and medium-sized enterprises (SMEs). Based on 100 SMEs in the culinary sector in Indonesia and using a quantitative approach based on PLS-SEM data analysis, our study reveals that entrepreneurial orientation influences company performance through competitive advantage. This research will help SME owners and managers to deal with the required entrepreneurial orientation without taking excessive risks that could be detrimental to company performance and competitive advantage.

The Role of Accounting Digitization in Entrepreneurial Success in West Java : Quantitative Study of Efficiency, Accuracy, Cost Reduction, Customer Satisfaction, and Data Security

The aim of this study was to investigate the role of accounting digitization in entrepreneurial success in West Java. A quantitative research approach was used, and data were collected from 250 small and medium-sized enterprises (SMEs) using a structured questionnaire. The study analyzed the impact of accounting digitization on efficiency, accuracy, cost reduction, customer satisfaction, and data security using Structural Equation Modeling (SEM) with Smart PLS software. The results of the study showed that accounting digitization has a significant positive impact on all five constructs. Specifically, the use of accounting digitization tools improves the efficiency and accuracy of accounting processes, leading to cost savings and increased customer satisfaction. Additionally, data security measures are crucial to protect sensitive financial information. The study highlights the importance of government support and policies that encourage the adoption of accounting digitization by SMEs in West Java. This can help SMEs to remain competitive in the global market, increase productivity, and create more job opportunities. However, the study has some limitations, such as the focus on only one region and the use of a quantitative research approach. Future research can use a qualitative research approach to gain more in-depth insights into the experiences and perceptions of SME owners and managers regarding accounting digitization.

Sustaining small and medium-sized enterprises through financial awareness, access to digital finance in South Africa

Small and medium-sized enterprises (SMEs) have several critical challenges that threaten their capacity to survive and thrive. However, access and awareness to digital platform is fundamental to moderate the financial costs and develop financial productivity and sustain SMEs financially. Considering this, the purpose of this study is to get empirical information on the level of management awareness and usage of digital platforms in SMEs in South Africa. The methodological framework included a quantitative research strategy and positivist paradigm. Purposive sampling was utilized to collect data from 321 out of 700 SMEs owners, and the Cochran formula was used to explain the sample size. There were 321 surveys sent out, and 304 were filled out and returned (95% response rate). Descriptive analysis, Pearson’s correlation, and regression analyses from the Statistical Package for Social Sciences were used. The results of Pearson’s correlation coefficient establish a statistically significant relationship between access to digital finances and SME Sustainability (r = 0.334), as well as a statistically significant relationship between financial awareness and SME Sustainability (r = 0.549). The findings alert SMEs managers of the need to improve their digital platforms awareness in order to meet current financial demands and make better informed financial choices to improve company success. The results explain the advantages of trading using many digital platforms available in the country to improve the performance of their enterprises.

Exploring paths underlying Industry 4.0 implementation in manufacturing SMEs: a fuzzy-set qualitative comparative analysis

PurposeThe purpose of this article is to develop a configurational approach based on the TOE framework (technology, organization and environment) to understand the degree of implementation of I4.0 technologies in manufacturing small- and medium-sized enterprises (SMEs). Specifically, the study considers technological infrastructure and competence, I4.0 integration capabilities, organizational agility and strategic flexibility, environmental dynamism and industry-specific forces as simultaneous pre-conditions for achieving an effective implementation of I4.0 technologies.Design/methodology/approachThis study uses the fuzzy-set qualitative comparative analysis (fsQCA) methodology as it allows for asymmetric and configurational-focused testing of proposition and sound theoretical development. In total, 305 responses were collected through a survey administered to SME managers in Europe and the United Kingdom (UK).FindingsThe study examines the influence of technology, organizational and environmental aspects on I4.0 technologies implementation in SMEs. High I4.0 degree of implementation is structured around 5 configurations, while other 4 configurations are related to low levels of I4.0 implementation.Originality/valueThis study proposes a configurational approach for SMEs to become I4.0 ready and how they may successfully implement I4.0 technologies. Such findings represent an original and novel contribution to existing research, offering a broad view on the I4.0 implementation by manufacturing SMEs.

The Role of Entrepreneurial Thinking Mediated by Social Media on the Sustainability of Small and Medium-Sized Enterprises in Iran

This study lends new insights into the hitherto-unexplored relationship between entrepreneurial thinking and the sustainability of small and medium-sized enterprises (SMEs) in Iran, mediated by social media. The goal was to investigate the effect of entrepreneurial thinking, mediated by social media, on the sustainability of SMEs in Iran from January to February 2022. The statistical population comprised 407 SME managers based in the Pardis Technology Park and the Science and Technology Town (Iran). Using Cochran’s formula, a sample of 197 SME managers was selected via the simple random method. The data were collected using a 5-point Likert scale questionnaire with 25 questions, the reliability and validity of which had been examined and confirmed. The data were analyzed in SmartPLS 3. The results revealed that entrepreneurial thinking plays a pivotal role in managerial decisions and is a crucial factor in the sustainability of SMEs in Iran. Managers, as creators and reformers of the internal business environment, can establish and enhance a strong link between business sustainability and employees’ ability to acquire entrepreneurial thinking.