Sustainability In Small And Medium-sized Enterprises Research Articles

Innovation for environmental sustainability: business models for SMEs

PurposeAn effective business model (BM) is essential for the success of any company, with sustainable innovation being a critical component of this model. This entails finding creative ways to meet present needs without compromising future generations. In this regard, cooperation can be crucial in developing sustainable innovation. This paper investigates how different types of cooperation impact the development of small and medium-sized enterprises (SMEs) innovation for environmental sustainability. In this sense, it intends to compare the effects of cooperation acquired nationally or at a European level.Design/methodology/approachThe methods used are logistic regression for the sample of 87,374 observations from 14 countries of the Eurostat Community Innovation Survey (CIS) database.FindingsThe results confirm that cooperation with national or European agents significantly impacts the innovation for environmental sustainability of SMEs; however, not all cooperations have the same significance level. At a national level, cooperation with the suppliers of equipment, materials, components or software, clients or customers and universities or other higher education institutes impacts the innovations for environmental sustainability developed by SMEs. At a European level, cooperation established with other enterprises within your enterprise group, equipment, materials, components or software suppliers, clients or customers and government, public or private research institutes significantly impacts innovations for environmental sustainability.Originality/valueThis study also provides substantial theoretical contributions on the subject and more information about the importance of cooperation by SMEs in developing innovation for environmental sustainability.

Sustainable corporate performance through corporate social responsibility in the printing sector: The mediating role of green product innovation and green supply chain

The study investigates the impact of corporate social responsibility (CSR) on sustainable corporate performance (SCP). Specifically, the study examines the mediating role of green product innovation (GPI) and green supply chain (GSC) in this relationship. A quantitative method was employed and used Smart PLS SEM to analyse the data collected from 418 respondents from managers and senior managers in small and medium sized enterprises (SMEs) from the printing industry in Vietnam. This study shows that there is positive impact from CSR to SCP. More importantly, the study has investigated the existence of the mediating role of GPI and GSC in the mechanism of these relationships. Through the analysis, the study brings about valued implications to managers and senior managers in printing companies so as to achieve sustainable performance. This study has highlighted the contributions of CSR, GPI and GSC in sustainability in Vietnamese SMEs. The research will also help SMEs conduct their operational and strategic plans with a positive influence on the environment, society, and the economy.

Discovering the deep roots of corporate social responsibility in SMEs

Purpose This article looks at the field of corporate social responsibility (CSR) in Cameroon's dynamic landscape, exploring the motivations driving small and medium-sized enterprises (SMEs) to adopt socially responsible practices. In contrast to the emphasis on CSR in large companies, we highlight the central role played by SMEs as catalysts for sustainable development. Design/Methodology/Approach Using a quantitative methodological approach, this study examines the different factors that influence the adoption of CSR in Cameroonian SMEs. We established a non-probability sample of 124 SMEs based in the following four Cameroonian cities: Douala, Yaounde, Garoua and Ngaoundere. We used binomial logistic regression to analyse the impact of financial resources, institutional environment, company size, sector of activity, managerial ethics and company age on SMEs' commitment to socially responsible practices. Findings and implications Our study highlights the key determinants of commitment to CSR in Cameroonian SMEs. Our results show that financial resources, the institutional environment, the size of the company, the sector of activity, the ethics of the manager and the age of the company appear to be key factors influencing the implementation of a CSR approach. However, the factors studied have different weights of influence in the implementation of this CSR approach. These results prompt a reassessment of CSR implementation strategies and provide valuable pointers for improving the reputation, sustainability and relevance of Cameroonian SMEs in a rapidly changing context. Limitations Although this study makes a significant contribution to the understanding of CSR in Cameroonian SMEs, certain limitations must be acknowledged. The research is specific to the Cameroonian context and the results may not be universally applicable. In addition, the dynamic nature of business environments introduces a temporal component that may impact the generalisability of our results over time. Finally, the absence of a relationship between the nature of the technologies used and the implementation of a CSR approach is counter-intuitive and would merit being tested on larger samples or being the subject of further qualitative research in order to identify other components of the variable.Originality This research fills a crucial gap in the literature by shedding light on CSR in the context of Cameroonian SMEs. The identification of multifaceted determinants offers a unique contribution to the wider CSR discourse, challenging conventional perceptions and providing practical implications for both academics and practitioners.

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Research background: The sustainability of small- and medium-sized enterprises (SMEs) represents a significant scientific and professional problem in the current turbulent period because these enterprises play an important role in any country’s economic and social systems. Purpose of the article: This paper aimed to define the significant sustainability factors of small and medium-sized enterprises and to quantify their impact and importance on the sustainability of SMEs. The areas of Human Resource Management, Corporate Social Responsibility, and financial management were defined as significant sustainability factors. Methods: Empirical research, on which the scientific hypotheses were formulated and evaluated, was conducted in June 2022 in V4 countries (Czech Republic, Slovak Republic, Poland, and Hungary) using a structured questionnaire. The study accumulated a sample of 1398 respondents. Data collection was conducted through an external agency, MN FORCE, operating in Central European countries. The Computer Assisted Web Interview (CAWI) method was used to record respondents’ perceptions. Descriptive statistics, correlation analysis, and linear regression analysis were used to evaluate the hypotheses. Findings & value added: The research showed that all defined factors in the areas of Human resource management (HRM), Corporate social responsibility (CSR), and financial management of the firm had an impact on defined sustainability attributes. The greatest impact was found on the firm’s financial management, followed by CSR and HRM. The empirical results confirm that the intensity of the independent variables varies across the V4 countries. These results also show that the intensity of the selected HRM, CSR, and financial management factors of a firm is higher in the integrated models than in the models for individual V4 countries. The research results have shown that a range of factors determine the right attitude towards the sustainability of companies. In this context, economic policymakers and entrepreneurs must perceive sustainable growth as complex and apply a systemic approach to its design and implementation.

Is knowledge management a missing link? Linking entrepreneurial competencies and sustainable performance of manufacturing SMEs

PurposeBy combining relevant literature and using quantitative methodology, this study aims to look into the role of knowledge management (KM) as a mediator between entrepreneurial competencies (ECs) and the sustainable performance (SP) of manufacturing small and medium-sized enterprises (SMEs).Design/methodology/approachThe relationships in the proposed model were examined with data collected from 122 Malaysian SMEs using a cross-sectional technique and a standardized questionnaire and analyzed using structural equation modeling path analysis.FindingsAccording to the findings, ECs have a positive and considerable impact on KM as well as the SP of manufacturing SMEs. Importantly, KM partially mediates between ECs and the SP of manufacturing SMEs.Research limitations/implicationsThis research provides a theoretical contribution through the integration of ECs, KM and SP within a unified framework that takes into account the viewpoints of the resource-based view, the knowledge-based view and the triple bottom line. The results corroborate that ECs directly affect SP and indirectly through KM. Nevertheless, the study’s use of cross-sectional survey data makes it impossible to draw conclusions about causes. This is because ECs, KM and SP all have effects on time that this empirical framework cannot account for.Practical implicationsThe findings of this research provide valuable insights for managers and decision-makers in SMEs, who are expected to show an increasing interest in adopting KM processes into their companies through which ECs can be translated into SP.Social implicationsBy applying the proposed framework, SMEs can conduct their activities in ways that do not harm environmental and societal well-being while achieving appropriate economic performance at the same time.Originality/valueAs a result, the findings of this study can add to the literature on ECs and KM, as well as boost the chances of SME sustainability. Directions for future research are also provided in relation to a better understanding of the factors affecting the SP of SMEs.

Financial literacy and sustainability in SMEs: Do financial risk attitude, access to finance, and organizational risk-taking tolerance mediate?

Small and medium-sized enterprises (SMEs) contribute significantly to the economic growth of emerging economies. However, SMEs have difficulty maintaining their performance. This paper examines the impact of financial literacy on the sustainability of SMEs with the roles of access to finance, financial risk attitude, and organizational risk-taking tolerance as mediators. This study concentrated on the Indonesian market and used questionnaires to collect data from the owners or chief financial officers of SMEs. The extent of the correlations was examined using partial least squares structural equation modeling. It was found that financial literacy, financial risk attitude, and organizational risk-taking tolerance are significant antecedents of SME sustainability. Access to finance, on the other hand, was not a factor in SME sustainability. A financial risk mentality was also revealed to have a substantial influence on the association between financial literacy and SME viability in the study. Furthermore, the relationship between financial literacy and SME viability was found to be mediated by organizational risk-taking tolerance. This study has significant relevance for SMEs, as it confirms that financial literacy is crucial for continued success. SMEs with proper financial literacy will have a superior attitude to financial risk and organizational risk-taking tolerance, ensuring their sustainability. Future studies can investigate SME sustainability in other emerging economies and compare their performance and sustainability.

Understanding and application of SMES on sustainable management: A case study in Vietnam

This study investigates the integration and impact of sustainable management practices within Small and Medium-sized Enterprises (SMEs) in Vietnam. SMEs play a crucial role in Vietnam's economy, contributing significantly to employment, GDP, and societal well-being. The research explores the challenges and incentives influencing SMEs' adoption of sustainability practices, drawing on theoretical frameworks, empirical data, and insights from existing literature. Key barriers include financial constraints, limited awareness of sustainability benefits, and regulatory shortcomings. Conversely, drivers include cost savings, enhanced brand image, and increased customer loyalty. Actionable strategies for fostering sustainability in SMEs, including governmental support, education programs, and stakeholder engagement, are proposed. By addressing these challenges and leveraging opportunities, Vietnamese SMEs can contribute to sustainable development and economic resilience.

Esg2go: A Method to Reduce Bias, Improve Coherence, and Increase Practicality of ESG Rating and Reporting

Rating agencies that assess a company’s environmental, social, and corporate governance (ESG) impact have been subject to public and academic scrutiny due to divergent and often biased rating outcomes. Concurrently, an evolving regulatory environment mandates publicly listed companies to report on ESG and climate emissions, taking into account supply chain risks as well. As a result, small and medium-sized enterprises (SMEs) are increasingly asked as suppliers to present a credible sustainability certificate. The esg2go rating and reporting system aims at improving the credibility and practicality of corporate sustainability assessment. It was jointly developed with its users and relevant stakeholders and is based on a calibrated benchmarking system from verifiable data. The rating method enables the measurement and comparison of sector- and firm size-specific sustainability performance. Its underlying adaptive parametrization is derived from a coherent and pragmatic definition of SME sustainability as the ‘ability to co-exist’. Our data analyses indicate that our scoring function is able to minimize bias and deliver a fair comparability between SMEs. We conclude that esg2go represents a pragmatic and innovative approach to enhance the fairness and accuracy of corporate sustainability assessment.

The Drivers of Sustainability Practices in SMEs and the Impact on Business Performance

The concept of sustainability practices by Small and Medium-sized Enterprises (SMEs) is often ignored, specifically in developing countries. This requires optimal attention, considering the significant role of SMEs in economic growth and the significant collective impact on the ecological environment. Therefore, this study aimed to analyze the impact of collaboration and innovation on SMEs sustainability practices and business performance. A total of 169 samples were obtained from metal manufacturing companies located in the Tegal, Klaten, and Greater Jakarta regions through purposive sampling. The results showed that collaboration significantly and positively affected SMEs sustainability practices, using SEM-PLS analysis. Innovation also positively influenced sustainability practices and business performance. Furthermore, the positive impacts of collaboration and innovation on business performance were mediated by sustainability practices. Sustainability practices also positively affected business performance, showing that the enhancement of sustainability practices commitment was required to achieve Sustainable Development Goals (SDGs) without sacrificing SMEs business growth. From the results, the implementation of other variables was recommended for future analyses, to improve the understanding of the different factors driving sustainability practices in SMEs.

Marketing Orientation, Customer Orientation, Entrepreneurship Education and Women Entrepreneurship Sustainability in Small and Medium-Sized Enterprises (SMEs) in Malaysia

The focal point of the examination included investigating the achievement factors among women entrepreneurs in the province of Malaysia. This paper explored to what degree a few factors, entrepreneurship education management, customer orientation and marketing orientation can clarify its commitment towards turning out to be effective women entrepreneurship visionary. Women entrepreneurs have been progressively mainstreamed into advancement forms, and by assuming an assortment of jobs at the family, network and society levels, they have had the option to add to national improvement and thriving. Reflecting dynamically expanded political will, progressive Malaysian advancement plans have put a more prominent accentuation on mainstreaming women entrepreneurs in national improvement through certifiable multi-sectoral approaches and projects. Gender orientation as an advancement center was first referenced in the Third Malaysia Plan (1976–1980), which supported the dynamic interest of women entrepreneurs being developed and their commitment to the economy. The job of Women entrepreneurs in neediness destruction was given acknowledgment under the Fifth Malaysia Plan when social projects to elevate the state of women were supplanted by monetary projects. The results show that the regression analysis on entrepreneurship education management, customer orientation and market strategy affect the sustainability of SMEs. Numerous studies have been undertaken to evaluate the effects of various elements on women's entrepreneurial success, but our study looked into several entrepreneurship education management, customer orientation and market strategy factors towards women's entrepreneurship sustainability that have largely gone unexplored, particularly in Malaysia. The current study further adds to the previous literature by providing empirical evidence.

The impact of corporate reputation and social media engagement on the sustainability of SMEs: Perceptions of top managers and the owners

Research background: Small and medium-sized enterprises (SMEs) play a fundamental role in countries’ economies. Currently, entrepreneurs are struggling not only with the uncertainty of the business environment, but also with high expectations for businesses to be run in a sustainable way. Therefore, the impact of corporate reputation and social media on sustainability is an area of interest for entrepreneurs. In this context, little research has been conducted on their perception of the linkage between these issues. Furthermore, there has been no direct explanation of the effects of SMEs’ reputation and social media usage on their sustainable development, especially in the V4 countries. Purpose of the article: This article defines, quantifies, and verifies the effects of corporate reputation and social media on sustainable development as perceived by SMEs’ owners and top managers in the V4 countries. Methods: Data were gathered in December 2022 and January 2023 using the computer-assisted web interviewing (CAWI) method. The survey was designed based on a literature review and experts’ opinions. Respondents (top managers of SMEs, n = 1090) were asked questions on their firms’ characteristics, reputation, social media usage and sustainable development. The linear regression modelling (LRM) was utilised to evaluate the hypothesis. Findings & value added: The study revealed a strong relationship between owners’ and top managers’ perceptions of the importance of both corporate reputation and sustainable development in SMEs. The belief that social media supports the growth of companies’ performance is related to the understanding of the concept of sustainable business development. Surprisingly, for the owners and top managers of SMEs in V4 countries, there was no relationship between the awareness of social media usage to share information with customers and partners and the understanding of sustainable business growth.

NURTURING AEROSPACE SMES IN BENGALURU: AN EXPLORATORY FACTOR ANALYSIS ON GROWTH AND SUSTAINABILITY DRIVERS

The aerospace industry in Bengaluru, India, is home to over 3000 small and medium-sized enterprises (SMEs) operating alongside prominent aerospace giants. However, while some SMEs have achieved remarkable growth and success, others need help to sustain themselves in this competitive market. Understanding the factors supporting these aerospace SMEs' growth and long-term sustainability is vital for the industry's continuous development and regional economic prosperity. This paper explores the factors supporting the growth and sustainability of aerospace SMEs in Bengaluru. Employing exploratory factor analysis, the study identifies three key factors: Customer and Supplier Engagement, Synergistic Business Strategies, and Collaborative Performance. These factors play crucial roles in shaping the success of aerospace SMEs, fostering innovation, and ensuring long-term viability. The research provides valuable insights for policymakers, entrepreneurs, and industry stakeholders to strengthen the aerospace ecosystem in Bengaluru. Policymakers can formulate supportive policies and initiatives, while industry stakeholders can forge strategic collaborations. By leveraging the findings, SMEs can enhance competitiveness, foster innovation, and establish sustainable growth trajectories. Continued research in this direction will contribute to the overall development of the aerospace industry in Bengaluru and enable it to maintain its status as the hub of Indian Aerospace.

Internationalization and corporate sustainability expenditure: The role of institutional support and foreign knowledge acquisition

AbstractThis study extends the literature on international business and sustainability by examining the impact of internationalization on corporate sustainability expenditures, and the conditions under which this relationship is enhanced or attenuated. Based on insights from institutional and firm resource theories, we examine the moderating effects of institutional support and foreign knowledge acquisition capability on the hypothesized relationship. Survey data were collected from 260 small and medium‐sized enterprises (SMEs) in Ghana, a developing sub‐Saharan African country, and analyzed using ordinary least squares (OLS) regression. The results indicate that increased internationalization levels are positively and significantly linked to corporate sustainability expenditure. In addition, the results of the moderation analyses reveal that the positive effect of internationalization on sustainability expenditure is stronger at high levels of institutional support for firms with high foreign knowledge acquisition capability. This study offers new perspectives and directions for improving SMEs' internationalization and sustainability practices through an integrated strategy that enhances the quality of domestic institutional environments by policymakers, augmented by managers' proactive efforts to develop their firms' foreign market learning capabilities. The limitations of this study and their implications for further research are discussed.

Impact of Social Responsibility as a Driver of Business Performance in Indonesian Smes

The Covid-19 pandemic continues to shape Indonesia's trajectory, with projections indicating its influence for the next 4-5 years, prompting a paradigm shift across all spheres, including the economy. Companies find themselves at a crossroads, tasked with aligning profitability with the evolving needs of communities, while simultaneously meeting ethical obligations to society and the environment. Consequently, Corporate Social Responsibility (CSR) has taken on a dynamic role, expanding beyond large corporations to encompass Small-and-Medium Sized Enterprises (SMEs). Nevertheless, the intricate interplay between CSR, SME resilience, and the capacity to endure economic downturns remains largely unexplored.This study endeavors to bridge this research gap by delving into the impact of CSR on the financial performance of SMEs in the face of economic challenges. As the Covid-19 pandemic persists, Indonesian SMEs must navigate an altered economic landscape. Although the concept of CSR has gained prominence, its precise influence on SMEs' ability to weather economic adversities and attain sustained financial success remains enigmatic. Consequently, this research aims to uncover the factors that shape the adoption of CSR practices among SMEs, while also investigating the extent to which CSR implementation correlates with financial performance. By elucidating this relationship, the study aspires to provide valuable insights into fortifying the sustainability and resilience of SMEs within the dynamic framework of evolving economic norms. Keywords: Decarbonization, Malaysia, Net-zero emissions, Corporate practices

Benefits of Adopting Innovation and Sustainability Practices in Project Management within the SME Context

The economic activity of Small and Medium-Sized Enterprises (SMEs) has become increasingly project-oriented. Given SMEs’ significant role in promoting social and economic well-being, Project Management (PM) has emerged as a crucial tool for fostering innovation and sustainability within these companies and society as a whole. However, there is a gap in the existing literature concerning identifying practices that ensure innovation and sustainability throughout PM within SMEs and the associated benefits of adopting these practices. To address this gap, a comprehensive Systematic Literature Review (SLR) was conducted, gathering articles from reputable databases such as Scopus and Web of Science. In addition, this study seeks to explore the practical, political, and theoretical implications of these findings. The review identified 166 innovation practices, 86 sustainability practices, and 61 benefits, which were categorized based on their primary subject areas. The results of this study contribute to both the academic and practical understanding of the interplay between PM, innovation, and sustainability in SMEs. By identifying these practices and associated benefits, this research provides valuable insights for practitioners and policymakers, enabling them to foster innovation and sustainability within SMEs. In conclusion, this research fills a critical gap in the literature by providing an in-depth analysis of innovation and sustainability practices in the context of PM in SMEs. Also, it identifies that the benefits of adopting these practices extend well beyond economic considerations. The practical, political, and theoretical implications of these findings underscore the importance of integrating PM, innovation, and sustainability for the overall well-being of SMEs and society.

Study on the impact of strategic management through sustainable operations for Industry 4.0 from the perspective of SMEs in the UAE

This research investigates the burgeoning field of sustainable manufacturing practices (SMPs) within the context of small and medium-sized enterprises (SMEs) in the United Arab Emirates (UAE) manufacturing sector. The study is grounded in the observation of SMEs' growing commitment to enhancing their sustainability performance through the adoption of sustainable practices. It adds valuable insights to the current academic discourse on SMPs and the sustainable performance of SMEs, shedding light on the mediation of competitive capacity and the moderating influence of environmental legislation. Utilizing structured questionnaires, data was systematically collected from SMEs operating in the UAE's manufacturing sector. The ensuing analysis, conducted via regression models, illuminates a significant relationship between the implementation of SMPs and the enhancement of SMEs' competitive capacities, ultimately fostering long-term sustainable performance. Notably, this association is further strengthened by the mediating role of improved competitive capacities. Furthermore, the study reveals a synergistic effect whereby the combination of SMPs and adherence to environmental legislation augments the long-term viability and sustainability of SMEs. In conclusion, this paper synthesizes its findings, providing valuable insights for practitioners and policymakers seeking to promote sustainability within the SME sector.

Developing the interconnection between green employee behavior, tax avoidance, green capability, and sustainable performance of SMEs through corporate social responsibility

Small and medium-sized enterprises (SMEs) are essential to any economy, as they contribute significantly to the gross domestic product (GDP) and create jobs. Nonetheless, the negative environmental impact of SMEs draws attention to the sustainability of SMEs. In order to achieve sustainable performance, businesses must possess a combination of factors that confer a competitive advantage and facilitate the attainment of objectives that culminate in a triple-bottom-line performance. Although prior research has identified the effects of employee behavior and corporate social responsibility (CSR) on firm performance, less is known about the effects of green employee behavior (GEB), green capability (GC), and CSR (to the community – to the environment) on sustainable firm performance (SFP). Current research bridges the literature gaps by answering how GC, GEB, and tax avoidance (TA) in SMEs correlate to achieving SFP. The study utilized a sample of 375 small and medium-sized textile enterprises in Pakistan and employed partial least square structural equation modeling (PLS-SEM) to analyze the data. The findings suggest that the relationship between corporate social responsibility (CSR) and sustainable firm performance is mediated by green capability. Additionally, corporate social responsibility to the environment does not influence the link between tax avoidance and sustainable firm performance, which still does not shadow the importance of tax avoidance and requires serious attention from the management.

Business climate and sustainability of Cameroonian small and medium enterprises in times of COVID-19

Purpose The purpose of this study is to evaluate the contribution of the business climate on the sustainability of Cameroonian small- and medium-sized enterprises (SMEs) in times of coronavirus disease 2019 (COVID-19).Design/methodology/approach To achieve this purpose, the study proceed with a quantitative analysis using the simple LOGIT model on a sample of 52 individuals.FindingsThrough the administration of questionnaires and estimations, results reveal that certain variables such as the taxation regime of the enterprise, the different types of taxes paid by the enterprise, the frequency of payment of income tax, the nature of the training of managers, the clauses of the debt contracts with banks/EMFs (Microfinance institution), the time taken to apply for a loan from the bank and the nature of the manager’s training have a negative influence on the sustainability of Cameroonian SMEs during COVID-19, while others such as the evolution of financial profitability in the context of the coronavirus pandemic in Cameroon, the company’s sector of activity and the main methods of financing the SME have a positive influence on the sustainability of Cameroonian SMEs during COVID-19 pandemic. The improvement of the business climate by the institutional authorities is, therefore, essential in the perspective of an eventual development of the country; the said development cannot take place without capitalizing on the potential for income and job creation by SMEs.Research limitations/implicationsThe first limitation is related to the size of the sample and also to the specificity of our study. In fact, the study is conducted among individuals/actors likely to have access to information on the business climate and sustainability of Cameroonian SMEs at the time of COVID-19 encountered in the city of Yaoundé. In this context, the sample size is considered to be small (52). This element does not immediately allow the results of the present research to be generalized to all regions where SMEs are located in Cameroon, as other criteria or other elements must still be taken into account and the results obtained must, therefore, be interpreted with caution. This research could be deepened in the future by considering more business climate variables on the one hand and a larger sample size extended to all cities in Cameroon on the other.Practical implications The results of this research confirm the importance of institutional bodies establishing a rigorous policy of support for businesses. Such a policy would contribute to improving the business climate and extend beyond mere resilience.Originality/value The originality of this study lies in the fact that it looks at the sustainability of SMEs in the context of the COVID-19 pandemic in Cameroon using a simple LOGIT econometric model.

THE BASES FOR ENHANCING THE SUSTAINABILITY OF SMALL AND MEDIUM-SIZED ENTERPRISES IN SOUTH AFRICA

Small and medium-sized enterprises (SMEs), continue to fail and discontinue operations at one of the highest rates in many developed and developing countries, such as South Africa. The chief goal of this study was to create a foundation for increasing the sustainability of SMEs. The methods utilised in this inquiry for gathering and analysing data were quantitative. The study's target population, the Central Supply Database of the Provincial Department of Finance, was utilised to count the number of South Africa's officially recognised SMEs. A non-probability sampling method was used to choose 400 small business managers and owners as the study's sample size. The study's findings indicate that there are a few key reasons why SMEs fail and discontinue operating in South Africa, including a lack of strategic business planning, insufficient funding, subpar management, a lack of innovation, a lack of business research, and insufficient human capital education and training.

Entrepreneurial Strategic Orientation: Prerequisite for SMEs Success in IoT and Digital Transformation Sphere?

Entrepreneurial orientation (EO) is a multidimensional construct that reflects a firm’s tendency to be innovative, proactive, and risk-taking. Previous research has demonstrated that companies with a strong EO possess a competitive advantage in the market when compared to those with a conservative approach to management. The objective of this study is to analyse the entrepreneurial orientation of small and medium-sized enterprises (SMEs) using the ENTRE-U scale and to identify the dimensions of EO that are critical for achieving business success in the context of digital transformation and IoT implementation. The identification of these dimensions is facilitated through a survey method and exploratory factor analysis. After administering the ENTRE-U scale to a representative sample of SMEs that use modern technologies, such as IoT, four distinct dimensions of EO emerged. Each dimension of EO has a significant impact on firm performance. By adhering to the established EO dimensions and using the proposed methodology, managers can develop an efficient business model that aligns with the current digital market demands, enhances SMEs (survival, resilience, and sustainability), and addresses the high uncertainty prevalent in today’s business environment.