Small Medium-sized Enterprises Research Articles

Customer participation in new product development and the impact of remote work

Purpose The COVID-19 pandemic has presented small-to-medium size enterprises (SMEs) with a massive and unexpected challenge that has caused many to adjust their operational standards. Perhaps the biggest change has been the shift to remote work and away from traditional office spaces. Thus, this study aims to explore the implications of this shift within the context of customer participation in the new product development (NPD) process. Design/methodology/approach Our study surveys 218 small-to-medium size business-to-business firms in the USA on a variety of questions revolving around their NPD processes, customer collaboration and the shift to remote work. The authors use structural equation modeling in the AMOS program to analyze the data. Findings The findings indicate that both customer participation breadth and customer participation depth positively impact new product performance. Furthermore, these relationships are found to be contingent upon whether firms rely on remote work during the collaboration process. The results show that accessing a broader variety of explicit customer insights (i.e., breadth) has become easier in the increasingly remote collaboration environment. However, as face-to-face customer participation in NPD has decreased, the prospect of gaining deep, tacit customer knowledge relevant to product development (i.e., depth) has become more challenging. Originality/value This study contributes to the knowledge-based view of the firm and the customer participation literature, and it also has implications for managers adjusting to the shift to remote work following the COVID-19 pandemic. The findings provide additional evidence that customer participation is an effective strategy for SMEs (Morgan et al., 2018), but remote work has both positive and negative implications regarding the type of external knowledge that is acquired during customer participation in NPD.

Entrepreneurial leadership in startups and SMEs: Critical lessons from building and sustaining growth

Entrepreneurial leadership plays a pivotal role in the success of startups and small to medium-sized enterprises (SMEs) by guiding them through the turbulent waters of innovation, risk, and growth. This review explores the critical lessons learned from the experiences of entrepreneurial leaders in building and sustaining growth within these dynamic organizations. In today's competitive business landscape, startups and SMEs face unique challenges, including limited resources, intense competition, and rapid market changes. Effective entrepreneurial leadership entails a visionary mindset, a willingness to take calculated risks, and an ability to adapt to evolving circumstances. This review delves into the fundamental elements of entrepreneurial leadership, such as vision setting, innovation, adaptability, team building, and decision-making, which are essential for navigating the complexities of the startup and SME environment. Furthermore, the review examines strategies for building and sustaining growth, including scalability, financial management, marketing, customer acquisition, and strategic partnerships. Through case studies and practical examples, it illustrates how successful entrepreneurial leaders have implemented these strategies to overcome challenges and achieve sustainable growth. Despite their potential for success, startups and SMEs also face numerous challenges, including regulatory hurdles, technological disruptions, and globalization. By understanding these challenges and embracing emerging trends, entrepreneurial leaders can position their organizations for long-term success in an ever-changing business landscape. In conclusion, this review underscores the importance of entrepreneurial leadership in driving innovation and growth in startups and SMEs. By learning from past experiences and embracing the principles of entrepreneurial leadership, aspiring leaders can chart a course towards success in the dynamic world of entrepreneurship. Keywords:  Entrepreneurial Leadership, Startups, SMEs, Sustaining Growth.

Mineral resource drivers in the global south: A case study of Australia

Mineral resource depletion directly restricts sustainable mineral development. This study investigates the drivers of sustainable mineral resource development via an evolutionary game model involving mineral firms, the Australian government, and financial institutions. The tripartite model provides a guide to strategies and interactions with external influences based on company liquidity. Leveraging panel data from Australian mining companies from 2015 to 2022, this study utilizes unconditional quantile regression techniques, culminating in three salient discoveries. First, despite financial limitations, small-to medium-sized enterprises (SMEs) can accumulate ample resources to enhance their green technology R&D and corporate social responsibility (CSR) expenditure through diverse financing methods, thereby creating an internal strategic impetus for CSR perpetuation. Second, by participating in CSR, mineral firms can transmit positive signals in an asymmetric market, which promotes their sustainable development. Finally, despite the Australian government's R&D tax refund policy incentivizing R&D investment, SMEs' lack of innovative capacity has led to the diversion of operational funds, which negatively impacts their sustainable development. These findings provide valuable insights for sustainable mineral resource development that extend beyond Australia to other Southern Hemisphere nations.

Exploring the perception of small and medium food enterprises in Lincolnshire, UK on the use of front‐of‐pack nutrition labels by consumers

SummaryThe food and drink industry is the UK's largest manufacturing sector, and small to medium‐sized enterprises (SMEs) play a key role in the UK's food system. This study investigates food‐providing SMEs' knowledge of nutrition labels and perceptions of the use of front‐of‐pack nutrition labels in making informed and healthy food choices by consumers. The SMEs were based in Lincolnshire, UK, and comprised food manufacturers (75%), food retailers (14%) and food service providers (11%) (n = 35). A 25‐item questionnaire was developed and validated to collect responses. The questionnaire link was disseminated by email and completed online. Comparisons were made between competing answers using Cochran's Q tests, each with post‐hoc pairwise McNemar test comparisons. Confidence intervals were computed using ordinal regressions. More than half of the SMEs' products (58%) had UK traffic light (TL) colour‐coded schemes and % hvGuideline Daily Amounts (GDAs). The SMEs stated that the TL label was the best format that provided ‘at‐a‐glance’ information, and this was significantly higher than %GDA and interpretative text (Ps < 0.003). Nearly 49% of the SMEs were unaware of the front‐of‐pack labels being not mandatory in the United Kingdom. Many (86%) acknowledged that the nutrition information on food products was helpful or very helpful for consumers in making purchasing decisions. The SMEs seemed to place the costs of implementing FOP labels on food products above their helpfulness in making healthier food decisions by consumers. This research is one of the first to investigate the perceptions of SMEs on how consumers utilise nutrition labels when making healthier food choices in the United Kingdom. Government subsidies on the costs incurred by incorporating TL labelling on the products are necessary in order to have front of pack (FOP) labels mandatory in the United Kingdom. Greater food industry involvement in academic and policy‐related research is essential to creating a healthier and more sustainable food environment.

The Innovative Entrepreneurial Marketing Journey and Sustainable Development of Southeast Asian Immigrants

The southeast Asian new immigrants face significant barriers in employment due to language and cultural differences, making it challenging for them to find jobs. Consequently, many southeast Asian immigrants have turned to entrepreneurship as a means to achieve economic independence and contribute to their family’s income. This study adopts entrepreneurial marketing (EM) as a theoretical lens and utilizes a process research methodology, based on sequentially ordered events, to explore the entrepreneurial journey of immigrant micro and small to medium-sized enterprises (SMEs). Employing purposive sampling, twenty-two southeast Asian immigrant entrepreneurs were selected for in-depth interviews to ensure data quality through multiple data collection methods. The research developed a dynamic adjustment model and management mechanisms for the entrepreneurial marketing of immigrant micro and SMEs. These findings not only bridge theoretical gaps in immigrant entrepreneurship strategy but also deepen the academic understanding of the dynamism in entrepreneurial marketing. Practically, the outcomes assist immigrant micro and small business entrepreneurs in developing operational strategies and serve as a reference for governmental units in crafting immigrant policies.

Assessing Competitive Strategies in UK Manufacturing SMEs

In this comprehensive study, we delve into an exhaustive examination of effective competitive strategies tailored for small to medium-sized enterprises (SMEs). The principal objective of this research centers on scrutinizing the strategic orientation of UK Manufacturing SMEs. Conducting an extensive literature review, we critically evaluated Porter's framework and identified several gaps in its applicability. Notably, critiques assert that the model inadequately captures the intricate nature of strategic behavior within real organizations and fails to provide a fully accurate representation of strategy-performance relationships. Empirical research further highlights the model's limitations, indicating its inability to facilitate the desirable combination of competitive strategies by firms. To address the outlined objectives, we employed a semi-structured questionnaire in our investigation. The ensuing analysis involved the application of factor and cluster analysis to identify strategic variables currently employed by SMEs in the manufacturing domain. Our data analysis revealed a divergence from the adoption of Porter's single generic strategies. Instead, the findings supported the utilization of mixed strategies that integrate elements from both differentiation and low-cost strategies. Significantly, these hybrid approaches were found to be associated with enhanced firm performance. This study contributes valuable insights into the nuanced landscape of competitive strategies within the UK SMEs, shedding light on the dynamic interplay between strategic choices and firm performance.

The perspective of managers on integrating HR practices to increase organizational performance in SME firms: An analysis of the interaction effect

Purpose: The aim of this paper is to clarify the human resource management (HRM) literature in small-to-medium-sized enterprises (SMEs) by empirically identifying possible combinations of HRM practices from the perspective of managers, and analyzing the relationships among them and with organizational performance in order to identify which combinations are most effective.Design/Methodology/Approach: Using the AMO (Ability- Motivation-Opportunity) framework, we ask whether there are significant interactions between AMO-based HRM bundles and, if so, to what degree and by what means they influence organizational performance. To explore this question, we tested a theoretical model using Partial Least Squares-Structural Equation Modeling (PLS-SEM) techniques and compared the interaction and main effects. The research sample comprises SMEs operating in the Basque Region of Spain.Findings: The study confirms the existence of hierarchies among bundles. The practices most strongly related to the SMEs’ performance lie in the bundle of motivation-enhancing practices. The results indicate that motivation-enhancing practices have a positive effect on organizational performance and when they are combined with ability-enhancing practices this effect grows.Research limitations/implications: The cross-sectional nature of the data means that it is not possible to establish clear causal relationships among the variables studied. It would therefore be beneficial in the future to use longitudinal designs and examine cause-effect over time, as well as use samples from other geographic locations.Practical Implications: High-performance HRM practices in the three Ability-Motivation-Opportunity (AMO) dimensions should not automatically be assumed to be complementary in an SME context, as many managers believe. Our results suggest that managers would be well advised to adopt motivational practices, combining them with training, to improve SMEs’ performance.Originality / value: This is one of the few studies to focus on testing the interaction effects among dimensions of Ability-Motivation-Opportunity-enhancing-practices on SMEs’ organizational performance, as observed by managers. It will encourage SME managers to consider more carefully the possible combinations of AMO dimensions and to focus on those combinations most likely to have positive effects.

SUFFICIENCY OF HUMAN CAPITAL IN SME: EVOLUTION OF SUSTAINABLE COMPETITIVE ADVANTAGE

Objective: This research aimed to explore the concept of sustainable competitive advantage concept in small medium-sized enterprise (SME) with collaborative capability and entrepreneur resilience as a mediating variable. It examined the relationship between human capital owned by entrepreneurs and sustainable competitive advantage with a focus on the woven sector, one of the largest tourism-supporting sectors in Bali.   Method: entrprenereurs of SMEs in Bali, Indonesia completed 333 surveys, with each construct measured using an adopted and modified scale from existing studies. Additional analyses were performed on the collected data using partial least square structural equation modelling (PLS_SEM) software. These analyses included regression, factor analysis, structural equation modelling with the boostrapping technique, reliability, validity, mediation and model fit indicates.   Result: The results showed that the human capital of the entrepreneurs, which consisted of education and experience, cannot be a source of sustainable competitive advantage in SME due to low education levels and minimal experience in managing businesses. On the other hand, collaborative capability is one of capabilities needed to achieve sustainable competitive advantage because it helps overcome resource limitations and internal capability by collaborating with external parties. Furthermore, another dynamic capability needed is entrepreneur resilience which can help in dealing with environmental turbulence. This research further supports this assertion by showing a full mediation relationship, implying that the human capital of entrepreneurs is insufficient for SME to attain sustainable competitive advantage, necessitating collaborative capability and entrepreneur resilience as a mediating factor to achieve this objective.

Strategic Agility, Exaptation, and Business Model Innovation: The Case of an SME

This study adopts a process view on business model innovation (BMI) to address multiple issues pertaining to theory and practice. First, BMI is challenging for most firms in part due to resource constraints that impose limitations on activities for opportunity identification and resource acquisition. To overcome these constraints, exaptation has recently been proposed by scholars as a way to innovate business models through the utilization of existing resources in new domains. However, research to date on exaptation in the context of BMI is limited with inadequate attention to the conditions that lead to exaptation. Second, in line with this research gap, scholars call for further process studies on BMI to explore the role of and the interdependencies among the antecedents in different contexts. To resolve these issues, this article investigates how strategic agility, an established organizational antecedent in the literature, leads to BMI through exaptation with a qualitative, in-depth, single-case study on an small to medium-sized enterprise (SME). The findings of this study are threefold. First, the BMI process in the case unfolds in line with the stages of exaptation proposed in the literature. Second, the relationship between the underlying elements of strategic agility (SA) and BMI is highly complex and at times reciprocal, with SA and BMI switching roles in the causal relationship along the process. Third, strategic sensitivity and resource fluidity, two of the three metacapabilities underlying SA, in combination trigger exaptation, which leads to BMI. Therefore, this study proposes strategic agility as an enabling capability for exaptation.

The schizophrenic board secretary: Embedded agent between multiple stakeholders and financial misconduct

While agency theory has emphasized the importance of corporate governance in preventing financial misconduct, monitoring bodies do not always function well, especially in transition economies. By integrating the stakeholder-agency perspective with prospect theory, this study provides a new explanation of such dysfunction by introducing an embedded agent concept that manifests in a “schizophrenic” status of agents who need to satisfy multiple stakeholders and their conflicting interests. Drawing on a sample of small-to-medium-sized enterprises (SMEs) listed on the Chinese National Equities and Exchange and Quotations system from 2014 to 2017, it is shown that having a board secretary did not help reduce financial misconduct as the government expected, due to an embedded agent problem. However, their dysfunctional status would largely disappear, and they would perform their monitoring responsibilities if given higher equity shares and stricter subnational regulations, two key contingencies that better align embedded agents’ interests with one group of stakeholders. Overall, this study contributes to the corporate governance literature by introducing the embedded agent concept and its theoretical boundaries, along with a focus on transition economies.

Green Innovation for Small-to Medium-Sized Enterprises (SMEs): Systematic Literature Review

The green innovation literature of the past few decades is not only interesting for research due to its high level of environmental awareness and the provision of green products and services, but also because of its widespread and important applications. This study aims to determine research trends related to the adoption of green innovation, especially in SMEs during 2013-2023 by using Systematic Literature Review techniques. The result of this research identifies the key elements factors of GI for managers and ultimately serve as an important reference to help formulate GI activity strategies. This research can serve as a foundation for scientific development so that the number of studies related to new topics related to green innovation also continues to increase

Green HRM practices, employee well‐being, and sustainable work behavior: Examining the moderating role of resource commitment

AbstractThis study examines how green human resource management (HRM) practices impact employees' subjective well‐being through the mediating mechanism of employees' green behavior (EGB). We further explore the moderating role of resource commitment. Based on a sample of 249 employees and their supervisors working in small‐ to medium‐sized enterprises (SMEs) in Ghana, we discovered that green HRM practices have a positive influence on EGB, and this connection is further reinforced by resource commitment. The analysis also reveals that EGB serves as a mediator in the relationship between green HRM practices and employees' subjective well‐being. These findings suggest that green HRM practices affect employees' subjective well‐being through EGB. The wider implications of these findings for theory and HRM practitioners are discussed.

Floriculture Industry: Multifunction Leaves Stem Cutting Machine for Small Medium-sized Enterprises

The floriculture industry plays a crucial role in the global economy by providing not only aesthetic value but also contributing significantly to agricultural employment and the export market. However, the efficiency and sustainability of SMEs in floriculture are often hindered by labourintensive practices, especially in the propagation of plants through stem cutting. This novel multifunction leaves stem cutting machine designed specifically to cater to the needs of SMEs in the floriculture sector. This machine serves the function to separate the flowers and leaves for selling purposes. It has gained lots of interest specifically in the flower-related field, florist businesses, and leaves extraction processes due to its convenient applications in separating the leaves from the flowers. However, readily available machines such as rose cutting machine are lack in it functions where it only operates only one function. The deficiency of the current product may cause serious injury to employees because the existing machine does not have good safety features that can avoid the workers being injured while carrying out the work. The objective of this study is to design, fabricate and test the functionality of the new system and ergonomic multifunction leaves stem cutting machine. The design was created by using Fusion 360 with the main part separating leaves, cutting the stem, washing part, and system part. All the processes will be carried out on the machine that have safety features that will not harm the user. The machine demonstrated exceptional performance including consistency of the machine that will benefits the SMEs with high productivity and lower production cost.

Sustainable business models in ‘lighthouse’ small to medium enterprises

AbstractAddressing major global environmental and social challenges requires transformation of the private sector. Small- to medium-sized enterprises (SMEs) constitute 90% of private organisations globally, resulting in calls for research into the strategic roles SMEs can play in shaping sustainable futures through adopting sustainable business models (SBMs). The purpose of our study is to understand the factors that allow SMEs to successfully adopt SBMs. We used an exploratory qualitative approach drawing on interviews with SMEs implementing SBMs. Our findings extend contemporary insights by revealing the important role of the external support (‘enabling’) environment, and identifying—potentially transformative—capabilities that can help steer SMEs’ transitions to SBMs. These include persistence, tenacity, flexibility, adaptability, and a willingness to learn and fail. They enable SMEs to successfully operate in times of uncertainty and rapid changes in the external environment, and respond to new requirements through changes to their business models.

Key policy mechanisms supporting the University–Industry collaboration in the Danube region: case study of academic HPC centres and SMEs

Purpose This paper aims to explore the key anchors of the National Innovation System shaping the nature of collaboration between academic high-performance computing centres (academic HPC centres) and small- to medium-sized enterprises (SMEs) working in the automotive and electronics sectors of the Danube region. With two main research questions, it discusses the importance of knowledge transfer and technology transfer for collaboration between University and Industry (U-I collaboration) in three groups of developmentally distinct countries: competitively advanced, competitively intermediate and competitively lagging. As main anchors of the innovation system, stable legal environment, exciting innovation policies and strong R&D funding are recognised.Design/methodology/approachA qualitative empirical study in 14 Danube region countries included 92 focus group participants, expert representatives of academic HPC centres and SMEs. The data were audio recorded, transcribed and analysed.FindingsThe findings show the main prerequisites of the framework conditions for efficient U-I collaboration evolve through a goal-oriented National Innovation Policy and developed and functioning legal environment supporting labour market and intellectual property (IP) protection and enforcement. Additionally, skilled people are needed to be able to operate with HPC, where it seems all the countries lack such skilled workforce. In competitively lagging countries, the high levels of brain drain exhibit strong impact to U-I collaboration.Research limitations/implicationsResearch into relationships between academic HPC centres and SMEs conducted was qualitative; therefore, limitations in terms of generalisation arise from it. On the other hand, the research is promising in terms of offering the guidance for policy makers who can use the findings when delivering innovation policy mix, adjusted to developmental level of own innovation ecosystem.Originality/value The study is among the pioneering work in U-I collaboration between academic HPC centres and SMEs from automotive and electronics industries in the Danube region. The research addresses the dynamics of collaboration and offers policy implications to strengthen the particular U-I collaboration.

A mobile messaging-based conversational agent-led stress mindset intervention for New Zealand small-to-medium-sized enterprise owner-managers: effectiveness and acceptability study

ABSTRACT The rising surge of work-related stress is particularly severe among small-to-medium-sized enterprise (SME) owner-managers, and has been linked to an array of deleterious consequences, such as burnout, venture failure, and suicide. Sadly, the majority of available stress management interventions appear to be ill-suited to owner-managers. Prior work, however, suggests that mobile phone-based messaging conversational agents (CAs) may hold promise for delivering mental health interventions to underserved groups such as the self-employed. Furthermore, recent research with SMEs finds that altering one's stress mindset – beliefs about the extent to which stress might be enhancing or debilitating can change one's responses to stress. Against this backdrop, the present study assessed the effectiveness and acceptability of a first-of-its-kind mobile messaging-based conversational agent-led stress mindset intervention (mCASMI) for Aotearoa New Zealand SME owner-managers. The mCASMI was delivered over 4-days via WhatsApp Messenger. The results confirmed that the mCASMI was successful in altering participants' mindsets about stress, in conjunction with self-reported improvements in productivity and work performance. The owner-managers who received the intervention were engaged, adherent, and reported a high degree of rapport with the CA. Though preliminary, these findings extend the state-of-the-art and suggest progressing with a larger-scale feasibility study.

The Determinants of Cloud Computing Vision and Its Impact on Cloud Accounting Adoption in SMBs

This study challenges the conventional belief of autonomy among the technological, organizational, and environmental (TOE) framework constituents and probes into their effect on the adoption of cloud-based accounting within small- to medium-sized enterprises (SMEs). We postulate that a vision of cloud computing plays a mediating role between the TOE elements and the adoption of cloud accounting practices. The study delves deeper into exploring the mediating impact of this cloud computing vision in driving the adoption of cloud accounting. Applying a snowball sampling methodology, we successfully collated 293 relevant responses. The outcomes lend support to the interconnectedness prevailing among the TOE components. The cloud computing vision emerged as a crucial mediator, accentuating the influences of organizational readiness, senior management endorsement, relative advantage, compatibility, and competitive pressure on the transition to cloud-based accounting. Additionally, our findings illuminate the impact of cultivating a vision of cloud computing on the adoption of cloud accounting methodologies. These results contribute to the enrichment of the TOE model by calling into question the prevalent notion of independence among TOE components when employing a vision as an intention surrogate. Consequently, we encourage further research to embed the vision as a proxy for intention within the TOE model and to concurrently investigate potential correlations among the TOE elements.

Sustainability Management, Technological Innovation and Corporate Social Responsibility for Social Media Small to Medium-Sized Enterprises (SMEs)

The aim of this paper is to investigate the impact of the social and technological environment on business performance. Focus is placed on SMEs and their effort to achieve sustainable competitive advantage and thereby sustainable business performance. For this purpose, a survey study was carried out, where primary data was collected from a representative sample of SMEs operating in the Social Media industry of Greece. Questionnaires were distributed to managers and entrepreneurs of the Social Media Industry. These managers/entrepreneurs were selected using a simple random sampling methodology. The findings of the study revealed that social and technological developments have a major role in developing a sustainable competitive advantage. Strategy alignment was also found to be key in tackling the problems and in undertaking the opportunities that arise from the current social and technological environment, thereby reaching sustainable business performance. The findings of the study are especially useful to entrepreneurs and professionals in the industry in formulating effective strategies towards aligning their business with current advancements in emerging digital technologies. Such an alignment would bring numerous competitive advantages and in turn sustainable business performance.

Automated Liquid Filling System for Small Medium-Sized Enterprises in Ghana

Ghana has seen a significant rise in the production of beverages by Small and Medium-sized Enterprises (SMEs) in recent times. However, the high cost associated with implementing automated systems in their production makes it difficult for SMEs to adopt such technology. To address this challenge a simple, scalable and economical automated liquid filling system that can be adopted by SMEs is built. The main components of the system are a microcontroller, servo motor, submersible water pump, relay, Liquid crystal display (LCD), and a keypad. The microprocessor in the design makes the system easier to customize to user preference and allows the system to be modified to accommodate different bottle sizes. The system’s use of a counter and timer are employed in the system to eliminate sensors making it economical, power efficient and limiting the number of interfaces for fault. The system is portable, user-friendly and easier to maintain. When tested with water and common beverages in the Ghanaian market the system demonstrated an ability to fill twelve 250-mL bottles with water, sobolo, and fruit juice within 21, 30, and 42 seconds, respectively. Thedeveloped system provides a practical solution to SMEs' challenge of implementing automated systems in their production process, thereby enhancing their competitiveness and potential for growth in Ghana.

The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector

The challenges of the global business environment foster small medium-sized enterprises (SMEs) to continuously improve their performance in the level of vulnerability to possible impacts and interruptions in their operations that may affect their sustainability. Resilience strategies and ambidextrous capabilities have become important determinants of organizational performance, which has developed as an emerging area of interest in supply chain management in recent years. SMEs are one of the major contributing sectors to the Malaysian economy. Therefore, SMEs have been forced to survive in the current market situation to ensure higher economic growth and competitiveness. The resilience strategies and ambidexterity capabilities are important determinants of SMEs’ performance. As such, this study aims to examine the relationship between proactive resilience strategies, ambidextrous capabilities, and the performance of SMEs in the manufacturing sector, drawing on the dynamic capabilities perspective. A quantitative research design is adopted, a structured survey questionnaire is used, and data are collected from 351 SMEs in the manufacturing sector. Partial least squares structural equation modeling (PLS-SEM), Smart PLS 3.0 is used to test both direct and mediating results. The findings of this study suggested that proactive resilience strategies may have a significant influence on organizational performance of SMEs. Ambidextrous capabilities also act as a strong mediator between proactive resilience strategies and organizational performance. These findings contribute to the dynamic capabilities literature by highlighting the importance of proactive resilience strategies and ambidextrous capabilities in enhancing the positive impact on organizational performance in SMEs. This study provides a plausible explanation of two important management mechanisms for enhancing organizational performance sustainability. The relationships between proactive resilience strategies, ambidextrous capabilities, and organizational performance are malleable. This study also suggests that fostering formal and informal relationships might hold the key to the sustainable performance of SMEs in the long term. This study’s practical contributions are improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and enhancing their competitive power in domestic and international markets.