Sustainability In Small And Medium-sized Enterprises Research Articles

POLICIES TO FOSTER ENVIRONMENTAL SUSTAINABILITY IN SMALL AND MEDIUM-SIZED INDUSTRIAL FIRMS IN EAST ASIA

Environmental sustainability is becoming crucial for development, especially in countries grappling with global warming and climate change. This study examines environmental sustainability in small and medium-sized industrial firms across seven East Asian countries from 2000 to 2021. Using the Continuously Updated Fully Modified (CUP-FM) approach, the analysis reveals a significant relationship between state-provided loans to small and medium-sized enterprises (SMEs) and increased CO2 emissions, underscoring how financial support impacts environmental outcomes. Governance quality plays a key role, with better governance linked to lower emissions, highlighting its importance in fostering sustainability. Unexpectedly, a negative correlation between inflation and CO2 emissions suggests that inflation might encourage SMEs to adopt more energy-efficient practices. Additionally, higher employment and poverty levels are associated with increased CO2 emissions, reflecting the difficulties SMEs face in balancing economic growth with environmental impact. Based on these results, East Asian countries are advised to enforce stricter regulations, improve access to green financing, enhance governance and encourage collaboration to advance SME sustainability.

The Interconnections Between CSR, Financial Management, and Sustainability in Service Sector SMEs

This study investigates the relationship between financial management, corporate social responsibility (CSR), and sustainability within small and medium-sized enterprises (SMEs) in the service sector across the Visegrad Four (V4) countries: Poland, Hungary, the Czech Republic, and Slovakia. The research aims to quantify the impact of financial management and CSR on SME sustainability, addressing a critical gap in understanding sustainability dynamics in this sector. The data was collected through a comprehensive survey of 339 SME owners or top managers across the V4 countries, employing a structured questionnaire. The hypotheses were tested using Structural Equation Modeling (SEM) to evaluate the causal relationships between the factors. The results reveal that financial management plays a more significant role in determining the level of sustainability in SMEs than CSR. Nevertheless, CSR also positively affects both sustainability and financial management, though the intensity of its impact on financial management is weaker. These findings are crucial for SME owners and managers, as they highlight the importance of integrating both financial discipline and socially responsible practices to achieve long-term sustainability. The study's implications extend to policymakers, educational institutions, and support organizations, providing a framework for developing strategies that promote sustainable business practices. This research offers a valuable contribution to the body of knowledge on sustainability in SMEs, especially in the context of post-pandemic recovery in the V4 region, and provides practical recommendations for enhancing the resilience and competitiveness of SMEs through improved financial management and CSR integration.

Navigating Uncertainty Through Resilience, Absorptive Capacity and Adaptive Performance in Shaping SME Exit Intentions in the Tourism Industry

This research examines how absorptive capacity and adaptive performance address the connection between entrepreneurs' resilience and their desire to leave their businesses among Small and Medium-sized Enterprises (SMEs) in the tourism industry. Specifically, this study focuses on tourism SMEs in Terengganu, Malaysia, a region heavily dependent on tourism as a key economic driver. The study integrates multiple constructs within the tourism entrepreneurship domain, including resilience, absorptive capacity, adaptive performance, and business exit intentions. A survey was conducted using self-administered questionnaires between October 2023 and December 2023, with valid responses from 205 tourism SMEs. The data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The results demonstrated a significant relationship between entrepreneurial resilience and the intention to exit the business, with absorptive capacity and adaptive performance acting as key mediators. The findings provide insights into how resilience helps entrepreneurs navigate challenges, sustaining their businesses amid uncertainties. The study offers strategic implications for tourism entrepreneurs, policymakers, and industry stakeholders by emphasising the importance of resilience and adaptive strategies in reducing business exit intentions. These insights contribute to a broader understanding of how entrepreneurial resilience, absorptive capacity, and adaptive performance interplay to influence critical business decisions, which can inform policies and interventions aimed at enhancing SME sustainability, particularly in emerging tourism markets.

Investigating the critical drivers of Fintech adoption to promote business sustainability of SMEs

Purpose Under the integrated perspective of the Net Valence Framework (NVF) and Theory of Reasoned action (TRA), this research intends to examine the impact of drivers (perceived risks (PRs) and benefits) on FinTech adoption (FA) as well as on business sustainability (BS) of small and medium-sized enterprises (SMEs) in Oman. The purpose of this study is to examine the impact of drivers (perceived risks and benefits) on FinTech adoption (FA) and business sustainability (BS) of SMEs in Oman , under the integrated perspective of the Net Valence Framework (NVF) and Theory of Reasoned Action (TRA). Design/methodology/approach Primary data was collected from 402 owners and managers of SMEs in Muscat, Oman using a purposive sampling method. Structural Equation Modeling with Partial Least Squares was mainly applied to assess the PRs and perceived benefits (PBs) determining both FA and BS of SMEs. Findings The results indicate that PBs (economic, convenience, transaction efficiency) positively impact FA, while PRs (financial, legal, security, operational) act as deterrents toward FA. Both the benefits and risks significantly influence BS. FA itself fosters sustainability, and PBs directly enhance it through ease of use, cost reduction and knowledge acquisition. Conversely, PRs hinder sustainability due to concerns about skills gaps, security, social inclusion and environmental considerations. Practical implications The research forms a model capturing the pros and cons of FA of SMEs to provide stakeholders with ideas that would promote sustainability and drive fintech-based growth and innovation. For instance, by improving financial management efficiency, increasing market access and enhancing competitiveness, SMEs can adopt fintech solutions to support sustainable growth and achieve Sustainable Development Goals across the region’s economy. Originality/value The current research, through the lens of the NVF as well as TRA, explores the contribution of FA determined by PRs and benefits toward BS of SMEs in the context of Oman.

Effect of Working Capital Management, Operational Efficiency, and Profitability on Financial Sustainability of SMEs

This study examines the effects of working capital management (WCM), operational efficiency (OE), and profitability on the financial sustainability (FS) of small and medium-sized enterprises (SMEs). Utilizing quantitative analysis and data collected from a diverse sample of SMEs, the research highlights the significant relationships between these variables. The results indicate that effective WCM and enhanced OE positively influence profitability, which, in turn, plays a crucial mediating role in promoting financial sustainability. This study contributes to the existing literature by demonstrating how integrated management strategies that prioritize working capital practices and operational improvements can enhance the financial health of SMEs. The findings provide practical implications for SME owners and managers, suggesting that a focus on these critical factors is essential for achieving long-term financial viability. Future research directions are proposed to explore sector-specific impacts and longitudinal effects on financial sustainability.

The influence of institutional context in the relationship between green management, perceived barriers to sustainability and innovation performance in SMEs

PropósitoEste estudio examina la relación entre la gestión verde, las barreras percibidas a la sostenibilidad y el rendimiento de la innovación en las PYME latinoamericanas y cómo los factores institucionales formales e informales influyen en esta relación.Diseño/metodología/enfoqueEl estudio utilizó un conjunto de datos recogidos por el Observatorio Iberoamericano de la PYME y se incluyó 15 indicadores de desempeño de países de América Latina publicados en fuentes de datos internacionales para abordar los contextos institucionales formales e informales. Por consiguiente, la muestra de datos final del estudio lo conforman 11,319 observaciones de Pymes de 16 países. El análisis incluyó tres fases. En primer lugar, un análisis factorial exploratorio. Segundo un análisis de conglomerados o clústeres. En tercer lugar, una prueba del modelo teórico de mediación entre los grupos identificados en el segundo estudio. Para ello, el análisis incluyó un análisis multigrupo para la estructura de covarianza mediante un procedimiento de tres etapas por medio de un modelado de ecuaciones estructurales.ResultadosLos resultados revelaron que tanto en las instituciones formales (como las políticas y normativas gubernamentales) como en las informales (como las normas sociales y los valores culturales) las prácticas de gestión verde influyen positivamente en desempeño innovador. Sin embargo, la magnitud de este impacto varía según el nivel de desempeño del contexto de estos países. Además, el estudio mostró que las barreras percibidas a la sostenibilidad no tienen un papel de mediación en esta relación, en ambos contextos institucionales. Finalmente, se observó que el efecto de las barreras percibidas a la sostenibilidad sobre el desempeño innovador disminuye en el contexto institucional informal.OriginalidadEl trabajo aporta valiosas ideas para los responsables políticos que buscan promover el desarrollo sostenible en América Latina, destacando la importancia del apoyo institucional para fomentar la adopción de prácticas verdes por parte de las pymes.

Marketing-Driven Supply Chain Innovation: A Framework for FMCG SME Sustainability

In an increasingly competitive and sustainability-conscious market, small and medium-sized enterprises (SMEs) in the Fast-Moving Consumer Goods (FMCG) sector face unique challenges in achieving long-term sustainability. This review explores the concept of marketing-driven supply chain innovation as a strategic framework for enhancing SME sustainability. By integrating consumer-centric marketing strategies with supply chain operations, SMEs can align their product offerings, sourcing practices, and logistics with growing consumer demand for environmentally and socially responsible products. The framework outlined in this study includes key components such as sustainable product design, green logistics, ethical sourcing, and the incorporation of circular economy principles. Additionally, technology-driven innovation, such as data analytics and digital platforms, is emphasized as a tool to improve supply chain transparency, reduce waste, and optimize resource utilization. Through these collaborative efforts, SMEs can foster stronger consumer trust, enhance brand loyalty, and build a competitive edge in the market. Despite the potential benefits, the review also discusses the challenges SMEs may face, including limited financial resources, resistance to organizational change, and balancing profitability with sustainability goals. However, by leveraging green financing options, cross-sector partnerships, and phased implementation strategies, SMEs can overcome these barriers. Ultimately, the integration of marketing-driven supply chain innovation is positioned as a critical path for FMCG SMEs to achieve long-term sustainability, profitability, and market competitiveness in an evolving global economy. Keywords: Marketing-Driven, Supply Chain, FMCG SME, Review.

Factors affecting sustainability of SMEs in the culinary industry during the COVID-19 period

This research attempts to investigate elements such as products, prices, shifting target markets, online advertising, capital, and accounting understanding of the sustainability of the food industry during the COVID-19 Period, Bintaro Modern Market. Micro-scale business players in the culinary industry at Bintaro Modern Market served as the study's population, and there were 129 participants. As a measurement analysis method with a structural model in this work, researchers employed partial least squares (PLS). A direct survey and the usage of a google form are the methods employed in this descriptive and quantitative research kind. The findings of this study show that the variables, such as products, prices, and changes in consumer preferences, are factors that impact the sustainability of small and medium-sized enterprises (SMEs) in the culinary industry. This research provides unique long-term value by analyzing how micro-scale culinary businesses adapted to the challenges of the COVID-19 period. Focusing on key elements like products, prices, shifting target markets, online advertising, capital, and accounting understanding, it identifies critical factors influencing the sustainability of SMEs in the food industry. The study fills a gap in the literature on the pandemic's impact on this sector and offers actionable insights for crisis management and sustainable practices in micro-scale enterprises, benefiting both policymakers and entrepreneurs globally.

The interplay between smart technologies, business sustainability, and environmental sustainability: An empirical analysis of SMEs

AbstractThis study examines the interplay between smart technologies, business sustainability, and environmental sustainability within the context of small and medium‐sized enterprises (SMEs). By employing structural equation modeling (SEM), the study evaluates the direct and indirect effects of smart technology integration on business and environmental sustainability outcomes. The results indicate that while smart technologies do not directly influence environmental sustainability, they significantly enhance business sustainability, which in turn positively affects environmental sustainability. This implies a mediated relationship, in which the strategic implementation of smart technologies is crucial for achieving environmental goals. The implications extend to the necessity of a strategic, holistic approach to sustainability in SMEs, emphasizing the intricate roles played by smart technologies in this sector.

Action or reaction? Entrepreneurial and Market Orientation for Implementing Circular Economy Practices in German SMEs

Circular Economy (CE) is one of the most promising practices in sustainable business development and achieving climate targets. Small and medium-sized enterprises (SMEs) play a significant role in this context due to their predominance in many countries and their associated ecological impact. Although studies indicate that CE offers various environmental and economic benefits, its implementation within SMEs remains relatively low. While SMEs face multiple challenges and barriers, there remains a lack of insights into the factors that can accelerate CE practices. A promising approach to overcoming these challenges involves strategic orientations. This study examines two specific strategic orientations, market orientation and entrepreneurial orientation, and their relationship with CE implementation in SMEs. Therefore, survey data from 757 German SMEs were analysed using multiple linear regression, which resulted in multifaceted insights. Both market orientation and entrepreneurial orientation positively influence CE implementation. Market orientation and entrepreneurial orientation demonstrate varying joint relationships, with entrepreneurial orientation acting as an enabler in the mediation between market orientation and CE. This study contributes to a deeper understanding of the relationships between various factors influencing the implementation of CE practices in SMEs. In particular, it provides the basis for further research into the interplay between market orientation and entrepreneurial orientation and their joint influence on CE. Practitioners in SMEs should not only integrate market orientation and entrepreneurial orientation as a holistic approach but, more specifically, seek to establish a culture that encourages innovativeness and risk-taking and deepen further marketing efforts throughout the organization to facilitate CE implementation. This ultimately leads to ecological sustainability and financial improvements in SMEs.

The Role of Commercial Bank Loans in Enhancing Financial Performance of Small and Medium-sized Enterprises in Morogoro Municipality, Tanzania

Purpose: This study investigates the role of commercial bank loans on the performance of small and medium-sized enterprises (SMEs) in Morogoro Municipality, Tanzania. It examines how commercial bank loans affect SME financial performance, providing a comprehensive understanding of how financial support from banks influences SME growth and sustainability. Design/Methodology/Approach: The study adopted a quantitative approach. It utilized cross-section data collected from a sample of 92 SMEs in Morogoro municipality. The collected data were descriptively analyzed using SPSS version 25. This analysis aimed to evaluate loan accessibility, determinants of loan choice, and the effect of commercial bank loans on key financial metrics such as profitability, cash flow management, and business growth. Findings: The study reveals that although many SMEs perceive commercial bank loans as easily accessible, others encounter significant barriers, including high interest rates and stringent collateral requirements. The study also reveals that commercial bank loans have mixed effects on SME performance. While they positively impact revenue generation and asset growth, their effects on profitability and business expansion are inconsistent. Originality/Value: This study contributes to the existing literature by providing nuanced insights into the role of commercial bank loans in SME performance within a Tanzanian context. It highlights the challenges SMEs face in accessing financial support and the varying impact of bank loans on their financial outcomes. The study findings are relevant for both policymakers and financial institutions aiming to improve loan accessibility and support SME development. Policy Implications: The study suggests several policy implications, including the need for banks to simplify loan application processes, offer more flexible loan products and address high interest rates that hinder SMEs access to finance. Additionally, it emphasizes the importance of building strong relationships between SMEs and financial institutions and leveraging financial advisory services to enhance loan utilization and overall business performance.

Psychological capital of employee and innovativeness of Small and Medium-Sized Enterprises (SMEs)

Purpose: This study explores the association between employees (PsyCap) and the innovation ability of Small and Medium-Sized Enterprises (SMEs). Research methodology: A descriptive correlational research design was employed, involving 150 respondents selected through simple random sampling. Two adapted questionnaires were used to measure PsyCap and innovation outcomes. Results: The results revealed A The strong positive relationship between employees' PsyCap and innovation outcomes (p<0.000, R=0.650), particularly creativity, risk-taking, and problem-solving. These findings underscore the importance of PsyCap as a significant predictor of innovative behavior within SMEs. Limitations: The study's limitations include its focus on SMEs, which may limit the generalizability of the results to larger organizations or different geographical regions. Despite this, the study contributes valuable insights into Human Resource Management (HRM) practices, emphasizing the need for targeted employee training and strategic organizational growth initiatives. Contributions: The findings highlight the critical role of Psychological Capital in fostering innovation and offer practical implications for enhancing competitiveness and sustainability in SMEs through the development of employees' psychological resources.

Succession Planning and Sustainability of Small and Medium Enterprises: The Moderating and Mediating Role of Transformational Leadership and Career Development

This study explores how succession planning (SP) impacts the sustainability of manufacturing small and medium-sized enterprises (SMEs) in Ghana, with a focus on the moderating role of transformational leadership (TL) and the mediating role of career development (CD). A survey of 500 employees from 200 registered manufacturing SMEs was conducted using a cross-sectional design and quantitative approach to gather data. Structural equation modeling analyzed the data and tested the hypotheses. Findings show that SP significantly predicts CD and SME sustainability. TL directly enhances SME sustainability and moderates the SP- SME sustainability relationship. CD directly enhances SME sustainability and mediates the SP- SME sustainability relationship. These results contribute to the existing literature by demonstrating how SP, TL, and CD interact within manufacturing SMEs. The study extends existing frameworks by providing valuable insights into SME sustenance. Future research can further investigate these interactions in different contexts to validate and extend the findings.

Struktur Modal dan UKM : A Systematic Literature Review

This systematic literature review (SLR) aims to provide a comprehensive overview of the existing research on the impact of capital structure on small and medium-sized enterprises (SMEs). The study synthesizes and analyzes findings from various studies to identify key trends, gaps, and areas for future research. The SLR covers factors influencing SMEs' capital structure decisions, including internal factors like company size, profitability, and growth opportunities, and external factors such as market conditions, industry characteristics, and regulatory environment. Our findings reveal that the capital structure significantly affects SMEs' financial performance and sustainability. Debt financing offers growth potential but increases financial risk, while equity financing provides stability and reduces risk but dilutes ownership. The optimal mix of debt and equity varies based on specific SME characteristics and external conditions. Additionally, the capital structure influences SMEs' ability to attract external financing and impacts their overall growth and profitability. The review also highlights the need for more focused research on the determinants of capital structure in SMEs, the role of external financing sources, and the relationship between capital structure and firm performance over time. Longitudinal studies and investigations into macroeconomic factors' impact on SMEs' capital structure decisions are recommended for future research.

The significance of green purchase behaviour: mediating and moderating role of waste management and eco-regulation

This study examines the significance of green purchase behaviour in small and medium-sized enterprises (SMEs) and explores the mediating and moderating roles of waste management and eco-regulation in this context. The theoretical frameworks of resource-based view was utilized to conceptualize the relationships and dynamics between green purchase behaviour, waste management, eco-regulations, and sustainable performance in SMEs. Insights from these theoretical perspectives help in understanding how internal resources, capabilities, external pressures, and institutional factors interact to drive sustainability practices and business outcomes. Using a cross-sectional design, a questionnaire survey was administered to 225 SME owners. Using the Structural Equation Modelling (SEM) technique of Partial Least Squares (PLS), this study empirically analyses the relationships between green purchase behaviour, waste management practices, eco-regulations, and sustainable performance in SMEs. The results confirmed that green purchase behaviour (GPB) positively impacts waste management (WM). Furthermore, WM positively impacts financial performance (FP), social performance (SP) and environmental performance (EP). The results validate the mediating role of WM. The moderating results revealed that eco-regulation (ER) does play a moderating role in proposed relationships. As SMEs worldwide grapple with the imperative to adopt sustainable business practices, this study provides valuable insights and a roadmap for SMEs seeking to navigate the complex landscape of environmental responsibility and social accountability. The findings provide practical guidance for SMEs striving to strike a balance between economic success and environmental stewardship, fostering a holistic approach to sustainability of SMEs.

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.