Sustainability In Small And Medium-sized Enterprises Research Articles

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.

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.

Digital transformation in SMEs: Assessing the impact of big data capabilities on project success, business continuity, and sustainability

During the innovation era and in the highly competitive environment, big data capabilities (BDCs) play a pivotal role in shaping competitive dynamics; the influence of these technologies on small and medium-sized enterprises (SMEs) operating in the retail sector is critically significant. This study is specifically focused on the retail industry, with a particular emphasis on how BDCs impact the project success, business continuity, and sustainability of SMEs within this industry. Our theoretical model was tested using a survey of 300 operations managers working in SMEs in the retail sector in the Middle East. PLS-SEM was conducted to analyze our collected data. Our results reveal that BDCs enhance project success and promote sustainability practices. The findings also reveal that BDCs have no impact on business continuity. By shedding light on the nuanced impact of BDCs on SMEs in the retail sector, this study contributes valuable insights to the existing literature, offering a deeper understanding of how these technological capabilities can drive success and sustainability in a highly competitive market environment.

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.

ТЕОРЕТИЧЕСКИЕ ОСНОВЫ РАЗРАБОТКИ СИСТЕМЫ ПОКАЗАТЕЛЕЙ ДЛЯ ОБЕСПЕЧЕНИЯ УСТОЙЧИВОГО РАЗВИТИЯ МСП В УСЛОВИЯХ ЦИФРОВОЙ ТРАНСФОРМАЦИИ

In the context of digital transformation of the economy, ensuring sustainable development of small and medium-sized enterprises (SMEs) is becoming a critical task for the Russian economy. This article is devoted to the analysis and systematization of theoretical approaches to the development of a system of indicators for the performance of SMEs, the use of which will allow choosing effective strategies for ensuring sustainable development of enterprises. The paper considers the features of assessing the sustainability of SMEs, the goals and areas of application of the results, which allows us to determine the specific aspects that distinguish this system from existing analogues. The main attention is paid to the requirements for indicators: complexity, adaptability, simplicity and accessibility, accuracy and reliability. The system of indicators is aimed at optimizing business processes, sustainable development, increasing competitiveness and risk management. The use of assessment results allows for strategic planning, improving operational processes, introducing innovations and increasing the social and environmental responsibility of enterprises.

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.