Driving sustainability in SMEs’ performance: the effect of strategic flexibility

Abstract

PurposeAlthough the significance of small and medium enterprises (SMEs) in influencing economic growth is recognized, the performance of SMEs all over the world including Nigeria is unanticipated. Thus, this research aims to investigate the effect of strategic flexibility by moderating the effects of sustainability strategy on the SMEs' performance in Nigeria from a business strategy perspective.Design/methodology/approachThe hypotheses of the study were tested using personally administered survey questionnaires; the study obtained 486 valid questionnaires, which were evaluated using SmartPLS algorithm and bootstrapping functions.FindingsThe research findings were established using SmartPLS algorithm and bootstrapping functions. According to the results, the research constructs have a satisfactory convergent and discriminant validity. Equally, the overall model has a very high predictive relevance. The study established a strong positive influence of strategic flexibility on the SMEs’ performance. In addition, the study also established the moderating influence of sustainability strategy on the constructs.Research limitations/implicationsThe research is explorative and designed to yield results and to be generalizable. Future research is thus encouraged to confirm or contradict the results of this study in a different context.Practical implicationsThe research findings may be beneficial to policymakers and academics. It can particularly be useful in understanding strategic flexibility, its influence on the performance of SMEs and whether it can fit between the sustainability and strategic direction of a business enterprise.Originality/valueThis study fulfils an identified need to study strategic flexibility and its influence on the performance of SMEs using a dynamic perspective specifically in the context of emerging economies such as Nigeria.

Explicating a sustainability-based view of sustainable competitive advantage

“…It already affects companies in many countries worldwide, but the strength of sustainability's impact will further grow in the years to come (Pucker, 2021; Eccles et al , 2020). The growing relevance of sustainability can be observed all across the globe at very different levels within societies (Ghobadian et al , 2020; Gorondutse et al , 2021). The “Fridays for Future” movement is just one major example, and many governments worldwide have started sustainability initiatives in recent years with particular attention to environmental sustainability.…”

Innovation capability and SME performance in times of economic crisis: does government support moderate?

“…Examples include service quality, employee performance, product quality, product innovation, process innovation, customer satisfaction, sales growth and market share. SME performance is influenced by factors such as strategic flexibility, organizational culture, entrepreneurial and market orientations, human resources management practices, planning and strategy and GS (Cicea et al, 2019;Gorondutse et al, 2020).…”

Open Innovation Strategies and SMEs’ Performance: The Mediating Role of Eco-Innovation in Environmental Uncertainty

“…The results found that environmental innovation and wine clusters affected performance and increased competitiveness in the global economy. Companies must maintain a competitive advantage [63]. Companies must strengthen their product lines to survive in a competitive market by creating green innovations in a rapid and unavoidable change [43].…”