Sustainability Outcomes in SMEs: A Configurational View of the Interplay of Strategic Orientations and Environmental Conditions

Abstract

Despite concerted scholarly and managerial interests in sustainability, integrating the principle of sustainable development in small and medium-sized enterprises (SMEs) remains an elusive goal. This article examines the complex interdependent nature of three strategic orientations (entrepreneurial orientation, market orientation, and sustainability orientation) and two external environmental conditions (competitive intensity and institutional support) and how they may jointly affect SME's financial, social, and environmental goals (triple bottom line or TBL)—in a nonlinear, configurational way. In accordance with this broad objective, the authors utilize fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 289 SMEs operating in a developing economy. This approach enables nuanced detection of the various ways in which causal conditions (i.e., strategic orientations) and contextual conditions (i.e., external environmental factors) together can lead to the presence and absence of TBL. The analyses reveal complex causality between TBL and its antecedent conditions that cannot be explained solely by isolated net effects. Specifically, for each TBL dimension, two distinctive configurations are found to be consistently sufficient, thereby providing important theoretical and managerial implications.

Driving Success: Unveiling the Synergy of E-Marketing, Sustainability, and Technology Orientation in Online SME

“…One possible reason could be that SMEs have observed that, following the implementation of sustainability plans, they achieve higher financial gains than the resources allocated for sustainable investments. This finding is consistent with [69,134,135], where enterprises not only perceive the social importance of sustainable business activities intensely but also demonstrate an increased interest in implementing sustainability plans.…”

“…Although enterprises continuously aim to maximize results and establish mutually beneficial relationships with market participants, the exploration of the three dimensions EMO, SO, and TO and their effect on OBP has been separately investigated [69,134,135]. This study responds to research demands by identifying items and deepening the understanding of factors contributing to the growth of the online business performance of Romanian SMEs, evaluating their common impact.…”

Traditional and environmentally friendly attributes in products of highly design-oriented firms: an exploratory study in the perception of Italian entrepreneurs

“…However, studies indicate that design can be sustained as well as unsustained (Fallan, 2019). Furthermore, firms’ orientations toward environmental issues may be interpreted as lagging and perhaps currently changing (Khizar et al ., 2023). More sustainable product attributes may also in the beginning be both uncertain and complicated to perceive (see, e.g.…”

“…Thus, firms must achieve efficiency and market share through constant innovation, which requires resources, capabilities, investments, and a certain degree of ethical responsibility and coherence with the society in which they operate (Oduro et al ., 2022). Achieving these objectives is particularly challenging for Small and Medium Enterprises (SMEs), which often have limited resources and competencies compared to large firms (Khizar et al ., 2023).…”