The impact of SMEs’ sustainability on competitiveness

Abstract

Purpose Recently, researchers have shown an increased interest in sustainable development. Indeed, national and international governments call for urgent transformations into sustainable development, where firms are affected and affecting this situation. However, recent evidence has shown that small and medium-sized enterprises (SMEs) present low interest, commitment and maturation levels on sustainability; they seem to neglect and question the actual impact of transforming sustainability as a priority in their operations. Thus, this paper aims to measure the impact of sustainability on competitiveness in SMEs. Design/methodology/approach This is empirical research on sustainability and competitiveness in SMEs with a quantitative approach through structural equation modeling. Three hundred twenty-five surveys were applied to SMEs’ manufacturing, construction, trade and services, operating in Mexico. Before measuring variables’ multiple correlations, tests were carried out to establish the validity and reliability of the model. The data collection, validation and analysis were carried out with statistical package for social sciences and analysis of moment structures. Findings The results indicate a significant positive effect of SMEs’ sustainability on competitiveness. The adjusted measurement model shows validity and reliability through the various tests applied. Thus, firms should not view sustainability as detrimental to their competitiveness. Originality/value Because firms are crucial in the urgent sustainability transformation, recent research has shown their low commitment and maturation to sustainability. This research’s originality empirically measures and demonstrates sustainability’s impact on SMEs’ competitiveness. Therefore, empirically testing this impact becomes essential and original to provide better insights into SMEs’ needs to be uncovered, prioritied and done in their specific and evolving contexts.

Model of Sustainability of Smes in V4 Countries

“…The presented study has both theoretical and practical implications. The theoretical contribution of the authors is in the model provided, which contributes to the enrichment of the theory of the sustainability of SMEs (see also Ortiz-Martinez et al, 2023;Lopez-Torres, 2022). The model can also play a vital part in the scientific discourse on the sustainability of SME's since it demonstrates the uniqueness of the factors that substantially influence their sustainable growth, not only economic, social, and environmental responsibility as the main pillars of sustainability according to many authors.…”

Perception of Selected Factors on the Sustainability of SMEs: Empirical Study from Visegrad Group Countries

“…The authors Kim & Vonortas [26], Stângaciu et al [27], and Lopez-Torres et al [28], based on their research, consider market risk as the most serious perceived risk in SMEs in the V4 countries and note the impact of market risk on the sustainability of SMEs. Hernandez-Diaz et al [29] and Gorondutse et al [30] regard the impact of market risk as an important strategic factor in the management of SMEs.…”

“…Market risk is considered the most serious risk perceived by SMEs in the V4 countries [27]. Lopez-Torres et al [28] assess the impact of market risk on the sustainability and competitiveness of SMEs. Hernandez-Diaz et al [29] and Gorondutse et al [30] assessed the impacts of sustainability support on SME performance from the perspective of strategic flexibility.…”

Openness, Innovation, and Sustainability in Museum Organizations

“…In fact, sustainability-oriented innovation (SI) (Klewitz & Hansen, 2013;Adams, Jeanrenaud, Bessant, Denyer & Overy, 2016;Bogers, Chesbrough, & Strand, 2020;Bigliardi & Filippelli, 2022;Markovic, Bagherzadeh, Barkemeyer & Samara, 2023) is a concept that refers to the integration of environmental, social and economic aspects in the process of developing and implementing new ideas, products, services or business models and can occur at different levels, from individual to organizational and systemic, without neglecting their interconnections (Kimpimäki et al, 2022). It can also enhance the competitiveness, resilience, and reputation of organizations by improving their efficiency, effectiveness, and legitimacy in the market and society (Coenen & Díaz López, 2010;Hermundsdottir & Aspelund, 2021;Lopez-Torres, Montejano-García, Alvarez-Torres, and Perez-Ramos, 2022;Lopez-Torres, 2023). In this broader perspective, the pursuit of sustainability-oriented innovation targets requires a holistic and systemic approach that considers the interdependencies and trade-offs among the different dimensions of sustainability.…”