Unveiling the impact of technological innovation and SMEs resilience: the moderating role of firms' social sustainability orientation

Abstract

PurposeThis study investigates the impact of personal, organisational and innovation capability on technological innovation and further impacts on small and medium enterprises’ (SMEs') performance during uncertainty. Moreover, the moderator role of social sustainability orientation on the relationships of technological innovation, innovation performance and organisational resilience is also examined.Design/methodology/approachA quantitative approach using 524 SME responses and Smart PLS 4.0 are adopted in this research.FindingsThe results indicate a correlation between three types of capabilities with technological innovation and further conversion to organisational resilience. Additionally, social sustainability shows a negative moderating effect between innovation performance and organisational resilience. The research findings advanced the resources-based-view (RBV) by proposing three capability dimensions as platforms for SMEs' innovation success, which later generate resilience possibilities. Specifically highlighted in this study are the personal capabilities of managers, organisational capabilities and innovation capabilities in setting business objectives and resource allocation towards economic and sustainable goals during turbulence and uncertainty.Originality/valueThis study investigates the role of technological innovation and innovation on SME resilience. Notably, we deploy the social sustainability orientation as moderators towards the relationship between technological innovation, innovation performance and SMEs’ resilience. SMEs employing social sustainability orientation might negatively inhibit the translation from innovation performance to SME resilience, providing novel insights into navigating uncertainty in modern business. It has no effect on the relationship between technological innovation and its consequences.