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The Role of Government Support in Sustainable Competitive Position and Firm Performance

1
Faculty of Finance, School of Management and Economic, Beijing University of Technology, 100 Pingleyuan, Beijing 100124, China
2
Faculty of Management Sciences, International Islamic University Islamabad, Islamabad 44000, Pakistan
3
Skans School of Accountancy, F8 Markaz Islamabad, Islamabad 44000, Pakistan
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(10), 3495; https://doi.org/10.3390/su10103495
Received: 21 August 2018 / Revised: 12 September 2018 / Accepted: 22 September 2018 / Published: 29 September 2018
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PDF [2939 KB, uploaded 29 September 2018]
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Abstract

Achievement of sustainable competitive position and superior performance is the first priority of business organizations. However, small firms, due to fairly known reasons; lack of resources, financial capabilities and lack of managerial skills are often unable to succeed in their mission. Hence, they often look for less risky and convenience sources to compete in the market. A variety of factors has been tested towards a firm competitive position and performance but the role of government support in this perspective has received minor attention. The present study examines the influence of government financial support and nonfinancial support on firm performance with mediating role of the sustainable competitive position. Hypotheses were tested using structural equation modeling in Analysis Moment of Structure (AMOS) on a data set of 326 Pakistani Small and Medium Size Enterprises (SMEs). The results indicate that government financial and nonfinancial support have a significant influence on sustainable competitive position and firm performance. Additionally, a sustainable competitive position partially mediates the relationship between government support and firm performance. Government bodies and policy makers are advised to provide financial and nonfinancial support to SMEs which in turn can upsurge economic growth and sustainability. View Full-Text
Keywords: government financial support; nonfinancial support; sustainable competitive position; firm performance government financial support; nonfinancial support; sustainable competitive position; firm performance
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Songling, Y.; Ishtiaq, M.; Anwar, M.; Ahmed, H. The Role of Government Support in Sustainable Competitive Position and Firm Performance. Sustainability 2018, 10, 3495.

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