Search Results (162)

The advent of digital technologies, increasing competition, market globalization, and the fourth industrial revolution compel organizations to rethink their operating models to sustain competitive advantage. At the same time, increasingly informed consumers expect higher levels of personalization, responsiveness, and cost efficiency. In this context, mass customization has emerged as a strategic response enabling firms to deliver tailored products while maintaining acceptable levels of cost, lead time, and operational efficiency. However, operationalizing mass customization remains particularly challenging for small- and medium-sized enterprises (SMEs), especially within normative environments characterized by regulatory and compliance requirements affecting product architectures and manufacturing processes. Although the literature highlights modular product design and product configuration as key enablers, it lacks a structured strategy for their implementation in such contexts. This article aims to develop and validate an operational strategy for mass customization based on these two levers. The methodology adopts an action research approach structured through a hybrid Agile–Stage-Gate framework and validated through its application to a representative portion of the product architecture within a case study. The results highlight the structured integration of variability analysis, modular product design, and configuration logic into an operational process, supporting the management of complexity and the implementation of mass customization in manufacturing SMEs. Full article

The circular economy (CE) is increasingly recognized as a strategic approach that enables firms to address environmental challenges while enhancing competitiveness and long-term value creation. However, evidence regarding its impact on business performance remains fragmented across sectors, performance dimensions, and organizational contexts. This study presents a systematic literature review conducted in accordance with the PRISMA 2020 guidelines to examine how CE practices influence business performance. The review synthesizes evidence from 79 peer-reviewed publications published between 2015 and 2025. The findings identify five major channels through which CE practices affect business performance: (1) economic, environmental, and social performance, (2) operational and supply chain performance, (3) competitive advantage and strategic positioning, (4) financial and environmental performance, and (5) barriers and performance in SMEs. Across these dimensions, CE practices are frequently associated with improved resource efficiency, cost reduction, innovation capacity, supply chain resilience, and enhanced environmental outcomes, including waste reduction and lower emissions. The review suggests that the performance effects of CE are contingent upon contextual factors such as firm size, ownership structure, industry characteristics, regulatory environment, and digital capabilities. While large firms often benefit from greater resources and organizational capacity, SMEs face significant barriers related to finance, technology, and governance, although these can be mitigated through collaboration networks and digitalization. The study contributes to the Strategic Environmental Management literature by indicating that CE practices may function not only as environmental initiatives but also as strategic capabilities that support competitiveness, resilience, and sustainability transitions. The findings provide implications for managers seeking to integrate circularity into business strategy and for policymakers designing institutional conditions that enable circular business transformation. Full article

This study investigates the export strategies of agri-food SMEs through two terroir products: La Tête de Moine AOP from the Bellelay region and Tunisian olive oil from the Sfax region. Grounded in the resource-based view (RBV), it explores how firm-level and territorially embedded resources shape export performance. A two-stage qualitative design combining semi-structured interviews and focus group discussions was employed in both contexts. Analysis reveals that the La Tête de Moine AOP sector stands out from the olive oil sector due to certain resources and capacities, which are collective reputation, product traceability, cooperative management, forecasting, and long-term planning systems, centralized knowledge management, shared brand, financial advantages, and territorial social capital. Tunisian olive oil export strategy differs from the cheese sector through market responsiveness, upstream integration, and product innovation. The findings highlight the critical role of territorial capital and collective organization in enhancing sustainable competitiveness and reveal how distinct resource configurations shape SME internationalization in developed versus emerging economies. Practical recommendations are proposed to create a more relevant resources–capabilities collection, aiming at creating a sustainable competitive advantage for SMEs exporting terroir food. Full article

This study investigates the relationship between green technology, company green commitment, and the internationalization performance of small and medium-sized enterprises (SMEs), with a particular focus on the mediating role of eco-innovation and the moderating effect of government support programs. Based on a resource-based view, we develop and test a comprehensive model using the partial least squares structural equation modeling (PLS-SEM) method to determine the variables that significantly affected the mechanisms (i.e., green technology, company green commitment) and internationalization performance. The results revealed that both green technology and company green commitment positively affect the internationalization performance of SME with eco-innovation mediating the relationships. Furthermore, the government support programs moderate the relationship between SMEs’ green technology/company green commitments and internationalization performance by strengthening this relationship under higher levels of institutional support. This suggests that policymakers need to focus on the intensity and effectiveness of government support programs, and enterprises should actively integrate high-quality policy resources to maximize international competitiveness. The findings contribute to sustainable international business by elucidating the mechanisms through which sustainable development translates into competitive advantages. Practical implications suggest that SME managers should strategically align technological and commitment-based green elements while actively leveraging governmental support mechanisms to optimize international expansion. Full article

Artificial Intelligence (AI) will drastically change the way entrepreneurs operate within their respective fields toward sustainable performance. However, although we have some data about how companies will adopt AI and how it is implemented, it is still an under-studied area of research. The goal of this study was to examine the antecedents and consequences of AI Adoption using the Technology–Organization–Environment (TOE) model and Unified Theory of Acceptance and Use of Technology (UTAUT). The researchers collected data from 207 entrepreneurial businesses (including SMEs, startups, and knowledge-based businesses) using a structured questionnaire and analyzed the data using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3. The study’s findings suggest that facilitating conditions, social influences, and competitive pressures are all important positive factors contributing to the firm’s decision on AI Adoption. On the other hand, the data indicate that performance expectancy is a negative factor related to the company’s decision to adopt because of the “reality check” influence of the initial implementation challenges diminishing ease of use. It is also important to mention that several internal factors including effort expectancy and top management support do not have a direct influence. Most importantly, however, the results show that AI Adoption provides companies with an opportunity for strategic renewal (opportunities) and sustainable business models (holistic sustainability). Also, this research provides insight into the Resource-Based View (RBV) and Dynamic Capabilities (DC) theory by showing that AI Adoption creates a significant competitive advantage for companies, making them more successful at creating entrepreneurial and technology-based firms, while providing them increased economic, environmental, and social performance. In conclusion, AI Adoption is a major game-changer for entrepreneurs interested in sustainable practices and the ability to achieve successful, holistic, and sustainable business performance. Full article

This study examines how dynamic capabilities contribute to sustainable competitive advantage in small and medium-sized enterprises (SMEs), with a particular emphasis on long-term organizational sustainability in dynamic and uncertain environments. Drawing on Dynamic Capabilities Theory, the research investigates innovation as a mediating mechanism and organizational learning capability (OLC) as a moderating factor that strengthens the relationship between dynamic capabilities, innovation, and sustainable competitive advantage. Using data collected from 250 SME managers and decision-makers in Saudi Arabia, the proposed model was empirically tested through a quantitative approach employing Structural Equation Modeling (SEM). The findings reveal that innovation significantly mediates the relationship between dynamic capabilities and sustainable competitive advantage. Moreover, SMEs with higher organizational learning capability demonstrate stronger innovation outcomes, enhancing their ability to adapt, renew resources, and maintain competitiveness over time. By highlighting the role of internal capabilities in fostering innovation, adaptability, and learning, this study contributes to the sustainability literature by demonstrating how SMEs can achieve economically sustainable performance and long-term resilience. The study advances dynamic capabilities theory by empirically demonstrating how innovation operates as a key transmission mechanism and how organizational learning capability conditions this process in SME contexts. The results also provide practical insights for SME leaders and policymakers seeking to promote sustainable business development in emerging economies. Full article

In today’s dynamic and global business landscape, economic profitability is essential for creating and sustaining competitive advantage. Nevertheless, a critical gap persists in the literature regarding the application of advanced optimization techniques that systematically link operational improvements in the supply chain with strategic financial indicators. Accordingly, this study aims to identify and synthesize the optimization techniques applied to supply chain processes and their impact on economic profitability. To achieve this objective, the PRISMA methodology was employed. A systematic literature review covering the last ten years (2015–2025) was conducted using the Web of Science database. After applying inclusion and exclusion criteria, 35 studies were selected, revealing a growing methodological diversity. Nature-Inspired Algorithms (NIAs) and hybrid approaches (such as MILP combined with Simulation) demonstrate greater capacity to address complex and multi-objective scenarios. Notably, hybrid techniques have been successfully applied to the maximization of Economic Value Added (EVA), a key strategic value indicator. Despite the sophistication of these optimization techniques, the predominant objective remains total cost minimization, often sidelining the direct optimization of strategic indicators such as EVA or the Cash Conversion Cycle (CCC). Additionally, a key research gap was identified in the development of adaptive and resilient models that integrate technologies such as Digital Twins, Blockchain, and Artificial Intelligence to dynamically manage physical and financial disruptions in supply chains. The study concludes by emphasizing the need for a theoretical shift toward models that go beyond cost minimization and focus on real value metrics, as well as the exploration of more accessible solutions for SMEs. This review contributes a reference framework for academics and practitioners to align the most suitable optimization techniques with strategic financial objectives in supply chain management. Full article

As the concept of innovative, coordinated, green, open and shared development gains popularity, small- and medium-sized enterprises (SMEs) have come to acknowledge green product innovation (GPI) as essential to sustaining competitive advantage, embedding it within their strategic frameworks. However, most SMEs heavily rely on the continued support of stakeholders, unaware that organisational learning, such as perceived relative advantage (PRA) and innovation capabilities, is the core competitive strategy for achieving green transformation. Drawing on institutional theory and organisational learning theory, this study examines how institutional pressures influence innovation capability and PRA, which in turn drive GPI and corporate reputation. This study analyses data from a survey of 330 Chinese construction SMEs using structural equation modelling. The results show that GPI significantly enhances corporate reputation. Innovation capability and PRA act as mediators in the relationship between institutional pressure and GPI. These findings highlight the importance of organisational learning and explain the critical role of the institutional environment in promoting GPI and thus enhancing corporate reputation. This research provides pathways for SMEs in the construction industry to enhance sustainability while gaining a long-term competitive advantage, contributing to the building of ecological civilisation and a community with a shared future for mankind. Full article

This study examines the impact of Green Entrepreneurial Orientation (GEO), Managerial Environmental Concerns (MECs), and Green Absorptive Capacity (GAC) on the environmental performance of Pakistani SMEs. The Dynamic Capabilities View (DCV) and Natural Resource-Based View (NRBV) demonstrate that innovation focused on sustainability and competitive advantage is enhanced by managerial engagement, knowledge capability, and environmental awareness. A cross-sectional survey involving 350 managers of SMEs in Pakistan utilized covariance-based structural equation modeling (CB-SEM). The MEC-to-GEO direction was insignificant, and this implies that the issue of managerial concern is not a driving force towards the initiation of green entrepreneurial endeavors. The confirmatory factor analysis model for the 350 SMEs demonstrates a satisfactory fit (CFI = 0.947; RMSEA = 0.073), along with reliability and validity. GEO and EP are positively influenced by GAC and MECs, with R² values of 0.204 and 0.526, respectively. The findings indicate that the absorptive and managerial capabilities of SMEs can integrate environmental responsibility into strategic decision-making, exceeding regulatory criteria to foster proactive environmental innovation. The study emphasizes ethical leadership, environmental competitiveness, and social responsibility through green information management and cooperative networks. The sustainability ideas and GEO are enhanced in developing nations by linking global green initiatives with local institutions and cultural contexts. Organizational management and policymakers should promote environmental education, ecological innovations, and sustainable practices within sectors. The limitations of the study include the use of self-reported data and cross-sectoral replication utilizing objective environmental indicators. Full article

Business intelligence and analytics (BI&A) competencies are presented as a strategic factor in managing sustainable competitive advantage. Similarly, dominant logic is presented as a set of beliefs and practices within organizational culture, and strategic diversification is the degree of development for market diversification. This research explored whether BI&A competencies mediate the relationship between dominant logic and strategic diversification in a Chilean SME. This was a non-experimental study with a cross-sectional design. A non-probabilistic sample of 244 employees from the SME was collected. Three instruments were used to measure the variables: the Organizational Dominant Logic Scale, the Organizational Strategic Diversification Scale, and an instrument that measures BI&A competencies. The results identified a proactive dominant logic in the organization, moderate strategic diversification, and moderate consolidation in BI&A competencies. Likewise, in relation to the mediation analysis, it was found that the indirect effects were not statistically significant at the 0.05 level, while the direct effects were, therefore, proactive dominant logic is related to strategic diversification. In conclusion, BI&A competencies could not mediate the relationship between proactive dominant logic and strategic diversification. Full article

Artificial Intelligence (AI) is a transformational force reshaping business processes, financial decision-making, and enabling firms to create, deliver and capture value more effectively. While large corporations in South Asian countries, particularly Bangladesh, India, Pakistan and Sri Lanka have started leveraging AI to drive Business Model Innovation (BMI), Small and Medium Enterprises (SMEs) continue to face significant challenges. These include limited infrastructure, poor bandwidth penetration, unreliable electricity, weak institutional capacity and governance immaturity, along with ethics and compliance concerns. These challenges hinder SMEs from fully exploiting AI-driven BMI and reduce their financial resilience and competitiveness in increasingly digital and globalised markets. This paper examines how South Asian countries are adopting AI technologies in SMEs by comparing patterns and variations in adoption, capability, ethics, risks, compliance, and financial outcomes. The paper proposes a tailored, actionable framework, called TRIAD (Target, Restructure, Integrate, Accelerate, and Democratise)-AI, designed to address technical, organisational and institutional challenges that shape AI-driven BMI across South Asian SMEs and to meet regional and global SME needs. The framework integrates the best practices from global AI leaders such as China, Estonia and Singapore, emphasising responsible AI adoption through robust ethics and compliance standards, and risk management, and offering practical guidance for South Asian SMEs. By adopting this framework, South Asian countries can gain a competitive advantage, enhance operational efficiency, support GDP growth across the region and ensure adherence to all relevant international AI standards for responsible, sustainable, and financially sound innovation. Full article

Artificial intelligence (AI) is increasingly positioned as an enabler of strategic renewal and competitiveness for small and medium-sized enterprises (SMEs) in emerging economies. However, its adoption remains limited and uneven, constrained by shortages of skilled talent, weak data infrastructures, and financial barriers. This study examines Ecuadorian SMEs as a representative case within this broader context, analyzing survey data from 385 firms to diagnose AI adoption patterns and validate a structural model linking AI adoption, dynamic capabilities, and strategic innovation performance. Results from Partial Least Squares Structural Equation Modeling (PLS-SEM) confirm that AI adoption enhances innovation and competitiveness both directly and indirectly through dynamic capabilities, specifically firms’ abilities to sense opportunities, seize them through innovation, and reconfigure resources. The model explains 41% of the variance in strategic innovation performance, providing robust empirical support for the proposed AI-Driven Dynamic Capabilities Framework for Strategic Innovation and Competitiveness. The study clarifies how perceptual and contextual enablers of adoption (TAM/TOE) interact with capability-building mechanisms (RBV/DCT), offering a more integrated understanding of how SMEs assimilate AI under resource constraints. These findings demonstrate how SMEs translate early adoption into strategic advantage under conditions of uncertainty. The study also offers actionable guidance by showing that the most effective interventions for SMEs focus on strengthening foundational data and organizational capabilities rather than promoting complex AI systems beyond current readiness levels. Full article

Business process management (BPM) emerges as a methodology for enhancing an enterprise’s processes by identifying, supporting, and governing them to achieve continuous improvement and sustainable competitive advantage. This study conducted a semi-structured systematic literature review of 92 articles published between 2000 and 2024, following the methodology outlined by Tranfield and Denyer. The main objectives of the review were to systematize the field and propose a comprehensive framework for a sustainable adoption of BPM. This framework resulted from the analysis and integration of relevant notions associated with BPM, and from the evolution of process management, shaped by the approaches and tools examined across key stages of its development. From a theory-building approach, six stages for adopting BPM were defined, from initial levels of documentation to more mature phases characterized by integrating advanced technologies. Furthermore, the proposed framework bridges theory and practice by outlining the phases a firm should consider improving its process management. This research has also identified critical gaps in this field, including the limited number of studies on small and medium-sized enterprises (SMEs) and sustainability from a holistic perspective. Furthermore, the results also reveal a limited number of studies in developed countries. These gaps emphasize the need to further study BPM from an integrative approach in resource-limited contexts, such as developing countries or SMEs, to support sustainable development. Full article

Environmental sustainability reporting is increasingly adopted by firms, yet its actual impact on economic performance remains unclear, raising the question of whether such disclosures represent genuine strategic resources or merely symbolic practices. This study examines the relationship between environmental disclosure and economic performance, in the Italian chemical and pharmaceutical industries. Adopting the Resource-Based View (RBV), we evaluate the effectiveness of certified environmental practices as strategic assets that can enhance firm performance. We utilized an AI-based content analysis of financial reports from non-listed, non-SME Italian chemical and pharmaceutical companies between 2012 and 2020 to determine the level of firms’ generic environmental disclosures (without third-party verification) and on specific environmental certifications. We then examine the relationship between economic performance and the type of environmental disclosure observed. Using financial data at the firm level as moderators, we found that generic environmental disclosures have no significant impact on economic performance. In contrast, disclosures on environmental certifications are positively associated with higher economic performance in the chemical sector. Certifications may provide a competitive advantage in environmentally intensive sectors but appear to be less relevant in innovation-driven sectors such as the pharmaceutical industry. Our findings emphasize the strategic value of reliable, externally validated environmental practices, and highlight the limitations of symbolic disclosure. Full article

The paper aims to identify areas and forms of cooperation between manufacturing companies and their business-to-business (B2B) stakeholders in CE. The paper includes a theoretical part (the literature review) and an empirical part (a survey of 200 manufacturing enterprises in Poland, in 2024). The study found that (1) companies that declared the inclusion of CE in their business strategy were statistically more likely to declare cooperation in the scopes analysed; (2) cooperation of business partners in one area intensifies and encourages action in other areas, increasing the chances of achieving jointly agreed goals; and (3) the implementation of CE in companies requires appropriate management of B2B relationship capital, which is a strong catalyst for the development of innovation in supply chains. Involving suppliers in the co-creation of CE innovations through partnerships in different areas has a positive impact on the value and competitive advantage of these actors. In Poland, there are publications available on the general condition of the SME sector and studies on the principles and examples of CE implementation—including in the SME sector—but there is a lack of targeted studies and reports on the activities of these entities in the field of CE—the proposed study fills this research gap. Full article