Strategic Business Model and Sustainable Growth of Smes in an Emerging Economy

Abstract

Understanding the interplay between strategic business model and sustainable growth of SMEs can guide the improvement of policies to boost the practicality and success of small and medium enterprises (SMEs). The aim of this research is to evaluate the effect of strategic business models on
the sustainable growth of SMEs, alongside exploring the mediating influence of management support. This study employed a quantitative method, utilising a cross-sectional survey. Partial Least Squares Structural Equation Modelling (PLS-SEM), enabled by SMARTPLS software, was employed to test the formulated hypotheses. The study findings indicate that the strategic business model ensures an improved information technology, innovation, and management support, all contributing to the
sustainable growth of SMEs. Also, it was found that management support partly mediates the relationship between business environment, innovation, and sustainable growth of SME. These pathways envision promoting social virtues within the ownermanager of enterprises. This research pioneers the
integration of diverse strategic business model components (such as the business environment, information technology, and innovation) alongside
management support to examine their effects on the sustainable growth of SMEs, representing a novel contribution to the literature. This study contributes to existing knowledge on sustainable growth in small and medium enterprises by investigating the mediating influence of management support, grounded in upper echelon theory.