Leveraging Innovation Capability and Organizational Resilience for Business Sustainability Among Small and Medium Enterprises: A PLS-SEM Approach

Abstract

The purpose of this study is to investigate the effect of innovation capability on business sustainability in Nigerian small and medium-sized enterprises (SMEs), as well as consider the effects of organizational resilience, sustainable competitive advantage, and environmental dynamism as mediators in succession. A quantitative approach was adopted to collect data from 401 employees in SMEs in the Lagos Metropolitan Area of Nigeria. We conducted the analysis of the collected data using the partial least squares approach (PLS-SEM). This research establishes that innovation capabilities are beneficial for ensuring business sustainability. The findings further corroborate the importance of sustainable competitive advantage and environmental dynamism for business sustainability. Finally, the results show that environmental dynamism is important for helping small business owners sustain their businesses and increase their innovation capabilities. Similarly, the indirect paths also showed that resilience organizations, like SMEs, play a role in the paradigm. However, businesses can benefit from this study's findings by crafting strategies that adapt more quickly to changing market dynamics and capitalize on emerging possibilities. This way, businesses may take the necessary measures to stay ahead of the competition while guaranteeing sustainability. Even though the heuristic model emphasizes originality, the current research on how to successfully link innovative capacity to sustainability and build sustainability in dynamic environments is sparse.