Building Sustainable Growth in Emerging Economies: Insights from Women-Led SMEs in North Central Vietnam

Abstract

This study investigates the determinants of sustainable growth among women-led small and medium-sized enterprises (SMEs) in North Central Vietnam, a region characterized by resource scarcity and institutional constraints. Integrating the Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), and Upper Echelons Theory (UET), the research examines how innovation capability, digital transformation, knowledge management capability, and sustainability-oriented leadership jointly influence sustainable growth performance. Using data from a survey of 535 women-led SMEs and applying partial least squares structural equation modeling (PLS-SEM), the findings indicate that all four factors significantly enhance sustainable growth, with digital transformation emerging as the most influential driver, followed by sustainability-oriented leadership, innovation capability, and knowledge management. Notably, while sustainability-oriented leadership exerts a strong direct effect on growth, its moderating role in the relationship between digital transformation and performance is unexpectedly negative, suggesting that a strong sustainability focus may temper short-term gains from digitalization. Theoretically, the study extends RBV, DCT, and UET by demonstrating how intangible resources and leadership orientations interact to foster sustainable performance in emerging markets. Practically, it highlights the need for women-led SMEs to prioritize digital adoption, innovation, and knowledge sharing while embedding sustainability principles in leadership practices, and it offers policy implications for fostering inclusive, resilient, and sustainable growth among women entrepreneurs in developing economies.