SME SUSTAINABILITY PERFORMANCE: IMPLICATIONS FOR COMPETITIVE ADVANTAGE AND LONG-TERM GROWTH

Abstract

Small and Medium-sized Enterprise (SME) sustainability performance has emerged as a critical strategic priority, enabling organisations to balance economic growth with environmental stewardship and social responsibility amid increasing regulatory requirements and technological advancements. Yet fragmented empirical evidence has limited a comprehensive understanding of the implications of sustainability performance for competitive advantage and longterm organisational growth. This systematic literature review addresses this gap by synthesising recent scholarly evidence on the subject. Guided by the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) framework, an extensive search of Scopus and Web of Science databases focusing on peer-reviewed studies published between 2024 and 2025. Following the screening and eligibility assessment process, 23 studies were retained for analysis. The findings were organised into three overarching themes, which are (1) Sustainability Innovation and Green Practices, (2) Digital Transformation and Technological Enablers, and (3) Strategic Management, Human Capital, and Institutional Support. The synthesis indicates that sustainability performance is shaped by an integrated internal–external ecosystem that enhances organisational resilience, competitiveness, and long-term growth. Nevertheless, the findings should be interpreted with caution owing to temporal and language restrictions, potential publication bias, and methodological heterogeneity among the included studies. Future studies should broaden the scope of investigation, incorporate longitudinal designs, and examine causal relationships more rigorously to provide stronger guidance for SME practitioners and policymakers.