Re-conceptualizing micro small & medium enterprises of Pakistan for sustainability and competitiveness via integrated RBV–PESTEL approach

Abstract

Goal: To examine the interrelationship of various factors and their integration with sustainability and competitiveness among MSMEs while identifying size-specific challenges and response strategies within an integrated framework. Design / Methodology / Approach: An exploratory qualitative method is used. Data from 30 MSME CEOs in diverse sectors using semi-structured interviews was taken. The study integrated RBV and PESTEL perspectives to develop the themes whereas interview data was coded and analyzed in NVivo. Various qualitative analysis techniques namely word cloud, hierarchical charts, and mapping techniques were carried out. Results: Findings reveal distinct patterns for enterprise sub-categories. Micro-enterprises remain vulnerable due to financial, technological and policy constraints but rely on digital tools and product uniqueness for survival. Small enterprises invest in sustainability and workforce development yet face regulatory and cost volatility. Medium enterprises show strategic maturity through automation and certifications but encounter regulatory barriers. Leadership, relational capital and innovation emerge as key resilience drivers for all MSMEs. The presented framework helps re-conceptualize the MSMEs for achieving sustainability and competitiveness. Limitations of the Investigation: The qualitative design and contextual focus on Pakistan may restrict generalization in certain aspects. Practical Implications: The importance of financial access, digitalization support, and regulatory reforms to enhance MSME competitiveness is highlighted. Importantly, the integrated framework provides an approach for sustainable and competitive MSMEs. Originality / Value: The research contributes in terms of an exploratory insight to various MSMEs sub-categories for linking sustainability and competitiveness through an integrated RBV–PESTEL framework.