The impact of SMEs' sustainability on competitiveness

Purpose Recently, researchers have shown an increased interest in sustainable development. Indeed, national and international governments call for urgent transformations into sustainable development, where firms are affected and affecting this situation. However, recent evidence has shown that small and medium-sized enterprises (SMEs) present low interest, commitment and maturation levels on sustainability; they seem to neglect and question the actual impact of transforming sustainability as a priority in their operations. Thus, this paper aims to measure the impact of sustainability on competitiveness in SMEs. Design/methodology/approach This is empirical research on sustainability and competitiveness in SMEs with a quantitative approach through structural equation modeling. Three hundred twenty-five surveys were applied to SMEs' manufacturing, construction, trade and services, operating in Mexico. Before measuring variables' multiple correlations, tests were carried out to establish the validity and reliability of the model. The data collection, validation and analysis were carried out with statistical package for social sciences and analysis of moment structures. Findings The results indicate a significant positive effect of SMEs' sustainability on competitiveness. The adjusted measurement model shows validity and reliability through the various tests applied. Thus, firms should not view sustainability as detrimental to their competitiveness. Originality/value Because firms are crucial in the urgent sustainability transformation, recent research has shown their low commitment and maturation to sustainability. This research's originality empirically measures and demonstrates sustainability's impact on SMEs' competitiveness. Therefore, empirically testing this impact becomes essential and original to provide better insights into SMEs' needs to be uncovered, prioritied and done in their specific and evolving contexts.