Strategic management of natural resources through human, technological, and institutional resources: Sustainable curing the resource curse

The small manufacturing units in Pakistan are increasing over time, but the sustainability of these businesses is questioned. Despite a large amount of research on the management of businesses with sustainability, little is known about the practices for sustainability in small and medium enterprises. To address this knowledge gap, this study was initiated to determine the impact of resource governance, natural resource abundance, human capital development, technological innovations, and institutional quality on the sustainable development of small manufacturing firms. Data for this research was collected with a cross-sectional approach employing a 7-point Likert scale questionnaire, and the sample size was based on 577 small manufacturing sector employees. The partial least squares–structural equation model (PLS-SEM) approach was used to analyze the data, and the study reported that the mediating influence of human capital development and technological innovations is significant between resource governance, natural resource abundance, and sustainable development. This study confirmed that the small manufacturing sector can use institutional quality to influence technological innovation, human capital development, and sustainable development. The novelty of the research relies on its model and the theoretical contributions to the literature. This research significantly reported that resource governance and natural resource abundance are critical for the sustainable development of small manufacturing firms.