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Leveraging Innovation Capability and Organizational Resilience for Business Sustainability Among Small and Medium Enterprises: A PLS-SEM Approach

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  • Banji Rildwan Olaleye

    (Business School, North-West University, Potchefstroom 2520, South Africa
    Department of Business Administration, Federal University Oye-Ekiti, Oye 360101, Nigeria)

  • Joseph Nembo Lekunze

    (Business School, North-West University, Potchefstroom 2520, South Africa)

  • Tsediso Joseph Sekhampu

    (Business School, North-West University, Potchefstroom 2520, South Africa)

  • Ntseliseng Khumalo

    (Business School, North-West University, Potchefstroom 2520, South Africa)

  • Adebanji Adejuwon William Ayeni

    (Business School, North-West University, Potchefstroom 2520, South Africa)

Abstract

The purpose of this study is to investigate the effect of innovation capability on business sustainability in Nigerian small and medium-sized enterprises (SMEs), as well as consider the effects of organizational resilience, sustainable competitive advantage, and environmental dynamism as mediators in succession. A quantitative approach was adopted to collect data from 401 employees in SMEs in the Lagos Metropolitan Area of Nigeria. We conducted the analysis of the collected data using the partial least squares approach (PLS-SEM). This research establishes that innovation capabilities are beneficial for ensuring business sustainability. The findings further corroborate the importance of sustainable competitive advantage and environmental dynamism for business sustainability. Finally, the results show that environmental dynamism is important for helping small business owners sustain their businesses and increase their innovation capabilities. Similarly, the indirect paths also showed that resilience organizations, like SMEs, play a role in the paradigm. However, businesses can benefit from this study’s findings by crafting strategies that adapt more quickly to changing market dynamics and capitalize on emerging possibilities. This way, businesses may take the necessary measures to stay ahead of the competition while guaranteeing sustainability. Even though the heuristic model emphasizes originality, the current research on how to successfully link innovative capacity to sustainability and build sustainability in dynamic environments is sparse.

Suggested Citation

  • Banji Rildwan Olaleye & Joseph Nembo Lekunze & Tsediso Joseph Sekhampu & Ntseliseng Khumalo & Adebanji Adejuwon William Ayeni, 2024. "Leveraging Innovation Capability and Organizational Resilience for Business Sustainability Among Small and Medium Enterprises: A PLS-SEM Approach," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:21:p:9201-:d:1505070
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    Cited by:

    1. Jing-Yan Ma & Tae-Won Kang, 2025. "Digital Intelligence and Decision Optimization in Healthcare Supply Chain Management: The Mediating Roles of Innovation Capability and Supply Chain Resilience," Sustainability, MDPI, vol. 17(15), pages 1-30, July.
    2. Kinda Saemaldaher & Okechukwu Lawrence Emeagwali, 2025. "The Role of Open Innovation in Enhancing Organizational Resilience and Sustainability Performance Through Organizational Adaptability," Sustainability, MDPI, vol. 17(13), pages 1-22, June.
    3. Azuraidah Taib & Yunita Awang & Jamaliah Said & Noor Erni Fazlina Mohd Akhir, 2025. "Unlocking the Role of Digital Capabilities in the Resilience of Malaysian Small and Medium Practices (SMPs)," Information Management and Business Review, AMH International, vol. 17(1), pages 171-183.

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