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Powering China SMEs' Sustainable Performance: A Combined Importance‐Performance Map Analysis

Author

Listed:
  • Fengwen Wang
  • Eugene Cheng‐Xi Aw
  • Stephanie Hui‐Wen Chuah
  • Yudong Zhang

Abstract

The pursuit of sustainability has become increasingly critical for small‐ and medium‐sized enterprises (SMEs), particularly as turbulent market environments have introduced new challenges to their sustainable growth. Within this context, this study explores how sustainability innovation ambidexterity and strategic flexibility impact the SMEs sustainable performance. Data were gathered from managers of SMEs in China and empirically verified through combined importance–performance map analysis. The findings showed that strategic flexibility plays a mediating role between sustainability exploitation innovation and sustainable firm performance, though environmental complexity weakens this mediation in the context of Chinese SMEs. The cIPMA analysis confirmed that while environmental complexity, sustainability exploitation innovation, sustainability exploration innovation and strategic flexibility are all necessary, strategic flexibility is the most critical driver of sustainable performance outcomes. This study contributes by investigating the moderated mediation effect of environmental complexity on the interlink between sustainability exploitation innovation and sustainable firm performance, mediated by strategic flexibility. Furthermore, the cIPMA results provide a guiding framework for the management of Chinese SMEs, incorporating necessity and importance–performance perspectives to enhance the prioritisation of decisions and resource allocation.

Suggested Citation

  • Fengwen Wang & Eugene Cheng‐Xi Aw & Stephanie Hui‐Wen Chuah & Yudong Zhang, 2026. "Powering China SMEs' Sustainable Performance: A Combined Importance‐Performance Map Analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S1), pages 701-718, January.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:s1:p:701-718
    DOI: 10.1002/sd.70206
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    References listed on IDEAS

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