Impact of Sustainability Performance on Financial Performance of Small and Medium enterprises (SMEs) in Pakistan

Abstract

Purpose: The relationship between sustainability performance and financial performance has been the subject of extensive research over the past few decades. Although a variety of approaches and strategies have been used by researchers to look into this relationship, the findings are still unclear. Since small and medium-sized businesses in Pakistan are dealing with some sustainability-related challenges, we examine the relationship between sustainability performance and financial performance in this article.

Methods: We used a basic random sampling technique to gather data from 385 employees of small and medium-sized businesses and analysis performed through Smart PLS.

Findings: According to our findings, financial performance is significantly impacted positively by sustainability performance and resource-based view also support these findings.

Novelty: According to researchers’ knowledge this is the pioneer study conducted on Pakistani small and medium enterprises. The findings contribute significantly to the policy implications for the creation of sustainability to improve their financial performance.