Conceptualising the relationship between green dynamic capability and SME sustainability performance: the role of green innovation, organisational creativity and agility

Abstract

The purpose of this paper is to propose a conceptual framework that establishes the linkages among green dynamic capability (GDC), green innovation (GI), organisational creativity (OC) and organisational agility (OA), which influence small and medium enterprises (SMEs) sustainability performance (SP) in trade and service sectors in Thailand. This paper conducts a search of existing literature regarding SMEs SP. A conceptual framework is provided that can be used by SMEs to enhance their SP driving sustainable business growth. A framework for SMEs sustainability is proposed, which demonstrates the connection between GDC and SME SP, with GI and OC as mediators and OA as a moderator. This paper is limited in terms of the scope of SME sustainability in the context of the trade and service sector. Future empirical study should be conducted to validate the proposed framework and hypotheses in this study. This study forms the basis for the enhancement of SMEs SP in relation to boosting their GDC, GI, creativity and agility. This paper presents a comprehensive framework that leads to the conceptualisation of SME SP. It will help practitioners and academics to better understand the causes of SMEs SP.

Keywords: Agility, Competitiveness, Green dynamic capability, Green innovation, Organisational agility, Organisational creativity, Organizational performance, Small to medium-sized enterprises, SMEs sustainability performance, Sustainable development