Driving sustainability in SMEs' performance: the effect of strategic flexibility

Purpose Although the significance of small and medium enterprises (SMEs) in influencing economic growth is recognized, the performance of SMEs all over the world including Nigeria is unanticipated. Thus, this research aims to investigate the effect of strategic flexibility by moderating the effects of sustainability strategy on the SMEs' performance in Nigeria from a business strategy perspective. Design/methodology/approach The hypotheses of the study were tested using personally administered survey questionnaires; the study obtained 486 valid questionnaires, which were evaluated using SmartPLS algorithm and bootstrapping functions. Findings The research findings were established using SmartPLS algorithm and bootstrapping functions. According to the results, the research constructs have a satisfactory convergent and discriminant validity. Equally, the overall model has a very high predictive relevance. The study established a strong positive influence of strategic flexibility on the SMEs' performance. In addition, the study also established the moderating influence of sustainability strategy on the constructs. Research limitations/implications The research is explorative and designed to yield results and to be generalizable. Future research is thus encouraged to confirm or contradict the results of this study in a different context. Practical implications The research findings may be beneficial to policymakers and academics. It can particularly be useful in understanding strategic flexibility, its influence on the performance of SMEs and whether it can fit between the sustainability and strategic direction of a business enterprise. Originality/value This study fulfils an identified need to study strategic flexibility and its influence on the performance of SMEs using a dynamic perspective specifically in the context of emerging economies such as Nigeria.