The impact of COVID-19 on small- and medium-sized enterprises (SMEs): empirical evidence for green economic implications.

Small- and medium-sized enterprises (SMEs) in China have been hit hard by the coronavirus (COVID-19) outbreak, which has jeopardized their going out of business altogether. As a result, this research will shed light on the long-term impacts of COVID-19 lockdown on small businesses worldwide. The information was gathered through a survey questionnaire that 313 people completed. Analyzing the model was accomplished through the use of SEM in this investigation. Management and staff at SMEs worldwide provided the study's data sources. Research shows that COVID-19 has a significantly bad influence on profitability, operational, economic, and access to finance. In the study's findings, outside funding aids have played an important role in SMEs' skill to persist and succeed through technological novelty than in their real output. SME businesses, administrations, and policymakers need to understand the implications of this study's results.

Introduction

This pandemic caused by COVID-19 is unprecedented in many respects (Jabeen et al. 2021; Irfan et al. 2022a). In the first place, it endangers the lives of millions upon millions of people worldwide. By the end of June 2021, it had already caused the deaths of nearly four million people worldwide as a direct consequence (Ahmad et al. 2020; Müller et al. 2021). The service industry, which depends on many small businesses than the manufacturing sector, was also negatively impacted by the social distancing guidelines implemented to contain the virus (Ipsmiller et al. 2021).

Compared to MNEs, small- and medium-sized enterprises (SMEs) have fewer considerations of standards, fewer financial resources, fewer R&D sources, less organizational culture, and fewer uses of advanced manufacturing technologies. Regardless of this, one cannot deny the importance of SMEs, which are widely regarded as indispensable for producing new jobs, the equitable distribution of existing ones, and the expansion of Asian exports. The MNEs have a lot of resources, but they are not very close to the outside world. On the other hand, SMEs are a lot more flexible when putting their decisions into action, and they are very in touch with the outside world. According to Kukanja et al. (2022a, b), ecological sustainability is not well understood among SMEs. They believe this is because most researchers focus their attention on the sustainable performance of large organizations in developed economies. According to the published research, sustainable performance practices are successful in large organizations, but they do not necessarily work in SMEs.

The efficiency of small- and medium-sized firms in terms of technology can be significantly improved by adopting a sustainable performance orientation (Ahmad et al. 2019; Irfan et al. 2019, 2022b). In addition, the degree of commitment to sustainability is heavily influenced by entrepreneurial orientation and market (Ahmad et al. 2021; Lau et al. 2021; Liu et al. 2021; Rao et al. 2022). It is believed that the attitude of owner-managers toward the natural environment can be used to predict the level of sustainable performance achieved by small businesses (Irfan et al. 2021; Işık et al. 2021; Jan et al. 2021). Integration of top organization teams’ behaviors has an optimistic impact on the organization’s orientation toward sustainability (Khokhar et al. 2020; Fu et al. 2021; Yumei et al. 2021; HUANG et al. 2022). Small- and medium-sized enterprises in developing economies typically have limited access to resources (Tang et al. 2021a, b; Rao et al. 2022; Tang et al. 2022b). Many believe that investing in sustainable performance constitutes an unnecessary additional expense. However, sustainable performance is an essential resource for organizations to consider when determining their performance. This resource cannot be ignored because some of the researchers used the sustainable performance of SMEs to determine the performance of firms, new ventures, and financial presentation. A finite number of studies examine the connection between sustainable performance and environmental performance; consequently, this study aims to develop this connection. In addition, the researchers suggested that further research into sustainable performance is required in both developing countries and developed countries. This is because sustainable performance is considered an essential component for organizations.

Xia et al. (2021) developed the technology-organization-environment (TOE) model, used in the present study. The model is helpful when adapting to changing circumstances because it allows one to study the interactions between processes, inputs, and outputs. The technology-organization-environment structure is adaptable and provides the optimal balance of external and internal drivers, essential for implementing innovations within organizations (Yung et al. 2021; Iqbal et al. 2021; Xiang et al. 2022b; Jin et al. 2022). There have only been a few studies that have used this framework to examine sustainability. These studies cover sustainable manufacturing practices (Baah et al. 2021), green IT initiatives, and a green supply chain. This model helps develop a holistic structure of sustainable functioning because it combines numerous elements that can each play their part in attaining sustainable business practices. Consequently, this model is useful for establishing a comprehensive structure of sustainable business practices. Sustainable business practices (such as green supply chain, green recycling and remanufacturing, green HRM and information technology) are conceptualized as a process in this study, and sustainable performance is conceptualized as an output. Technological innovation is conceptualized as an input. The panel’s theoretical foundation is the resource-based view (RBV) theory.

Because of the current COVID-19 condition, a more in-depth investigation into the relationship between illogical behavior and attitude of SMEs and economic morality is required. Standard economic theory cannot be relied upon to gain a deeper comprehension of this issue; rather, behavioral economics theory is what is required. We are developing a model of the practical connection between irrationality, morality, and commercial ethics for SMEs. SMEs can benefit from this research. It provides a foundation for developing programs to permit SMEs to improve their economic mindset and behavior.

The COVID-19 crisis has impacted international commerce and tourism, which impacts the global economy (Rintanalert and Sirisunhirun 2021)(Chen et al. 2021a). The adverse effects are widespread and permeate every aspect of human life, mainly related to health. The majority of financial activities continue to be restricted as a result of public isolation, travel limitations, lockdowns, and other similar measures, which is a significant blow to a great number of businesses (Saputra and Herlina 2021). Industries and businesses of all sizes have been severely wedged as a result of COVID-19, and many are struggling to maintain their viability as a result of these effects. Despite this, some companies have seized the opportunity to carve out a new market, and many SMEs are attempting to adapt to the new environment. Small businesses are more susceptible to global crises because of their limited resources, and COVID-19 is having an especially negative impact on them. There is still a requirement to adopt strategies that will ensure long-term survival, even though environmental sustainability has become one of the most important factors in the present situation (Lu et al. 2021). Consequently, small- and medium-sized businesses are under increasing pressure to modernize their operations through various technologies (Zaverzhenets and Łobacz 2021). Sustainability in the industry is achieved by utilizing technologies that either develop or adopt environmentally friendly practices. The current study will focus on the process for achieving sustainable performance that SMEs can use during the COVID-19 pandemic.

The term “governance mechanism” refers to a broad concept fraught with a number of debates on account of the numerous theoretical approaches and points of view (Chen et al. 2021b)(Wu and Zhu 2021). Previous research has consistently found that a company’s governance mechanism has an impact on both the company’s financial results and its communal outcomes (Costa et al. 2020)(Zhang et al. 2022)(Li et al. 2022). With fierce competition, governance mechanisms tend to focus on ensuring that the interests of society, the environment, and the economy are all taken into account. To accomplish this goal, it is no longer a recommendation but rather a prerequisite for companies that participate in social and environmental responsibility initiatives (Wellalage et al. 2021).

There have only been a limited amount of experiential research conducted on the result that technological innovation has on sustainable performance in the SME sector through sustainable green practices. Further investigation is necessary to fill in this gap. Generally speaking, only 2% of businesses use various forms of technology (Ko et al. 2021). The ongoing COVID-19 pandemic, on the other hand, has made it unavoidable for businesses to abandon their traditional methods in favor of more environmentally friendly ones to operate sustainably. To achieve this goal, SMEs will require technologies that can be customized. SME research focuses on the factors that lead to environmental and social practices in small- and medium-sized enterprises (SMEs). They are linked to environmental productivity and performance, social performance, governance mechanisms, and green innovation. On the other hand, the authors do not discuss how new technology affects environmental stewardship and SMEs’ ability to sustain themselves. The goal of the current research is to develop a model that will offer a comprehensive theoretical structure for assessing how environmental, organizational, and technological factors can lead to long-term functioning levels in SME through the adoption of environmentally friendly green practices. As a result, it will be a developed methodology for assessing how technology advancement can contribute to long-term performance levels in SMEs.

Literature review and hypothesis development

COVID-19 factors and sustainable business practices

Equated to SARS, a lethal endemic in China in 2003, COVID-19 is more contagious and hardy. Within 2 months, there were more confirmed cases than SARS had in the preceding 8 months, and within 3 months, it had spread around the world and was considered a pandemic. That many cases of SARS were reported after 8 months. When it comes to its effect on society and the economy, the COVID-19 outbreak is unlike any other crises or epidemic in China or elsewhere (Al-Hakimi et al. 2021; Lau et al. 2021; Liu et al. 2021; Rao et al. 2022).

Small- and medium-sized enterprises in China are finding it difficult to survive due to COVID-19’s rapid spread. On February 15, 2020, the China Association of SMEs published a “Research Report on Countermeasures and Suggestions for the Impact of COVID-19 Pandemic” that found that nearly 67.69% of SMEs have reduced their operating income; 21.61% of SMEs cannot timely repay debts; 86.22% of SMEs cannot survive with funds on the account for more than three months, and 33.73% of SMEs do not have enough funds to last for more than six months (Wendt et al. 2021)(Iqbal et al. 2021; Tang et al. 2022a, b). China’s economic growth was negatively impacted by the precarious financial situation of SMEs. As a result, China’s GDP growth rate fell 6.8% year over year in the first quarter to its minimum level in the past couple of decades (Jafari-Sadeghi et al. 2022). Meanwhile, the labor market was sluggish, with the unemployment rate rising from 5.3% in January to 6.0% in April. Because of this, China’s SMEs continue to feel the effects of this year’s pandemic outbreak. As soon as the COVID-19 pandemic comes to an end, the negative impact on the economy will not go away. SMEs will continue to face the challenge of long-term recovery and the pressures of survival and growth as the economy continues to recover (García-Pérez-de-Lema et al. 2021).

The COVID-19 virus has been a major concern for the Chinese government. Wuhan’s urban bus, subway, ferry, and long-distance passenger transportation services were shut down on January 23, 2020. At the airport and train stations, the exit channels were also closed. More than 10 million people were completely cut off from a large metropolitan area. China’s first-level public health emergency reaction was initiated sharply after the lockdown of Wuhan in an attempt at virus containment and prevention (Zainal et al. 2022a). Chinese authorities mobilized the entire country to implement the most rigorous and comprehensive control methods possible to save lives. Gatherings, meetings, and conferences were banned; towns, municipalities, and communities were put on lockdown; factories, businesses, and stores were shut down. As a precautionary measure, travelers from Wuhan and other epidemic zones had to report their travel proceedings and self-quarantine for 2 weeks. To keep population migration to a minimum, the Spring Festival holiday was extended for 2 days. In addition, businesses in several provinces, including Sichuan Province, were not permitted to return to normal operations until February 10. In order to keep the epidemic under control, many businesses and factories across the country were forced to shut down for the majority of February.

These measures did help to slow the spread of the coronavirus. Still, at the same time, they posed a threat to the continued existence of businesses in all fields and sectors, which could have had potentially disastrous economic repercussions, societal and individual, such as a significant reduction in the number of available jobs and increased social vulnerability (Sun et al. 2021b). Rahman et al. (2022) discovered that they could not return to the cities in which they worked because the cities had been locked down, highways had been hindered off, and suburban populations had been sealed off. Although these stringent measures successfully prevented the spread of the epidemic, they did so at the expense of preventing workers from returning to work and disrupting the movement of raw materials and finished goods. If there are further limitations on traveling and, as a result, trade, and business within China, the economic impact of the widespread disease may increase significantly (Ganlin et al. 2021a). Only time will tell whether or not this is the case.

H: Small- and medium-sized businesses (SMEs) are more likely to implement sustainable business practices (SBP) when put into lockdown.

Technological innovation–sustainable business practices nexus

In technology in the business world, “innovation” refers to a strategy that gives a company an advantage over its rivals by facilitating the diversification of existing markets and creating new avenues for financial gain. Adopting a novel strategy or way of doing things within an organization is one definition of innovation. According to Miocevic (2022), innovativeness can be defined as the grade to which an organization uses technology or new ideas compared to their competitors to gain competitive returns in terms of cost, time, and the value of service. The ability to innovate is not only necessary for businesses to continue existing in today’s economy, but it is also a significant factor in growth, productivity, and competitiveness (Miocevic 2022).

Compliance with sustainable practices is just as important in the highly competitive business environment as the innovation of new technologies; as a result, policies on corporate social responsibility (CSR) are becoming more prevalent in SMEs. The achievement of excellence in the management of organizations is the primary focus of environmental sustainability. “A commitment to improving social well-being through discretionary business practices and the contribution of corporate resources” is how corporate social responsibility can be defined in a general sense.

The literature (Sun et al. 2021b; Ganlin et al. 2021a; Rahman et al. 2022; Miocevic 2022) contains significant research on the relationship between innovative practices and environmentally sound practices. Therefore, the addition of new products, processes, and managerial activities involved in the delivery of a product or service can be understood to constitute innovation. Pedauga et al. (2022) found a relationship between environmental sustainability practices and innovation and suggested that businesses should act following the ethics of corporate social responsibility (CSR) in their manufacturing practices by making use of new technology that is kind to the environment (Eldeeb et al. 2021). This was based on Bansal’s finding a relationship between innovation and environmental sustainability practices. The purpose of corporate social responsibility (CSR) is to simultaneously advance fiscal growth, community justice, and environmental protection (Surya et al. 2022). Many initiatives have recently been launched to encourage businesses to frame their disclosure activities to demonstrate their commitment to sustainable development (Le and Nguyen 2022a).

It is becoming increasingly accepted that small- and medium-sized businesses are the most important source of developing new products and technologies (Le and Nguyen 2022b). Small- and medium-sized enterprises (SMEs) continue to pose a significant challenge for business policymakers and investors in light of the current dynamic business climate. While innovation is important and even essential, performance improvement is the key to motivating SMEs to implement CSR practices (Belyaeva and Levis 2022). SMEs typically have a greater aptitude to increase performance through their CSR practices as a result of their increased emphasis on innovation (Adam and Alarifi 2021). Companies with strategic CSR objectives to improve performance, such as achieving growth (Belyaeva and Levis 2022; Le and Nguyen 2022a, b), may need to make product and process innovations.

Different researchers use different definitions of SMEs due to the varied characteristics of these businesses (Abed 2020). These definitions are frequently based on size or turnover, and they are meant to reflect the economic, cultural, and social norms of each country. It is generally agreed that the number of employees, the level of investment, and the volume of sales are the defining characteristics of SMEs. According to the European Commission, small- and medium-sized businesses have between 10 and 49 employees, while large businesses have between 50 and 250 employees (Adam and Alarifi 2021). The Small and Medium Enterprises Act of 2012 in Kenya classifies SMEs according to their industry, the number of employees, and the amount of investment they have (Yu and Schweisfurth 2020).

H: Green innovation (GIN) positively affects the implementation of sustainable business practices (SBP) by SMEs.

Organizational factors and sustainable business practices

Albats et al. (2020) corporate social performance model was employed in the study to further describe how sustainable practises are implemented in firms. There are three stages of solicitation for groups committed to sustainable development. As a first step, enterprises need to understand the fundamentals of sustainable development (SD). These principles, as established by society, are institutional forces (Sun et al. 2021a). In response, organizations establish policies and programmes tailored to their specific qualities. Stakeholders have a right to expect the entrepreneur to respond appropriately to their demands.

According to Jesemann et al. (2021), one of the steps that must be taken to comprehend the phenomenon of corporate ownership of SD is to investigate the company’s attributes. Corporations are required to address the potentially bad impacts their organizational circumstances may have in order to prevent a similar situation from occurring in the future (Zainal et al. 2022b). As a result, organizational circumstances influence how businesses respond to SD concerns. According to this strategy, the behaviors anticipated in SD are those dictated by the very nature of the business that is being analyzed. The business plan, financial performance, and innovation are examples of these contingent factors (Rakshit et al. 2021). Dai et al.’s (2021) interpersonal behavior theory is applied to the characteristics of entrepreneurs in this study. According to this theory of interpersonal behavior, individuals make decisions about how they will act based on their intentions, habits, and other supportive factors (Hossain et al. 2021). The theory’s goal is to shed light on human behavior. Affect, self-image, and the perception of consequences are all factors that are considered in addition to the norms and roles that are discussed above. In light of the above, we will assume that:

H: Green marketing (GMK) has a positive impact on SMEs’ application of sustainable practices.

H: The acceptance of a green supply chain (GSCM) has a beneficial affect on SMEs’ use of corporate sustainability.

H: Green HRM (GHRM) has a positive impact on SMEs’ application of sustainable practices.

Environmental awareness–sustainable business practices nexus

The external environment that the organization operates in is represented in the TOE model by the environmental factors component. The willingness of small- and medium-sized businesses to adopt environmentally responsible practices heavily depends on the government’s support (Bai et al. 2021). There is a strong correlation between technological advancement and the ability of organizations to implement sustainable green practices in uncertain environments.

There is a strong correlation between environmental factors and the adoption of green practices. Without additional support from the outside, it is impossible to implement green HRM practices. In the absence of support from the government, the organization that is committed to implementing environmentally friendly practices might fail. As a result, the support provided by ecological factors makes the adoption of environmentally responsible HR practices easier. An important part of supply chain management is outward activities. Therefore, the kinds of elements surrounding the organization can affect the practices that are used in the supply chain. Regulations imposed by environmental bodies have become an important factor in spreading environmentally responsible behaviors (Hrovatin et al. 2021). For an organization to implement environmentally friendly supply chain practices, relevant environmental aspects must be present. Environmental factors are also a factor in how marketing strategies are implemented. The adoption of environmentally friendly marketing practices is made easier by the relevant environmental factors, and environmentally friendly marketing practices can only be effective in an encouraging external environment. The implementation of environmentally responsible marketing strategies needs backing from environmental factors. Factors in the environment drive organizations to pursue and implement environmentally friendly innovations (Zutshi et al. 2021). The policies that the government and the legal system have in place to protect the environment have an effect on the innovative practices of an organization. Incorporating environmentally friendly innovations into daily life relies heavily on preexisting environmental factors such as policy orientation, certainty, support, and market alignment. These factors have the potential to trigger different kinds of innovations. Consequently, environmental factors are also a factor in whether or not green innovations are adopted. Consequently, the subsequent premises are put forward for consideration:

H: Social awareness has a positive impact on SMEs’ application of sustainable practices.

H: Environmental awareness has a positive impact on SMEs’ application of sustainable practices.

Green practices–sustainable business practices nexus

It is generally accepted that protecting the environment leads to the development of socially desirable outcomes (Denicolai et al. 2021). The regulatory setting defines the business context and identifies the types of private and public institutions that adhere to CSR practices and services (Iborra et al. 2020). Enhancing collaboration among stakeholders, providing economic support for environmental conservation, and providing sufficient substructure to support environmental sustainability are all part of the Regulatory Setting’s mission to control environmental conservation (Yeon et al. 2022)(Chen et al. 2020) and protect international environmental legislation. These goals will be accomplished by ensuring environmental sustainability (Yang et al. 2020)(Hu et al. 2021).

There are three points of view on the current state of the business environment, according to Hussain et al. (2022). The first point of view concentrates on parties external to the company that interferes with its operations. These parties include customers, other businesses in the industry, sellers, and government regulations. The second point of view emphasizes the qualities exhibited by external forces, such as intricacy, lethargy, and generosity (Aidoo et al. 2021). The marketplace orientations can be moderated by the external environmental aspects, which influence firm performance (Tolstoy et al. 2021). According to the findings of a study carried out by Raymond (Le and Nguyen 2022c), the third perspective expresses concern regarding the sensitivities associated with decision-making regarding environmental aspects. It was discovered that the alignment of an organization’s interior and exterior environments had a moderating effect on the performance of the business (Dyduch et al. 2021). Top management ought to comprehend their results, grab chances to safeguard the company from extortions, and measure both internal and external factors that affect the company’s performance (Zhang et al. 2021). After going through all of this previous research, the researcher concluded the following hypothesis.

H: Green manufacturing (GRNM) has a positive impact on SMEs’ application of sustainable practices.

H: Green design (GRND) positively impacts the application of sustainable practices by SMEs.

H: Recycling and remanufacturing (R&R) positively impact the application of sustainable practices by SMEs.

Information technology–sustainable business practices nexus

As was previously mentioned, the establishment of close collaborations and the exchange of information both within and between companies, made possible by information systems, are necessary for companies’ growth of sustainability abilities. It has been demonstrated that the combination of information technology resources with their corresponding human and management resources can support the capabilities that provide companies with a competitive advantage (e.g., Górska et al. (2021)). The three factors found in information technology systems are technical elements, human technical and management abilities, and undefinable IT-enabled assets like efficiency and customer awareness. It has been found that combining human and informational technology (IT) resources (such as infrastructural applications, for example) confers companies with advanced abilities that help them increase overall effectiveness, revenue growth, innovation, and gain a long-term advantage in the market. However, most of this type of research concentrates on the effects of information technology on the economy. These types of arguments bring us to our first proposal, which will serve as the basis for our investigation into the role that various kinds of information technology resources play in contributing to the strategy of businesses in developing their capacity for sustainability (Fig. 1).

Fig. 1

Flow diagram

H: Information technology adoption has a positive effect on SMEs’ application of sustainable practices.

Methodology

Sample and data collection

A research method known as a survey was used in this particular study. Previous research served as the foundation for the development of the questionnaire. The validity of the initial questions was established through a pilot study, in which academics and managers were allowed to review the questions. A preliminary test was carried out to validate both the content and the appearance of these instruments. Five experts thoroughly reviewed the scales’ content validity to determine their reliability. The appropriateness of the wording, ease of understanding, relevance, and item sequence of each measurement scale was brought to the attention of specialists who were invited to conduct the review. Additionally, the experts were allowed to provide qualitative comments regarding the measures. The content validity ratio (CVR) was determined by following the guidelines provided by Turkyilmaz et al. (2021). After the initial review by the experts, the CVR for the scale was set at 1, and no experts recommended removing any of the items from the scale. However, all of the experts did recommend making some minor adjustments to the item sequence and original wording. Ten industry and academic professionals with relevant expert knowledge were required to consider the scales in order to deliver proof of the scales’ alleged face validity. They had to rate for every item’s specificity and significance on a Likert scale and suggest any items for removal. All fourteen items were kept after receiving comments from the ten people who participated.

There are several factors that go into calculating the environmental impact of a company, and these factors are not limited to just one company. However, there is a lack of relevant research on supply chain performance metrics (Miocevic 2022). Sustainable business practices (SBP) and its relation with other variables (like green innovation, green design, green HRM, COVID cases, green, information technology, recycling and remanufacturing, and green marketing) assessed in the study, which focuses mostly on perception data (Turkyilmaz et al. 2021; Zhang et al. 2021; Górska et al. 2021). With important suppliers and customers, SBP are measured in terms of four activities: strategic planning, employing various information or communication technologies, attaining operational-level integration, and forming strong partnerships (Younis and Elbanna 2021; Miocevic 2022). Results are categorized under the following outcomes: green innovation, green HRM, green marketing, green supplychain, COVID-19, and green information rechnology (Yao and Yang 2022). When evaluating the value of SBP to small- and medium-sized businesses, we look at few key performance indicators: green marketing, green innovation, green HRM, green design and green recycling and green remanufacturing. We also look at social and environmental indicators, such as charity support and relationships with the local community (Le and Ikram 2021).

SMEs in this study are defined as companies with 100 employees, and we use the terms “small” and “medium” to describe these two categories. Business owners or managers of SMEs were the primary focus of the study, and a representative sample of these companies was drawn at random from the yellow pages, trade publications, and other industry-specific resources. The survey method was used in this investigation (both mail and online). In order to safeguard the privacy of respondents and the confidentiality of information that was exposed, the entire data gathering process was anonymous. We sent out a thousand surveys, but only 313 people completed them. Despite the low response rate (10.7%), we used Armstrong and Overton’s (1977) to measure non-response bias. We used a t-test to compare the first 25% of responses with the last 25% of responses based on demographic characteristics (degree of professional job experience, annual sales, industry type). There were no statistically significant differences in the means of the questions between the two groups; therefore, there is no reason to worry about non-response bias. We followed the advice of Ganlin et al. (2021b) and used Xiang et al. (2022a, b) single factor to check for common method bias.

When using the maximum likelihood (ML) method in structural equation modeling (SEM) analysis, the observed variable and sample size ratio of 1:10 is the smallest sample size requirement (Wendt et al. 2021). It was possible to collect 313 reliable samples as part of this investigation (Table 1).

Table 1

Enterprise profile

Characterization	Frequency	Percent
SME size	5–10 employees	29	35.5
	11–20 employees	24.5	24.5
	21–50 employees	36.5	29
	51–99 employees	10	11
SME age	Less than 10	47	54
	11 to less than 20	18	15
	21 to less than 30	22	8.7
	31 to less than 50	21	13.3
	51 and more	12	9

The demographic information of the SME managers surveyed is presented in Table 1. All these SMEs are organizations with 1 to 100 employees, where 81.9% of the respondents indicated that they had had 2–15 years of professional work experience. The sample is split between firms with annual sales less than or equal to NZ$16.5 m (43.7%) and those with more than NZ$16.5 m (56.3%), which suggests that there is good coverage of SMEs. Responses were collected from various types of organization: third-party logistics providers (25.7%); manufacturing (18.9%); retail (17.3%); and automotive and transportation (11.8%). Overall, 80.2% of the respondent firms are involved in distribution, retail, and manufacturing.

AMOS version 23 and SPSS version 23 are both utilized throughout carrying out the analysis for SEM. When using this software, the primary objective is to determine whether or not the preliminary model is reinforced and decoded by the data gathered. As can be seen in Fig. 2, the preliminary study model has been redrawn as a path diagram within AMOS to facilitate analysis. All of the observed variables in this study are self-rating items, which were done so that researchers could gauge the respondents’ opinions. These observed variables are also taken as gages of various underlying variables, which are depicted by great abbreviations in the graph. Indicator variables of a latent practice variable include things like partnerships, strategic planning, process integration, and the use of information and communications technology (ICT). In other words, we are modeling the various latent variables by utilizing variables that act as indicators. Even though we do not directly measure the latent variables, it is still very important that we have a good understanding of them. To determine whether or not a certain practice positively influences the outcome, we must have a solid understanding of the fundamental connections between the practice and the result. For the initial analysis, we have all of the weights set to 1, which is the default setting. After completing the numbering, the model is now in a usable state. It is now possible to estimate AMOS linkages, such as practice leading to outcome and outcome leading to performance.

Fig. 2

Path diagram

Several solutions were implemented to decrease the amount of missing data. As a direct consequence of this, the rate of missing data has been successfully maintained at or below 5 percent. Because this study only has a small number of missing data points, the researchers decided to use list-wise deletion as their data imputation method.

The maximum likelihood estimation (MLE) method was selected as the optimal choice for use in combination with confirmatory factor examination to assess the viability of the primary model. The most critical assumption is that each indicator variable follows a normal distribution when running MLE. Byrne (2001) suggests that the value of any skewness coefficients or kurtosis for indicator variables must not exceed the value of 1.96 in order to guarantee that the variables are normally distributed. Despite this, the total value of the multivariate kurtosis statistic (45.035) is significantly greater than the threshold value of 10. Based on this result, it is clear that the initial model suffers from a severe breach of multivariate normality. The MLE solution will produce more biased estimates than they would be otherwise, even though Tevapitak and Bert Helmsing (2019) claims that an SEM result may still be precise and valid even after a severe violation of multivariate normality. The application of a bootstrap estimate is considered a potential solution to reduce the amount of bias present in this study. The model does not fit the raw data well, as demonstrated by the bootstrap estimate. According to the results of the MLE analysis, the chi-square for the first model is 170.330, and the associated probability level is 0.000. The conclusion suggests that the model does not fit the raw data well, which contradicts the null hypothesis. TLI, CFI, RMSEA, and HOELTER are the descriptive model-fit tests that were chosen to be referenced after being chosen from a larger pool of candidates. According to Hu and Bentler (1999), a good model fit would have TLI values larger than 0.9, CFI values larger than 0.9, RMSEA values less than 0.08, and HOELTER values larger than 66. On the other hand, the descriptive statistics tests do not support the assertion that the model is a good fit. That is to say, by signifying to the bootstrapping, chi-square, and descriptive model-fit tests, we are now able to realize that the original model has a poor entire fit to the raw data (chi-square = 170.330, p < 0.000, TLI = 0.721, CFI = 0.770, RMSEA = 0.140 and HOELTER = 37).

In particular, to respond to the questions posed by the research, it is essential to understand the one-to-one relationships that exist between practice, outcome, and performance. The consequences of the study are presented in Table 2, and when the p values are considered, it appears that all of the regression weights and the loadings are significant. Two deductions can be strained from this: The first is that each indicator variable has a significant loading on the latent variables. According to regression weights, practice positively impacts performance, and the outcome has a positive impact on performance. This is consistent with the research question. One example of this is strategic planning, which significantly influences practice. Other examples include partnership, process integration, and information and communication technology (ICT).

Table 2

Respondent profile

Item	Characterization	Frequency	Percent
Gender	Female	218.4	32.655
	Male	484.05	72.345
Employee type (domestic and global)	Local	542.85	81.165
	Global	159.6	23.835
Employees work in local or global companies	Domestic industry	672	100.485
	Global companies	30.45	4.515
Specialization	HRM department	178.5	26.67
	Marketing department	166.95	24.99
	Bookkeeping/funding division/section	137.55	20.58
	Information technology department	115.5	17.22
	Cusomer care center	78.75	11.76
	Operations department	25.2	3.78
Position level	Top level managers	300.3	44.94
	Middle level managers	139.65	20.895
	Lower middle level management	177.45	26.565
	Lower level managers	85.05	12.705

We referred to the modification indices in AMOS to locate a model that was a better fit for the data. These modification indices included strategic planning, greenness, resiliency, and innovation. After taking out these four observed variables—strategic planning (in practice), environmental friendliness (in outcome), resiliency (in outcome), and innovativeness—a model that fits the data well has been developed (in outcome).

All of the Cronbach’s alpha values are more than 0.7, depicting that the structure is consistent. The practise value is 0.718, the outcome value is 0.840, and the performance value is 0.709. The validity of the model is demonstrated by the fit indices, which are as follows: chi-square = 45.807, probability level = 0.068; Bollen-Stine bootstrap p = 0.433; CFI = 0.955; TLI = 0.938; RMSEA = 0.07; and HOELTER = 83.

It was determined whether the model assumption held for the modified model. The conclusion drawn from the findings is that the revised model exhibits serious deviations from normality distribution. In light of this, the chi-square test will be carried out in conjunction with the bootstrap estimate. TLI = 0.938, CFI = 0.955, RMSEA = 0.07, and HOELTER = 83 all show a consistent result, which further approves that the final model has a good fit to the raw data. This can be seen by further examining TLI, CFI, and HOELTER tests. TLI = 0.938, CFI = 0.955, RMSEA = 0.07, and HOELTER = 83. As shown in Table 3, each weight and loading is of significant importance.

Table 3

Measurement assessment results

Variable	Item	Alpha	CR	AVE	Loadings
COVID-19	COVID1	0.843	0.889	0.615	0.778
	COVID2				0.755
	COVID3				0.812
	COVID4				0.787
Green innovation	GIN1	0.877	0.907	0.620	0.787
	GIN2				0.769
	GIN3				0.773
	GIN4				0.821
Green marketing	GMK1	0.868	0.901	0.603	0.816
	GMK2				0.797
	GMK3				0.744
	GMK4				0.762
Green supply chain	GSCM1	0.879	0.906	0.581	0.750
	GSCM2				0.752
	GSCM3				0.825
	GSCM4				0.778
Green HRM	GHRM1	0.879	0.908	0.642	0.790
	GHRM2				0.747
	GHRM3				0.757
	GHRM4				0.804
	GHRM5				0.796
Social awareness	SOCA1	0.866	0.903	0.651	0.785
	SOCA2				0.725
	SOCA3				0.717
Environmental awareness	ENVA1	0.861	0.900	0.642	0.749
	ENVA2				0.822
	ENVA3				0.799
	ENVA4				0.818
Green manufacturing	GRNM1	0.828	0.879	0.593	0.806
	GRNM2				0.740
	GRNM3				0.796
	GRNM4				0.787
Green design	GRND1	0.860	0.898	0.618	0.842
	GRND2				0.827
	GRND3				0.782
	GRND4				0.780
	GRND5				0.818
Recycling and remanufacturing	R&R1	0.868	0.901	0.603	0.810
	R&R2				0.811
	R&R3				0.787
	R&R4				0.792
Information technology	INFT1	0.879	0.906	0.581	0.769
	INFT2				0.809
	INFT3				0.771
	INFT4				0.707
Sustainable business practices	SBP1	0.879	0.908	0.642	0.769
	SBP2				0.809
	SBP3				0.771
	SBP4				0.707

We refer to this modified model as the final model.

The proposed structural model was analyzed to test the hypothesis and determine whether the initial model had a poor fit. We modified it and obtained a good-fit model after removing four observed variables (chi-square = 45.807, probability level = 0.068; Bollen-Stine bootstrap p = 0.433; CFI = 0.955; TLI = 0.938; RMSEA = 0.07; and HOELTER = 83). We found that these variables, which had a high contribution to the modification indices, could be an accurate representation of the current situation. Strategic planning and SBP are two practices lacking in China’s small- and medium-sized enterprises (SMEs) (Troise et al. 2022). Based on the data above, we can conclude that strategic planning, partnership, process integration, and ICT use significantly influence practice. More importantly, to some degree, practice is positively related to outcome, while the outcome is positively related to performance.

This study also shows that SBP is not an artifact exclusively for large enterprises. Although the collected data did not fully support the initial model, the final model proposes that SMEs can work on three characteristics of sustainable business practices to obtain competitive advantages. The SMEs’ outcomes mainly reflect efficiency, agility, and security performance.

Common method bias

Since the data for this study were gathered through the use of the key informant method, common method bias is a potential issue that can lead to measurement errors. These errors, in turn, have the potential to call into question the validity of the inferences regarding the relationships between the hypotheses. In the first step of the process, a single-factor test developed by Harman was used to examine the possibility of common method bias. According to the findings, no single variable could be credited with adequately explaining all of the variances. In addition to the Harman test, the marker-variable technique was used. This was done because the Harman test tends to be quite conservative when detecting bias (Fleming et al. 2016). Although it had no theoretical association with any of the other variables in this study, the questionnaire that asked respondents, “Would you prefer to visit Ha Long Bay during the national holiday this year?” was used as a marker variable. When the effects of the relationships between the marker variable and the other constructs were taken into account, the mean change in the correlations between the primary constructs was only 0.03. As a result, it appears from the results of all of the tests that have been outlined above that this study does not exhibit common method bias. In addition to that, the study investigated whether or not this study could be subject to multicollinearity. The maximum inner variance inflation value was 2.48, which is a significant amount lower than the value of 10, which is the “rule of thumb.” As a result, the degree of multicollinearity in this study is practically nonexistent.

Measures

An investigation of the relationship between technological innovation (inputs) represented by technological, organizational, and environmental factors, as well as green practices (processes) like green human resources management, green innovation, green supply chain, and sustainable performance was the primary goal of this study (as outputs). In addition to this, the study investigated the causal impact that technological innovation has on environmentally friendly practices and the impact that environmentally friendly practices have on sustainable performance. A survey instrument composed of questions culled from previously developed surveys was created to test this conceptual model. This survey was translated into Arabic in order to confirm that all participants understood the questions. In this case, the measurement was made using perception, and the individual served as the unit of analysis. Each scale consisted of multiple dimensions and had multiple levels. The level of technological innovation was evaluated based on responses to 18 questions, which were then broken down into three categories: environmental factors, organizational factors, and technological factors, each of which was evaluated based on responses to seven, six, and five questions, respectively. Based on previous research, these factors have been incorporated into the new study (Krasniqi et al. 2021). Twenty-two criteria were used to evaluate green practices during this period, which were then grouped into four categories: green technology, green marketing, green human resources, and green supply chain. Criteria for evaluating the effectiveness of green HRM were drawn from six sources (Barrett et al. 2021). In addition, five items taken from (Crovini et al. 2021) were used to evaluate green marketing, and five items were taken from (El Chaarani et al. 2021), were used to evaluate the green supply chain. If you want to know more about the effects of cannabis on the human body, you need to look no further than these studies. When it came to measuring sustainable performance, five items were selected.

Statistical analysis procedure

There was an online survey that could be completed and submitted. Each of the responses received was given an initial scan using the SPSS 23 program. The procedure resulted in the submission of 756 questionnaires. Eighty-seven of the responses received were deemed ineligible for further analysis based on the initial scanning of the responses and the fact that many of the questions had the same response (e.g., all of the questionnaires were strongly agreed or strongly disagreed). As a result, 88.5% of the total completed questionnaires were valid, resulting in 669 questionnaires for analysis. Using partial least squares (PLS), this sample size was appropriate for the study (Miocevic 2021). Using the PLS-SEM technique, the structural model used in this study was evaluated on a computer running the SmartPLS program.

Two primary stages of analysis were performed on the final valid data, which were the questionnaires. The first phases of the project focused on testing the adopted measurement to ensure its validity. The tests for skewness and kurtosis ensured that the items being used had a normal distribution. The Cronbach’s alpha and composite reliability (CR) tests ensured that the study mode had reliable internal consistency. Following that, the research model was validated by using convergent and discriminant validity tests. The multicollinearity test, which included both an inner and an outer test, was performed with the variance inflation factor (VIF) method before the structural equation modeling test. This was done to know whether or not any strong errors could occur as a result of the strong connections between the latent variables.

Analysis and results

Measurement assessment

In mode A, the variables used for the research were measured using reflective one-dimensional variables of first and second-order reflective types. The SEM-PLS methodology was selected for this investigation because of the subsequent considerations: (1) the landscape of the objects being reflective; (2) the design of the quantitative–predictive type of research; and (3) the size of the sample in addition to the robustness of the model with first- and second-order constructs. According to Le and Nguyen (2022) the constructs and indicators of this research are classified as a part of the social sciences because they examine the actions and business activities of SMEs’ front-runners. Reflective models are best suited for measuring this type of construction because of their versatility. This model works on the premise that the variance of a group of effects can be completely accounted for by an unnoticed variable known as the common factor and the random errors associated with that variable. This model assumes that measurement errors do not correlate with any of the other variables, constructs, or other types of errors. The latent variable cannot be directly observed in any given situation. The only evidence that indirectly supports the existence of the indicators is the pattern of correlations between them. The indicators all have something in common and the fact that the chain of causality goes from the construct to the measurements.

The two-stage approach was utilized when analyzing the multidimensional constructs (of the second order). In order to accomplish this, the scores of the latent variable were analyzed. These aggregate scores are used to model the second-order construct after the first-order dimensions have been estimated. This process is broken down into two stages. Using the SEM-PLS, the method based on variance was applied to perform an analysis of the statistical data of the anticipated theoretical model. The software SmartPLS Professional version 3.3.5 was utilized to analyze both the structural and measurement models. All of the first- and second-order constructs had factorial loads that were either very close to or significantly higher than the value of 0.707.

Model validity

In this study, a quantitative approach was taken, and the technique known as CB-SEM (covariance-based structural equation model) was utilized. CB-SEM was utilized in this investigation as a result of the following considerations. In terms of sample size, this study used the “10-times rule” and an additional precaution against non-response bias to compute the sample size. This was done to ensure that the results were not skewed by non-response bias. Consequently, an initial sample size of up to 510 was calculated, which is considered a large sample size. A total of 475 valid samples were collected after the survey was completed. Because this was a large sample size, CB-SEM was chosen as the approach most appropriate in this case. CB-SEM estimates are more accurate than PLS-SEM estimates for sample sizes of fifty or more, according to Loader (2015). The findings of their investigation lead them to this conclusion.

In order to test the discriminant validity of the scales, the procedure developed by Fornell and Larcker (1981) was utilized. This procedure calls for a comparison of the variance extracted for each pair of constructs (AVE coefficient) with the squared correlation estimate between these two constructs. The results of this comparison determine whether or not the scales are discriminant (Table 4). The fact that the extracted variances for each construct were higher than the squared correlation between them in every instance provides evidence in favour of the measurement scales’ capacity to discriminate between different types of phenomena.

Table 4

Square roots of AVE and factor correlation coefficients

	COVID-19		GIN	GRM	GSCM	GHRM	SOCA	ENVA	GRNM	GRND	R&R	INFT
COVID-19		0.76
GIN		0.45	0.74
GRM		0.36	0.45	0.81
GSCM		0.38	0.39	0.48	0.71
GHRM		0.25	0.31	0.36	0.39	0.81
SOCA		0.22	0.36	0.35	0.36	0.32	0.73
ENVA		0.44	0.52	0.46	0.44	0.40	0.45	0.69
GRNM		0.39	0.42	0.47	0.46	0.51	0.39	0.63	0.74
GRND		0.43	0.41	0.38	0.40	0.39	0.35	0.58	0.54	0.70
R&R		0.46	0.38	0.37	0.40	0.41	0.45	0.55	0.56	0.54	0.78
INFT		0.39	0.42	0.40	0.41	0.41	0.47	0.61	0.61	0.62	0.78	0.89

The bold values in the diagonal line represent the square root of the average variance extracted

Second, compared to PLS-SEM, CB-SEM has some advantages. In particular, CB-SEM can distinguish between the measurement error and the manifest variable, enabling it to produce the most accurate estimate of the factor loadings possible. One more benefit of using CB-SEM is that it can accurately identify the multicollinearity problem. This is made possible by the modification index tool associated with this application (Caballero-Morales 2021). In contrast to PLS-SEM, which does not offer this advantage, the CB-SEM methodology makes it possible for the researcher to determine which components of the construct have the potential to have a negative impact on the meaning of the construct. In addition, the construct reliability of CB-SEM may be more reliable than that of PLS-SEM due to the possibility of bias in the estimates of factor loading value produced by PLS-SEM. PLS-SEM has the potential for bias, so this is not recommended. It is also clear that CB-effect on construct reliability is more pronounced than PLS-when SEM’s it comes to average variance extract estimates in various samples and models. Furthermore, Kijkasiwat (2021) claims that CB-SEM is preferred to PLS-SEM in parameter precision. As a result of using a consistent estimator, the CB-SEM estimation method can produce consistent attributes across different contexts. A questionnaire-based online survey was used as the primary source of information.

Analysis of structural model

Before the structural modeling test was carried out, the variance inflation factor (VIF) method attempted to rule out the possibility of any errors being caused by strong correlations between the latent variables utilized in the study. Using PLS-SEM, a collinearity problem was indicated when the VIF was less than 3.3. The VIF values (both inner and outer) that fall below this threshold are shown in Table 5. Therefore, in addition to the results of Harman’s single factor test deliberated earlier, these two results guarantee that there will not be any issues with multicollinearity.

Table 5

Hypothesis test results

Hypothesis	Path	β coefficients	T statistics	P values	Result
H1	COVID-19 → SBP	− 0.371***	6.57	0	Support
H2	Green innovation (GIN) → SBP	0.125**	2.15	0.032	Support
H3	Green marketing (GMK) → SBP	0.267***	5.29	0.001	Support
H4	Green supply chain (GSCM) → SBP	0.378***	4.72	0.001	Support
H5	Green HRM (GHRM) → SBP	0.33**	5.86	0.021	Support
H6	Social awareness → SBP	0.506***	9.07	0.002	Support
H7	Environmental awareness → SBP	0.175**	2.98	0.001	Support
H8	Green manufacturing (GRNM) → SBP	0.227	2.91	0.401	Support
H9	Green desing (GRND) → SBP	0.117**	1.85	0.035	Reject
H10	Recycling and remanufacturing (R&R) → SBP	0.22*	4.22	0.051	Support
H11	Information technology (INFT) → SBP	0.373***	8.67	0.001	Support

In Fig. 2, all of the model’s path coefficients (β) values are displayed. To find out whether or not something is significant, a bootstrapping algorithm with 5000 samples was used in PLS (Table 5). The t value was greater than 1.96, and the p value needed to be less than 0.05 to validate the hypothesis. The error probability for the β values was estimated to be 5% based on these two values.

The findings shows that organizational factors have a positive impact on green HRM, green innovation, green marketing, and a green supply chain. In addition, technological factors contribute to green HRM, green innovation, green marketing, and green supply chain (= 0.33, 0.50, 0.17, and 0.20, respectively). In addition, environmental factors (= 0.22, 0.37, 0.25, and 0.41, respectively) increase green innovation, green marketing, and green supply chain. Sustainable performance can also be improved by implementing green HRM, green innovation, and green marketing strategies (= 0.41, 0.24, and 0.19, respectively).

According to a p value of 0.109, environmental factors did not affect green human resources management. H9 is also rejected because the green design has no significant impact on sustainable performance (= 0.01; p 0.05). All remaining constructs had significant path coefficients () and p values. Thus, all remaining hypotheses were found to be correct. Furthermore, the coefficient of determination, R2, was used to evaluate the relationship between the latent dependent variable (sustainable performance) and the total variance. GHRM, GIN, GR&R, and GSC each accounted for about 51.5% of the total variance, explained by technological, organizational, and environmental factors, as shown in Fig. 2. About 52.9% of the variation in long-term performance could be explained by the four factors mentioned above.

Discussion

Small- and medium-sized enterprises (SMEs) faced many obstacles and setbacks due to the COVID-19 restrictions, making it difficult for them to maintain their viability in this unstable environment. Technology innovation had an impact on small- and medium-sized businesses’ sustainable performance through the use of sustainable practices such as green human resource management (GHRM), green supply chain management (GSCM), and green marketing (GMK).

A few pioneering studies were conducted during the COVID-19 pandemic, and this one is one of them. Using the theory of resource-based view (RBV) in conjunction with the TOE framework created a comprehensive framework for sustainable performance. Because it is one of the few pioneering studies, this one is significant. By applying environmentally friendly practices, this integration aimed to gauge the long-term sustainability of Middle Eastern SMEs. The findings show the importance of environmental factors in green marketing because it has the highest impact level compared to other environmentally friendly practices.

Ref (2020) conducted a similar study that found that green marketing plays a critical role in making companies more competitive by focusing on environmental variables as drivers of the firm’s competitive values as the primary strategic goals.

Although environmental variables have had an impact on green supply chains and green innovation, it does not appear that they have had a significant impact on green human resource management. This circumstance suggests that thru the COVID-19 disease, directors of SMEs may have been forced to choose between continuing to operate sustainably or going out of business as many other companies did. Because this crisis has caused people to be forced to work remotely, they did not focus on environmental variables related to HRM practices. As a result, they minimize the number of resources (i.e., energy, water, and raw materials) that they consume and lessen the number of emissions they release into the atmosphere. In light of COVID-19’s disruption, SMEs may not be influenced by environmental context pressures to engage employees in environmental issues or choose workers based on environmental criteria. Similarly important, reducing the number of resources used by the company and the emissions it releases into the air or water can have an influence on the adoption of green marketing strategies and practices. Some examples include promoting electronic commerce, increasing the number of digital communication methods used to promote their goods and facilities, and implementing a paperless procurement policy in their operations.

One of the main drivers of new, positive GSC practices is the pressure from a specific stakeholder group. Though Ardito et al. (2021) support the current belief that GSCM practices can powerfully enhance the environmental performance of a firm, it is worth noting that this pressure represents one of the key drivers of GSCM implementation. Accordingly, the different contexts in which GSCM practices are implemented can be linked to various performance outcomes. The Omani economy is expanding rapidly in areas where a variety of international companies are present. On the other hand, most Omani SMEs are relatively new and small; for example, they have very few employees and are still in the early stages of operation and investment; for example, they have fewer than 5. Omani environmental laws and regulations are still in their infancy, despite the Omani economy’s rapid growth and the presence of many international corporations. SMEs in Oman might need more time to evaluate the long-term effects of GSC before deciding to implement it. An argument can be made that GSCM does not improve performance because it takes time, experienced leadership support, and commitment to implement. Zainal et al. (2022c) found the same thing, concluding that GSCM practices had no impact on environmental performance and development in the United Arab Emirates, a similar context (Le 2022). Because supply chains in crisis are more likely to wisely use their unique and uncommon internal resources when formulating strategies to achieve their competitive advantages, the GSC has little impact on sustainable performance. This is particularly critical in the current competitive environment, which favors supply chains over individual companies. To encourage others to take greater ethical responsibility in protecting our planet, companies could instead share their success stories about GSC practices’ advantages and positive effects (Rahman et al. 2022).

As a result of the current crisis, the vast majority of traditional and physical marketing activities have begun to shift to digital ones. Green HRM and the green supply chain were influenced by organizational factors, whereas green innovation and the green supply chain had the greatest impact on technological factors. Both of these factors are considered to be environmentally friendly. The results are in line with the hypothesis (Ahokangas et al. 2021). According to these findings, SMEs in Omani society are more likely to provide relevant training and advise their contractors and suppliers to follow environmental criteria if they care about their societal values and invest more time and effort in adopting sustainable development practices. As a bonus, this circumstance is in line with Wu et al. (2021).

According to the findings of this study, Omani SMEs can benefit from research and development in order to produce high-quality goods or by using new technology in the manufacturing process. The findings were also reported by Wu et al. (2022). These findings also indicate that Omani SMEs are using new technology to produce and deliver products during the COVID-19 pandemic. Additionally, they work with subcontractors and suppliers who adhere to environmental standards and participate in eco-friendly design and development. Researchers (reference) have previously found a link between technological factors and green management practices, and this new finding now corroborates their findings.

Recent years have seen a rise in the number of business professionals and academics who are interested in the concept of sustainability. In addition to concentrating on the financial profits that can be made from their activities, businesses need to take into account the effects that those activities will have on both society and the environment (Elkington 1994; Elkington et al. 2004). It is possible that by doing so, businesses will be able to cut costs, increase effectiveness, maintain their business marketplace, and ultimately become practical contributors to both society and the business market over a long period of time.

We summarise an integrated sustainability framework and research model based on the resource-based view of the firm and literature in SCM, MIS, HRM, and sustainability. In this model, it is suggested that the integration of HR, SCM, and IT resources is vital for businesses to advance sustainability capabilities that enable them to deliver sustainability value to stakeholders while all at the same are adding wealth and gaining sustainable competitive advantages for the firms themselves. Specifically, our proposals argue that different types of IT resources, such as automation, information, transformation, and infrastructure, can make distinct contributions to businesses in developing sustainability capabilities for various sustainability goals spread across the four quadrants of the integrated sustainability framework. Our study adds several important new insights to the body of knowledge we already possess regarding environmental responsibility.

In this section, we will discuss the most important findings from the research study that was conducted based on the theory of competitive behavior and the theory based on resources and capabilities. The following describes the findings obtained from the testing of the theories contained within the suggested theoretical model to address the aims and concerns raised by the investigation.

The first section will examine hypotheses H1, H2, and H3. According to the findings, SME competitiveness has not been boosted by financial or market-oriented business strategies. According to Ulvenblad and Barth (2021), Business strategy has no significant impact on the management of innovation or SMEs’ economic indicators, according to these findings. To survive in a highly competitive market during a pandemic, businesses often shift their focus to new kinds of activities that permit them to achieve outcomes quickly. This suggests that small- and medium-sized businesses are presently implementing novel policies, such as using skill for their market tactics. In totaling, they are experiencing severe economic problems and inferring this from the fact that corporate tactic has a minor but significant negative impact on business functioning. According to the theory of competitive behavior, these findings support the use of business strategies in the face of external impacts from the COVID-19 pandemic. The theory of business resources and capabilities can now be used to explain these findings. SMEs’ lack of managerial and financial capabilities are strong barriers to gaining organizational and financial advantages. It has been hypothesized in studies of competitive behavior that risen net profit for businesses is a result of successful competition. RBV displays that businesses that successfully implement market and economic tactics are primarily capable to act so because of the quantity of physical and impalpable resources they have, which provides them with a modest benefit and eventually leads to more long-term financial achievement. Financial constraints can have an effect on how quickly a company adopts new products and market strategies as well as on the adoption of innovative practices and economic indicators. Because of this, the market cannot expand as quickly as it could Ahokangas et al. (2021). SMEs may have financial constraints or capacities and organizational uncertainty, which may explain why a substantial relationship between market and economic techniques and novelty has not been located. Ulvenblad and Barth’s (2021) findings align with our findings, confirming the importance of learning from consumers, opponents, and suppliers in identifying chances and improving innovation controlling in SMEs. However, these challenges can inspire managers of small- and medium-sized enterprises (SMEs) to be more creative and, of course, to put the focus on promoting innovation (Belas et al. 2021). According to our findings, SMEs have become more vulnerable to the COVID-19 pandemic, according to Barabaschi et al.’s (2022) findings. SMEs are struggling to keep their financial health in check and grow innovative marketing strategies, which have resulted in a significant and critical company’s competitive wear, to the point where they are only capable of surviving and covering their operational expenses, which has a severe impact on their financial returns.

The findings of hypotheses 4 and 5 are discussed in the second block, where they are shown to have significant and favorable effects. Based on these findings, we can conclude that small- and medium-sized enterprises in this area are engaged in a fiercely competitive tussle. The organizations known as SMEs are providing support for this attack of the COVID-19 pandemic. Despite Mexico’s lack of economic incentives to combat the global economic crisis, this is still the case. In order to maintain a competitive edge in the market, it is essential to keep an eye on and manage innovation. As a result of their ability to maintain a reasonable amount of sales and financial advantages, they can meet their commitments (Saguy 2022). Considering that those in charge of running SMEs are putting their innovative and creative skills to adapt to the market’s shifting dynamics — from physical markets to virtual ones — these results are in relevent with the theory of resources and competencies. The findings support the theory of resources and competencies. Pattinson et al. (2022) found that management models and processes need to be adopted and implemented to foster organizational innovation. As a result, the companies’ employees and managers must put in a lot of effort, which helps the companies become more competitive and deliver better results over time. Researchers Molina-Ibáñez et al. (2021) found that intangible assets and corporate strategy play an important role in determining a company’s innovation and financial performance. Our research results are very similar to theirs. SMEs during the COVID-19 epidemic were more inventive and were able to establish new kinds of promoting tactics and acclimate their goods to the requirements of customers, as Canhoto et al. (2021) reveal. These factors permitted them to stay in the market and achieve satisfactory financial outcomes, which allowed them to steady their processes and maintain their profitability. As a result of the current market’s shift to the digital age, studies like those done by Kukanja et al. (2022b) show that ambidextrous innovation (both disruptive and incremental) is a daily occurrence in SMEs.

The outcome of the H6 experiment is discussed in the third and final blocks. According to the findings, the economic impact had a moderately positive and statistically significant effect on the operational performance of SMEs in this region. Because of these findings, we can conclude that the business abilities and competitive behavior of these companies’ managers have enabled these businesses to keep their economic fitness in a balanced state (in terms of the level of debt, liquidity, and economic solvency), while also being able to cover their operating expenses and costs. Innovative actions (improvements in products, processes, and management) and fresh sales networks like the use of social linkages and digital networks have permitted SMEs to invest in these strategies to enhance their marketing practices within new sales networks. Due to the actions taken by these companies, they have successfully maintained and gained new clientele to boost sales and profits (Ulvenblad and Barth 2021). Thanks to these actions, they have been able to improve their marketing practices through the use of new sales networks, such as digital programs and social linkages. Resource-based theory and competitive behavior theory both support these findings. As Belas et al. (2021) found, small- and medium-sized enterprises (SMEs) in most regions face high levels of debt and cannot generate a profit from their operations, which is in line with our findings. Research conducted by Barabaschi et al. (2022) is similar to our findings. SMEs in underdeveloped regions, on the other hand, have unreliable economic strategies and a deprived ethos of economic health, which results in economic indicators that are neither profitable nor sustainable; Pattinson et al. (2022) demonstrated this.

In totaling to the basic hypotheses on which the model was based, two additional control variables were examined. According to the results, small- and medium-sized businesses in the zone can improve their innovation practices and overall business performance by conducting business online. SMEs adopted and applied technological innovation during COVID-19 by enhancing their sales and marketing practices via social linkages and digital platforms. On the other hand, small- and medium-sized businesses adapt to new ways of working by implementing home offices as part of their innovative strategies. In order to meet current global challenges, these actions and strategies are commanding firms to optimize their innovation management methods.

Work–life balance is a hot topic right now, and the COVID-19 crisis may be the catalyst for a paradigm shift in corporate culture. This is true not only for established businesses but also for those who have started their businesses themselves. Associations and people that work jointly for a common goal can achieve great things. Many of the world’s most challenging issues could benefit from the expertise of people in other countries. Fresh inspiration for creative endeavors can be found when different ideas are brought together in new ways. As a result of companies realizing that they cannot do everything on their own, they have formed partnerships, collaborations, and alliances with like-minded organizations. The illustration of people getting together to face a shared opponent is previously improbable partnerships. One example of society coming together to face a common adversary is previously impossible partnerships. Remote innovators rely on different information, such as information based on technology or science, that is fewer responsive to time than market relevent information.

Thus, implementation, open innovation, and dynamic practices constitute a challenge for businesses on both organizational and financial levels. Telecommuting and other forms of remote work can serve as a catalyst for open innovation and the development of latest business techniques by facilitating the gathering of new information regarding society and markets. Businesses can precisely syndicate client feedback while also permitting customers to be more deeply engaged in the design development and management of product cycles.

In conclusion, we have included this section because we believe it is very significant to examine the findings of the multigroup investigation incorporated into the study. In order to achieve this objective, the categorical variable, which consists of family businesses and non-family businesses, was incorporated into the proposed theoretical model to test its effects. In order to lessen the impact of the global economic crisis, managers of non-family businesses were found to have paid particular attention to implementing innovative strategies. This was revealed by the fact that they were the ones who express the most responsiveness to the research and development of these strategies. The multigroup study’s findings, which revealed that family-owned and non-family-owned businesses had been hit hard by the COVID-19 pandemic, should be cited because they are critical to understanding the situation. Within the scope of this investigation, we took a look at two important strategic moves that can be made as part of open innovation. The research on open innovation strategies in family and non-family businesses for small- and medium-sized enterprises is completely incompatible. In some circles, non-family businesses are thought to be better able to foster innovation and make larger capital investments than family businesses. As a result, open innovation is more common in non-family businesses, giving them the appearance of being more open to collaborating with the outside world and capturing new knowledge. A company’s financial performance can be affected by its ability to improve its innovative practices (Molina-Ibáñez et al. 2021). The findings of our multigroup analysis are reflected in these postulates.

Conclusion and implications

This study contributes to the expanding body of research on sustainable business practices for SMEs. It utilizes the technological, organizational,, and environmental (TOE) factors and resource-based theory view to investigate the impact that SMEs’ internal green resources have on their ability to maintain a high level of sustainable performance. The original TOE framework has been expanded as part of this study by adding green exercises to find the SMEs’ level of sustainable business practices. The TOE factors went through the conceptualization stage as the input. The process stage consisted of sustainable green practices such as green remanufacturing and recycling, green supply chain, green marketing, and green HRM, and the output stage was sustainability. The purpose of incorporating this model was to investigate how adopting environmentally responsible business practices in SMEs can process the TOE factors that influence sustainable performance. The current research on SMEs, on the other hand, covers the factors that determine the implementation of environmentally friendly and socially responsible practices. These factors include environmental productivity and performance, environmental and social practices, social performance, and green innovation.

The findings of this study provide conclusive proof that technical and organizational factors, as opposed to environmental factors, are more important inputs for green innovation, green human resource management, and green marketing when small- and medium-sized businesses are looking to achieve sustainable performance. Since environmental responsibility and commitment are key components of sustainable development, small- and medium-sized enterprises (SMEs) must devote more time and resources toward this goal during a pandemic by adopting recruitment strategies based on environmental standards, such as being environmentally responsible and committed. It also necessitates higher investment in research and development to improve ecological efficiency and better-quality goods or services to encounter new environmental standards. This necessitates the use of updated technology in the production process and the delivery of service. Businesses of all sizes, especially small- and medium-sized ones, can benefit from the pandemic by using environmentally friendly products and promoting their services and goods via digital communication methods that promote an internal culture of reducing emissions, resource consumption, and the environmental impact of their products. SMEs are better equipped to weather economic downturns and continue to reduce hazardous waste, increase the use of environmentally friendly materials, improve environmental compliance, and emphasize green human resource management and green innovation due to these efforts.

Implications

Theoretical implications

Several factors were combined in this study to create a comprehensive model of sustainable performance in small- and medium-sized businesses. These factors showed a strong indication of achieving sustainable performance (SMEs). Measuring the performance of sustainability has been given a new perspective as a result of the integration of the theory of RBV and the model of the (TOE framework), particularly through the use of environmentally friendly practices as processes. In other words, the research has broadened the application of the TOE framework by incorporating a recently developed approach to environmentally friendly business practices. The TOE framework’s validity has been confirmed by this new approach, as all of its factors show a positive coefficient when measuring the level of sustainability achieved by SMEs. Internal and external factors can be syndicated using TOE, while green practices aligned with RBV have strengthened the theoretical view of sustainability performance in this framework. Green human resource management, green marketing, and green innovation all play an important role in keeping Omani SMEs on track during the COVID-19 crisis, according to this study’s findings The theoretical evidence that environmentally friendly business practices as input play an important role in the sustainable performance of small- and medium-sized enterprises is strongly supported by this combination (SMEs). Sustainable human resource management should be top of mind for Omani SMEs. For Omani SMEs to succeed in green marketing strategies, they need to focus more on environmental considerations, according to the findings of this study. When developing a strategy for green innovation, technological factors are the most important to consider, as expected.

Practical and academic implications

This study contributes to the existing body of academic research by providing a conceptual framework that simultaneously integrates the constructs of technical, human/organizational, green product development practices, and company performance. According to the findings, the importance of considering technical aspects of GPD and environmental management, in general, is reinforced by previously published research (Canhoto et al. 2021). These findings support the hypothesis that environmental management can be competitive. This is because GPD may have an impact on performance. Despite this, the findings of this study do not support the hypothesis that human and organizational factors significantly influence GPD. Research on GHRM and green organizational culture will benefit from these findings. Organizations must prioritize environmental management’s human component and provide more direct support for the field’s most cutting-edge environmental management practices. These new perspectives on improving these performance indicators have not been highlighted in previous research. Still, the findings of this study show a connection between GPD and the three different types of performance (e.g., and reliability and GPD or success and GPD in beginning new products).

Environmental management and the adoption of GPD practices are suggested to organizational managers as potential influences on a company’s performance, including market, functional, and environmental outcomes. Performance in all three areas is included here. As a result, when working to improve one’s performance, GPD is crucial. Study shows that businesses must invest in HOA, which is not always the case, based on the technical aspects. GPD implementation is not limited to large companies, businesses with an EMS, or companies under environmental pressure from green regulations, according to the findings of this study. Is it something that could be implemented and has a wide-ranging impact on performance is GPD?

There must be more research into the link between human factors and GDP and the development of strategies to make this link more important for business owners and executives to understand. This study also improved our understanding of the control variables we examined. As a result of these restrictions, the study’s findings and conclusions may have been tainted. These restrictions include the study’s focus on Brazilian respondents and the sample’s overall size.

Limitations and future research

Despite the significant contributions it makes, the current study has some shortcomings that should be considered. Even though there were two waves of data collection, it was impossible to deduce any causal correlations between the different variables. As a result, the validity of such associations can be strengthened through the conduct of a longitudinal study. Second, during the current COVID-19 pandemic, this study investigated Vietnamese manufacturing SMEs’ industrial hygiene (IO) and environmental practices. This study relied on self-reported data from managers because, third, it was difficult to obtain objective data on environmental performance from manufacturing SMEs in Vietnam (because of privacy issues), so the study relied on data reported by the managers themselves. In the future, research should collect objective data so that environmental performance can be evaluated. A further potential limitation of the study is that it was conducted in a geographically specific context. Because this study was carried out with Vietnamese small- and medium-sized manufacturing companies, it may have some restrictions in its applicability in other countries. Accordingly, from the perspective of institutional theory, there is a need for additional research to be carried out in nations that have a variety of political systems, approaches to international relations and international trade, cultural values, and environmental regulations.