The role of managerial competencies in managing resources for sustainable development strategy in SMEs
Abstract
Purpose
Grounded in upper echelon (UE) theory, this study aims to examine the role of managerial competencies (business experience, financial literacy and digital literacy) in sustainable development strategy, with resource management as a mediator.
Design/methodology/approach
The empirical data collection is conducted through a survey completed by 297 top management teams of small and medium-sized enterprises (SMEs) operating in Pakistan. Structural equation modelling in Smart PLS is used to substantiate the hypotheses.
Findings
The findings reveal that financially and digitally literate managers significantly contribute to the sustainable development strategies of SMEs. However, experienced managers do not focus significantly on sustainable development strategies. Resource management partially mediates the nexus between financial literacy and sustainable development strategy, as well as between digital literacy and sustainable development strategy. In contrast, resource management does not mediate the nexus between business experience and sustainable development strategy.
Research limitations/implications
This study recommends that SMEs should prioritize managers with digital and financial literacy over those with experience. SMEs led by a management team with digital and financial literacy are more effective in resource management for sustainable development practices, whereas experienced managers may not significantly prioritize managing resources for sustainability.
Originality/value
While research based on the UE theory significantly contributes to the body of knowledge on sustainable development, the role of managerial competencies, particularly business experience, financial literacy and digital literacy, in sustainable development strategy via resource management is neglected. This research fills this gap in the context of UE theory and thereby enriches the literature.
Keywords
Acknowledgements
The authors would like to thank the anonymous reviewers for their helpful comments and guidance during the review process. The authors also express their utmost gratitude to Professor Dr Carlos Noronha, the Editor-in-chief, for providing constructive feedback and his valuable expertise, which has significantly contributed to improving the overall quality of the paper.
Funding: This research does not receive any funding.
Citation
Sualeh Khattak, M., Wu, Q., Ahmad, M. and Ullah, R. (2024), "The role of managerial competencies in managing resources for sustainable development strategy in SMEs", Social Responsibility Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SRJ-11-2023-0634
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited