Unveiling the influence of social network characteristics on sustainable performance in small and medium-sized enterprises: A dynamic capabilities perspective

Abstract

Gaining a deeper understanding of the mechanism through which social networks influence sustainable performance and exploring the role of resource bricolage in enhancing competitiveness are valuable. These insights can help small and medium-sized enterprises (SMEs) better adapt to market changes in the digital age and ultimately, this can enable SMEs to achieve sustainable development. In the context of accelerated technological change and resource scarcity, the question of how SMEs can leverage network resources to achieve sustainable growth has become a pressing issue. This study, grounded in social network theory and resource-based theory, develops a theoretical model exploring the relationships between social network characteristics, resource bricolage, and SME sustainable performance. Using survey data from 230 SMEs, the study empirically demonstrates that both social network scale and social network strength have significant positive impacts on sustainable performance. Additionally, resource bricolage mediates the effects of social network scale and strength on SME performance. Moreover, opportunity identification and opportunity exploitation-key dimensions of dynamic capabilities—moderate the relationship between resource bricolage and sustainable performance. This study highlights the mechanisms through which SMEs can leverage social networks to enhance their sustainable performance, offering theoretical guidance for effectively identifying and utilizing network resources in uncertain and dynamic environments.