Title: Sustainable Practices and SMEs Competitiveness in Emerging Markets: The Moderating Role of Government Incentives
Authors: Emmanuel Yusuf Attah Emmanuel Adejoh Ferdinand Ojonimi Edino
Volume: 9
Issue: 7
Pages: 107-115
Publication Date: 2025/07/28
Abstract:
This study explores how government incentives influence the relationship between sustainable practices and the competitiveness of small and medium-sized enterprises (SMEs) in emerging markets, drawing on the dynamic capabilities theory as its conceptual foundation. Employing a descriptive research design, the research gathered data from 250 SMEs located across Nigeria's six geopolitical zones through self-reported questionnaires. To analyze the data and test the proposed hypotheses, Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied. The findings reveal that sustainable practices are positively associated with SME competitiveness. Moreover, the analysis demonstrates that government incentives exert a strong and significant positive impact on SME competitiveness and serve as a positive moderator in the relationship between sustainable practices and competitiveness. The study addresses a notable gap in the literature, as few prior investigations have specifically examined the moderating role of government incentives in this context. By highlighting this dynamic, the research contributes valuable insights into how sustainable practices and supportive government policies together can enhance the competitiveness of SMEs operating in emerging economies.