Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2023.2218468
Business strategy and sustainability of Chinese SMEs: determining the moderating role of environmental uncertainty
YuHang Zhang
Sultan Sikandar Mirza
Raheel Safdar
ChengMing Huang
Chengwei Zhang
Sažetak
This paper investigates the relationship between business strategy
and sustainability of Chinese SMEs and how the environmental
uncertainty may affect this relationship. It analyses the impact of
active and passive business strategies on firms’ sustainability and
tests the potential moderating role of economic policy uncertainty
in this relationship. The empirical analysis is performed by
employing fixed-effect and GMM estimations on data collected
from 937 Chinese A-share non-financial companies listed on the
Shanghai and Shenzhen stock exchanges from 2010 to 2021. The
results show that the high-risk active business strategy of innovation
and new market development is associated with greater
business sustainability, and this relationship is stronger for SMEs
than for non-SMEs in China. Moreover, higher economic policy
uncertainty strengthens the positive relationship between active
business strategy and firm sustainability, implying that in periods
of higher environmental uncertainty firms which pursue active
business strategy achieve greater business sustainability. These
findings are useful for devising business strategy and can assist in
formulating policy initiatives seeking to ensure sustainable development
of SMEs in China.
Ključne riječi
Corporate business strategy; sustainability; environmental uncertainty; Chinese SMEs
Hrčak ID:
314889
URI
Datum izdavanja:
5.6.2023.
Posjeta: 49 *