Title: Delineating a trajectory for progressive SMEs towards a sustainable future: a cluster-based approach

Authors: Priyanka Kapoor; Shobhit Goel; Nidhi Nagar

Addresses: Amity Business School, Amity University, Lucknow, Uttar Pradesh, India ' Amity Business School, Amity University, Lucknow, Uttar Pradesh, India ' Department of Statistics, D.A.V. College, Kanpur, Uttar Pradesh, India

Abstract: Small and medium enterprises (SMEs) are critical for the well-being and robustness of any economy. They account for more than 90% of firms and 50% of employment generated worldwide. Thus, they need to imbed sustainability in their operational construct to remain globally competitive and environmentally responsible. This work presents an 'enterprise success' framework comprising variables - entrepreneurial orientation, enterprise competitiveness and external environment. The commonality of attributes amongst the SMEs is examined to develop clusters exhibiting similar traits; thereby locating development strategies based on this cluster approach that positively impacts their performance. Cluster analysis is completed using the K-means clustering technique, identifying the homogeneous SME clusters based on various firm attributes. The cluster formation helps locate pertinent factors that impact the enterprise's long-term competitiveness, enabling the development of an innovative and strategic foresightedness for a sustainable future. The proposed framework offers managerial exhortations, highlighting the optimum solution transit strategy towards sustainability.

Keywords: small and medium enterprises; SMEs; sustainability; interlocking circles model; entrepreneurial orientation; enterprise competitiveness; digital adoption; firm performance; cluster analysis; K-means clustering technique.

DOI: 10.1504/IJPQM.2023.134814

International Journal of Productivity and Quality Management, 2023 Vol.40 No.3, pp.340 - 363

Received: 02 Aug 2021
Accepted: 24 Dec 2021
Published online: 13 Nov 2023 *

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