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<p>The importance of sustainability and application in the business sector is rising constantly. Therefore, understanding sustainability is critically essential to not impede practical execution. The aim of this paper is to determine the factors affecting perceived corporate sustainability practices (PCSPs) and identify the relationship between PCSPs and organizational performance (OP). A quantitative approach was used to gather information from 267 managers for manufacturing small and medium-sized enterprises (SMEs) in Yemen. To analyze the research model, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to investigate seven hypotheses. The findings demonstrate that top management, CSR, corporate environmental strategy (CES) and value proposition have a positive effect on the PCSPs, while the results contradict the assumption that there is a positive impact of green activities on sustainability perception. Furthermore, a significant correlation is found between PCSPs and the OP of Yemeni manufacturing SMEs.</p>

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Unraveling Corporate Sustainability: Drivers and Impact on Organizational Performance in SMEs

  • 期刊论文

  • 发表日期：

    2025年7月24日

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  • Wail Alhakimi,
  • Hajar Alnajjar

摘要

The importance of sustainability and application in the business sector is rising constantly. Therefore, understanding sustainability is critically essential to not impede practical execution. The aim of this paper is to determine the factors affecting perceived corporate sustainability practices (PCSPs) and identify the relationship between PCSPs and organizational performance (OP). A quantitative approach was used to gather information from 267 managers for manufacturing small and medium-sized enterprises (SMEs) in Yemen. To analyze the research model, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to investigate seven hypotheses. The findings demonstrate that top management, CSR, corporate environmental strategy (CES) and value proposition have a positive effect on the PCSPs, while the results contradict the assumption that there is a positive impact of green activities on sustainability perception. Furthermore, a significant correlation is found between PCSPs and the OP of Yemeni manufacturing SMEs.