Role of various determinants in developing strategies to create global competitive advantage and economic sustainability: A structural equation modelling approach.
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Abstract
Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic orientation and economic sustainability under unpredictable circumstances. This study collected quantitative data from a total of 284 micro small and medium enterprises (MSMEs) from Uttar Pradesh through structured interviews. Data were analysed using partial least squares structural equation modelling (PLS-SEM). Analysis for a model-free estimation using non-linear, multilayer, and parallel regression. The results revealed statistically significant and positive effect of strategic orientation on economic sustainability. Additionally, this study found that competitive advantage expanded the effect of strategic orientation on economic sustainability. Findings of analysis confirm high prediction accuracy of the model. Findings of the sensitivity analysis highlighted the importance of innovation, network and technological orientation, and the positive effect of competitive advantage on Carpet manufacturing MSMEs’ economic sustainability. In order to achieve long-term economic sustainability, Carpet manufacturing MSMEs should therefore focus on innovation capacity, vertical and horizontal networking and adoption of the latest designs and improved quality using latest technologies. The uniqueness of this study focused on the strategic orientation and value of competitive advantage of Carpet manufacturing MSMEs towards economic sustainability. Additionally, this study was the first to develop hybrid SEM network analysis to apply sensitivity analysis for the evaluation of the contribution of each exogenous predictor towards the endogenous construct.