Driving Multidimensional Sustainability: The Role of Entrepreneurial Marketing, Transformation, and Financial Capabilities in SMEs

Abstract

Small and medium-sized enterprises (SMEs) face mounting pressure to achieve multidimensional sustainability—covering economic, environmental, and social dimensions—amidst increasing resource depletion and evolving market preferences. This research looks at the important role of internal skills, specifically Entrepreneurial Marketing (EM), Transformation Capability (TRC), and Financial Capability (FCB), in promoting the multidimensional sustainability of small and medium-sized businesses. With increasing resource depletion and changing market preferences, the study shifts from focusing solely on digital transformation to a balanced model that includes Economic (STE), Environmental (STV), and Social (STS) performance. Using a quantitative approach and PLS-SEM analysis of 315 business actors, the findings show that Entrepreneurial Marketing is the strongest and most universal driver, significantly enhancing all three sustainability dimensions (β range: 0.161–0.241, p<0.01). Financial Capability acts as a specialized catalyst for Environmental Behavior (β= 0.228, p<0.001), while Transformation Capability mainly influences Social Concern Behavior (β= 0.221, p= 0.001). These results offer a strategic guide for practitioners, highlighting that while marketing drives overall success, financial and transformation skills should target specific ecological and social outcomes to achieve true, balanced sustainability.