Antecedents and consequences for sustainability in Malaysian small and medium-sized enterprises (SMEs)

Purpose This paper aims to examine the key antecedents and challenges faced by Malaysian small and medium-sized enterprises (SMEs) and the suggestion for the government to support SMEs in implementing sustainable practices. Design/methodology/approach In-depth interviews were chosen and conducted with seven SME owner-managers from Kuala Lumpur or Selangor, chosen through a purposive sampling technique. The data was analyzed thematically using NVivo 12 software. The study also extended the resource-based view theory by incorporating sustainable practices as an advantage for SMEs in the competitive business environment. Findings This study discovers the antecedents of sustainable practices are awareness, pressures, competitiveness and company image. According to the data, all SME owner-managers indicate that awareness is the main reason for implementing sustainable practices. The consequences of implementing sustainable practices in SMEs are financial issues, limited knowledge and skills and a lack of resources when implementing sustainable practices. The current study also suggests the government provides financial and non-financial support to encourage sustainability among the SMEs. Practical implications This paper may also provide the policymakers, SME Corporations, investors and SME owner-managers with an understanding of the current sustainable practices among SMEs. It also helps formulate policies, plans and actions to support SMEs in implementing sustainable practices. Originality/value The findings of this study contribute to the existing literature by highlighting the role of sustainable practices in enhancing firm performance while advancing the RBV theory in the context of Malaysian SMEs. This research fills a research gap by examining sustainability’s specific antecedents and consequences within this sector.