The Integration of Renewable Energy Adoption in Sustainability Practices for Sustainable Competitive Advantage in Jordanian SMEs

This study investigates the extent to which renewable energy adoption contributes to achieving a sustainable competitive advantage in Jordanian small and medium-sized enterprises (SMEs) through enhanced sustainability practices. A quantitative research design was employed, utilizing data collected from 467 administrative personnel across 43 SMEs operating in diverse industries to ensure representativeness. Structural equation modeling (SEM) was conducted using SmartPLS 4 to examine both the direct and indirect effects of renewable energy adoption on corporate sustainability practices and its subsequent impact on long-term competitiveness. The findings indicate that integrating renewable energy into business operations significantly strengthens sustainable competitive advantage by improving operational efficiency, reducing costs, and enhancing corporate reputation. Furthermore, the results highlight the role of renewable energy adoption in reinforcing sustainability initiatives, thereby aligning environmental stewardship with strategic business objectives. These insights provide valuable implications for SMEs seeking to enhance market positioning through sustainability-driven strategies. Additionally, the study contributes to the existing body of knowledge on corporate sustainability and strategic management by elucidating the mechanisms through which renewable energy facilitates long-term competitive positioning. Practical recommendations are offered to policymakers and business leaders to support the effective implementation of sustainability initiatives within the SME sector.