Growing Success With Sustainable Business Practices Among Small and Medium Enterprises ( <scp>SMEs</scp> ): A Resource Orchestration Theory Perspective

ABSTRACT Prior Sustainable Business Practices (SBP) research has predominantly focused on conceptual or systematic reviews. The specific drivers that facilitate successful SBP adoption are poorly understood. This study examines four key drivers of SBP: green dynamic capabilities, supporting organizational culture, knowledge management, and green innovation based on resource orchestration theory. While resource orchestration theory has proven valuable in operational and supply chain contexts, its application to SBP remains underdeveloped. Using data from 345 small and medium enterprises and analyzed via Partial Least Squares Structural Equation Modeling, the findings confirm that green dynamic capability, supporting organizational culture, and knowledge management positively influence SBP. Moreover, green innovation significantly mediates the relationship between green dynamic capability and SBP. This study advances resource orchestration theory by investigating how small and medium enterprises jointly orchestrate their resources to achieve SBP. This study contributes to sustainable development goal 8 by revealing how small and medium enterprises can reconcile environmental and social goals through resource orchestration, providing an implementation blueprint for emerging economies facing sustainability‐competitiveness trade‐offs.