Integrating Sustainability Practices Into Strategic Management: A Framework for Small and Medium Enterprises

Abstract The integration of sustainability into strategic management is increasingly vital for small and medium enterprises (SMEs), which form the backbone of global economies. Despite limited resources, SMEs are uniquely positioned to adopt flexible and innovative sustainability practices aligned with their core values. This paper explores the drivers, barriers, and practical strategies for embedding sustainability into SME strategic management. Using a mixed-methods approach, the study analyses insights from 25 qualitative interviews and a quantitative survey of 217 SMEs. Key findings reveal that leadership commitment, cost efficiency, and market differentiation drive adoption, while resource constraints and knowledge gaps remain significant barriers. The paper introduces the SCALE framework—Strategic, Connected, Adaptive, Leveraged, Evolutionary—as a practical model for SMEs to integrate sustainability incrementally and effectively. This framework emphasizes alignment with business goals, stakeholder engagement, contextual adaptability, resource leveraging, and evolutionary progress. The research contributes to the literature by tailoring sustainability frameworks to SME-specific challenges and capabilities. It also offers actionable insights for SME leaders and policymakers seeking to enhance sustainability outcomes. Given SMEs’ collective impact on the economy and environment, supporting their sustainability integration is essential for advancing inclusive, long-term development.