Fostering competitiveness through knowledge management and sustainability-oriented resources: insights from manufacturing industries

Purpose This paper aims to examine the relationships between sustainability-oriented resources, innovative capabilities and competitiveness, accounting for the mediating roles of responsible innovation and organisational support. Design/methodology/approach The authors used a cross-sectional research design during the fiscal year 2023. Data were gathered from a sample of 493 manufacturing small- and medium-sized enterprises (SMEs) across the European Union (EU), the UK and the USA. Mediation effects were tested using the causal steps approach and path analysis. Findings The empirical evidence proves that both direct and indirect pathways enhance competitiveness, with responsible innovation and organisational support acting as key mediators. Practical implications This research suggests that SME managers should deepen their commitment to responsible innovation by embedding sustainability into business models and daily routines. Furthermore, policymakers should encourage targeted initiatives, such as grants or incentives, to support sustainable transitions and bolster long-term competitiveness. Originality/value Unlike prior research, this study’s dual-path model elucidates how these sustainability-oriented mechanisms enable SMEs to convert internal resources into competitive performance. By adopting a context-sensitive approach across different geopolitical environments, this research offers new insights into how firms can strategically leverage both tangible and intangible resources within diverse institutional frameworks.