Beyond the façade: knowledge reconfiguration and responsible innovation for sustainable SME performance – a KBV perspective

Purpose This study aims to investigate how female entrepreneurs and female small and medium enterprises (SMEs) managers leverage knowledge processes to enhance social, environmental and financial performance. Drawing on the Knowledge-Based View (KBV), this study examines the influence of network connectedness and reflexive learning on knowledge reconfiguration and explores how reconfigured knowledge facilitates responsible innovation and sustainable performance outcomes. Design/methodology/approach Data was collected from 301 female entrepreneurs and SME managers through a survey administered via Prolific, an established online research platform. Structural equation modelling was used to test the proposed direct, mediating and moderating relationships. Findings The findings of this study support the KBV by showing that network connectedness and reflexive learning facilitate knowledge reconfiguration, which promotes responsible innovation and improves social, environmental and financial performance. The non-significant moderating effect of knowledge quality further suggests that, in disadvantaged entrepreneurial ecosystems, the relevance and legitimacy of knowledge may matter more than conventional measures of knowledge quality. Practical implications The findings suggest that female entrepreneurs and SME managers can enhance sustainable performance by strengthening external networks, fostering reflexive learning practices and prioritizing responsible innovation to effectively transform knowledge resources into social, environmental and financial outcomes. Originality/value The integration of responsible innovation into the KBV offers a more context-sensitive understanding of knowledge processes, demonstrating how female entrepreneurs and SME managers leverage knowledge resources to advance inclusive and sustainable development outcomes.