The significance of sustainable business performance in manufacturing sector has gained wide recognition around the world. Though entrepreneurial skills and innovativeness are the cornerstones of sustainable business performance, existing literature is limited on how entrepreneurial skills and innovativeness impact sustainable business performance of manufacturing units. The goal of this study is to examine the effect of entrepreneurial skills and innovativeness on sustainable business performance from the perspective of Indian manufacturing micro, small and medium enterprises.
The study collected cross-sectional responses from 317 manufacturing enterprises operating in different sectors in India with the help of structured questionnaires. Partial least squares-structural equation modelling via SmartPLS 4.1 was employed to verify all the hypotheses in the theoretical framework.
The outcome of the study indicates that entrepreneurial skills and innovativeness are crucial predictors of sustainable business performance. Furthermore, it was revealed that innovativeness partially mediates between entrepreneurial skills and sustainable business performance.
The findings provide fresh perspectives to entrepreneurs, academia and policymakers into how key entrepreneurial skills can be catalysed with innovation to accelerate sustainable business performance. Policymakers can formulate targeted policies and programmes on strengthening innovation ecosystem and skill development of entrepreneurs in manufacturing enterprises.
The study expands the literature by investigating the indirect effect of innovativeness on the relationship between entrepreneurial skills and sustainable business performance in manufacturing units from an emerging economy perspective.
