Social Media Agility, Environmental Dynamics, and Sustainable Performance in SMEs: The Mediating Role of Innovation Capability and Moderating Role of the Circular Economy Business Model
DOI:
https://doi.org/10.33152/jmphss-10.3.12Keywords:
Social media agility, Environmental dynamics, Innovation capability, Circular economy business model, Sustainable performanceAbstract
This research explores the complex relationships between institutional theory, social media agility, and environmental dynamics in establishing and influencing the sustainable performance of Small and Medium Sized Enterprises (SMEs) in Thailand. Specifically the research investigated innovation capability from a mediating perspective and the circular economy business model from a moderating perspective across these relationships. The survey data were collected from 330 senior and middle managers working in SMEs in Bangkok and Pattani, Thailand. The study subsequently employed Structural Equation Modeling (SEM) based on an analysis of the survey data and to test a theoretical model. The findings reveal that social media agility (p < 0.001) and environmental dynamics (p < 0.001) play an essential role in strengthening the ability to innovate. Innovation capability, in turn, serves as an essential channel for the indirect impact of social media agility (p < 0.001) and environmental dynamics (p < 0.001) on sustainable performance. Moreover, the circular economy business model has a moderating effect on the connection between innovation capability and sustainable performance (p = 0.007). In summary, the model helps to explain 67.1% of the variance in innovation capability and 65.0% of the variance in sustainable performance, while the results can be considered beneficial from the point of view of management and policy.
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