Entrepreneurial Orientation, Agility, and Responsibility: A Triad for Sustainable Competitive Advantage

Purpose: This study investigates the interactions between entrepreneurial orientation, strategic agility, and corporate social responsibility (CSR) in influencing sustained competitive advantage in Moroccan Small and medium-sized enterprises (SMEs). Additionally, it analyzed the influence of competitive intensity, firm size, and age on attaining sustained competitive advantage. Design: We employed a dual approach to analyze 300 Moroccan SMEs, joining partial least squares structural equation modeling (PLS-SEM) and necessary condition analysis (NCA). PLS-SEM was utilized to maximize the explained variance of endogenous constructs and handle mediation effects, aligning with the study's explanatory purpose. The NCA was used to identify necessary conditions for sustained competitive advantage by examining the extent to which the conditions (i.e., entrepreneurial orientation, strategic agility, and CSR) are present in all cases where sustained competitive advantage is present. Findings: The PLS-SEM analysis found that entrepreneurial orientation positively influences sustained competitive advantage and CSR, and strategic agility partially mediates the relationship between entrepreneurial orientation and sustained competitive advantage and between entrepreneurial orientation and CSR. The NCA results imply that CSR, entrepreneurial orientation, and strategic agility have small but significant effect sizes, indicating they are necessary conditions for achieving higher levels of sustained competitive advantage. Additionally, firm age and size are not necessary conditions. Originality: This study provides a more comprehensive understanding of entrepreneurial orientation influencing sustained competitive advantage in SMEs. It challenges previous beliefs regarding the impact of CSR on sustained competitive advantage, particularly in the Moroccan SME context. Contrary to expectations, the findings indicate that CSR does not significantly impact sustained competitive advantage or mediate the relationship between entrepreneurial orientation and sustained competitive advantage. The NCA results further develop these findings by revealing that CSR is a necessary condition only for achieving upper levels of sustained competitive advantage in Moroccan SMEs.