Factors affecting business sustainability in family-businesses: the moderating role of organizational improvisation and access to finance

Small and Medium Enterprises (SMEs) contribute towards employment generation and economic growth in developing countries. Most SMEs operating in Pakistan were owned and operated by families. One of them is the surgical instruments industry which is not performing well even though this industry has potential good business sustainability. This study examined the factors affecting the business sustainability of family-owned SMEs. The study used a quantitative approach to investigate the role of succession planning, strategic flexibility, and market orientation in assessing the business sustainability of family-owned SMEs in the surgical instruments industry with the moderating role of access to finance and organization improvisation. Triple bottom line theory was the underpinning theory of this study. The study used surgical instrument industry of Pakistan as a unit of analysis, where owners/managers were representatives of organizations. A total of 392 questionnaires were collected for the final data analysis, and the response rate was 59.39%. The PLS-SEM technique was employed for the data analysis. The findings indicate that succession planning, and strategic flexibility have a significant and positive relationship with business sustainability. Market orientation indicates an insignificant association with business sustainability. Access to finance does not significantly moderate the relationship between succession planning, strategic flexibility, and business sustainability. Finance access significantly moderates the relationship between market orientation and business sustainability. Furthermore, organizational improvisation significantly moderates the relationship between succession planning, strategic flexibility, and business sustainability; however, organizational improvisation does not significantly moderate the relationship between market orientation and business sustainability. This study also discussed the theoretical, and practical contributions that provide the implications to managers/owners, regulatory authorities, and policymakers regarding the significance of succession planning, strategic flexibility, market orientation toward the business sustainability with the moderating role of access to finance and organizational improvisation. Future studies need to consider entrepreneurial thinking, networking orientation, and management accounting as predictors of business sustainability