Paradoxes on sustainable performance in Dhaka’s enterprising community: a moderated-mediation evidence from textile manufacturing SMEs

Abstract

Purpose Manufacturing small and medium-sized enterprises (SMEs) are heading towards smart manufacturing despite growing challenges caused by globalisation and rapid technological advancement. These SMEs, particularly textile SMEs of Bangladesh, also face challenges in implementing sustainability and organisational ambidexterity (OA) due to resource constraints and limitations of conventional leadership styles. Adopting paradoxical leadership (PL) and entrepreneurial bricolage (EB) is important to overcome the challenges. However, these dynamics are less explored in academia, especially in the Bangladeshi textile SMEs context. Hence, the purpose of this study is to investigate the influence of the adoption of smart technologies (ASTs), PL and OA, EB on sustainable performance (SP) of textile SMEs in Bangladesh. Design/methodology/approach A cross-sectional and primary quantitative survey was conducted. Data from 361 textile SMEs were collected using a structured self-administrated questionnaire and analysed by partial least square structural equation modelling (PLS-SEM). Findings The statistical outcome confirms that ASTs and PL significantly influence SP and OA. OA plays a significant mediating role for PL and is insignificant for ASTs, and EB significantly moderates among ASTs, PL and SP. Research limitations/implications As this study is cross-sectional and focussed on a single city (Dhaka, Bangladesh), conducting longitudinal studies and considering other parts of the country can provide exciting findings. Practical implications This research provides valuable insights for policymakers, management and textile SMEs in developing and developed countries. By adopting unique and innovative OA, PL and EB approaches, manufacturing SMEs, especially textile companies, can be more sustainable. Originality/value This study has a novel, pioneering contribution, as it empirically validates the role of multiple constructs such as AST, PL, OA and EB towards SP in the context of textile SMEs in a developing country like Bangladesh.