Strategic Agility Mediates MSME Sustainability amid Trade Pressures and Green Finance Constraints in South Sulawesi

Kevin Samuel Massie () and Nurdjanah Hamid
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Kevin Samuel Massie: Hasanuddin University
Nurdjanah Hamid: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 2215-2227 from Springer

Abstract: Abstract The growing uncertainty triggered by trade wars, climate-related financial pressures, and governance challenges has raised urgent concerns over the sustainability of micro, small, and medium enterprises (MSMEs), especially in developing regions. This study aims to empirically examine the mediating role of strategic agility in the relationship between trade war pressure, access to green finance, and governance capacity toward sustainability performance of MSMEs in South Sulawesi, Indonesia. Grounded in Dynamic Capability Theory and Institutional Theory, the research employs a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on survey data from 182 MSME owners and managers across Makassar, Gowa, Parepare, and Maros. The results indicate that all proposed direct and indirect relationships are statistically significant. Strategic agility not only exerts a direct positive influence on sustainability but also serves as a robust mediator linking external pressures and internal capabilities to sustainable outcomes. The findings contribute to theory development in MSME sustainability by contextualizing agility within regional governance and financing constraints. Practically, this study suggests the importance of local green finance accessibility and agility training to enhance MSME resilience. Limitations and directions for future research are discussed to broaden the generalizability of the model across regions and industries.

Keywords: Strategic Agility; MSMEs; Sustainability Performance; Trade War Pressure; Green Finance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_154

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DOI: 10.2991/978-94-6239-709-5_154

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