Sustainable development practices have become very important for firms to go beyond short-term profitability, towards economic, environmental and social sustainability. This research aims to examine the relationship between a firm’s sustainable development practices and its financial performance. Modelled as a multidimensional construct, sustainable development practices are represented by environmental practices, social practices in the workplace and social practices in the community, while financial performance is determined by profitability and growth. Using a mixed method survey, data were obtained from 389 textile firms in Vietnam, where there is a dire need to promote sustainable and environmental practices. Data analysis using partial least squares structural equation modeling demonstrates that sustainable development practices positively affect financial performance directly and indirectly via customer loyalty, employee satisfaction and corporate reputation. The findings also reveal the moderating role of entrepreneurial orientation, whereby the impact of sustainable development practices on financial performance is stronger for firms that are more innovative, proactive and willing to take risks. Taken together, these findings provide support for firms to holistically implement sustainable development practices and adopt an entrepreneurial orientation.

Purpose: – The study aims to explore the innovative characteristics of small- and medium-sized enterprises (SMEs) and the link between their innovation and business performance in the emerging Dubai market in the United Arab Emirates.Design/methodology/approach: – Using data from 200 SMEs, the study utilizes a structured survey that was developed from a methodical literature review. Both descriptive and inferential statistics were used to evaluate the findings.Findings: – The findings described the innovative characteristics of SMEs and suggested that there is a significant positive link between innovation and business performance.Research limitations/implications: – The study offers SMEs with innovative behaviors a better perspective of their business and market environments. However, the study is limited to SMEs operating in the Dubai marketplace. Future research could also look at other markets and use qualitative research methods.Originality/value: – The study provides important insights that could guide SMEs in their understanding of innovation and its benefit in emerging markets. The findings reinforce the growing empirical evidence of the positive impact of innovation on business performance. The findings also challenge the assumption that innovation drains resources in emerging markets.