The contribution of Small and Medium-Sized Enterprises (SMEs) to economic prosperity and expansion is widely acknowledged worldwide. However, the empirical evidence in the literature on enhancing sustainable performance in manufacturing industries, specifically SMEs in developing countries living under constant unstable economic and political environments such as Palestine, is still insufficient. Referring to the theory of Triple Bottom Line (TBL), Contingency Theory (CT), Natural Resource Based View (NRBV) and the relevant literature on sustainable performance in business firms, this study aims to explore the effect of competent human capital (CHC), strategic flexibility (SF) and turbulent environment (TE) on the sustainable performance (SP) of SMEs industries in the context of Palestine. Based on 380 random samples in manufacturing SME industries in the country, 245 useful questionnaires were analyzed using Partial Least Squares Structural Equation Modeling for analysis by the Smart PLS 4.0 software. The findings indicate that several enablers could improve the performance of SMEs in Palestinian industries in terms of sustainability. One of these aspects is adopting a supportive governmental policy to strengthen the sustainability concept in the industrial sector and encouraging industries to move toward circularity and greening their operations. Nevertheless, SMEs need to implement proper managerial tools at the firm’s level that enhance sustainable performance, including investment in competent human capital, developing flexible strategies and proper analysis of the surrounding turbulent environment, since all of these will positively impact and improve the sustainable performance of those SMEs. The contribution of this study to the literature develops current knowledge of sustainable performance in SMEs in manufacturing industries, specifically in countries that suffer from political and economic turbulence, by providing a conceptual framework focusing on managerial and business aspects that contributes to achieving desired sustainable performance. Consequently, the study’s findings also show how CHC, SF and TE are essential managerial tools for organizations and SMEs operating in an extremely competitive and turbulent market.

Small and Medium Enterprises’ (SMEs) impact on economic growth is widely acknowledged. Nevertheless, the literature lacks empirical evidence as to how the sustainable performance of manufacturing SMEs in developing countries with unstable and turbulent business environments, such as Palestine, could be enhanced. Relying on the Triple Bottom Line (TBL), Resource-based View (RBV) theory, and sustainable performance literature, this study explores the influence of systematic strategic planning (SSP) and strategic business innovation (SBI) on the sustainable performance (SP) of Palestinian manufacturing SMEs. Based on a sample of 377 manufacturing SMEs in Palestine, 245 valid surveys have been subjected to Partial Least Squares Structural Equation Modeling for analysis using Smart PLS 3.0 software. The results show that various factors can enhance manufacturing SMEs’ sustainability performance, such as adopting a supporting national policy to enhance the concept of sustainability at the policy level. However, implementing proper systematic strategic planning (SSP) and strategic business innovation (SBI) in a collaborative culture and a participatory management style at the firm level in manufacturing SMEs positively influences and enhances the sustainable performance of those firms. This study’s contribution to the literature expands the knowledge on sustainable performance in manufacturing SMEs in developing countries experiencing political and economic uncertainty. Hence, the research findings demonstrate how (SSP) and (SBI) are crucial management tools for businesses operating in a highly competitive and turbulent environment.

Purpose: The primary objective of this study is to examine the direct impact of independent variables – systematic strategic planning, strategic business innovation (SBI) and competent human capital (CHC) – on the sustainable performance (SP) of Palestinian industrial small- and medium-sized enterprises (SMEs). Additionally, the study aims to investigate the indirect mediation effect of strategic flexibility (SF) between these independent variables and SP. Design/methodology/approach: Administering personally delivered questionnaires allowed researchers to test the study’s hypotheses. Data were obtained from 235 valid survey owners and directors from industrial SMEs operating in Palestine via a random sampling technique. The analysis of results applied the partial least squares structural equation modeling approach. Findings: The study found a significant and favorable impact of systematic strategic planning (SSP), SBI and CHC on the SP of SMEs in Palestinian industrial industries. Furthermore, the results also revealed a mediating influence of SF between SBI, SSP and SP. However, SF does not mediate the relationship between CHC and SP. Research limitations/implications: Despite its significant theoretical and practical contributions, this study is limited to industrial SMEs in Palestine. As an exploratory study, it aims to produce results applicable to a broader context. Therefore, future research should seek to validate or contradict these findings in different sectors and business settings. Practical implications: The research findings hold significant value for practitioners, policymakers and researchers, emphasizing the importance of CHC, SBI and SSP for SP. It also highlights the significance of SF, particularly in the unstable political and economic environment. The study recommends that government policies support SMEs’ growth by creating enabling environments fostering innovation and flexible strategic planning to cope with turbulent business environments. Originality/value: This study fulfills an acknowledged need to explore the mediation effect of SF between strategic enablers and SP of SMEs working in a dynamic business ecosystem.

Since artificial intelligence (AI) is revolutionizing the way services are delivered, current research has largely focused on performance effects, overlooking the long-term sustainability effects on employees’ psychological well-being. This conceptual paper aims to fill this gap by articulating a sustainability paradox that occurs when AI is adopted to enhance the efficiency of an organization but can also have a detrimental effect on employee well-being and long-term sustainability. Our framework combines self-determination theory (SDT) and recovery theory, suggesting that the use of AI negatively affects psychological need satisfaction (autonomy, competence, relatedness), leading to psychological distress and a decline in human sustainability. The model also suggests that the negative relationship between employee AI literacy and culture of AI is tempered by human-centered AI practices such as transparency, employee involvement, AI literacy training, and human oversight. The paper builds on the growing body of research on responsible AI by moving from an efficiency-focused lens to a human sustainability lens. Managerial implications involve implementing participatory AI design, preserving discretion of employees, assessing psychical health and well-being, and synchronizing AI adoption with sustainable development goals (SDG 3, 8, and 9). The framework can be used as a basis for empirical testing in various organizational and cultural environments.

* The article discusses a very good case with room for improvement in certain areas : One gap is that specific illustrations of the challenges and threats are needed to support the analysis and the strength and weaknesses. * The article need to e...