Green Management Strategies for Sustainable Competitive Advantage in MSMEs

Abstract

Micro, small, and medium enterprises (MSMEs) constitute the backbone of most emerging economies, yet they lag behind larger firms in adopting environmentally responsible practices because of resource, knowledge, and managerial-capability constraints. This study examines how green management strategies, encompassing green human resource management, green innovation, green supply chain management, green financial management, and green intellectual capital, contribute to sustainable competitive advantage in MSMEs. Using a systematic literature review and conceptual synthesis of twenty-five peer-reviewed studies published mainly between 2021 and 2026, this article develops an integrative framework grounded in the Natural Resource-Based View and the Resource-Based View. The novelty of the study lies in its cross-sectoral synthesis, which links five previously fragmented streams of green management research, namely human resource, innovation, supply chain, financial, and intellectual-capital dimensions, into a single MSME-specific model, an integration that has not been jointly examined despite each dimension being studied in isolation. The findings indicate that green management strategies enhance competitive advantage primarily through mediating mechanisms such as eco-innovation, green knowledge acquisition, and technological adaptability, moderated by top-management environmental commitment and institutional pressure. The study concludes that MSMEs adopting integrated green strategies achieve superior legitimacy, cost efficiency, and market differentiation, offering practical implications for owners, policymakers, and support institutions seeking to accelerate green transitions among resource-constrained enterprises.