SUSTAINABLE PRACTICES, DIGITAL TOOLS, AND SME SUCCESS: A PATHWAY TO LONG-TERM GROWTH

Abstract

The study present relationship between competitive pressure, customer pressure,  and government support—and how these factors affect the adoption of Social Media (SM) practices by small and medium-sized enterprises (SMEs) in Khyber Pakhtunkhwa (KP), Pakistan. The study also looks at how social media adoption could mediate the conversion of these external restrictions into outcomes for outreach and financial sustainability. Data from 270 SMEs was gathered using a quantitative research approach and a standardized survey form. The  predicted correlations in AMOS were investigated using structural equation modeling (SEM). The findings show that significant drivers of social media adoption are competitive pressure, customer demand, and government support; these factors improve financial sustainability and outreach and influence financial stability. Social media's adoption was found to be a partial mediator in the relationship between customer pressure and financial sustainability, therefore highlighting its indispensable importance in enhancing SME performance. The study emphasizes the need for government support in advancing social media usage and improving small and medium-sized company results. These results improve the body of knowledge on SMEs by providing actual data on how digital participation and outside pressure influence market performance and financial situation. Emphasizing the need for targeted efforts to improve social media usage and sustainable practices, thereby fostering long-term development and competitiveness in resource-limited environments, the study offers practical insights for legislators and SME management.