The adaptive enactment of value propositions in fragile economies: Evidence from sustainable MSMEs

• Value Proposition enactment examined through PAR (9 MSMEs) and PCA survey (n = 106) • Demonstrates how women-led MSMEs co-create adaptive value in crisis conditions • Reveals three components: Integration, Customer Foundation, Accountability Gaps • Links strategic intent to everyday practice and learning within small enterprises • Shows that performance monitoring remains an underused capability among MSMEs • Proposes a practical framework to embed resilience and sustainability in value design This study examines how micro and small enterprises (MSMEs) enact value propositions (VPs) to sustain competitiveness and economic resilience under crisis conditions. While prior research has emphasized VP design and communication, limited work has explored their enactment as strategic and economic practices within fragile and resource-constrained environments. Using a mixed-method design, the study combines Participatory Action Research (PAR) with nine Lebanese MSMEs and a survey of 106 enterprises analyzed through Principal Component Analysis (PCA). The findings show that MSMEs enact value propositions as adaptive, relational, and practice-based mechanisms embedded in daily entrepreneurial decision-making, relying on customer trust, improvisation, and resource bricolage rather than standardized tools. These enactment practices support economic continuity, value co-creation, and survival in the absence of stable institutional and policy frameworks. The PCA yields a three-component model comprising Integrated Value Proposition Practice, Customer-Driven Value Foundations, and Performance Accountability Gaps. While MSMEs demonstrate strong adaptive and customer-centered value practices, systematic economic evaluation and accountability mechanisms remain underdeveloped, constraining long-term sustainability and scalability. By reframing value propositions as enactment-based mechanisms of sustainable entrepreneurship, this study contributes to entrepreneurship and sustainability research and offers policy-relevant insights for supporting MSMEs in fragile and crisis-affected economies.