Relational entrepreneurship and inclusive networks in business sustainability: evidence from an international comparative study of SMEs

Purpose This study examines how inclusive entrepreneurial networks foster long-term sustainability strategies (LSS) in small and medium-sized enterprises (SMEs), focusing on the mediating role of relational entrepreneurship (RE). Design/methodology/approach Grounded in Effectuation Theory, inclusive networks are conceptualized as structural diversity and relational quality (trust and mutual support). Relational entrepreneurship is theorized as an enactment mechanism that activates network resources into sustainability-oriented outcomes. Hypotheses are tested using regression analysis on survey data from 731 SME entrepreneurs in Lebanon, France, Germany and the UAE, with bootstrapped mediation and robustness checks. Findings Network diversity positively predicts LSS in the pooled sample, while trust shows no consistent direct effect across contexts. Mediation analysis indicates that relational entrepreneurship mediates the relationship between trust and LSS but not between diversity and LSS. Country-level regressions reveal institutional variation: diversity predicts LSS in Lebanon, France and the UAE but not in Germany, where relational entrepreneurship becomes the primary pathway. These findings highlight structural and relational mechanisms linking inclusive networks to sustainability strategies. Originality/value The study advances research by distinguishing structural network conditions from relational enactment and positioning relational entrepreneurship as the mechanism linking inclusive networks to long-term sustainability strategies.