Sustainable Growth and SMEs Survival in Nigeria: the moderating role of ethical leadership

Purpose: This study explores the trajectory of internal growth determinants, resource efficiency, digital innovation, and ethical leadership and their impact on Nigerian small and medium-sized firms' (SMEs) survival. It tries to elucidate how the relationship between sustainable growth and SMEs survival in Nigeria. Strategy/methodology/approach: The study adopts quantitative research strategy, data were obtained via structured surveys presented to a representative sample of Nigerian SMEs. Analysis used Structural Equation Modelling (SEM) in investigating hypothesised interactions across important constructs, showing good empirical validity of the study's conceptual framework. Findings: Results demonstrate that resource efficiency considerably promotes digital innovation, which in turn positively influences ethical leadership practices. The moderating role of ethical leadership positively affects firm's survival. Notably, a direct negative association was identified between resource efficiency and ethical leadership, underlining a complicated dynamic that underscores the necessity of mediating elements like digital innovation. The model demonstrates excellent explanatory ability for understanding sustainable SMEs growth within the Nigerian environment. Limitations and Research Implications: The focus of the research on Nigerian SMEs may restrict the generalizability of findings to other contexts. Future studies may investigate sectoral variations and the role of cultural and institutional modifiers. Longitudinal studies are required to establish dynamic trends over a set length of time and further improve the understanding of the reverse link identified between resource efficiency and ethical leadership. Practical implications: Findings underline the importance of multiple solutions that trade off resource effectiveness with innovation uptake and moral leadership development. Policymakers and SMEs support groups are urged to create coordinated initiatives that foster these complementary competencies with a view to creating sustained SMEs resilience. Originality/value: The research contributes to the field by experimentally integrating Resource-Based View, Institutional Theory, and Dynamic Capabilities methods into one model of SMEs survival. The study gives unique insights into the mediating and moderating factors promoting sustainable SMEs growth in developing economies like Nigeria.