Building Sustainable Advantage through Visionary Entrepreneurship in an Emerging Economy SME: A Case Study from Sri Lanka

Abstract

This study examines how visionary entrepreneurship enables sustainable industrial innovation in resource-constrained small and medium-sized enterprises (SMEs) in emerging economies, with a focus on how internally driven innovation contributes to sustainable competitive advantage. A qualitative single-case study was conducted in a Sri Lankan apparel SME engaged in bonded apparel production and in-house machinery development. Data were collected through semi-structured interviews, on-site observations and internal documents, and analysed using thematic analysis guided by the Triple Bottom Line framework. The findings identify three key innovation mechanisms: technical self-reliance, niche opportunity recognition and resource-conscious innovation practices. These mechanisms show how resource constraints can be transformed into drivers of operational efficiency, economic resilience and reduced material dependency, indicating potential sustainability outcomes across economic, environmental and social dimensions. The findings also highlight the role of HRM-related processes, including skill development, knowledge sharing, and employee involvement, in supporting these innovation mechanisms. However, the study is limited to a single case within one industry and context, and future research should examine multiple cases across different sectors to extend and validate the findings. The study offers practical insights for SME leaders by highlighting the importance of developing internal capabilities, encouraging adaptive experimentation and focusing on niche market opportunities to enhance sustainability without relying on formal research and development systems. It also highlights the broader social contribution of such innovation practices, including skill development, knowledge retention and local capability building. Overall, the study contributes by proposing a Vision-Driven Sustainable Innovation Model, with Human Resource Management (HRM) integration, showing how visionary entrepreneurship can activate internal innovation mechanisms to generate sustainability outcomes in resource-constrained settings.

Key Words: Economic, Environmental and Social Sustainability, Emerging Economies, Human Resource Management, Resource-constrained Innovation, SMEs, Sustainable Innovation, Visionary Entrepreneurship