Navigating moral and market realities: Sustainability strategies for ethical SMEs

This study examines sustainability strategies among ethical SMEs in the manufacturing sector, navigating tensions between moral imperatives and market pressures. Drawing on paradox theory, a PLS-SEM approach was adopted to test the conceptual framework, using valid survey data from 415 manufacturing SME respondents across Ghana. Findings indicated that three of the hypotheses were significant, while the moderating hypothesis (organizational slack) was insignificant. Extending the contribution, these findings are systematically compared with empirical evidence from Central European countries. This cross-regional comparison reveals both convergences, such as the primacy of cognitive abilities over resource abundance in driving sustainability strategies, and divergences, including the dominant role of regulatory pressure in Central Europe versus moral imperatives in Ghana. The comparison also confirms that the non-significant moderation of slack resources holds across both contexts, reinforcing paradox theory's claim that cognitive navigation of tensions matters more than resource munificence. Results advance theory by integrating cognitive ability as a mediator in emerging-market contexts and by identifying institutional contingencies across African and European post-transition economies. Practical guidance is offered to policymakers on prioritizing ethical principles and cognitive capacity-building. Limitations include cross-sectional design and self-reports, suggesting the need for longitudinal and multi-country validations.