Sustainability Orientation and Entrepreneurial Performance in Resource‐Constrained Contexts

Abstract

ABSTRACT This study examines how sustainability orientation shapes entrepreneurial performance in bottom‐of‐the‐pyramid (BoP) markets by theorizing responsible entrepreneurship as a central mechanism and BoP orientation as a contextual contingency. Using survey data from 283 small‐ and medium‐sized enterprises (SMEs) in Ghana, we integrate perspectives from sustainability, entrepreneurship, and inclusive‐market research to explain how firms pursuing sustainability create economic and social value under severe resource constraints. Our findings show that sustainability orientation promotes responsible entrepreneurship and that this behavioral pathway translates into stronger entrepreneurial performance. This mediating effect highlights responsible entrepreneurship as a key strategic channel through which sustainability‐driven firms realize superior outcomes. We also find that BoP orientation attenuates the performance benefits associated with responsible entrepreneurship. This moderating effect suggests a tension between deep social inclusivity and financial returns in low‐income contexts. Implications for theory and practice are discussed.