Determinants of sustainable performance of Bumiputera microenterprises in Malaysian food and beverages industry: mediating role of vuca approach

In response to the COVID-19 pandemic and the recent economic downturns, there has been a noticeable shift towards enhancing the sustainable performance of microenterprises (ME) in Malaysia. Despite the allocation of various government aid programs, these microenterprises continue to grapple with low success rates and challenges that leave them uncompetitive within the broader market. This research aims to identify the key determinants of sustainable performance and investigate the mediating effects of sustainable development through the lens of the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) approach on these determinants. Utilizing a quantitative research methodology, data was collected from 261 microenterprises (ME) in Malaysia's food and beverages industry through a self-administered questionnaire, achieving an impressive 76% response rate. The data was then analysed by using Partial Least Squares Structural Equation Modeling to uncover the relationships between three main constructs, determinants of sustainable performance, sustainable performance and sustainable development. The findings reveal significant insights, emphasizing that food and beverage management systems, sustainable orientation, organizational culture, and government support are crucial factors in enhancing microenterprise sustainable performance. Contrary to previous studies, this research found that technology and innovation capability did not exhibit a positive correlation with sustainable performance. Additionally, a lack of comprehensive understanding of sustainable development through the VUCA approach contributed to the insignificance of food and beverage management systems, sustainable orientation, and government support in driving sustainable performance. However, the VUCA approach was found to partially mediate the relationships between technology and innovation capability and organizational culture towards overall sustainable performance. This study provides a deeper understanding of the factors influencing sustainable performance in the Malaysian food and beverage sector, offering valuable insights for industry practitioners, government bodies, and policymakers. The findings contribute to the development of effective strategies and policies that can enhance resilience, sustainability, and ultimately support broader economic stability and growth.