Quynh Xuan Nguyen

Type of the article: Research Article

Abstract
As emerging economies pivot toward regenerative models, agricultural small and medium-sized enterprises face increasing pressure to harmonize sustainability with market performance. This study investigates the mechanisms through which green supply chain management and circular economy orientation drive sustainable competitive advantage, specifically focusing on the agricultural sector in Vietnam. Data were collected from 369 agricultural small and medium-sized enterprises and analyzed using partial least squares structural equation modeling to test the hypothesized relationships. The empirical results reveal that the structural model accounts for 43.3% of the variance in sustainable competitive advantage. While both strategies significantly enhance competitive outcomes, circular economy orientation (β = 0.307, p < 0.001) exhibits a stronger positive association with sustainable competitive advantage compared to green supply chain management (β = 0.181, p < 0.001). Furthermore, dynamic capabilities act as a potential mediator, partially mediating the relationship between green orientations and market superiority. Notably, market turbulence significantly strengthens the relationship between dynamic capabilities and sustainable competitive advantage (β = 0.098, p = 0.024), highlighting the boundary condition that enhances the strategic value of organizational agility. These findings suggest that for small and medium-sized enterprises in volatile emerging markets, transitioning from operational greening to systemic circularity is essential for long-term resilience and securing a robust competitive position.