A conceptual framework for SME growth in China based on strategic resources, capabilities, and sustainability

The sustainable growth of Small and Medium-sized Enterprises (SMEs) is central to economic resilience and inclusive development. In China, government-led initiatives have spurred the expansion of business incubation institutions to support entrepreneurship and innovation. However, existing studies have not sufficiently examined how resource-based mechanisms within incubation models affect SME development. This conceptual paper proposes an integrated framework grounded in the Resource-Based View (RBV), Dynamic Capabilities Theory, and the Natural Resource-Based View (NRBV) to explore the relationship between incubation services, resource orchestration, and SME performance. The study identifies key internal and external resources, such as financial, human, technical, and sustainability-oriented capabilities, that influence incubator effectiveness. It highlights the importance of strategic resource alignment, capability development, and environmental adaptation in supporting SME competitiveness. The framework also considers contextual factors such as regional disparities and sector-specific needs, which may moderate the effectiveness of incubation efforts. By situating the discussion within China’s evolving innovation ecosystem, particularly in regions like Fujian Province, the study contributes to theory-building in incubation research and informs the design of more effective and context-responsive incubation strategies. The framework serves as a foundation for future empirical research aimed at enhancing the long-term impact of incubation models on SME innovation, sustainability practices, and strategic growth.

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