Abstract The emergence of climate change calls for the high‐intensity adoption of sustainability practices in all business actors, especially small‐and‐medium enterprises (SMEs). Yet the adoption of such practices remains lag far lower than developed nations. This article examines the relationship between sustainability practices, a firm's strategic movements towards co‐innovation and entrepreneurial orientation, and SMEs performance. Using quantitative data from questionnaires, a total of 450 SMEs in Vietnam participated in this research. The results indicate two crucial findings. First, economic and social sustainability practices enable technological innovation and innovation outcomes through co‐innovation and entrepreneurial orientation. Second, the effectiveness of technological innovation on SMEs performance is examined in a developing country context. These findings will provide empirical evidence for SMEs and corporations in developing countries to craft sustainable orientations and practices to aid the Sustainable Development Goals.
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