Abstract This paper explores the role of the seven constructs—Digitalization, Entrepreneurial Orientation, Funding, Governance, Managerial Capabilities, Market Configuration, and Performance—towards SME sophistication and managerial performance in Brazil. Based on a survey conducted among Brazilian SME managers, focusing on seven key constructs—Digitalization, Entrepreneurial Orientation, Funding, Governance, Managerial Capabilities, Market Configuration, and Performance, a novel entropy maximization approach based on neutrosophy, fuzzy logic, and gray relational analysis was designed to retrieve information on perceptual Likert scales so as distinct construct indexes could be built. Subsequently, a robust MCDM approach was implemented on the sophistication scales of each construct to identify the key drivers within and between superior SME construct indexes towards improved managerial performance. The study found that funding, governance, entrepreneurial orientation, and digitalization are major factors contributing to SME sophistication in Brazil. Additionally, managerial capabilities and market configuration were identified as critical for supporting and enhancing managerial performance and competitiveness. This suggests that a combination of strong internal management practices, strategic governance, and access to funding and digital resources plays a central role in SME growth and performance. These insights underscore the importance of comprehensive resource management and organizational adaptability for Brazilian SMEs aiming to enhance their operational effectiveness and market positioning.
Levi et al. (Thu,) studied this question.