This Small and medium-sized enterprises (SMEs) occupy a pivotal role in the global economy, acting as engines of innovation, employment, and socio-economic development. However, their capacity to sustain competitive advantage is increasingly challenged by volatile market conditions, technological disruptions, and dynamic regulatory frameworks. This study investigates the integration of advanced business consulting methodologies with organizational learning, absorptive capacity, and innovation management practices to enhance SME performance. Drawing upon a multi-disciplinary theoretical foundation encompassing strategic management, social capital theory, knowledge management, and green innovation frameworks, the research elaborates a complex consulting model tailored for SMEs. The study systematically examines the mechanisms by which formalization, social networks, and knowledge acquisition mediate the efficacy of consulting interventions. Methodologically, the research synthesizes qualitative and quantitative insights, analyzing case studies and empirical evidence on SME innovation trajectories, absorptive capacity metrics, and the implementation of consulting frameworks. Results reveal that SMEs engaging in structured, knowledge-intensive consulting programs exhibit higher levels of exploratory and exploitative innovation, superior environmental and financial performance, and greater resilience to market turbulence. The discussion integrates theoretical perspectives on organizational learning, dynamic capabilities, and social capital, highlighting the nuanced interdependencies between consulting strategies, internal competencies, and external network structures. The study also identifies contextual moderators, including cultural balance, institutional pressures, and industry-specific constraints, which shape the outcomes of consulting engagements. Limitations related to generalizability, measurement fidelity, and cross-cultural applicability are critically examined. Finally, the research proposes a forward-looking agenda for both practitioners and scholars, emphasizing the need for adaptive consulting models that incorporate sustainability, digital transformation, and integrative knowledge management practices to reinforce SME innovation and strategic agility.

SME performance, business consulting, absorptive capacity, social capital

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