Against the background of climate uncertainty, market volatility, and evolving regulatory environments, firms embedded in agricultural value chains face increasing pressure to maintain sustainable growth. This study examines China’s A-share-listed Traditional Chinese Medicine (TCM) firms to explore how internal organizational factors and external institutional conditions jointly shape firm-level sustainable growth capability. This setting is characterized by strong ecological dependence, strict quality regulation, deep policy embeddedness, and supply-chain sensitivity. Drawing on the resource-based view, dynamic capability theory, contingency theory, and the institutional environment perspective, this study applies fuzzy-set qualitative comparative analysis (fsQCA) to 2023 cross-sectional data from 59 A-share-listed TCM firms. The results show that no single condition constitutes a necessary condition for high sustainable growth capability. Instead, high sustainable growth capability is mainly achieved through three configurational pathways: innovation-driven growth, policy-supported development, and market-responsive strategy. Low sustainable growth capability follows asymmetric pathways, mainly reflected in the mismatch between innovation capability and the institutional environment, and the coexistence of high financing constraints and low agility response. The findings indicate that sustainable growth capability is not the result of isolated factors, but a context-specific configurational outcome shaped by innovation, agility response, internationalization, equity governance, ESG performance, government support, marketization level, and financing conditions. This study provides a configurational explanation for growth research on agriculture-related firms and offers differentiated pathway implications for managers and policymakers.
Chen et al. (Sun,) studied this question.