Factors Affecting Performance of Small & Medium Enterprises: The Mediating Role of Knowledge Management

2021 ◽  
Vol 9 (2) ◽  
pp. 197-209
Author(s):  
Ali Junaid Khan ◽  
Sajid Tufail ◽  
Asad Ali
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Structural Equation ◽  
Performance Standards ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Entrepreneurial Innovation ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Entrepreneurial orientation, entrepreneurial innovation, and knowledge management all play critical roles in improving the performance of Pakistan's small and medium-sized enterprises (SMEs). Pakistan's business index score decreased from 137th to 138th due to the country's low performance in the small and medium-sized enterprise sector. Small and medium-sized firms must overcome several obstacles in order for the country's economy to thrive. This study will address this issue. We used a cross-sectional design and a quantitative technique in our research. Data were acquired via an email questionnaire and analyzed using the structural equation modeling technique and SmartPls. The findings suggested that entrepreneur orientation and innovation are critical factors in enhancing the success of SMEs. Additionally, knowledge management acts as a buffer between entrepreneurial attitude and organizational performance, as well as between entrepreneurial innovation and organizational performance. The study's findings have a number of implications for SME management and policymakers, including the importance of innovation and knowledge management in achieving better performance standards.

The Importance of Entrepreneurial Orientation's Dimensions in Influencing the Organizational Performance of Food and Beverage SMEs

2020 ◽  
Vol 7 (12) ◽  
pp. 81-99
Author(s):  
AKRAM Abdulsamad ◽  
Noor Azman Ali ◽  
Anuar Shah Bali Mahomed ◽  
Haslinda Hashim ◽  
Abdulwahab Jandab ◽  
...  
Keyword(s):  
Organizational Performance ◽  
Risk Taking ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Beverage Industry ◽  
Food And Beverage ◽  
Medium Enterprises

The study is attempted to examine and analyze the important influence of entrepreneurial orientation components - risk-taking, innovativeness, and proactiveness- on the organizational performance of Yemeni Small and Medium Enterprises within the food and beverage industry. The model of study is tested on 459 owners/Managers of SMEs by employing the analysis of Partial Least squares structural equation modeling (PLS-SEM), as well as Importance-Performance Map Analysis (IPMA). After utilizing the cross-sectional approach, the results illustrated that the innovativeness and risk-taking have a significant and positive impact on organizational performance, but their effect was less than proactiveness. Moreover, the analysis of importance-performance pointed out that proactiveness more important than innovativeness and risk-taking in determining organizational performance. The model of study expounded 34% of the whole variance in SME's performance. Moreover, it provided the implications of practical and theoretical.

scholarly journals Impacts of activity-based costing on organizational performance: evidence from Thailand

2020 ◽  
Vol 28 (3) ◽  
pp. 329-349
Author(s):  
Witchulada Vetchagool ◽  
Marcjanna M. Augustyn ◽  
Mike Tayles
Keyword(s):  
Comparative Study ◽  
Organizational Performance ◽  
Structural Equation ◽  
Developing Economies ◽  
Cost Evaluation ◽  
Equation Modeling ◽  
Activity Based Costing ◽  
Content Type ◽  
Small Medium Enterprises ◽  
Medium Enterprises

PurposeTo extend the limited yet conflicting results of prior studies, this paper hypothesizes and statistically tests alternative, structurally different models of likely positive impacts of activity-based costing (ABC) on organizational performance (OP). It also tests moderating effects of business type and business size.Design/methodology/approachTo test the models' abilities to explain the data, this comparative study uses survey data from 191 Thai firms, measures validated in the study and structural equation modeling (SEM).FindingsExtensive use of ABC for cost analysis, cost strategy and cost evaluation directly improves operational performance (OPP); it also indirectly improves financial performance (FP) through improving OPP. The results are similar for manufacturing and non-manufacturing firms and for large firms and small-medium enterprises (SMEs).Research limitations/implicationsFuture studies could test the alternative models in other geographical and industrial contexts and could widen the range of control variables.Practical implicationsMonitoring of the effects of ABC use on OPP is crucial to achieving positive financial outcomes. The cross-functional nature of ABC is apparent; for it to be effective managers must ensure cooperation from departments and employees involved in the design and implementation of ABC systems.Originality/valueThis research arbitrates prior inconsistent findings by adopting an original approach of testing structurally different models in a single comparative study, using measures validated in the study. It provides new evidence that extends knowledge about impacts of ABC on OP. Further, it demonstrates its applicability in the context of developing economies.

scholarly journals Perception Level of Small Medium Enterprises Employees and Their Environmental Corporate Social Responsibility Practices

2021 ◽  
Vol 2 (4) ◽  
pp. 40-54
Author(s):  
Arunmozhi M ◽  
Sumandiran C.S.P
Keyword(s):  
Structural Equation ◽  
Tamil Nadu ◽  
Statistical Tests ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Coimbatore District ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Purpose: The current study examines the perception level of environmental-oriented CSR practices among the employees of small-medium enterprises in the Coimbatore district of Tamil Nadu, India. Approach/Methodology/Design: It is a cross-sectional field study of environment CSR practices among SMEs employees of Coimbatore district, the western part of Tamil Nadu, India. A multistage random sampling technique is adopted. Sixty-one firms were approached to study the employees’ perception of CSR and environmental impact on CSR. The sample included 369 participants out of the total population of 9027 employees. This study follows the research methodology based on the Eco-labeling principles, designed by the European Commission 2005 Descriptive analysis, Chi-square test, Bartlett sphericity statistical tests, and Structural Equation Modeling in AMOS version 23 were used.. Findings: The results indicate the significance of SMEs employees’ perception level according to their age, gender and experience. The results reveal that CSR practices towards environments are related to employee perception level. CSR practices play a very predominant role in changing the mindset of the employees working in small-medium enterprises. Practical Implications: This study also paves a way to diverse thoughts in the exploration of the multimodal dimensions of the internal aspects and external CSR practices. Originality/value: The analysis presents the main directions of pro-environmental initiatives undertaken by enterprises and the perception of employees to understand environmental CSR. The results also indicate the differences in the most frequent pro-environmental activities of enterprises operating in the Coimbatore district of Tamil Nadu, India.

scholarly journals Factors Affecting Performance Manager and Its Impact on Competitive Advantage: Studies Small Medium Enterprises (SMEs) in The Shoes Industry Mojokerto East Java Province

2017 ◽  
Vol 8 (4) ◽  
pp. 153-162
Author(s):  
Choirul Bashor ◽  
Chamdan Purnama
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Factors Affecting ◽  
Manager Performance ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact ◽  
Positive Effect

AbstractThis study aims to describe and analyze the factors which affect the performance of managers consisting of entrepreneurial orientation and creativity factors and their impact on competitive advantage. Apart from that in this study also seeks to want to know how big the impact is directly entrepreneurial orientation and creativity to competitive advantage and influence indirectly through manager performance. The research was conducted on a sample of 170 manager’s small medium enterprises (SMEs) in the shoe industry Mojokerto East Java Province, sampling using random sampling techniques. Through the analysis of the results of structural equation modeling (SEM) found that the first-factor entrepreneurial orientation and creativity positive effect on manager performance. Second, the factors of entrepreneurial orientation and creativity direct positive effect on the competitive advantage. Third, through manager performance, factors of entrepreneurial orientation and creativity indirectly positively effects on the competitive advantage. Fourth, manager performance positively affects competitive advantage.

The impact of knowledge management practices on organizational performance

2015 ◽  
Vol 28 (1) ◽  
pp. 131-159 ◽  
Author(s):  
Changiz Valmohammadi ◽  
Mohsen Ahmadi
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Structural Equation ◽  
Management Practices ◽  
Service Industries ◽  
Leadership Role ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to present a holistic approach regarding evaluation of knowledge management (KM) practices on organizational performance. The effects of seven critical success factors (CSFs), namely leadership role, organizational culture, KM strategy, processes and activities, training and education, information technology, and motivation and rewarding system, on organizational performance in the framework of four perspectives of balance scored card (BSC) approach were surveyed. Design/methodology/approach – The research hypotheses were raised based on the four perspectives of this approach, namely, growth and learning, internal processes, customer and financial. By literature review, CSFs of KM and organizational performance along with their items were identified in the framework of BSC’s perspectives. Based on these constructs and their items an instrument was designed and distributed among managers and employees of the subsidiary firms of Iran National Petrochemical Company (INPC). Reliability of the instrument was calculated by Chronbach’s α for the two sections of the instrument i.e. KM practices and organizational performance. Also, using factor analysis the construct validity of the questionnaire was approved. Finally, based on the hypotheses of the study and using structural equation modeling the impacts of KM practices on organizational performance were investigated. Findings – The results revealed that KM practices positively and meaningfully (though weak) impact overall organizational performance. This impact is significant only regarding growth and learning dimension and on the other dimensions is insignificant. Also, as customer and financial constructs were loaded on one factor based on the entity of their indicators we considered these two constructs as stakeholders construct. In addition, among the above mentioned seven CSFs, motivation and rewarding system obtained the lowest rank among the survey organizations. Research limitations/implications – The sample is restricted to only three companies, so gathering data from various parts of Iran including both manufacturing and service industries could increase the generalizability of the results obtained. Also, as in this study the data gathered were cross-sectional, a longitudinal study could help gain deeper understanding of the cause-and-effect relationship among the variables. Originality/value – The most significant gap in the literature is the lack of enough application of statistical and comprehensive methods like BSC that KM makes a difference to organizational performance. This study contributes to the field of KM by empirically investigating the impact of KM practices on various measures of organizational performance in order to prove the suitability of a comprehensive approach like BSC.

scholarly journals Peran Aset N onfisik dalam Meningkatkan Kinerja Organisasional pada UKM Sektor Manufaktur di Kota Palu

2010 ◽  
Vol 10 (2) ◽  
pp. 95-116
Author(s):  
Mauled Moelyono
Keyword(s):  
Organizational Performance ◽  
Random Sampling ◽  
Structural Equation ◽  
Equation Modeling ◽  
Intangible Asset ◽  
Manufacture Sector ◽  
Business Networking ◽  
Small Medium Enterprises ◽  
Medium Enterprises

The aim of this research is to analyze the role of intangible asset in improving organizational performance of Small Medium Enterprises (SMEs) in manufacture sector in Palu. This research was designed as explanatory research. The sample was determined using stratified proportional random sampling and consists of 175 units of SMEs. The data collected by questionnaire to the directors of the SMEs were analyzed using Structural Equation Modeling (SEM). This research has successfully proved the role of intangible asset in improving organizational performance through the role of socialcapital; it is by moderating the influence of business networking and organizational learning to the organizational performance of SME's.

scholarly journals Trustworthy E-Commerce Model for Small Medium Enterprises (SMEs)

2018 ◽  
Vol 7 (4.15) ◽  
pp. 135
Author(s):  
Hamed F.H.O ◽  
Madihah M.S ◽  
Kamaruzzaman S
Keyword(s):  
Structural Equation ◽  
Theory Of Planned Behaviour ◽  
Preference Score ◽  
Equation Modeling ◽  
Planned Behaviour ◽  
Two Factors ◽  
Main Factors ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Survey Questionnaires

This paper presents a trustworthy model for an e-commerce website consisting of technologically-driven factors that influence the e-commerce usage and by employing the Theory of Planned Behaviour as the basis of developing the model. For this paper, self-administered survey questionnaires were distributed to 600 respondents at small medium enterprises (SMEs) in Libya, the structural equation modeling (SEM) was utilized to test the factor analysis. Based on 296 of 600 respondents of the administered questionnaires, the results showed that the perceived ease of usage and perceived ease of trust are highly significant when it comes to the usage of ecommerce. Both parameters recorded a preference score of 52% and 36% respectively. As a result, these two factors are considered to be the main factors that influence the e-commerce usage by SMEs in Libya. 

Evaluation of knowledge management practices - a leather industry context

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srinivasan P.
Keyword(s):  
Knowledge Management ◽  
Structural Equation Modeling ◽  
Organizational Performance ◽  
Structural Equation ◽  
Influential Factor ◽  
Equation Modeling ◽  
Survey Method ◽  
Leather Industry ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of knowledge management (KM) in terms of organizational performance using structural equation modeling. To enhance organizational performance, KM is used as a powerful strategic tool. The factors such as management commitment, leadership and organizational culture are the KM enabler’s conditions, and the step processes of KM are knowledge capture, creation, organizing/storing and transfer, and through this, KM is analyzed on organizational performance in the context of leathers manufacturing company. This study constructs with questionnaire consist of 34 variables. Design/methodology/approach There are about 101 samples that were collected through the questionnaire survey method in the leather companies in Ranipet. The data were collected from executives and associates in the leather companies. Data were analyzed using the SPSS tool and SMART PLS tool used for framing a research model and the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The finding of this study is mandatory to implement a structured KM practice in the leather companies. Application of KM is quite an impact on organizational performance, which leads to profitability and productivity. Originality/value This is the first paper to empirically investigate the KM enablers, process and support for the role of KM practices at leather industry. Further, the positioning of KM practices as a strategic competitive tool can be considered as an influential factor to organizational performance.

scholarly journals IT and Fast Growth Small-to-Medium Enterprise Performance: An Empirical Study in Australia

2015 ◽  
Vol 19 ◽  
Author(s):  
Rui Bi ◽  
Robert M Davison ◽  
Kosmas X Smyrnios
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Business Value ◽  
Fast Growth ◽  
Equation Modeling ◽  
It Business Value ◽  
It Capability ◽  
Industrial Sectors ◽  
It Resources ◽  
Medium Enterprises

Information technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT helps small-to-medium enterprises (SMEs) to create business value still remains unclear. Drawing upon resource-based view theory, source-positional advantage-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT expertise, IT infrastructure), IT capability (IT integration), IT-enabled inter-firm partnership processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth SME context. We propose that IT business value depends on how firms employ IT resources to develop IT capability which facilitates inter-firm partnership processes along value chains. Structural equation modeling is employed to test our theoretical conceptualization of 310 Australian fast-growth SMEs across different industrial sectors. Results show that IT contributes to fast growth SME performance through the development of IT capability and enhancement of inter-firm partnership activities. This research highlights the role of IT in business value creation and the ways in which IT is used by fast growth SMEs to foster core business competencies.

Increasing the cost of participation: red tape and public officials’ attitudes toward public participation

2020 ◽  
pp. 002085232094231
Author(s):  
Koen Migchelbrink ◽  
Steven Van de Walle
Keyword(s):  
Public Participation ◽  
Organizational Performance ◽  
Structural Equation ◽  
Point Of View ◽  
Equation Modeling ◽  
Public Officials ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Negatively Associated ◽  
Red Tape

Red tape is seen as a destructive organizational force that reduces public officials’ motivation and curtails organizational performance. By increasing the time, cost, and effort required to inform the public and coordinate participation, red tape has also been said to reduce public officials’ positive attitudes toward public participation. However, research on the effects of red tape on public officials’ attitudes toward public participation remains inconclusive. This study examines how the lack of functionality and compliance burden of rules affect public officials’ attitudes toward public participation. Using cross-sectional survey data of n = 862 municipal public officials and a structural equation modeling approach, this study finds that public officials’ perceptions of the lack of functionality of rules are positively associated with attitudes toward public participation, and that perceptions of the compliance burden of rules are negatively associated with attitudes toward public participation. Points for practitioners • Red tape affects public officials’ attitudes toward public participation. • The compliance burden of rules is negatively associated with public officials’ attitudes toward public participation. • The perceived lack of functionality of rules is positively associated with public officials’ attitudes toward public participation. • The effects of red tape are multifaceted and should be examined from a multidimensional point of view.

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