Entrepreneurial orientation and performance of small and medium-sized enterprises

2019 ◽  
Vol 29 (5) ◽  
pp. 551-572 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Two Dimensions ◽  
Equation Modeling ◽  
Current View ◽  
Significant Positive Effect ◽  
Content Type ◽  
Differentiation Strategy ◽  
And Performance ◽  
Positive Effect

Purpose This paper aims to investigate the effects of entrepreneurial orientation (EO) on the performance of small and medium-sized enterprises (SMEs) with mediating role of differentiation strategy in Pakistan. Design/methodology/approach A theoretical framework has been developed to base the hypotheses, as also to determine the exact approach in this study. To establish the influence of EO on the performance of SME, a five-point Likert scale questionnaire has been used to collect data from middle and senior managers who operate in SMEs in the manufacturing sectors. The sample illustrates 166 incumbents, comprising 68.07 per cent from middle management and 31.93 per cent from senior management operating in manufacturing sector of SMEs, by means of a stratified random sampling technique. The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested by using structural equation modeling (SEM) technique. Findings EO, as a whole, presents a significant positive effect on the performance of SMEs. Moreover, differentiation strategy partially mediated the relationship between EO and performance of SMEs. Two dimensions of EO, proactiveness and risk-taking propensity, strongly increased firm performance while innovativeness, competitive aggressiveness, autonomy and competitive energy did not cause any significant change. The findings differ from the current view of western enterprises that innovativeness (INO) played a major role by increasing performance of SMEs. The results transpired that innovativeness (INO) tends to reduce performance of SMEs, but the p-value did not reach a high significance value. Research limitations/implications The main limitation of this empirical study is comparatively a small size of the sample. The analysis of power suggests that a larger sample could have provided more reliable and extensive results. Regardless of that, the analysis of reliability, using the Cronbach's alpha, exhibited the consistency of outcomes in providing an accurate portrait of the EO influences on the performance of SME. Practical implications The study verifies that two dimensions of EO have considerable effects on the performance of SMEs, while the others have not, whereas, the EO, as whole, has significant positive effect on performance of SMEs. These findings should be helpful for researchers looking for appropriate performance measures, and for entrepreneurs aiming at getting support for their decisions and evaluating their performance. Originality/value The current study appears to be first of its kind focusing on the link between EOs, as whole, and its dimensions, to performance of SMEs and differentiation strategies within the specific context of Pakistan.

Modelling halal restaurant’s brand image and customer’s revisit intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yunia Wardi ◽  
Okki Trinanda ◽  
Abror Abror
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Brand Image ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Health Awareness ◽  
Content Type ◽  
Revisit Intention ◽  
Quality Health ◽  
Positive Effect

Purpose Limited research has investigated the antecedents of halal restaurant’s brand image and its consequence to customer’s revisit intention empirically. This study aims to fill this gap by providing an insight into the relationship of halal restaurant brand image toward revisit intention, and the crucial antecedents of halal restaurant’s brand image, taking Rumah Makan Padang as a unit of analysis. Rumah Makan Padang (Padang Restaurant) is a type of halal restaurant in Indonesia originating from West Sumatra. These restaurants are widely spread in Indonesia and also in other countries where Indonesians migrate. Design/methodology/approach The research design was cross-sectional. Data were collected from various Rumah Makan Padang in West Sumatera, Indonesia. The proposed model was tested using structural equation modeling with a sample size of 450 respondents. Findings This study confirmed that halal restaurant’s brand image has a significant positive effect on customer’s revisit intention. Furthermore, the antecedents of halal restaurants brand image (i.e. service quality, health awareness and religiosity) were also found to have significant positive effect on halal restaurant’s brand image, Whereas, halal preferences do not have an influence on its brand image. Originality/value To the author’s knowledge, this study is among the first to provide a holistic approach toward the antecedents of halal restaurants brand image (i.e. halal preference, service quality, health awareness and religiosity) and investigated the effect of halal restaurant’s brand image on customer’s revisit intention. This study also proves the effect of religiosity on brand image, which has not been discussed in previous studies. From a market-specific context, this is also the first study that investigated the antecedents of Rumah Makan Padang’s brand image and its consequence to revisit intention.

scholarly journals Open innovation in specialized SMEs: the case of supercars

2017 ◽  
Vol 23 (6) ◽  
pp. 1167-1195 ◽  
Author(s):  
Andres Ramirez-Portilla ◽  
Enrico Cagno ◽  
Terrence E. Brown
Keyword(s):  
Open Innovation ◽  
Structural Equation ◽  
Social Performance ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Firm Innovativeness ◽  
And Performance

Purpose The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firm’s practices and models, and within the three dimensions of firm sustainability. Design/methodology/approach Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling. SmartPLS software was used to conduct a path analysis and test the proposed framework. Findings The findings suggest that high adoption of OI models tends to increase firm innovativeness. Similarly, the adoption of OI practices has a positive effect on innovativeness but to a lesser extent than OI models. The moderation results of innovativeness further show that OI models and practices can benefit the performance of SMEs. Specifically, two dimensions of performance – environmental and social performance – were found to be greatly influenced by OI. Research limitations/implications Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors. Practical implications This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable. Originality/value This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars.

scholarly journals The effect of entrepreneurial orientation variables on business performance in the SME industry context

2020 ◽  
Vol 32 (1) ◽  
pp. 35-62
Author(s):  
Ni Made Wahyuni ◽  
I Made Sara
Keyword(s):  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Textile Industry ◽  
Business Performance ◽  
Learning Orientation ◽  
Potential Contribution ◽  
Significant Positive Effect ◽  
Content Type ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation. Design/methodology/approach The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali). Findings Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies. Originality/value The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

The effect of consumer-based brand authenticity on customer satisfaction and brand loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adem Uysal ◽  
Abdullah Okumuş
Keyword(s):  
Customer Satisfaction ◽  
Brand Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Content Type ◽  
Brand Authenticity ◽  
Negative Effect ◽  
The Difference ◽  
Positive Effect

PurposeThe purpose of this study was to determine the effect of consumer-based brand authenticity (CBBA) on customer satisfaction (CS) and brand loyalty (BL). The moderating effect of the variable “alternative attractiveness” in the relationship between CS and BL was further investigated. The study compared and analyzed the difference between global sportswear brands and domestic ones and the difference between global chocolate brands and domestic ones in terms of CBBA, CS, BL and attractiveness of alternatives (AA).Design/methodology/approachStructural equation modeling and multigroup analysis were conducted in order to analyze the data collected from 600 consumers via face-to-face survey.FindingsThe results showed that quality commitment and heritage-sincerity, which are subdimensions of CBBA, had a significant positive effect on CS. Additionally, both of them affected CS differently in the comparison of the global brands with the domestic ones. Furthermore, CS had a significant positive effect on BL, and AA had a negative effect on BL.Originality/valueThis study deepens the insights into the effects of antecedents of CBBA on CS and BL, enhancing the research with quantitative analysis through two different product groups. The study provides important cues on which antecedents of CBBA help to strengthen the authenticity of brands of Turkish and global origin, and also differs in that it examines to what extent the effect of CBBA on CS and BL varies across global and domestic brands.

scholarly journals Mechanism for Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE) Using Partial Least Squares Structural Equation Modeling (PLS-SEM)

2020 ◽  
Vol 17 (22) ◽  
pp. 8450
Author(s):  
Xingwei Li ◽  
Jianguo Du ◽  
Hongyu Long
Keyword(s):  
Structural Equation Modeling ◽  
Least Squares ◽  
Partial Least Squares ◽  
Structural Equation ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Industrial Enterprises ◽  
Green Development ◽  
And Performance ◽  
Positive Effect

Although the theory of green development behavior and performance of industrial enterprises (GDBP-IE) reveals that the green development behavior (GDB) of industrial enterprises is affected by internal and external factors and produces performance, it lacks a clear mechanism. This paper aims to verify the theory of GDBP-IE and reveals the mechanism of GDBP-IE in the Chinese context. The partial least squares structural equation modeling (PLS-SEM) method was used to analyze valid samples of Chinese industrial enterprises (N = 615). The empirical conclusions are as follows. (1) Corporate tangible resources, corporate intangible resources (CIR), market environment, public supervision and policy and institutional environment (PIE) have a significant positive effect on GDB (i.e., green supply chain management practice and clean production behavior). (2) Compared with other factors, the positive effect of CIR on GDB is the strongest. (3) The level of positive effect of PIE on GDB is not as significant as other factors. (4) GDB has a significant positive effect on green development performance (i.e., corporate social performance, corporate financial performance and corporate environmental performance). This paper provides effective evidence for researchers to use other methods to further verify the theory of GDBP-IE in the Chinese context. This paper also provides an opportunity for cluster analysis of GDBP-IE in different countries or regions. In addition, this paper not only gives a targeted reference for the government to formulate guidelines concerning the green development of industrial enterprises but also encourages industrial enterprise managers to formulate green development strategies, which is a way to help industrial enterprise managers and workers to participate in and comply with GDB.

Antecedent factors that affect restaurant brand trust and brand loyalty: focusing on US and Korean consumers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
June-Hyuk Kwon ◽  
Seung-Hye Jung ◽  
Hyun-Ju Choi ◽  
Joonho Kim
Keyword(s):  
Brand Loyalty ◽  
Structural Equation ◽  
Hypothesis Test ◽  
Equation Modeling ◽  
Path Coefficient ◽  
Brand Trust ◽  
Significant Positive Effect ◽  
Hierarchical Analysis ◽  
Content Type ◽  
Positive Effect

Purpose This study aims to empirically analyze the effects of marketing communications, such as advertisement/promotion and social network service (SNS) content, on consumer engagement (CE), brand trust and brand loyalty. Design/methodology/approach The study’s participants were 230 US and 376 Korean consumers who have used (i.e. contacted) a food service establishment (i.e. family restaurant) at least once before and who continue to use an SNS (e.g. Facebook and Instagram). This study conducted a hypothesis test using structural equation modeling analysis. In addition, hierarchical analysis was performed to further generalize and support the statistical analysis results. Findings Advertisement/promotion and SNS content have a statistically significant positive effect on CE. Advertisement/promotion has a statistically significant positive effect on brand trust, and SNS content has a statistically significant negative effect on brand trust. CE has a statistically significant positive effect on brand trust, and CE and brand trust have a statistically significant positive effect on brand loyalty. No statistically significant differences were shown between the US and Korean consumer groups (critical ratios for difference of path coefficient < ± 1.96). The hypothesis test results of the structural equation model analysis and hierarchical analysis were the same for the entire group. Originality/value The findings indicate that the overall mediating role of CE is important. To the best of the authors’ knowledge, this is the first study to investigate which marketing communication channels are most effective in the restaurant sector.

Studying the effect of spiritual leadership on organizational performance: an empirical study in hotel industry

2015 ◽  
Vol 9 (3) ◽  
pp. 346-359 ◽  
Author(s):  
Reza Salehzadeh ◽  
Javad Khazaei Pool ◽  
Jafar Kia Lashaki ◽  
Hasan Dolati ◽  
Hadi Balouei Jamkhaneh
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Hotel Industry ◽  
Spiritual Leadership ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Statistical Population ◽  
Content Type ◽  
Positive Effect

Purpose – The purpose of this paper is to investigate the effect of spiritual leadership on organizational performance based on the balanced scorecard (BSC). Design/methodology/approach – Statistical population includes the middle managers of 60 hotels across eight provinces in Iran. For data analysis, 207 accurate completed questionnaires have been used. Structural equation modeling has been used to explore the relationships between the research variables. Findings – The findings showed that spiritual leadership has a significant positive effect on calling and membership. Also, spiritual leadership, calling and membership have a significant positive effect on organizational performance. Originality/value – This paper by presenting a comprehensive model provides a framework and approach for studying the performance consequences of spiritual leadership in the hotel industry using the BSC.

scholarly journals Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia

2018 ◽  
Vol 12 (3) ◽  
pp. 299-321 ◽  
Author(s):  
Noor Raihani Zainol ◽  
Abdullah Al Mamun
Keyword(s):  
Competitive Advantage ◽  
Opportunity Recognition ◽  
Equation Modeling ◽  
Competitive Advantages ◽  
Significant Positive Effect ◽  
Development Programs ◽  
Content Type ◽  
Entrepreneurial Competencies ◽  
And Performance ◽  
Positive Effect

Purpose The purpose of this study is to examine the effect of entrepreneurial competencies on competitive advantage and to investigate the effect of competitive advantage on the performance of informal microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Design/methodology/approach This study used a cross-sectional design and collected quantitative data from 384 informal women micro-entrepreneurs operating in “night markets” in Kelantan, Malaysia. Findings The finding of the analysis using variance-based structural equation modeling indicated that commitment competency, conceptual competency, organizing competency and opportunity recognition competency have a significant positive effect on competitive advantages, and competitive advantages have a significant positive effect on the performance of microenterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. Research limitations/implications The development programs and policies should focus on improving the competencies, i.e. commitment competency, conceptual competency, organizing competency and opportunity recognition competency to improve the socioeconomic condition of low-income households in Malaysia. Informal women micro-entrepreneurs should, therefore, focus on value creating strategies to avoid potential competitors from duplicating the benefits of their strategy. This will result in a sustainable competitive advantage of microenterprises in Malaysia. Originality/value This study puts forward and tests the effect of entrepreneurial competencies on competitive advantages and performance of informal women micro-entrepreneurs in Kelantan, Malaysia, which provides a foundation for the design and implementation of development programs and policies that promote entrepreneurial activities in Malaysia.

The impact of counterfeit risk management on healthcare supply chain performance: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Falasca ◽  
Scott Dellana ◽  
William J. Rowe ◽  
John F. Kros
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
The United States ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Healthcare Organizations ◽  
Content Type ◽  
Overall Performance ◽  
The Impact ◽  
Positive Effect

PurposeThis study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).Design/methodology/approachIn the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.FindingsHCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.Research limitations/implicationsAll study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.Originality/valueThis study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.

Individual social entrepreneurial orientation in Brazil: measurement and the predictive role of personal values and attitude toward social change

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Márcia Maria Garçon ◽  
Vânia Maria Jorge Nassif ◽  
Tiago Jessé Souza de Lima
Keyword(s):  
Social Change ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Personal Values ◽  
Explanatory Power ◽  
Equation Modeling ◽  
Survey Method ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Self Transcendence

Purpose The purpose of this paper is to develop and test a model that aims to explain individual entrepreneurial orientation (IEO) focused on the context of social entrepreneurship (SE) (Social-IEO) by considering the personal values and attitude toward social change through direct and indirect effects. To achieve this purpose, the authors created and validated a scale to measure Social-IEO. Design/methodology/approach The paper uses scale construction techniques (DeVellis, 2016) and survey method for data collection. As such, this study was conducted by considering a sample of 198 social entrepreneurs. Multivariate data analysis and structural equation modeling are used to validate the theoretical model. Findings The Social-IEO scale was validated and shows to adequately encompass and measure the construct. The proposed model has predictive relevance and explains 45% of Social-IEO. Findings suggest that self-transcendence value has no direct effect on Social-IEO. Additionally, conservation and self-promotion values do not have a negative correlation with Social-IEO. Finally, attitude of social change has a strong explanatory power to Social-IEO. The findings offer important theoretical and practical implications for the field of entrepreneurship education and entrepreneurial behavior. Originality/value The definition of a specific concept of IEO applied to the context of SE contributes to the correct understanding of its dimensions, measurement and management. This eliminates a gap in studies and contributes to expand and strengthen research. It also provides an original empirical approach, as the method used to measure IEO in a reflective way is unusual in previous studies.

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