Location and competitiveness in subsistence small businesses

Author(s):  
Carlos M. Jardon

Purpose This paper aims to analyse the location as root of the specificity of the sources of competitiveness in subsistence small businesses (SSBs) of wood industry to improve the situation of poverty and the different behaviour of subsistence entrepreneurs. Design/methodology/approach The research uses an exploratory analysis based on principal components in two phases and confirmatory analysis based on partial least square techniques applied to a sample of 113 small and medium enterprises of wood industry in Oberá, a region of Argentina. Findings The analysis evidences the use of competitiveness sources of SSBs and a double behaviour in SSBs according to subsistence threshold. Satisfactory SSBs use competitiveness sources to improve organizational and economic performance. Unsatisfactory SSBs find economic performance without relation to organizational performance. Research limitations/implications Data are cross-sectional, and in a conjuncture of economy expansion, future research should monitor the sample of firms using panel data to assess the development of relations. Sample is in a particular region and sector, and generalizations should be done carefully. Practical implications SSBs should raise the strategy integrating short and long term, which requires a strengthening of intellectual capital, especially in cooperation, professionalism and training. They could integrate and share a business community to develop competitive advantages of collective systemic. Originality/value The research shows the importance of the location for the competitiveness of SSBs and provides a classification of SSBs according to their performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shih-Jung Juan ◽  
Eldon Y. Li ◽  
Wei-Hsi Hung

PurposeThis study aims to explore the relationships among the five components of supply chain (SC) resilience (SCRES): visibility, velocity, flexibility, robustness and collaboration and their impacts on the SC performance under disruption (SCPUD).Design/methodology/approachFive SCRES components are identified from the literature review and data are collected using an web survey from 113 manufacturing companies in Taiwan. The data are analyzed by structured equation modeling with the partial least square solution. Two-stage least-squares (2SLS) regression was used to test the potential endogeneity of SC collaboration (SCC).FindingsThe results reveal that SCC is an exogenous driver of SCRES; it directly affects visibility, velocity, flexibility, robustness and SCPUD. Furthermore, SC flexibility is the only component of SC agility that directly affects SCPUD; it is influenced directly by SC velocity and indirectly by SC visibility through SC velocity. SC visibility is a vital agility component that positively influences SC velocity and SC robustness.Research limitations/implicationsThe data in this study are cross-sectional and the sample size of 113 is relatively small. The relationship between SC robustness and SCPUD needs a longer observation period to reveal. The logistic issue in the shortage of carriers caused by the pandemic has been overlooked.Practical implicationsA firm should enhance its collaboration and flexibility in the SC as they both are the critical antecedents of SC performance (SCP) during the disruption period.Originality/valueThis study integrates visibility, velocity, flexibility, robustness and collaboration into a complete framework of SCRES. The dependent variable, SCPUD, measures SC performance (SCP) under the disruption caused by the COVID-19 pandemic. It is the first study to investigate the associations of the six constructs in a research model.


Author(s):  
John Mendy ◽  
Mahfuzur Rahman

Purpose The purpose of this paper is to investigate small- and medium-sized enterprises’ (SMEs) internationalisation from an emerging market perspective. It explores and applies human resource management (HRM) processes to small businesses’ internationalisation efforts in order to ascertain the extent to which human- and technology-oriented barriers to internationalisation can be better understood and their processes better managed by SMEs. Design/methodology/approach The data collection and analysis involved a mixed method technique so as to identify the two dominant barriers faced by SMEs at the employer and employee levels. By using primary survey data obtained from 212 Bangladeshi SMEs, a partial least square based structural equation model was successfully validated and its development enhanced the comparison of processes involved in managing people and technology-type barriers. Findings The research results highlight the importance of HRM processes in the proper management of both human and technology-type barriers, which are equally as significant to SMEs’ internationalisation. Practical implications The results highlight the urgent need for governments in emerging economies to prioritise SMEs’ internationalisation and to dedicate resources and processes in order to effectively optimise economic and social dividends. The practical, theoretical and methodological implications of the paper raise opportunities for further research in SMEs’ internationalisation and people management processes and practices as well as new policy guidelines. Originality/value The examination of the link between humans and technology is a much under-represented area in developing countries and the actual contribution of effective HRM processes in the context of SMEs’ internationalisation is missing. Applying HRM processes to these aspects serves to deepen the knowledge of small businesses’ internationalisation efforts and the contributed model enhances professional practice and theory development in these disciplines and in emerging economies.


2020 ◽  
Vol 27 (5) ◽  
pp. 817-837
Author(s):  
Godwin Mwesigye Ahimbisibwe ◽  
Joseph Mpeera Ntayi ◽  
Muhammed Ngoma ◽  
Geoffrey Bakunda ◽  
Levi Bategeka Kabagambe

PurposeThe purpose of this study was to investigate whether each level in international networking (network extension, network penetration and network integration) matters in the internationalization of small to medium-sized enterprises (SMEs).Design/methodology/approachThe study adopted a cross-sectional and correlational research design. The data were collected through a questionnaire survey of 206 exporting SMEs in Uganda. The study employed a structural equation modelling (SEM) technique using partial least square (PLS) to test the hypothesis.FindingsThe findings revealed that network extension and network integration do matter in SMEs’ internationalization, while network penetration does not.Practical implicationsSMEs in developing countries need to concentrate on network extension and network integration levels to successfully internationalize their operations.Originality/valueThe study provides initial evidence on whether network extension, network penetration and network integration matter in SMEs’ internationalization in developing countries like Uganda.


2019 ◽  
Vol 49 (6) ◽  
pp. 1269-1286
Author(s):  
Sajeet Pradhan ◽  
Aman Srivastava ◽  
Lalatendu Kesari Jena

Purpose Based on the unfolding theory of voluntary turnover, the purpose of this paper is to investigate the linkage between abusive supervision (a shock) and subordinate’s intention to quit (withdrawal cognition). The study also explores the multi-mediation routes by testing the abusive supervision-intention to quit relationship via psychological contract breach and via burnout. Design/methodology/approach To test the proposed hypotheses, the study draws cross-sectional data from Indian employees working in various MNCs in the country. Data were collected using an electronic data collection method. The online form link was send to 600 employees, out of which 246 valid and complete responses were received (n=246). Partial least square (PLS–SEM) was used for the analysis. Findings Results showed that abusive supervision is positively related to intention to quit. Similarly, psychological contract breach and burnout partially mediates the abusive supervision-intention to quit linkage. Originality/value First, the current study has conceptualized and tested abusive supervision as a shock that triggers various adverse cognitions including withdrawal cognition (intention to quit). Second, the study also empirically investigated multi-mediational routes via psychological contract breach and burnout that explained the indirect effect between abusive supervision and intention to quit.


Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 352-375 ◽  
Author(s):  
Soheil Kazemian ◽  
Rashidah Abdul Rahman ◽  
Zuraidah Mohd Sanusi ◽  
Abideen A. Adewale

Purpose Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan repayment rate that the microfinance firms report, they still face the challenge of sustainability. The paper aims to provide insights into how three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, affect the two aspects of the sustainability of microfinance institutions (MFIs; management and financial). Design/methodology/approach To achieve this goal, this study focuses on Amanah Ikhtiar Malaysia (AIM), a leading microfinance provider which is also the largest MFI in South East Asia. Data elicited via a survey questionnaire administered on 190 management staff of AIM across Malaysia are subjected to statistical analysis via the partial least square-structural equation modeling using SmartPLS 2.0. Findings The results provide empirical evidences that indicate that management sustainability is significantly influenced by customer orientation and inter-function coordination. However, only customer orientation affects the financial sustainability of AIM. Nevertheless, competitor orientation has non-significant effects on both aspects of sustainability of AIM. Research limitations/implications The result of the paper contributes to the literature in understanding the long-term sustainable financial and social performance-based market orientation. Originality/value Findings are useful for policy makers, management of MFIs, practitioners and academics to enhance microfinance system. Managerial implications, limitation of the study and suggestions for future research are also included.


2020 ◽  
Vol 11 (1) ◽  
pp. 155-176
Author(s):  
Ratni Prima Lita ◽  
Ranny Fitriana Faisal ◽  
Meuthia Meuthia

Purpose This study aims to identify the effect of entrepreneurial orientation and organizational culture on organizational innovation and organizational performance among small- and medium-sized enterprises (SMEs) on the creative industry which is supporting tourism in Indonesia. Design/methodology/approach A quantitative approach was used to distribute questionnaires using a purposive sampling technique to 183 SME’s owners of the creative industry that produce and trade the products directly to the customers. A partial least square (PLS) was conducted to analyze the data. Findings Entrepreneurial orientation and organizational culture have a significant effect on innovation, which in turn, influences the performance. Interestingly, innovation does not have a significant influence on performance as well as does not mediate the influence between entrepreneurial orientation and organizational performance. Research limitations/implications The issue of innovation in this study was measured by many indicators that reflected the organizational innovation. Further studies may investigate other specific types of innovation. Practical implications Both entrepreneurs and government should establish more technological support, business incubation centers and counseling organizations to encourage performance in the future. Originality/value Socio-cultural diversity such as entrepreneurial orientation and natural resources especially the culture of Indonesia can inspire creative industries to continue to innovate and after that can lead them to improve their performance, especially in the tourism area.


2015 ◽  
Vol 35 (3/4) ◽  
pp. 273-288 ◽  
Author(s):  
Eijaz Ahmed Khan ◽  
Mohammed Quaddus

Purpose – This study realize that the relationships between business environment and firm performance in context of small- and medium-sized enterprises and large organizations is well understood and focused, but less research has been done on microenterprises, especially in informal sector. The purpose of this paper is to examine these relationships. Design/methodology/approach – A mixed method research design was used. In the field study, data were obtained from 14 participants via one-to-one personal interview. Content analysis was applied to extract, classify, and cross-examine of the data. In the quantitative approach, questionnaire was developed and data were collected from 438 informal microenterprises (IMs) owners. The data were analysed using the partial least square structural equation modelling. Findings – Results from this field study and survey recognized these relationships and vibrates well with the existing literature and establish the hypothesis. Practical implications – In order to create more favourable environment and ensure the performance, the policy makers, professional bodies could formulate decent requirements for IMs to have a code of business practices and socio-economic performance. Originality/value – This study provides a first step towards business environment and firm performance in context IMs and makes several contributions to the literature.


2017 ◽  
Vol 28 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Carlos Maria Jardon ◽  
Amandio Dasilva

Purpose Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future. Design/methodology/approach A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study. Findings The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs. Research limitations/implications The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America. Practical implications This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development. Originality/value The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.


2020 ◽  
Vol 38 (4) ◽  
pp. 917-932
Author(s):  
Johra Kayeser Fatima ◽  
Rita Di Mascio ◽  
Ali Quazi ◽  
Raechel Johns

PurposeThis study aims to capture the mediation role of customer–frontline employee rapport on customer satisfaction and affective, calculative and normative commitment by using three alternative models. It also verifies the moderation effect of relationship age on the rapport-satisfaction link in each alternative model.Design/methodology/approachThe survey data collected from bank customers were analyzed using structural equation modeling (SEM) with the partial least square (PLS) method.FindingsResults confirmed rapport as a significant mediator between satisfaction and each of the three types of commitment. Relationship age significantly moderates the links between rapport to affective and normative commitment but not to calculative commitment.Research limitations/implicationsAdditional findings from “importance–performance analysis” suggest that satisfaction is more import to customers than rapport for developing commitment, so further investigations can reveal the underlying reasons. Also, complementary mediation shows one or more missing mediators, which calls for future research.Practical implicationsManagers need to use rapport strategically with customers in different relationship ages to build different types of commitment. Specific tactics to build rapport and possible long run implications for developing affective, calculative and normative commitment have been discussed in the “note to practitioner” section.Originality/valueUsing “broaden-and-build” theory, the study extends the literature by confirming the mediation influence of rapport on satisfaction and three types of commitment relationships.


2020 ◽  
Vol 27 (3) ◽  
pp. 1003-1041 ◽  
Author(s):  
Anil Kumar ◽  
Rohit Kr Singh ◽  
Sachin Modgil

PurposeThis paper presents the concerns in agri-food supply chain. Further the research investigates the role of information and communication technology (ICT) in agri-food supply chain and determines the impact of supply chain management (SCM) practices on firm performance.Design/methodology/approachThe theoretical framework was proposed for the study on the basis of existing literature. Data for the study was collected with the help of structured questionnaire from 121 executives and officers of the public food distribution agency. Partial least square (PLS)–structured equation modeling was employed to test the framework and hypotheses.FindingsThe results indicate that ICT and SCM practices (logistics integration and supplier relationships) have a significant relationship. Furthermore, SCM practices (information sharing, supplier relationship and logistics integration) have a significant and positive impact on performance of the organization.Research limitations/implicationsFurther research could be carried out to test the moderation effect of SCM practices between ICT and organizational performance (OP). Extending the research study to the companies operating in other sectors can enhance the external validity of the study and improve the accuracy of parameters examined.Practical implicationsThis study can be of interest to the agri-food industry as well as other industry practitioners interested in improving the performance of the organization from the view of supply chain.Originality/valueThe outcomes of this study have important implications that translate into a series of recommendations for the management of public food distribution as well as other agri-food-based supply chains.


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