The level matters: building capabilities for innovation and enterprise performance through customer involvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Financial Performance ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Service Firms ◽  
Critical Question ◽  
Content Type ◽  
Customer Involvement ◽  
And Performance ◽  
Medium Enterprises

PurposeThis paper aims to examine the quadratic relationship between customer involvement capability and performance, and innovation of small- and medium-scale service firms. The study answers the critical question of how SMEs make the most benefit from their involvement capability.Design/methodology/approachData from small and medium enterprises (SMEs) operating in the service sector of an emerging economy in sub-Saharan Africa were used. A two-stage data analysis with a quadratic estimation was used to assess the hypothesized relationships.FindingsThe study found that the influence of involvement capability over SME performance differs in terms of financial and non-financial. And that, while increasing customer involvement will improve non-financial performance such as customer satisfaction and service quality, it is only at the intermediate level that financial performance is optimized.Originality/valueThe relationships (involvement, and performance and innovation) are not linear, and that at some levels, the relationship with financial or non-financial performance is more positive than other levels. The findings also suggest that involvement capability influences both process and product innovations most at intermediate levels than at low and high levels.

Organizational culture and leadership as antecedents to organizational flexibility: implications for SME competitiveness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Organizational Culture ◽  
Competitive Advantage ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Service Firms ◽  
Firm Level ◽  
Managerial Implication ◽  
Content Type ◽  
Internal Resources ◽  
Medium Enterprises

Purpose This study aims to assess how innovative organizational culture and innovative leadership generate market flexibility for small and medium enterprises (SMEs) in the service sector to enhance their competitiveness. Both organizational culture and leadership are seen as firm-level resources capable of influencing the flexibility of the firm in periods of market turbulence. The study argues that SME service firms must use their internal resources to develop their flexibility capability which is more valuable, rare, inimitable and not substitutable. Design/methodology/approach SME service firms from Ghana are used to test the study’s hypotheses through robust standard regression analysis. A sampling frame was developed from an online database of small and medium enterprises operating in the service sector. Findings The findings suggest that although organizational culture and leadership may influence a service firm’s competitiveness, it is more viable to use these firm-level resources to create market flexibility capability to amplify the effect. This means, when culture and leadership propel the flexibility drive, the service firm is able to connect, coordinate and synchronize functional units to take advantage of new product and market opportunities. Additionally, market flexibility emanating from organizational culture and leadership wields enough power and resource support to tackle the turbulent market conditions better than firms with less support. Practical implications The managerial implication from this study is that firms should use their organizational culture and leadership to create flexible organizations that afford them the opportunity to adapt to the environmental dynamics. If both leadership and culture work together, they are able to create strong market capabilities such as flexibility which determines how well the firm will respond to the competition, customer demand and all other external pressures. It is, therefore, the view of this paper that SMEs should use their organizational culture and leadership to build a market-flexible organization to create a competitive advantage. Originality/value This paper shows how internal resources/assets such as culture and leadership generate the needed flexibility to create a competitive advantage for SMEs. This paper explains the two dimensions of Volberda’s flexibility from a firm-level resource perspective and highlights flexibility as a second-order capability whose cultivation and effectiveness are dependent on a firm’s culture and leadership. Evidence of how a firm’s market flexibility is fuelled by organizational leadership and culture is demonstrated. Finally, this paper shows how resource-poor SMEs in emerging African economies can enhance their market competitiveness through internal systems and processes.

scholarly journals Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Financial Capital ◽  
Moderation Effect ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

Modelling strategic orientation dimensions and performance of small and medium enterprises

2019 ◽  
Vol 14 (3) ◽  
pp. 754-772 ◽  
Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel
Keyword(s):  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Strategic Orientation ◽  
Decision Makers ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Manufacturing Performance ◽  
Different Dimensions ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this paper is to identify and rank different dimensions of strategic orientation and firm’s performance using the approach of interpretive structural modeling. Design/methodology/approach The study uses interpretative structural modeling and the MICMAC technique to establish a hierarchical relationship among different dimensions of entrepreneurial orientation and manufacturing performance of Indian SMEs. Findings The final outcome of interpretative structural modeling and the MICMAC analysis revealed a relationship between the variables under study along with the categorization of all in two different categories, depending upon their driving power and dependency, which decision-makers can also use while devising their strategy to improve performance. Originality/value To date, to the best of the authors’ knowledge, no significant contribution about such interrelationship was reported; therefore, this study is one of its types to fill this gap.

Strategic orientations and capabilities' effect on SMEs' performance

2020 ◽  
Vol 38 (7) ◽  
pp. 829-845 ◽  
Author(s):  
Ibrahim Alnawas ◽  
Allam Abu Farha
Keyword(s):  
Structural Equation ◽  
Survey Methodology ◽  
Small And Medium Enterprises ◽  
Suppressive Effect ◽  
Marketing Capabilities ◽  
Complementarity Effect ◽  
Content Type ◽  
Strategic Orientations ◽  
And Performance ◽  
Medium Enterprises

PurposeThis study aims to: first, examine the effect of interaction orientation (IO) and brand orientation (BO) on marketing capabilities and small and medium enterprises' (SMEs') performance, and second, assess the complementarity effect of IO and BO on marketing capabilities and SMEs' performance.Design/methodology/approachA model was developed and tested using a survey methodology. Data were collected from 538 SMEs located in Qatar and analysed by structural equation modelling with AMOS.FindingsFirst, IO affects SMEs' performance only indirectly via marketing capabilities, whereas BO affects SMEs' performance both directly and indirectly. Second, contrary to expectations, the complementarity between IO and BO produced a destructive/suppressive effect, rather than a synergistic effect, on both marketing capabilities and SMEs' performance, reflecting the importance of a trade-off to enhance both marketing capabilities and SMEs' performance.Originality/valueTo the authors' knowledge, this is the first paper to examine the complementary effect of BO and IO on marketing capabilities and performance.

Organization-stakeholder relationship and performance of Iranian SMEs

2020 ◽  
Vol 13 (3) ◽  
pp. 417-436
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah
Keyword(s):  
Risk Taking ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cluster Sampling ◽  
Content Type ◽  
Stakeholder Relationships ◽  
And Performance ◽  
Medium Enterprises ◽  
Stakeholder Relationship

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.

Types of foreign networks and internationalization performance of Korean SMEs

2016 ◽  
Vol 24 (1) ◽  
pp. 47-61 ◽  
Author(s):  
So Won Jeong
Keyword(s):  
Financial Performance ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Performance Outcomes ◽  
Business Networks ◽  
Content Type ◽  
Strategic Performance ◽  
Medium Enterprises ◽  
Performance Satisfaction ◽  
The Impact

Purpose The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance. Design/methodology/approach To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs. Findings The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets. Originality/value The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.

Tradition, innovation and relationships: emergent profiles from agro-food Italian industry

2020 ◽  
Vol 123 (1) ◽  
pp. 279-299
Author(s):  
Antonietta Cosentino ◽  
Paola Paoloni ◽  
Barbara Iannone ◽  
Valerio Temperini
Keyword(s):  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Corporate Sustainability ◽  
Future Research ◽  
Relational Capital ◽  
Content Type ◽  
Positive Effects ◽  
Executive Process ◽  
And Performance ◽  
Medium Enterprises

PurposeThe purpose of this study is to analyze the link between innovation technology (IT), relationships which affect the relational capital (RC), and intangible value for the environment, focusing on small and medium enterprises (SMEs) of agro-food sector (AFS) in which these topics are prominent.Design/methodology/approachThis paper adopts a qualitative research methodology, based on a multiple case study. The empirical data were obtained from interviews designed to reveal the determinants of the Paoloni's CAOS model (characteristics, ambience, organization, start-up) useful to analyze the relational capital from the firm's perspective. The content analysis shows the most important factors influence the relationships of the companies analyzed.FindingsThe empirical analysis highlights the strong link between tradition and innovation in the AFS and its positive effects on corporate sustainability and company relationships as well as in enhancing knowledge. The introduction of ITs and the positive effects it produces in terms of efficiency, product quality, environmental sustainability and new communication channels is an important factor that influences business's relationships.Originality/valueThis paper contributes to the RC literature by stressing how ITs improve not only the executive process and performance of SMEs, but also the intangible resources of the territory. Accordingly, it provides both triggers for future research in the AFS, as well as suggestions to SMEs decision-makers to enhance their competitiveness. Furthermore, the paper offers insights to push policy makers in adopting policies that favor ITs investments in the AFS.

scholarly journals Asset specificity in make or buy decisions for service operations

2008 ◽  
Vol 19 (1) ◽  
pp. 111-133 ◽  
Author(s):  
Tomás F. Espino‐Rodríguez ◽  
Pei‐Chun Lai ◽  
Tom Baum
Keyword(s):  
Financial Performance ◽  
Business Performance ◽  
Service Sector ◽  
Service Operations ◽  
Asset Specificity ◽  
Operation Performance ◽  
Content Type ◽  
Hotel Sector ◽  
And Performance ◽  
The Relationship

PurposeThis work analyses make or buy decisions from the transaction cost economics perspective and the resource‐based view of the firm. The aim is to analyse the extent to which the presumptions of the two theories are valid in the service sector in terms of specific assets.Design/methodology/approachThe study was conducted on a representative sample of hotels in Scotland, UK. Each of the surveyed hotels was asked for information about 13 operations or hotel processes. A comprehensive model is developed that establishes the relationship between asset specificity and operation performance and hotel or business performance, moderated by the form of governance (make or buy). Moreover, the relationship between asset specificity and outsourcing in the hotel sector is also examined. The different hotel processes are classified according to the asset specificity. The factors that could lead to an increase in the outsourcing strategy are also analysed.FindingsThe results indicate that, the relationship between asset specificity and operation performance is weaker when the operations are executed in‐house. In the case of the relationship between specific assets and performance, the findings regarding non‐financial performance are not contradictory since it is slightly higher when the operation is outsourced. The factors determining an increase in outsourcing would be those related to the quality of the operation and to non‐financial performance.Research limitations/implicationsPrevious studies have not considered the relationship between specificity and business performance, which gives extra incentive to complement and expand the literature on service operations. Future research should analyze other theories on organisations and outsourcing. The findings should also be tested in other geographical regions and use sources of information other than the hotel managers.Practical implicationsThe work generates knowledge and aids managers in their “make or buy” decisions for the principal processes in the hotel industry according to the asset specificity.Originality/valueThe paper develops a specificity‐outsourcing matrix and identifies each of the hotel operations. Apart from testing the model in the hotel sector, which is an important sector of the service industry, the work offers a better understanding of outsourcing decisions based on the two basic theories used in the literature on services management. The paper also makes an innovative contribution by analysing relationships between operation specificity and performance that are previously untested in the service sector.

Organizational effects and labor behavior of domestic violence

2016 ◽  
Vol 29 (4) ◽  
pp. 419-434 ◽  
Author(s):  
Segundo J. Castro-Gonzáles ◽  
Orquídea Arias Díaz ◽  
Anamari Irizarry Quintero
Keyword(s):  
Domestic Violence ◽  
Puerto Rico ◽  
Customer Service ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Canonical Analysis ◽  
Limited Attention ◽  
Physical Damage ◽  
Content Type ◽  
Medium Enterprises

Purpose Using a proposed model, the purpose of this paper is to categorize small and medium enterprises’ (SMEs) owners/managers’ perceptions of customer service, and of the manifestations and observable behaviors in relation to the most frequent repercussions of domestic violence in the workplace. Design/methodology/approach A sample of 73 SME owners/managers was selected; a survey with 44 variables was used for data collection; and factorial and canonical analysis techniques were used to analyze the data. Findings The following were found: among the most frequent manifestations of domestic violence in SME customer services, there are four categories that explain 69.46 percent of the model of variance: threats and continuous absences, frequent mistakes and bad relationships, physical damage/lack of concentration and negative manifestation with low self-esteem; among observable behavior at the workplace, there are four categories that explain 65.35 percent of the model of variance: lack of concentration/tearfulness, fear/insecurity, limited attention to customers and continuous threats; finally there is a 96.70 percent probability of the SMEs’ productivity being affected (loss of customers and low production), through three manifestations of domestic violence detected in the employees: tiredness, sleepiness and tearfulness. Research limitations/implications This research is circumscribed to only one geographical zone in Puerto Rico. Practical implications Even only three manifestations of domestic violence in workers will significantly decrease productivity. When SME managers detect these, they can take action to mitigate the problem for the benefit of the workers. Originality/value This study is a pioneer proposal in its analytical quantitative approach on domestic violence in Puerto Rico and its repercussions on the productivity of the service sector, using canonical analysis.

Performance outcome of entrepreneurial behavior of SMEs in a developing economy: the role of international mindset

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Agyapong ◽  
Patience Dakora Maaledidong ◽  
Henry Kofi Mensah
Keyword(s):  
Risk Taking ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Behavior ◽  
Content Type ◽  
Positive Effects ◽  
Entrepreneurial Behaviour ◽  
And Performance ◽  
The Individual ◽  
Medium Enterprises ◽  
The Relationship

PurposeDespite the burgeoning stream of research on the relationship between entrepreneurial behavior (EB) and performance, the linkage between entrepreneurial behaviour, international mindset and performance is still underexplored. Therefore, this study investigates how the international mindset moderates the relationship between entrepreneurial behavior and performance.Design/methodology/approachThe study's model is tested on a sample of 257 small and medium enterprises (SMEs) in an emerging economy – Ghana – using a three-stage least squares estimator.FindingsResults indicate that an international mindset primarily fosters entrepreneurial behavior in driving performance over and above the unique positive contributions of entrepreneurial behavior and international mindset. Specifically, the study finds that at high levels of international mindset, the positive effects of innovativeness and risk-taking elements of entrepreneurial behavior becomes strengthened. The international mindset's moderating role on the entrepreneurial behavior-performance linkage shows that the international mindset makes SMEs more innovative and open to risk, hence affecting performance positively.Originality/valueThe study demonstrates that, in the SME sector in the emerging economies, the relationship between the individual dimensions of entrepreneurial behavior and performance is contingent upon the role international mindset play in such a relationship. Further, this study explores how international mindset interacts uniquely with the EB (innovativeness, risk-taking and proactiveness) to predict performance.

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