scholarly journals MCS package and entrepreneurial competency influence on business performance: the moderating role of business strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafique Ur Rehman ◽  
Hamzah Elrehail ◽  
Kiran Nair ◽  
Anam Bhatti ◽  
Abdallah Mohammad Taamneh

PurposeThis paper draws on resource-based theory (RBV) to examine the impact of the management control system (MCS) package on business performance through the mediating role of entrepreneurial competencies and the interaction role of business strategy in small and medium-sized enterprises (SMEs).Design/methodology/approachA total of 372 questionnaires were used in this research for analysis purposes using partial least square–structural equation modelling. Cluster sampling was used and nine states out of 16 states were selected randomly, including Kelantan, Johor, Sarawak, Selangor, Kedah, Kuala Lumpur, Penang, Perak and Sabah, because the nine states cover 84.4% of the total SMEs.FindingsThe results revealed that only cultural and administrative control has no relationship with business performance. Moreover, in the MCS package, all elements have a significant and positive influence on entrepreneurial competencies. Furthermore, business strategy (cost leadership and differentiation strategy) significantly moderates, while entrepreneurial competencies mediate between, cultural, planning, cybernetic, rewards and compensation, administrative control and business performance.Originality/valueSMEs in Malaysia are contributing 36.6% to gross domestic product. Further, as this sector is important, less attention has been paid to this area of MCS package with business strategies to determine organisational performance. This study fills these gaps, and the recommendations and findings for further research are discussed in detail accordingly. Moreover, the findings of the current research provide guidelines for the management of SMEs.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farrukh ◽  
Ali Raza ◽  
Abdul Waheed

PurposeBased on the social network theory, this study investigates the impact of political ties on innovation performance. Besides, this study also tests a mediation role of absorptive capacity (AC) and a moderation role of technology turbulence.Design/methodology/approachA hypothetico-deductive approach is adopted to test the hypotheses. Data were collected from the small and medium enterprises (SMEs) managers/owners through a structured questionnaire.FindingsPartial least square structural equation modeling technique is used to analyze the hypothesized relationships; the findings showed that political ties significantly impact the innovation performance, and this relationship is mediated by AC. Moreover, technological turbulence moderated the relationship between political ties and innovation performance.Originality/valueDespite the increasing attention to the role of networking in improving innovation, there is a scarcity of studies on the role of political ties, AC and technology turbulence in fostering organizational innovation; thus, this study is a unique contribution to literature.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kian Yeik Koay ◽  
Man Lai Cheung ◽  
Patrick Chin-Hooi Soh ◽  
Chai Wen Teoh

Purpose Social media influencers (SMIs) have become an important source of influence that affects consumer behaviours in their decision-making processes. As such, this justifies scholarly attention in understanding how SMIs transfer their meanings to endorsed brands and drive consumers’ positive behavioural intentions. With the intention to fill this knowledge gap, this paper aims to examine the impact of SMIs’ credibility, as manifested by trustworthiness, attractiveness and expertise, along with the moderating effects of materialism, on followers’ purchase intention. Design/methodology/approach Self-administrated online surveys were used to collect data from Instagram users. A total of 191 usable data were collected and analysed using partial least square structural equation modelling. Findings The results show that SMIs’ trustworthiness and expertise are significant predictors of followers’ purchase intention. Moreover, the moderating effect of materialism on the relationship between attractiveness and purchase intention is significant. Notably, the influence of attractiveness on purchase intention is greater when materialism is high. Originality/value This research contributes to the SMI literature by examining the influence of SMIs’ trustworthiness, attractiveness and expertise, along with the moderating effect of materialism, on followers’ purchase intention.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hussein-Elhakim Al Issa

PurposeThis paper aims to examine the effect of financial bootstrapping strategies (FBS) and strategic improvisation (SI) on business performance (BP). The study enriches our understanding of the contributions of bootstrapping and improvisation strategies toward resource-constrained small businesses during real economic downturns and crises. The potential moderating effect of SI on the relationship between FBS and its dimensions and performance were also examined.Design/methodology/approachUsing the convenience snowball sampling technique, data were collected from entrepreneurs in Tripoli, Libya. Structural equation modeling by means of partial least square bootstrapping resampling was used for the hypotheses testing of the 147 useable responses.FindingsStatistically significant positive relationships were found in the direct relationships between bootstrapping and improvisation with performance. However, there was no significant association found between the delaying payment related bootstrapping and the owner-related bootstrapping with performance. The moderating effect of improvisation had a significant relationship between bootstrapping as an aggregate construct and its dimensions and performance.Research limitations/implicationsDue to the cross-sectional nature of this study which used a small sample that was randomly selected, generalization to the entire population of business ventures should be made with caution.Practical implicationsThe negative moderation effect of improvisation on FBS-BP association suggests that entrepreneurs need to be careful in balancing the two strategies so that efforts are no wasted.Originality/valueWhile business performance has been studied in various organizations, its examination with financial bootstrapping strategies as a predictor and strategic improvisation as a moderator contribute nascent theoretical insights.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph K. Nwankpa ◽  
Yaman Roumani ◽  
Pratim Datta

Purpose This paper aims to examine the dynamic relationship between digital business intensity (DBI) and process innovation through knowledge management. More specifically, the paper investigates the mechanism through which DBI and knowledge management jointly influence process innovation. Design/methodology/approach The study used a single informant approach of data collection and consistent with prior research, and a random sample of CIOs was selected and invited to participate in the survey resulting in a total 193 usable responses. The analysis and empirical validation of the research model used partial least square. Findings The results reveal a positive link between DBI and process innovation. This finding presents empirical support for hitherto anecdotal evidence regarding the impact of DBI on process innovation. In particular, the study notes the impactful role of DBI as an input repertoire that facilitates knowledge management with subsequent positive effects on process innovation. Results further surface an accentuating interplay between DBI and knowledge management on process innovation. Originality/value The current study advances our understanding of how DBI, a pre-condition to attaining digital business strategy, influences process innovation. Moreover, investigating the consequences of DBI should help offer an initial insight to managers and top management facing the challenge of implementing a successful digital footprint in an increasingly digital business landscape. Furthermore, to the best of the authors’ knowledge, this study is the first to investigate how digitization efforts and knowledge management practices jointly affect process innovation.


2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.


2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.


Author(s):  
I Gede Hendry Kamanjaya ◽  
Wayan Gede Supartha ◽  
IG.A. Manuati Dewi

This study is focused to analyze the impact of servant leadership on employee performance in relation to the organizational commitment mediation. It is a causality research, providing an explanation and understanding about the impact of servant leadership on employee performance and the impact of servant leadership on organizational commitment. The sample of the research are 90 civil servants in Wangaya General Hospital as the respondents. In this study questionares are used as instuments of the research. Descriptive and inferential analysis were applied as method of analysis and Structural Equation Model-Partial Least Square (SEM-PLS) as a tool. The result is that servant leadership does not have any significant effect on employees performance, servant leadership has a positive and significant effect on organizational commitment, organizational commitment has positive and significant effect on employee performance, and the impact on servant leadership and employee performance through the role of organizational commitment as mediating variable is supported.


2018 ◽  
Vol 19 (0) ◽  
pp. 49-58
Author(s):  
Enni Savitri

This study investigates the relationship between family ownership, agency costs, financial performance, and companies’ business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007–2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies’ business strategies are not affected by the family ownership. Family ownership and business strategies influence companies’ financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company’s development.


2019 ◽  
Vol 2 (1) ◽  
pp. 42-50
Author(s):  
Tasya Kahfia Abshariena ◽  
Sisca Eka Fitria

The MSMEs is a sector that has a very large role in increasing the economic growth of the Indonesta state. Garut Regency of West Java utilizing the wealth and potential they have by making MSMEs as employment. One factor that has a very umportant role in the development of MSMEs is precisely the Dodol Industry itself is marketing but there are still many who use traditional marketing. This study aims to analyze the influence of Entrepreneurial Marketing on business performance at dodol centers in Garut Regency.   This study aims to determine the effect of Opportunity Focus, Proactiveness, Customer Intensity, Innovation, Risk Taking, Resource Leveraging, and Value Creation on Business Performance. The population in this study were business actors in the dodol center of Garut Regency, which amounted to 156 business actors with a sample of 70 respondents. This study uses a non-probability sampling technique that is Purposive sampling. The data analysis technique in this study is descriptive with data analysis of Structural Equation Model-Partial Least Square by performing data processing using SMART-PLS 3.0. The results of this study are that Customer Intensity, Innovation, Risk Taking, Resource Leveraging, and Value Creation have a significant effect on Business Performance, while Opportunity Focus and Proactiveness have no significant effect on Business Performance. From the r-square results that the seven independent variables witch is Entrepreneurial Marketing simultaneously contribute influence of 60.1%, which has moderate value.


2018 ◽  
Vol 10 (3) ◽  
pp. 76 ◽  
Author(s):  
Temoor Anjum ◽  
Sara Ravan Ramzani ◽  
Muhammad Farrukh ◽  
Valliappan Raju ◽  
Nida Nazar ◽  
...  

The purpose of this study was to investigate the impact of entrepreneurial education on entrepreneurial intentions of the university students, moreover, a mediating role of  Entrepreneurial Passion, Perceived Creativity Disposition and Entrepreneurial Passion was also assessed. Data were collected from 595 university students; Partial least square technique was used with the help of SmartPLS software. Results of partial least square structural equation modeling showed that all the hypothesized direct and indirect relationship were supported. Possible implications for theory and practice are discussed in detailed.


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