The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson
Keyword(s):  
Multinational Corporations ◽  
Absorptive Capacity ◽  
Developing Economies ◽  
Export Performance ◽  
Foreign Market ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
The Relationship

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Do high-performance work systems mediate the relationship between HR practices and employee performance in multinational corporations (MNCs) in developing economies?

2020 ◽  
Vol 11 (4) ◽  
pp. 541-557
Author(s):  
James Baba Abugre ◽  
David Nasere
Keyword(s):  
Multinational Corporations ◽  
High Performance ◽  
Developing Economies ◽  
Employee Performance ◽  
Job Involvement ◽  
Training And Development ◽  
Equation Modeling ◽  
Content Type ◽  
Hr Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of job involvement as high-performance work system (HPWS) on the relationship between human resource (HR) practices and employee performance in multinational corporations (MNCs) in developing economies using Ghana as a case study.Design/methodology/approachUsing questionnaires to collect data from 317 employees and ten MNCs in Ghana, structural equation modeling (SEM), multiple regression and bootstrapping analysis were used to analyze the data.FindingsThe results showed that an HPWS proxy as job involvement fully mediates the relationship between HR practices and employee performance. The findings also showed that training and development and compensation and reward have a significant and direct positive effect on employee performance.Practical implicationsThis paper provides a practical guide to management and corporations on the significance of training and compensation on employee performance in MNCs. The study, therefore, recommends managers of firms and corporations to take a serious look at their HR practices and institute an HPWS, which can positively improve both corporate and employee performance.Originality/valueThis paper enhances our understanding of micro-level HPWS in the form of job involvement as a positive mediator between training and development and employee performance on the one hand, and between compensation and reward and employee performance on the other hand in work organizations in a less-studied context.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Exploring the role of corporate social responsibility skepticism in ethical purchase intention

2019 ◽  
Vol 16 (2) ◽  
pp. 291-307 ◽  
Author(s):  
Salmi Mohd Isa ◽  
Phaik Nie Chin ◽  
Irene Liew
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Peer Influence ◽  
Purchase Intention ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Research Approach ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose Few studies exist which delve into the possible factors that prevent ethically minded consumers from translating their ethical perceptions into ethical purchase intention (EPI). Thus, this study aims to explore how consumers assess corporate social responsibility (CSR) based on several influencing factors toward EPI, with CSR skepticism (SKP) as a moderator. Design/methodology/approach This cross-sectional study is conducted through a self-administered questionnaire and uses a positive research approach with a quantitative basis of enquiry. The partial least squares–structural equation modeling- model is used to examine the causal relationship between seven independent variables of CSR assessment (i.e. CSR awareness, knowledge of CSR position of company, cause importance, price consciousness, CSR image of company, credibility of CSR efforts and peer influence) with EPI. In addition, this study also examines the moderating effect of SKP in the relationship. Findings The findings show that CSR assessment factors are important to convert mere purchase criteria into EPI and SKP does play a significant role in weakening the relationship. Originality/value This study examines the moderating effect of CSR skepticism, the exploration of which still remains very limited in current literature.

scholarly journals Passive leadership and deviant behaviors: the moderating effect of power distance and collectivism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fenika Wulani ◽  
Marliana Junaedi
Keyword(s):  
Cultural Values ◽  
Structural Equation ◽  
Power Distance ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Deviant Behaviors ◽  
Interpersonal Deviance ◽  
Managerial Employees ◽  
The Relationship

PurposeThis study investigates the relationship between passive leadership and deviant behaviors targeted to supervisors (supervisor-directed deviance) and coworkers (interpersonal deviance), and the moderating effect power distance and collectivism have on these relationships.Design/methodology/approachThis study uses a survey questionnaire. Respondents were 310 non-managerial employees working in various industries in Surabaya, Indonesia. This study uses partial least squares structural equation modeling (PLS-SEM) to examine hypotheses.FindingsThis study indicates that passive leadership has a positive relationship with supervisor-directed deviance, but not with interpersonal deviance. Moreover, power distance moderates these relationships. Additionally, the findings show that collectivism moderates the relationship between passive leadership and interpersonal deviance, but not with supervisor-directed deviance.Practical implicationsManagers need to be aware of the roles and responsibilities of their positions and understand their subordinates' expectations, specifically related to their cultural values.Originality/valueFew studies have investigated the relationship between passive leadership and deviant behaviors, especially those directed at supervisors and coworkers. Also, there is little study that explored the role of cultural values in these relationships. The present study provides new insight regarding the moderating role power distance and collectivism have in the relationship between passive leadership and deviant behaviors.

scholarly journals The mediation between participative leadership and employee exploratory innovation

2019 ◽  
Vol 40 (3) ◽  
pp. 334-355 ◽  
Author(s):  
Yi-Ying Chang ◽  
Ian Hodgkinson ◽  
Paul Hughes ◽  
Che-Yuan Chang
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Equation Modeling ◽  
Participative Leadership ◽  
Content Type ◽  
Technology Firms ◽  
Time Lagged ◽  
Questionnaire Method ◽  
The Relationship ◽  
Exploratory Innovation

Purpose The purpose of this paper is to examine the role of intermediate knowledge mechanisms on the participative leadership–employee exploratory innovation relationship using a distal mediation model. Design/methodology/approach Deploying a time-lagged questionnaire method implemented over four business quarters, data are generated from 1,600 responses in R&D units of Taiwanese technology firms. Findings The structural equation modeling results reveal that participative leadership is positively related to employee exploratory innovation; coworker knowledge and absorptive capacity partially mediate the relationship between participative leadership and employee exploratory innovation independently; and coworker knowledge sharing in combination with absorptive capacity partially mediates this relationship. Originality/value The findings contribute new knowledge on the relationship between participative leadership and employee exploratory innovation by uncovering intermediate knowledge mechanisms that augment this relationship.

scholarly journals Cultural distance, innovation and export performance

2016 ◽  
Vol 28 (2) ◽  
pp. 176-207 ◽  
Author(s):  
Goudarz Azar ◽  
Rian Drogendijk
Keyword(s):  
Cultural Differences ◽  
Structural Equation ◽  
Organizational Innovation ◽  
Cultural Distance ◽  
Export Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Innovation Strategies ◽  
Using Data ◽  
The Relationship

Purpose This paper aims to examine the relationship between cultural distance (both perceived and objective), innovation and firm export performance. Design/methodology/approach Hypotheses were tested here by structural equation modeling using data from 186 export ventures into 23 international markets by Swedish companies. Findings The results indicate that managers’ perceptions of substantial cultural differences as well as objective cultural differences (gauged using Hofstede’s (1980, 2001) scores for dimensions of national culture) and subsequent environmental uncertainty when expanding into culturally distant markets triggers strategies for interacting and integrating with the market environment. These include producing and adopting innovations to processes and products and to organizational strategy, structure and administrative procedures to cope with the new environment and overcome uncertainties. These innovations and the associated competitive advantages improve firm export performance. Originality/value Despite much research into the relationship between firm internationalization and innovation, little attention has been paid to the effect of the characteristics of the foreign markets (specifically cultural differences) on firm innovation strategies. Moreover, much research has been devoted to the effect of innovation on firm export performance, but such research has mainly focused on one type of innovation, i.e. technological innovation, while the influence of organizational innovation on firm export performance has been basically ignored. The present study validates the explanatory of cultural distance (both perceived and objective) in relation to innovation strategies (technological and organizational) and export performance.

A contingency model of marketing dashboards and their influence on marketing strategy implementation speed and market information management capability

2016 ◽  
Vol 50 (12) ◽  
pp. 2077-2102 ◽  
Author(s):  
Michael T. Krush ◽  
Raj Agnihotri ◽  
Kevin J. Trainor
Keyword(s):  
Marketing Strategy ◽  
Information Management ◽  
Strategy Implementation ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Market Information ◽  
Content Type ◽  
Management Capability ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to focus on the value of marketing dashboards, a key area of interest for scholars and practitioners. This study examines two critical outcomes of marketing dashboards: marketing strategy implementation speed and market information management capability. Additionally, the research analyzes the impact of the firm’s internal structure on the relationship between marketing dashboards and the outcomes. Design/methodology/approach A conceptual model grounded in the knowledge-based view of the firm is tested. The research uses survey data collected from marketing professionals employed within business-to-business firms. Data from the key informants are analyzed using structural equation modeling. Findings The results demonstrate that marketing dashboards are significantly related to marketing strategy implementation speed and market information management capability. Centralization exhibits a negative moderating effect, and formalization exhibits a positive moderating effect on the relationship between marketing dashboards and marketing strategy implementation speed. Marketing strategy implementation speed and market information management capability are related to market performance. Originality/value Through the examination of main and moderating relationships, this paper demonstrates that marketing strategy implementation speed and market information management capability are key integration mechanisms that leverage the marketing dashboard resources.

Entrepreneurial knowledge and start-up behavior in a turbulent environment

2017 ◽  
Vol 36 (9) ◽  
pp. 1149-1159 ◽  
Author(s):  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir
Keyword(s):  
Developing Economies ◽  
Positive Impact ◽  
New Ventures ◽  
Environmental Turbulence ◽  
Equation Modeling ◽  
Content Type ◽  
Entrepreneurial Opportunities ◽  
Start Up ◽  
Entrepreneurial Knowledge ◽  
The Relationship

Purpose The purpose of this paper is to refine the relationship between environmental turbulence and start-up behavior by considering entrepreneurial-related antecedents (alertness to business ideas, entrepreneurial opportunities, and intention toward entrepreneurship) and moderating roles of entrepreneurial knowledge. Design/methodology/approach The study was conducted through a self-administered survey of owner/managers of SMEs in Pakistan. Correlation, moderated hierarchical regression, and structural equation modeling approach were used for the analysis. Findings The results revealed that environmental turbulence positively affects the alertness to business ideas and entrepreneurial opportunities which, in turn, affect intention toward entrepreneurship. The results also suggested that entrepreneurial knowledge significantly moderates the relationship between intention toward entrepreneurship and start-up behavior. Research limitations/implications The changes in the market and technologies which shape the entrepreneurial behavior toward start-up activities should be longitudinally observed. The research data came from the owner/managers of SMEs industries; therefore, the findings may not be generalized to other sectors due to industry-specific difference. Practical implications The positive impact of environmental turbulence suggests that turbulence is a presentiment signal, calling upon the entrepreneurs to collect meaningful information as well as identify new opportunities and adjust their capabilities for any challenges and changes ahead. Originality/value The study confirmed the positive impact of environmental turbulence toward the creation of new ventures in the context of developing economies as well as the moderating role of entrepreneurial knowledge on the relationship between intention toward entrepreneurship and start-up behavior in small and medium enterprises.

Moderating effect of hedonism on store environment-impulse buying nexus

2020 ◽  
Vol 48 (5) ◽  
pp. 465-483
Author(s):  
Hammad Bin Azam Hashmi ◽  
Chengli Shu ◽  
Syed Waqar Haider
Keyword(s):  
Moderating Effect ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Impulse Buying ◽  
Content Type ◽  
Shopping Enjoyment ◽  
Impulse Purchase ◽  
Store Environment ◽  
Hedonic Shopping ◽  
The Relationship

PurposeAlthough the store environment-impulse buying nexus is well documented, the influence of consumer motivations on this nexus is still underexplored. Consequently, this paper aims at explaining the mediating effect of emotional states and the moderating effect of hedonic shopping motives on the relationship between store atmospherics and impulse buying behavior.Design/methodology/approachPrimary data from 437 customers were generated through a questionnaire developed for this study. Respondents were accessed using mall-intercept technique. Structural equation modeling (SEM) was done to empirically estimate the model.FindingsResults indicate that pleasure and shopping enjoyment mediate the effect of store atmospherics on the impulse purchase behavior. The findings also show that hedonic shopping motives moderate the relationship between the store atmospherics and impulse purchase.Originality/valueThis study contributes by introducing the moderating role played by the hedonic shopping motives on the relationship between store atmospherics and impulse purchase. In addition, it introduces that shopping enjoyment and pleasure mediate the effect of perceived store atmospherics on impulse purchase.

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