Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation

2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
Positive Direct ◽  
Moderating Role

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Poor resource capital of micro-entrepreneurs: the mediating role of entrepreneurial orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eijaz Ahmed Khan ◽  
Mohammad Alamgir Hossain ◽  
Mohammed Abu Jahed ◽  
Anna Lee Rowe
Keyword(s):  
Entrepreneurial Orientation ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Business Outcomes ◽  
Mediating Role ◽  
Resource Setting ◽  
Start Up ◽  
And Performance

Purpose Understanding the micro-start-up resources and its relationships with entrepreneurial orientation and performance is unique because it operates a business in a poor resource setting. However, poor resource settings of micro-start-up are not adequately examined into the literature in relation to entrepreneurial orientation and performance. Therefore, grounded on resource-based view, this paper aims to attempt to examine the relationships between resource capital, entrepreneurial orientation and performance in a developing country context. Design/methodology/approach To establish this, the authors conducted a survey among 180 micro-entrepreneurs from Bangladesh and analyzed the data using the partial least squares structural equation modeling (PLS-SEM) approach. Findings The results demonstrate the mediating role of entrepreneurial orientation on the relationship between human and financial resources and performance, while having partial mediating influence between social resource and performance, therefore indicating the importance of resources for determining business outcomes for micro-entrepreneurs. Research limitations/implications These results extend theoretical explanations of micro-entrepreneurship within the poor resource setting context. The findings have implications for identifying micro-firms likely to succeed for the purpose of strategic allocation of resources and supports; they also provide future research avenues. Originality/value To the best of the authors’ knowledge, no previous study has established that entrepreneurial orientation plays a critical and mediating role between resource capital and micro-firm performance in a poor resource setting.

The influence of strategic alliances on innovation and new product development through the effects of exploration and exploitation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho ◽  
Luiz Moutinho
Keyword(s):  
Product Development ◽  
Knowledge Sharing ◽  
New Product Development ◽  
Strategic Alliances ◽  
Dynamic Capabilities ◽  
New Product ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Moderating Role

PurposeThis study delves in the controversy about the nature and the sign of the effect of strategic alliances and exploration and exploitation capabilities on innovation and new product development. The paper analyses the effects of knowledge sharing and strategic alliances relationships at the firm level. Specifically, we study the influence of strategic alliances relationships in new product development and the mediating role of exploration and exploitation as dynamic capabilities.Design/methodology/approachThis investigation proposes a theoretical model tested using structural equation modeling (SEM). The multigroup analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between strategic alliances and innovation and new product development variables. For this study, 387 valid questionnaires were collected from a sample of Portugal SME' firms. A 90-item questionnaire was submitted to employees managers of a large number of Portuguese SMEs, which consists to study the relationships among all the variables.FindingsThe results show that exists a positive direct influence of strategic alliances on innovation and new product development, and mediating impact the exploration and exploitation by the moderating role of knowledge sharing.Research limitations/implicationsThis study has some methodological limitations affecting its potential contributions. A cross-sectional study that captures one image in time and its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Future research should initially target different countries. Such research could then test the generalizability of the results.Practical implicationsTo fill this managerial relevance gap, we propose a process model in which the main antecedents of alliance stability will be examined. We argue that an alliance's evolutionary dynamics depend on these factors and variables that the partners must assess and manage over its developmental stages. In this sense, managers have significant scope to influence the ultimate success of strategic alliances. This study highlights the need to actively manage the cooperation – competition (coopetition) tension with the alliance partner and to apply the knowledge acquired from the partner to create new knowledge to enhance innovative performanceOriginality/valueThis paper contributes to fill the gap between strategic alliances and new product development mediated by exploration and exploitation in the dynamic capabilities view.

scholarly journals Mediating role of Innovation and Moderating Role of Size of Enterprise over the Relationship between Entrepreneurial Orientation and Performance of Micro and Small Enterprises

2018 ◽  
Vol 7 (4.7) ◽  
pp. 60
Author(s):  
Yousif Riyadh Mahmood ◽  
Khitam Dekhn Hamzah
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Equation Modeling ◽  
Small Enterprises ◽  
Mediating Role ◽  
Micro And Small Enterprises ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

In this study the authors tried to identify mediating role of innovation and moderating role of size of enterprise in the relationship between entrepreneurial orientation and performance of Micro and Small Enterprises (MSEs). The researchers also investigated the effect that vary from enterprise size that basically means micro and small enterprises. For the purpose of this study data was collected from 384 MSE's operating in Punjab province. Initially the data was analyzed using SPSS 22 and later on for the development of structure equation modeling Smart PLS-3 was used. Only two aspects of entrepreneurial orientation have been analyzed; first one is risk taking and second one is pro-activeness, third most common aspect innovation has been taken as mediating variable as an enterprise cannot be innovative if it has not the capacity of risk taking and pro-activeness. These both aspects are attached to performance and also deals with innovation. The major contribution of the study is to identify any moderating effect of size of the enterprise over the relationship between entrepreneurial orientation, innovation and performance of MSEs. These elements basically show the contribution that is made by the innovation and performance of the MSE's. The objectives of the study were achieved, and it was found that there is no difference between performance of MSEs on the basis of entrepreneurial orientation and innovation. It is proved that the size of the enterprise is not the factor. The linkages found are affected by size of the enterprises. 

Performance implications of exploration and exploitation in SMEs: the mediating role of interaction orientation

2020 ◽  
Vol 35 (12) ◽  
pp. 1971-1981
Author(s):  
Laure Ambroise ◽  
Céline Bérard ◽  
Isabelle Prim-Allaz
Keyword(s):  
Structural Equation ◽  
Negative Impact ◽  
Measurement Model ◽  
Customer Relationship ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
Complex Relationships

Purpose This paper aims to explore the complex relationships between knowledge strategies (i.e. exploration and exploitation) and the performance of manufacturing SMEs by testing the mediating role of customer relationship management capabilities, which are defined as a firm’s level of interaction orientation in this study. Design/methodology/approach Following a hypothetical deductive approach and using data collected from 793 French manufacturing SMEs, the measurement model and relationships among the constructs were examined with structural equation modelling, using the partial least squares approach. Findings The results support the expected mediating role of interaction orientation between exploitation and performance, and stress a competitive mediating role between exploration and performance. Complementary analyses demonstrate that while both exploration and exploitation are effectively antecedents of interaction orientation, which also acts as a lever to performance, they exhibit specific effects on the different dimensions of interaction orientation. Originality/value The results specifically highlight that interaction orientation counterbalances the negative impact of exploration on performance. Moreover, the findings underline the key role that customer interaction processes and tools play in making exploration and exploitation singularly effective. This is a real issue, as SMEs broadly tend to adopt opportunistic tools, not necessarily as part of a clearly defined strategic focus.

scholarly journals THE MODERATING ROLE OF VRIN AND MEDIATING ROLE OF ICT ON THE RELATIONSHIP BETWEEN MANAGEMENT COMPETENCIES, ENTREPRENEURIAL ORIENTATION AND SMES PERFORMANCE

2019 ◽  
Vol 4 (3) ◽  
pp. 69-71
Author(s):  
Buba Musa Pulka ◽  
Mohammed Alhaji Audu ◽  
Hauwa Aliyu Yamta
Keyword(s):  
Entrepreneurial Orientation ◽  
Social Role ◽  
Standard Of Living ◽  
Management Competencies ◽  
Mediating Role ◽  
And Performance ◽  
The Individual ◽  
The Relationship ◽  
Moderating Role

The study is informed by inconsistencies and controversies that characterised previous research on SMEs performance that made the findings to be inconclusive. Similarly, there is dearth of studies and understanding of the moderating role of VRIN and the mediating role of ICT resources on the relationship between management competencies, entrepreneurial orientation and SMEs performance. Therefore, these have put limits to the researchers, academics, practitioners and other stakeholders in understanding the moderating and mediating role of VRIN and ICT resources on the relationship between management competencies and entrepreneurial orientation in achieving better SMEs performance. Consequently, this paper contributes to filling in the gaps identified in the literature by developing and proposing a conceptual framework for achieving better SMEs performance, and that could explain the relationships among the various SMEs resources and SMEs performance. Therefore, the study proposed twelve propositions. Consequently, the study contributed to knowledge by providing a framework that could be used to examine the relationship between the variables of this study empirically. It also provides a basis for further/ future studies. It is hoped it would lead the achieving better SMEs performance capable of providing employment, growth of GDP, enhancing exports and standard of living of the society. Therefore, SMEs performance is defined as the abilities of the SMEs to harness, integrate and utilize various internal and external resources with timely and right reconfiguration to achieve targeted set of objectives and performance capable of providing employment opportunities, growth of GDP, export and to uplift the standard of living of the society (Pulka, 2019). Management competencies are defined as “effective performance of a task or activity in a job setting, due to the underlying characteristics of the individual: motives, traits, skills, self-image, social role, or knowledge and experience” (LeBrasseur, Blanco, & Dodge, 2002). Covin and Slevin (1991) defined entrepreneurial orientation as the process of development of specific behaviour that is targeted towards improving the SMEs propensity to take and absorb risks, to be creative, initiative, proactive and innovative toward achieving entrepreneurial success and a better SMEs performance. VRIN resources refer to the specific bundle of unique resources posses by the SMEs that are drivers of the SMEs’ better performance (Barney, Wright, & Ketchen, 2001). Bhakoo and Choi (2013) see ICT as “the technology-based infrastructure that acts as a conduit for facilitating transactions, sharing information with trading partners, coordinating activities and establishing governance structures between SMEs.

scholarly journals Leveraging marketing capabilities into competitive advantage and export performance

2015 ◽  
Vol 32 (1) ◽  
pp. 78-102 ◽  
Author(s):  
Qun Tan ◽  
Carlos M.P. Sousa
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Low Cost ◽  
Export Performance ◽  
Meta Analysis ◽  
Marketing Capabilities ◽  
Marketing Capability ◽  
Content Type ◽  
Mediating Role

Purpose – By using the dynamic capabilities (DC) theory and the theory of competitive advantage, the purpose of this paper is to develop a framework to investigate the role of marketing capabilities on the firm’s export performance. Specifically, this framework depicts the consequences of marketing capabilities and focuses on the relationships among marketing capabilities, competitive advantage, and export performance. Design/methodology/approach – The authors conduct a meta-analysis of the literature on marketing capabilities and use multivariate analyses to test the framework. Findings – The study revealed that competitive advantage has an important mediating role in the relationship between marketing capabilities and export performance. Specifically, the authors found that two types of competitive advantage (i.e. low-cost advantage and differentiation advantage) positively mediate the effect of marketing capabilities on export performance. Originality/value – Although research on marketing capabilities is still in its early infancy, the study provides a base from which future work can be developed. The authors also contribute to the literature by examining the mediating role of competitive advantage in the marketing capability-export performance relationship, thereby offering new insights into how and why marketing capabilities play a crucial role in explaining the firm’s export performance.

scholarly journals Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Ayman Abu-Rumman ◽  
Ata Al Shraah ◽  
Faisal Al-Madi ◽  
Tasneem Alfalah
Keyword(s):  
Strategic Alliances ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Networks ◽  
Mediating Role ◽  
And Performance ◽  
Medium Enterprises

AbstractPerformance of small and medium enterprises (SMEs) has been addressed widely in the literature. Both developed and developing countries are highly concerned about the growth and performance of SMEs. The literature exploring performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study was conducted with the aim being to identify the mediating role of dynamic capabilities which are developed by entrepreneurial networks and entrepreneurial orientation. The study collected the data from a sample of SMEs based in Jordan which were connected through a closed network and were the part of groups. The data was collected via an electronic questionnaire, and100 SMEs were contacted and invited to participate in the survey on a purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that amongst the chosen firms, entrepreneurial networking has an insignificant impact; however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

scholarly journals Entrepreneurial Networks, Entrepreneurial Orientation, and Performance of Small and Medium Enterprises: Are Dynamic Capabilities the Missing Link?

2020 ◽  
Author(s):  
Ayman Abu-Rumman ◽  
Ata E. M. Al-Shra'ah ◽  
Faisal Al-Madi ◽  
Tasneem Alfalah
Keyword(s):  
Strategic Alliances ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Networks ◽  
Mediating Role ◽  
And Performance ◽  
Medium Enterprises

Abstract Performance of small and medium enterprises (SMEs) has been addressed widely in the literature. Developed and developing both the countries are highly concerned about the growth and performance of small and medium enterprises. The literature over the performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study has been conducted. the aim of the study was to identify the mediating role of dynamic capabilities which are developed by the entrepreneurial networks and entrepreneurial orientation. The study collected the data from those small and medium enterprises which were connected through a closed network and were the part of groups. The data was collected with the help of adopted questionnaire. 100 small and medium enterprises were contacted for the collection of data. The sample firms were chosen on purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that among the chosen firms, entrepreneurial networking has an insignificant impact, however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

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