Survival strategies of SMEs amidst the COVID-19 pandemic: application of SEM and fsQCA

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Sabbir Rahman ◽  
Fadi AbdelMuniem AbdelFattah ◽  
Surajit Bag ◽  
Mohammad Osman Gani
Keyword(s):  
Structural Equation ◽  
Necessary Conditions ◽  
Small And Medium Enterprises ◽  
Qualitative Comparative Analysis ◽  
Sufficient Conditions ◽  
Survival Strategies ◽  
Data Set ◽  
Content Type ◽  
Business Agility ◽  
The Impact

Purpose As a global pandemic, the COVID-19 crisis has profoundly affected the development of local firms, threatening the survival of small and medium enterprises (SMEs). This study aims to present an integrated framework by investigating the impact of strategic tools (i.e. firms’ capability of business agility, marketing operational efficiency, optimisation of innovation capability [OIC], managing employees’ satisfaction and rethinking customers’ experience) on the survival strategies of SMEs amidst the COVID-19 pandemic. Design/methodology/approach The current study used data from managers of SMEs and conducted an asymmetrical analysis (i.e. structural equation modelling [SEM]) to investigate the factors influencing the survival strategies of SMEs amidst the COVID-19 pandemic. This study also applied an asymmetrical approach (i.e. fuzzy sets qualitative comparative analysis-fsQCA) to explore the causal recipes and analysis of the necessary conditions to identify the factors required to achieve the expected outcome. Findings Results from SEM support all hypotheses. Results from fsQCA with the same data set show that firms’ business agility and OIC are necessary conditions for SMEs’ survival strategies. The result from fsQCA also reveals multiple sufficient conditions to succeed SMEs’ survival strategies amidst the COVID-19 pandemic. Practical implications Findings prescribe how SMEs adapt to this vulnerable business condition by applying the strategic tools and recipes suggested for survival. Originality/value This research applied an innovative analysis to reveal necessary and sufficient conditions that conventional methods such as SEM have limited power. This pioneering research in the context of the COVID-19 pandemic is considered novel in terms of the prescriptive strategic recipes offered to SMEs to adapt to and survive in the crisis caused by COVID-19.

When do domestic networks cause accelerated internationalization under different decision-making logic?

2020 ◽  
Vol 32 (2) ◽  
pp. 227-256 ◽  
Author(s):  
Juan M. Gil-Barragan ◽  
José A. Belso-Martínez ◽  
Francisco Mas-Verdú
Keyword(s):  
Decision Making ◽  
Resource Constraints ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Qualitative Comparative Analysis ◽  
Integrative Model ◽  
Data Set ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

Purpose Given the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional environment, this paper aims to combine theoretically relevant antecedents of domestic networks relationships (weak or strong domestic ties) and decision-making logic (effectuation or causation) to explore the configurations that are the most promising for explaining accelerated internationalization. Design/methodology/approach This study uses fuzzy-set qualitative comparative analysis (fsQCA) to examine the accelerated internationalization of 33 contrarian cases of SMEs located in weak institutional environment. The data set has been collected through in-depth interviews with managers in Colombia (21 cases) and Peru (12 cases). Building on the findings, an integrative model for accelerated internationalization is presented. Findings The authors found that the combination of weak domestic ties and effectuation logic accelerated the internationalization of SMEs with fewer resource constraints. In contrast, strong domestic ties and causation behavior lead to accelerated internationalization of SMEs with greater resource constraints. They propose a model to help enrich the existing literature about the causal configurations for achieving accelerated internationalization in SMEs from weak institutional environment. Originality/value The contribution of this study is to provide empirical evidence to address three shortcomings in the literature. First, the mixed results regarding the impact of strong and weak domestic ties and decision-making logic in the accelerated internationalization of SMEs; second, the limited research on domestic networks; and third, the scarce investigation in weak institutional environment, where the emphasis on constrained resources is higher.

HRM practices and the multifaceted nature of organization performance

2018 ◽  
Vol 13 (3) ◽  
pp. 315-334 ◽  
Author(s):  
Abdallah Taamneh ◽  
Abdallah Khalaf Alsaad ◽  
Hamzah Elrehail
Keyword(s):  
Organizational Performance ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Performance Measurement System ◽  
Organization Performance ◽  
Data Set ◽  
Content Type ◽  
Hrm Practices ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of human resource management (HRM) practices on the performance of Jordanian banks as determined by using the balanced scorecard (BSC) performance measurement system and by testing the effect of organizational citizenship behavior (OCB) as a possible mediator variable. Design/methodology/approach A questionnaire was used to collect data from the study sample, which consisted of 230 managers working in various banks across Jordan. The study hypotheses were then tested using SPSS and AMOS software by applying structural equation models (SEMs). Findings The data set revealed that the use of HRM practices had a significant impact on both employee OCB and bank performance in all the four dimensions of the BSC (financial, customer satisfaction, internal processes, learning and growth). In addition, OCB was found to have a positive significant impact on organizational performance. Moreover, results indicated that OCB partially mediates the relationship between HRM practices and organizational performance. Originality/value The authors examine the impact HRM practices on the organization performance through the mediation role of OCB. The results obtained from this study extend the existing literature by providing evidences from non-western country such as Jordan. Based on the findings, the theoretical and practical implications of the study as well as limitations and suggestions for future studies are also discussed.

Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Northern India ◽  
Indian Setting ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

The impact of innovation strategies on the relationship between supplier integration and operational performance

2019 ◽  
Vol 49 (2) ◽  
pp. 156-177 ◽  
Author(s):  
Jose Benedicto Duhaylongsod ◽  
Pietro De Giovanni
Keyword(s):  
Structural Equation ◽  
Group Analysis ◽  
Operational Performance ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Supplier Integration ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate whether implementing certain innovation strategies and adopting a portfolio of innovations improve the relationship between supplier integration (SI) and operational performance (OP). Design/methodology/approach The authors test several research hypotheses by using a data set of 173 firms. Data were collected by interviewing managers, presidents and directors, from ten European countries and across nine different industries. The authors use structural equation modeling to estimate the relationships between SI and OP. The authors apply multi-group analysis to test the effects of certain innovation strategies and a portfolio of innovations on these relationships. Findings The authors show that SI improves internal OP but has no direct effect on external OP. The latter can only be improved through well-performing internal operations. The adoption of an incremental product innovation strategy improves the relationship between internal and external OP and leads to more effective SI. Other types of innovations do not help in improving the impact of SI on OP. Finally, the adoption of a portfolio of innovations does not enhance the influence of SI on OP. Thus, firms should focus on a small number of innovations rather than expanding their innovation portfolio to improve the effectiveness of SI on OP. Practical implications When firms aim to improve the impact of SI on OP, they should concentrate on incremental product innovations. Other strategies obtained by combining process, incremental and radical innovations are not adequate for that purpose. An expanded portfolio of innovations does not improve the effect of supplier innovation on OP. Originality/value This research suggests how the impact of SI on OP can be improved by adopting certain innovation strategies and without diversifying the portfolio of innovation projects.

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Competitive Intensity ◽  
Content Type ◽  
The Impact

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

Financing woes: estimating the impact of MSME financing gap on financial structure practices of firm owners

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vibhuti Mittal ◽  
T.V. Raman
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Financial Structure ◽  
Service Industries ◽  
Equation Modeling ◽  
Content Type ◽  
Financing Gap ◽  
Medium Enterprises ◽  
The Impact ◽  
Firm Owners

PurposeAccessing formal mainstream finance is a cumbersome process for Micro, Small and Medium Enterprises (MSMEs) of emerging economies. Empirical investigations have connected finance accessibility to financing gap that restricts MSMEs from borrowing through formal channels. The purpose of this study is to explore the influence of financing gap on firms' financial structure (FS) practices. In this regard, the research framework divides financing gap into four dimensions, namely: demand gap (DG), supply gap (SG), knowledge gap (KG) and empathy gap (EG).Design/methodology/approachThe paper adopts a quantitative approach to establish the underlying relationship between the variables. The participants of the self-structured questionnaire survey were 219 MSME owners from manufacturing, trading and service industries. The results are inferred through the partial least squares structural equation modeling (SEM) technique.FindingsThe findings recognise a significant impact of financing gap on the FS practices of firm owners. The financing constraints contributing to KG, SG and EG are found to be extending the unwillingness of firm owners to borrow through formal channels. Further, the results also confirm the influence of financing gap on the pecking order framework (POF) of MSMEs' FS.Practical implicationsThe study offers the perspective and hesitance of MSME owners towards mainstream financing. The key findings are useful for the financial intermediaries and policymakers, who need to be sensitive and proactive in their small business lending process.Originality/valueThe study adds to the limited evidence of various dimensions of financing gap. It also addresses the role of financing gap on the conscious preferences of MSME owners towards the informal source of financing along with the POF.

Marketers’ human capital resources and job performance

2018 ◽  
Vol 36 (1) ◽  
pp. 124-137 ◽  
Author(s):  
Nguyen Dinh Tho ◽  
Nguyen Dong Phong ◽  
Tran Ha Minh Quan ◽  
Nguyen Thi Mai Trang
Keyword(s):  
Human Capital ◽  
Job Performance ◽  
Structural Equation ◽  
Sufficient Conditions ◽  
Equation Modeling ◽  
Future Research ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Positive Effects

Purpose Positing that human capital resources of marketers comprise both psychological capital (PsyCap) and marketing capital (MarCap), and that PsyCap in combination with MarCap will have a synergistic effect on marketers’ job performance, the purpose of this paper is to investigate the configurational roles of PsyCap and MarCap in marketers’ job performance. Design/methodology/approach Using a survey data set collected from 472 marketers in Ho Chi Minh City, Vietnam, the study tested the net effects of PsyCap and MarCap on job performance using structural equation modeling (SEM). Then, the study investigated the configurational roles of PsyCap and MarCap in job performance employing the fuzzy-set qualitative comparative analysis (fsQCA). Findings SEM results show that two components of PsyCap (efficacy and optimism) and one component of MarCap (organizational MarCap) have positive effects on job performance. fsQCA findings reveal that, except hope, combinations of PsyCap and MarCap components form several sufficient conditions for job performance. Research limitations/implications The focus of this study is on marketers, that is, at the individual level. Future research should examine both PsyCap and MarCap at a higher level, such as the team, unit, or firm level. Practical implications The study’s findings suggest that firms should pay attention not only to the net effect but also to the configuration of PsyCap and MarCap when designing and implementing their human resource strategies and policies. Originality/value This study contributes to the literature on human capital resources by confirming the configurational roles of PsyCap and MarCap in marketers’ job performance.

scholarly journals An analysis of Covid-19 implications for SMEs in Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rehan Aftab ◽  
Muhammad Naveed ◽  
Sajjad Hanif
Keyword(s):  
Small And Medium Enterprises ◽  
Quality Data ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Labor Statistics ◽  
Proactive Planning ◽  
Medium Enterprises ◽  
Bureau Of Labor Statistics ◽  
The Impact

Purpose The purpose of this paper is to ascertain the impact of coronavirus (Covid-19) on small and medium enterprises in Pakistan, which are vulnerable to crisis situations. This study also aims to provide policy recommendations to the stakeholders by reviewing the situation of small and medium scale enterprises (SMEs) after the Covid-19 sudden surge. Design/methodology/approach The descriptive study is based on quantitative data technique and primary data collection is undertaken. The survey instrument is adapted from the US Bureau of Labor Statistics public documents. Collected responses from SME owners are descriptively analyzed using appropriate graphs. Findings The analysis infers that SMEs in Pakistan have encountered unfavorable implications of Covid-19 in the form of shortage of goods, blockage in transportation, decrease in demand of products and services, decline in profits and sales, limited operations, lockdown and employee’s layoff. Research limitations/implications The limited sample and precise use of instruments are few limitations along with valuable implications of this research. The analysis of Covid-19 impact on SMEs is an ongoing phenomenon and aids in proactive planning for the second wave of this outbreak. Financing schemes, youth entrepreneurship loans, retention of skilled staff and proactive planning for adverse future are few recommended measures for revival of the SMEs sector. Originality/value The use of a unique sample and quality data set collected using the Bureau of Labor Statistics instrument adds value to the findings of the study and their consistency. The existing body of knowledge in the context of the SMEs sector of Pakistan is strengthened with an analysis of crisis implications for this sector, which remained unaddressed in the past.

scholarly journals Social well-being and transformative service research: evidence from China

2019 ◽  
Vol 33 (6) ◽  
pp. 735-750 ◽  
Author(s):  
Kuo Feng ◽  
Levent Altinay ◽  
Hossein Olya
Keyword(s):  
Structural Equation ◽  
Social Connectedness ◽  
Necessary Conditions ◽  
Qualitative Comparative Analysis ◽  
Well Being ◽  
Service Research ◽  
Positive Interactions ◽  
Supportive Services ◽  
Content Type ◽  
The Social

Purpose This empirical study aims to investigate the influence of socially supportive services provided by commercial senior living services on older customers’ social well-being. This study seeks to test the moderating role of social connectedness on the above associations. It explores necessary conditions and causal recipes from the combination of interactions and social connectedness to predict customers’ social well-being. Design/methodology/approach Data were collected from 190 older customers residing in commercial senior living services in Beijing, Shanghai and Shenyang in China. The proposed structural and configurational models were tested using structural equation modelling and fuzzy-set qualitative comparative analysis (fsQCA). Findings The results of the model testing illustrate that peers have no influence on the social well-being of older customers. However, positive interactions with employees and outsiders are supportive resources that increase older customers’ social well-being. Social connectedness moderates the relationship between interaction with peers and the social well-being of customers. fsQCA results revealed that complex combinations of interactions and social connectedness predict social well-being. Interactions with employees, peers and outsiders appeared as necessary conditions to achieve social well-being. Originality/value This study provides evidence for how commercial senior living services can serve as a space to exchange socially supportive resources with employees and outsiders, which enhance older customers’ social well-being.

scholarly journals The role of senior managers’ positive self-image in supporting MIS implementation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nahid Izadpanah Mehrkish ◽  
Susan B. Grant
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Implementation Process ◽  
Management Support ◽  
Senior Managers ◽  
Data Set ◽  
Content Type ◽  
Self Image ◽  
Model Efficiency ◽  
The Impact

Purpose Researchers have long been interested in how the psychology of senior managers affects their behaviours. This paper aims to present the results of a questionnaire into how positive self-image influences how well senior managers in UK manufacturing organisations support the implementation of management information system (MIS). This study developed two scales, one to measure senior managers’ attitudes and the other to measure support of MIS implementation. It also sought to investigate the impact of senior managers’ positive self-image on their support of MIS implementation in UK manufacturing organisations. Design/methodology/approach The authors tested the hypotheses on a data set of 400 senior managers from UK manufacturing organisations. Two unidimensional scales to measure senior managers’ attitude and support level towards MIS implementation were developed. Exploratory factor analysis (EFA) was used to validate the scales. The study also examined the impact of senior managers’ positive self-image on their attitude and support from the perspective of UK manufacturing organisations by using structural equation modelling. Findings The study found that senior managers’ positive self-image is a significant contributing factor to their attitude. Also, senior managers’ attitude has a strong positive impact on their support in the MIS implementation process. A strong mediating relationship was found to exist between senior managers’ positive self-image and support through their attitude towards MIS implementation. Originality/value Although past literature has examined the importance of senior managers’ attitude and support in successful MIS implementation, there has been no specific scale around management support and attitude towards MIS implementation developed to date. Thus, a contribution of this study is its development of two new scales based on a survey of senior managers of UK manufacturing organisations. The scales can be used to evaluate senior managers’ perception towards MIS implementation and the support they are willing to give whilst implementing MIS. Another contribution of this study is the analysis of positive self-image via item-parcelling which improves model efficiency and provides more stable estimates of the construct.

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