Social capital leading to innovation: understanding moderating effects of the environment in the Zimbabwean small and medium enterprise context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Boris Urban ◽  
Kudzanai Mutendadzamera
Keyword(s):  
Social Capital ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Positive Influence ◽  
Primary Data ◽  
Moderating Effects ◽  
Social Infrastructure ◽  
Content Type ◽  
Social Capitals ◽  
Medium Enterprises

Purpose Realizing the value of social capital to small and medium enterprises (SMEs) in developing economies, where relationship networks play a big role in filling the gaps that are left by dysfunctional institutions, the purpose of this paper is to gain an empirical understanding of various forms of social capital in relation to the innovation of SMEs in Zimbabwe. Design/methodology/approach Primary data is collected from SMEs across several regions in Harare, where instrument validity is checked with confirmatory factor analysis, and hypotheses are tested using moderated regression analyses. Findings A positive influence is observed for both alliance capital and reputational capital on innovation, while non-significant moderating effects in terms of environmental hostility and dynamism are noted for these relationships Practical implications On a practical level, to increase levels of innovation, SME owner-managers need to secure stronger investments into their social infrastructure by developing (both physical and digital) alliance and reputational capitals Originality/value By segregating various forms of social capital, an original understanding is attained in terms of how entrepreneurs actively leverage alliance and reputational forms of social capitals to increase their levels of innovation. The theoretical and empirical understanding of the social capital-innovation link is enhanced, and the study constructs now have broader application as their psychometric properties have been established in an under-researched African market context.

A systematic literature review of open innovation in small and medium enterprises in the past decade

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huma Sikandar ◽  
Umar Haiyat Abdul Kohar
Keyword(s):  
Literature Review ◽  
Open Innovation ◽  
Resource Constraints ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
The Past ◽  
Prisma Statement ◽  
Major Factors ◽  
Medium Enterprises

Purpose There is a growing trend of open innovation (OI) in small and middle enterprises (SMEs) these days, yet the implementation of OI in SMEs is a challenge because of their financial and resource constraints. This study aims to identify and analyze the past trends, barriers and outcomes and major factors influencing the implementation of OI in SMEs. Design/methodology/approach This review is based on 40 published articles from the Scopus database. It selects highly cited papers published from 2010 to 2019. The PRISMA statement template is used to explain the overall process of selection and rejections of the relevant articles. Findings The study contributes in two ways. First, through a comprehensive literature review, the authors highlight the overall development of the concept of OI in the literature over the past 10 years and highlight the findings of the significant studies. Second, the authors provide detailed representations of the OI literature by calculating yearly publications and identifying the SMEs which mostly implement OI practices, journals that publish a relevant article, OI-related publications in different disciplines and geographical locations in which most of the OI studies have been conducted. The study also reveals the most cited articles, journals and authors. Originality/value The authors conclude this paper with the argument that although much research has been done in the OI field, still there is a need to establish tools, models and methods that could facilitate SMEs in OI, especially for developing economies.

From strategic orientation to social media orientation

2016 ◽  
Vol 23 (4) ◽  
pp. 1165-1190 ◽  
Author(s):  
Vincent Dutot ◽  
François Bergeron
Keyword(s):  
Social Media ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Positive Influence ◽  
Strategic Orientation ◽  
Content Type ◽  
Media Performance ◽  
Future Direction ◽  
Medium Enterprises ◽  
Media Orientation

Purpose The purpose of this paper is to develop and test a framework of small and medium enterprises’ (SMEs) strategic orientation (SO) and its impact on social media performance. Moreover, it introduces a new concept, social media orientation (SMO) (composed of sales and business development (SBD) and visibility) to add in the model. Design/methodology/approach A quantitative approach was used and, based on a study of 257 SMEs, analyses were performed. A smartPLS analysis was judged appropriate regarding the sample size. Findings Results show that entrepreneurial orientation (EO) and customer orientation have a positive influence on SBD which in turn has a positive influence on social media performance. Visibility is positively influenced by EO and has an indirect effect on social media performance. Social media performance is therefore directly influenced by SBD and indirectly by visibility. Research limitations/implications The authors complete previous research that called for the introduction of different SO on a same study and go further as the author highlight the role of EO on visibility (and not only on business or performance). A second contribution lies in the conceptualization of SMO (defined here with SBD and visibility) and third in the measurement of social media performance through growth and attention. Practical implications SMEs first need to develop their visibility, and then link it to SBD. Originality/value This research is one of the first to explore SMEs’ SO on social media and proposes a new concept defined as SMO. It gives SMEs future direction on how to perform on these platforms.

scholarly journals Internationalization of SMEs and market orientation

2019 ◽  
Vol 32 (1) ◽  
pp. 69-85 ◽  
Author(s):  
Soniya Billore ◽  
Gautam Billore
Keyword(s):  
Market Orientation ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Cultural Knowledge ◽  
Target Market ◽  
Indian Market ◽  
Customer Knowledge ◽  
Content Type ◽  
Strategic Fit ◽  
Medium Enterprises

Purpose This paper aims to study the context of market orientation and the contribution of customer knowledge, networking and cultural knowledge to market orientation particularly to the internationalization of firms in developing economies. Design/methodology/approach A multiple case approach is adopted with four Swedish firms internationalizing to the Indian market. The data was obtained through personal interviews and typically lasted an hour. Follow-up questions were obtained by personal meetings or on Skype. Data was collected over a period of seven months during 2016-2017. Findings This study highlights the importance of customer knowledge, networking and cultural knowledge for foreign small and medium enterprises (SMEs) in the initial stages of internationalization. It proposes that a holistic market sensing of the target market can be achieved as the three constructs contribute to the market orientation of the firms and help in devising relevant strategic fit with the market. Research limitations/implications The sample size is small due to a limited number of Swedish SMEs who have the experience of operating in the Indian market. Future studies may include the Nordic region, and a quantitative approach for testing market orientation frameworks can be adopted. Originality/value This study lifts the concept of market sensing as customer knowledge, networking and cultural knowledge strengthen the market orientation of the firm. It addresses the research gap about limited research in developing market contexts for SME internationalization and specifically on Swedish SMEs in the Indian market.

The adoption of ecopreneurship practices in Indonesian craft SMEs: value-based motivations and intersections of identities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arien Arianti Gunawan ◽  
Caroline Essers ◽  
Allard C.R. van Riel
Keyword(s):  
Small And Medium Enterprises ◽  
Value Theory ◽  
Media Analysis ◽  
Primary Data ◽  
Proenvironmental Behavior ◽  
Content Type ◽  
Conservation Values ◽  
Religion And Ethnicity ◽  
Self Transcendence ◽  
Medium Enterprises

PurposeThis article explores value-based motivations to adopt ecological entrepreneurship (ecopreneurship) practices and investigates how intersections of social identities such as gender, religion and ethnicity influence these motivations.Design/methodology/approachThe study uses primary data from field observations, social media analysis and semistructured in-depth interviews with 16 owner-managers of small and medium enterprises (SMEs) in the Indonesian craft sector.FindingsThe findings show that self-enhancement, conservation and self-transcendence values motivated the entrepreneurs to adopt ecopreneurship practices. Furthermore, the intersections of identities also tended to influence the entrepreneurs' motivations to adopt ecopreneurship practices.Research limitations/implicationsThe sample was limited to the Indonesian craft sector. However, the study has furthered one’s understanding of how values motivate ecopreneurship behavior. Conservation values were added to the values known to influence proenvironmental behavior. Furthermore, Schwartz's value theory, strongly associated with Western, individualistic, culture is suggested to be adapted. In Asian – collectivist – cultures, the values driving the entrepreneur are often more community-oriented than individualistic.Practical implicationsThis study recommends policymakers to create more inclusive policies to foster the acceleration of sustainable development by equitably including both genders and encourages them to promote local culture, which motivates entrepreneurs in the craft sector to adopt ecopreneurship practices.Originality/valueThe study contributes to the entrepreneurship literature, particularly to the fields of gender and ecopreneurship, by considering the intersections of identities of the ecopreneurs. A research agenda for ecological entrepreneurship and family business researchers is provided.

scholarly journals Analysis of Dominant Factors in Improving Performance of Small Medium Industry in the Field Marine and Fishing Processing

2017 ◽  
Vol 6 (6) ◽  
pp. 42-51
Author(s):  
Edy Supriyadi ◽  
Iha Haryani Hatta ◽  
Darmansyah Darmansyah
Keyword(s):  
Business Performance ◽  
Small And Medium Enterprises ◽  
Market Competition ◽  
Positive Influence ◽  
Global Market ◽  
Primary Data ◽  
Moderator Variables ◽  
Significance Level ◽  
Performance Variables ◽  
Medium Enterprises

The existence of global market resulted in the increasing number of business actors, especially Small and Medium Enterprises (SMEs). Currently SMEs are experiencing increasingly fierce market competition. Even the competition is in an increasingly complex condition. Faced with this condition, SMEs are required to have the ability to survive and improve its performance. The population of this research is the perpetrators of SMEs in the field of fishery and marine processing business in Lontar Village, Banten Province. The sample are participant of 46 SME actors. Technical sampling is purposive sampling. The data in this study is the primary data collected through questionnaires. The result are (1)Competence leader (KOM) has a positive influence on business performance variables (KIN) with a significant value of 0.070 at a significance level of 0.10.(2). Innovation (INO) has a positive influence on business performance variables (KIN) with a 0.000 significance level at a significant level of 0.05.(3). Entrepreneurship (WIRA) has a positive influence on business performance variables (KIN) with a synergy value of 0.00 at a significant level of 0.05.(4). Investment (INV) has no effect on business performance with significance of 0.223.(5). The moderator variables of entrepreneurs have an influence in contributing to the leadership competence of performance. With a significant value of 0.032.(6). The moderator variables of entrepreneurs have an influence in contributing to innovation on the performance of Entrepreneurship, with a significant value of 0.000 at the 0.05 level (7). The moderator variables of the entrepreneur have no influence in contributing to investment on the performance of the company. with a significant value of 0.060 at the 005 level.

Identification and testing of barriers to sustainable manufacturing in the automobile industry: a focus on Indian MSMEs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naveen Virmani ◽  
Sasadhar Bera ◽  
Rohit Kumar
Keyword(s):  
Factor Analysis ◽  
Automobile Industry ◽  
Best Practice ◽  
Small And Medium Enterprises ◽  
Sustainable Manufacturing ◽  
Primary Data ◽  
Content Type ◽  
Policy Interventions ◽  
Government Rules ◽  
Medium Enterprises

PurposeThe purpose of the study is two-fold. First, to find out the different barriers that prevent the implementation of sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs). Second, quantifying the relative intensity of these barriers to understand the importance and dependence power of the observed variables.Design/methodology/approachPrimary data were collected via structured questionnaires from 150 Indian MSMEs working in the automobile industry. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was performed. Finally, barriers are ranked using graph theory and matrix approach (GTMA), considering the inheritance and interaction among the observed variables.FindingsThere are a total of 22 barriers to “sustainable manufacturing”. EFA and CFA models confirmed four different categories of barriers. In order of importance, they are ranked as – production and operations related; organization related; collaboration related; and government rules and regulations.Practical implicationsThe findings show that there are multiple barriers to sustainable manufacturing. The barriers are categorized into four major categories, and their ranking provides an opportunity for prioritization from both policy and managerial perspectives. The barriers can be overcome through both policy interventions as well as through best practice sharing, benchmarking and organizational-wide initiatives.Originality/valueThe study is among the first studies that provide valuables insights on what are the 22 different barriers to sustainable manufacturing and its relevance to the MSMEs working in the automobile industry. The study would provide further opportunities for similar studies in different sectors.

Enhancing sustainable performance through job characteristics via workplace spirituality

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qaisar Iqbal ◽  
Noor Hazlina Ahmad ◽  
Basheer Ahmad
Keyword(s):  
Environmental Sustainability ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Workplace Spirituality ◽  
Job Characteristics ◽  
Positive Influence ◽  
Equation Modeling ◽  
Content Type ◽  
Task Variety ◽  
Medium Enterprises

PurposeThis paper aims to provide empirical evidence of the associations between perceived job characteristics and workplace spirituality with environmental sustainability within the domain of small- and medium-sized enterprises. This study aims to investigate the influence of perceived job characteristics (job identity, task significance and task variety) on environmental sustainability through workplace spirituality.Design/methodology/approachData are collected from 400 small and medium enterprises (SME) employees working in New Delhi, India, and Islamabad, Pakistan. Response rate in this study is 58 per cent. Structural equation modeling has been used to analyze the data through SmartPLS 3.0 and SPSS version 24.FindingsThe results indicate that perceived job characteristics have significant positive influence over workplace spirituality. It is concluded that workplace spirituality also significantly mediates the relationship between perceived job characteristics and environmental sustainability.Research limitations/implicationsIn the present study, perceived job characteristics have been evaluated to improve environmental sustainability in SMEs from Pakistan and India. Therefore, before generalization in the context of other countries can be made, the results obtained may need some modifications.Practical implicationsThe research concerns the understanding of various job characteristics and environmental sustainability from the viewpoint of employees in SMEs at imparting perceived job characteristics as important factors to meet challenges relevant to environmental sustainability in the dynamic market.Social implicationsThere is anecdotal evidence claiming the pivotal role of job characteristics and workplace spirituality toward the recognition of sustainability in the progressive dynamic market. The results of this study represent the effectiveness of perceived job characteristics for accomplishing social objectives through workplace spirituality.Originality/valueThis study contributes to the field by bringing together the concepts of workplace spirituality with perceived job characteristics and environmental sustainability in the context of Pakistani and Indian SMEs.

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 Competitive or cooperative relationships in clusters

2018 ◽  
Vol 14 (2/3) ◽  
pp. 230-251 ◽  
Author(s):  
Anthony Ayakwah ◽  
Leandro Sepulveda ◽  
Fergus Lyon
Keyword(s):  
Supply Chain ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Mixed Method Research ◽  
Business Relationships ◽  
Cluster Policy ◽  
Content Type ◽  
Horizontal Competition ◽  
Business Structures ◽  
Medium Enterprises

Purpose An efficient policy supporting clustered business operations necessitates an appreciation of the dynamics of rivalry and collaborations among businesses. This paper postulates that variation in competition and cooperation can significantly influence the nature of business relationships among clustered businesses, which is essential for cluster policy particularly (Newlands, 2003) as most research on rivalry and cooperation in clusters have been in developed economies. The purpose of this paper is to seek to fill the gap in the literature in African clusters based on original empirical research. Design/methodology/approach The study adopts a mixed-method research design allowing for data triangulation to study two food processing clusters. The approach comprises a survey and in-depth interview with key actors along the supply chain. Findings The findings show that business clusters with more formal business structures tend to have minimal horizontal competition but higher vertical cooperation. Comparatively, clusters with more socially embedded milieu tend to have higher levels of cooperation and minimal competition in both vertical and horizontal relationships. The research also shows that such variations in inter-business relationships have an effect on cluster operations in terms of business access to finance, formal contract, sharing of innovation and the way they relate to different stakeholders in their supply chain. Originality/value This paper advances a critical case for international business theory on clusters in Africa to incorporate the distinctive business relationships in small and medium enterprises (SME) clusters. It also demonstrates how unique location-specific attributes of developing economies hold the key to sustaining the operations of SME-based clusters.

Mediating effect of innovation with market orientation and performance relationship

2019 ◽  
Vol 17 (2) ◽  
pp. 152-167
Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Mediating Effect ◽  
Incremental Innovation ◽  
Cross Sectional ◽  
Content Type ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs). Design/methodology/approach Following a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis. Findings The outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context. Research limitations/implications This study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship. Practical implications The research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance. Originality/value The study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.

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