Organizational culture and leadership as antecedents to organizational flexibility: implications for SME competitiveness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Organizational Culture ◽  
Competitive Advantage ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Service Firms ◽  
Firm Level ◽  
Managerial Implication ◽  
Content Type ◽  
Internal Resources ◽  
Medium Enterprises

Purpose This study aims to assess how innovative organizational culture and innovative leadership generate market flexibility for small and medium enterprises (SMEs) in the service sector to enhance their competitiveness. Both organizational culture and leadership are seen as firm-level resources capable of influencing the flexibility of the firm in periods of market turbulence. The study argues that SME service firms must use their internal resources to develop their flexibility capability which is more valuable, rare, inimitable and not substitutable. Design/methodology/approach SME service firms from Ghana are used to test the study’s hypotheses through robust standard regression analysis. A sampling frame was developed from an online database of small and medium enterprises operating in the service sector. Findings The findings suggest that although organizational culture and leadership may influence a service firm’s competitiveness, it is more viable to use these firm-level resources to create market flexibility capability to amplify the effect. This means, when culture and leadership propel the flexibility drive, the service firm is able to connect, coordinate and synchronize functional units to take advantage of new product and market opportunities. Additionally, market flexibility emanating from organizational culture and leadership wields enough power and resource support to tackle the turbulent market conditions better than firms with less support. Practical implications The managerial implication from this study is that firms should use their organizational culture and leadership to create flexible organizations that afford them the opportunity to adapt to the environmental dynamics. If both leadership and culture work together, they are able to create strong market capabilities such as flexibility which determines how well the firm will respond to the competition, customer demand and all other external pressures. It is, therefore, the view of this paper that SMEs should use their organizational culture and leadership to build a market-flexible organization to create a competitive advantage. Originality/value This paper shows how internal resources/assets such as culture and leadership generate the needed flexibility to create a competitive advantage for SMEs. This paper explains the two dimensions of Volberda’s flexibility from a firm-level resource perspective and highlights flexibility as a second-order capability whose cultivation and effectiveness are dependent on a firm’s culture and leadership. Evidence of how a firm’s market flexibility is fuelled by organizational leadership and culture is demonstrated. Finally, this paper shows how resource-poor SMEs in emerging African economies can enhance their market competitiveness through internal systems and processes.

The level matters: building capabilities for innovation and enterprise performance through customer involvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Financial Performance ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Service Firms ◽  
Critical Question ◽  
Content Type ◽  
Customer Involvement ◽  
And Performance ◽  
Medium Enterprises

PurposeThis paper aims to examine the quadratic relationship between customer involvement capability and performance, and innovation of small- and medium-scale service firms. The study answers the critical question of how SMEs make the most benefit from their involvement capability.Design/methodology/approachData from small and medium enterprises (SMEs) operating in the service sector of an emerging economy in sub-Saharan Africa were used. A two-stage data analysis with a quadratic estimation was used to assess the hypothesized relationships.FindingsThe study found that the influence of involvement capability over SME performance differs in terms of financial and non-financial. And that, while increasing customer involvement will improve non-financial performance such as customer satisfaction and service quality, it is only at the intermediate level that financial performance is optimized.Originality/valueThe relationships (involvement, and performance and innovation) are not linear, and that at some levels, the relationship with financial or non-financial performance is more positive than other levels. The findings also suggest that involvement capability influences both process and product innovations most at intermediate levels than at low and high levels.

The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia

2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Quantitative Methods ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Leadership Orientation ◽  
Content Type ◽  
Typical Food ◽  
Medium Enterprises ◽  
The Relationship

Purpose The purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable. Design/methodology/approach Quantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents. Findings There is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher. Originality/value The originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.

Territory-based knowledge management in international marketing processes – the case of “Made in Italy” SMEs

2020 ◽  
Vol 32 (3) ◽  
pp. 425-442
Author(s):  
Giuseppe Festa ◽  
Matteo Rossi ◽  
Ashutosh Kolte ◽  
Mario Situm
Keyword(s):  
Competitive Advantage ◽  
International Development ◽  
Development Strategy ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Industrial Districts ◽  
International Expansion ◽  
Content Type ◽  
Medium Enterprises ◽  
Made In

Purpose This study aims to analyze the territory as a distinctive factor through which the concept and practice of “Made in Italy” operates. Specifically, the study considers the role of local and sub-national entrepreneurial collaborations that preserve and enhance factors such as history, style and talent as the essence of Italian “quality” and as the pillar of Italian territorial capitalism. Design/methodology/approach The research examines this Italian phenomenon by investigating small and medium enterprises (SMEs) that successfully compete abroad (and also in the domestic market) with a “glocal” approach, adopting the entrepreneurial formula of industrial districts. Findings The results indicate that international expansion is becoming increasingly more complex (as is every growth/development strategy) but that “glocalism” could represent a potential driver for the success of internationalization strategies. Specifically, for SMEs operating in industrial districts, territorial capitalism could emerge as a unique competitive factor, because it is a component of local structural capital and global reputational capital, as in the case of “Made in Italy.” Originality/value In an increasingly globalized market environment, many companies look to foreign markets to maintain and expand competitive advantage and business performance. Once the companies embark on this endeavor, organizations are involved in governing and managing these networks of finance, production and communication and the distribution-related relationships that constitute globalization. The push to engage in international development is currently imperative for SMEs, which need to extend their business engagement beyond conventional local markets and identify and exploit their distinctive competitive advantage to be able to succeed. One possible way of achieving this is the close interaction with the local territories in which these enterprises reside.

The requisite match between internal resources and network ties to cope with knowledge scarcity

2020 ◽  
Vol 24 (4) ◽  
pp. 861-880 ◽  
Author(s):  
Alkis Thrassou ◽  
Demetris Vrontis ◽  
Maria Crescimanno ◽  
Marcella Giacomarra ◽  
Antonino Galati
Keyword(s):  
Small And Medium Enterprises ◽  
Internationalization Process ◽  
Network Ties ◽  
Content Type ◽  
Internal Resources ◽  
Internal Capabilities ◽  
Stratified Sample ◽  
Internationalization Strategies ◽  
Medium Enterprises ◽  
Collective Influence

Purpose This paper aims to investigate the internationalization strategies of small and medium enterprises (SMEs), focusing on the interaction between network ties and “soft” internal resources at the foundation of knowledge management (KM). Specifically, it identifies the firms’ internal capabilities that affect KM strategies, and their collective influence on the degree of internationalization; verifies the influence of network ties on the internationalization process itself; and develops a conceptual “preliminary theoretical framework of SME internationalization capabilities and networks.” Design/methodology/approach The primary research and analysis are based on a proportional stratified sample of Sicilian wineries; while the conceptual and implicative developments of the paper rest on the combination of the theoretical with the primary findings of the research, and, it has been designed and tested through eight experts’ interviews/reviews. Findings Findings underline a strong influence of the internal capabilities of firms on the internationalization process. In addition, an important role in the export process emerges from the acquisition of information and knowledge through the establishment of networks. Research limitations/implications The results need to be interpreted within the context for which this study was designed and cannot be applied generally to all businesses. However, results allow cellars’ managers to better understand the relationships among the influencing factors of SMEs internationalization. Originality/value The originality of the paper lies not only in its above-stated explicit theoretical objectives and findings but also in its comprehensive conceptual framework that theoretically incorporates the “strategic” with the “internal” and “networking” aspects; purposefully also arming the industry with a practicable tool toward managerial implementation.

scholarly journals ANALYSIS OF ENTREPRENEURSHIP ORIENTATION, ADAPTABILITY OF BUSINESS ENVIRONMENT, AND INTERNAL RESOURCES COMPANY ON COMPETITIVE ADVANTAGES TO IMPROVE COMPANY PERFORMANCE (Study at Micro Small and Medium Enterprises Embroidered Kudus District)

2019 ◽  
Vol 17 (2) ◽  
pp. 119
Author(s):  
Aulia Ardhian Ayuningtyas ◽  
Miyasto Miyasto ◽  
Yohanes Sugiarto
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Company Performance ◽  
Competitive Advantages ◽  
Performance Study ◽  
Internal Resources ◽  
Central Java ◽  
Medium Enterprises

Economic development in Indonesia MSMEs has an important role because the majority of Indonesia's population lives from MSME activities both in the traditional and modern sector. MSME in Central Java is also quite good. However, MSMEs in Central Java also experienced an increase in competitiveness, especially with similar businesses. Therefore, entrepreneurs are required to be able to innovate and dare to explore the resources it has for its business can continue to grow and survive amid the competition. In this study, the authors explain the condition of competitiveness of SMEs in the Kudus Regency is the business of embroidery which from year to year always decreased. Based on the result of the theoretical study directing this study developed a model with five research variables covering entrepreneurial orientation, business environment adaptability, internal resources of company, competitive advantage, and company performance. The results of the analysis show that the entrepreneurship orientation does not positively affect the competitive advantage. The adaptability of the business environment positively affects the competitive advantage. Internal resources of the company positively influence the competitive advantage. Entrepreneurship orientation positively affects the company's performance. Internal resources of the company positively affect the company's performance. Competitive advantage positively affects the company's performance.

Human capital, service innovation advantage, and business performance

2016 ◽  
Vol 36 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Daniel I. Prajogo ◽  
Adegoke Oke
Keyword(s):  
Human Capital ◽  
Business Performance ◽  
Service Sector ◽  
Service Innovation ◽  
Mail Survey ◽  
Business Environment ◽  
Service Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of human capital (HC) on service innovation advantage (SIA) and business performance (BP) in service sector firms, and how external environmental factors influence these relationships. Design/methodology/approach This study utilized a cross-sectional mail survey of a random sample of Australian service firms with the unit of analysis being at the firm level. In total, 228 usable responses were received. Findings The overall findings of this study show that HC is positively related to the creation of value or SIA which in turn results in rent generation for firms. The results further show that the effect of SIA on BP is influenced by environmental dynamism and competitiveness with dynamic environments enhancing the effect while competitive environments weakening it. Research limitations/implications The findings demonstrate the complementarity between the resource based theory and contingency theory as they clearly shows that the value of innovation as a firm’s capability is enhanced or weakened within a business environment that is more dynamic or competitive. Practical implications The findings demonstrate the importance of HC, and, thus, encourage managers to seek ways to harness and leverage HC for improving innovation and BP. In addition, the study also helps managers to understand the contingency effect of business environment on the effectiveness of innovation, hence, helping them in deliberating firms’ strategy in different business environments. Originality/value To the best of the authors’ knowledge, this is the first study which examines the effectiveness of HC as organizational resource for building SIA as a source of organizational competitive advantage.

Exploring determinants of internationalisation: the case of late starters

2017 ◽  
Vol 29 (2) ◽  
pp. 159-177 ◽  
Author(s):  
Christopher Karl Köhr ◽  
Giulio Malorgio ◽  
Maurizio Aragrande
Keyword(s):  
Small And Medium Enterprises ◽  
Wine Industry ◽  
Export Intensity ◽  
Firm Level ◽  
Content Type ◽  
Wine Sector ◽  
Medium Enterprises ◽  
Late Starters ◽  
Practical Implications ◽  
Late Starter

Purpose The purpose of this paper is to explore the determinants of internationalisation among late starters in the wine sector. Strategic implications for small and medium enterprises (SMEs) in a young wine producing region are derived based on the findings. Design/methodology/approach Data were collected through a quantitative survey among 38 wineries that are engaged in export activity in the Romagna wine producing area (Italy). Both multivariate analysis of cardinal company data through multiple and fractional regression models as well as nonparametric analysis of Likert-type survey elements were carried out. Findings The study identifies several determinants that affect the export intensity of businesses in the sample: Resources within the business turn out to be important, as well as the choice of distribution partners. Characteristics of exported goods were found to differ on comparing intra- and extra-EU exports. Practical implications Competitiveness in the international marketplace is closely linked to the product quality, distribution network and productivity of a firm. Regional networks can help businesses to develop these factors, overcome export barriers and strengthen the competitiveness of a region as a whole. Originality/value This study investigated the determinants of internationalisation in a wine producing region which is considered a late starter of internationalisation in the wine industry and it is the first one spotlighting on a regional firm-level in the Italian wine industry.

Organizational effects and labor behavior of domestic violence

2016 ◽  
Vol 29 (4) ◽  
pp. 419-434 ◽  
Author(s):  
Segundo J. Castro-Gonzáles ◽  
Orquídea Arias Díaz ◽  
Anamari Irizarry Quintero
Keyword(s):  
Domestic Violence ◽  
Puerto Rico ◽  
Customer Service ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Canonical Analysis ◽  
Limited Attention ◽  
Physical Damage ◽  
Content Type ◽  
Medium Enterprises

Purpose Using a proposed model, the purpose of this paper is to categorize small and medium enterprises’ (SMEs) owners/managers’ perceptions of customer service, and of the manifestations and observable behaviors in relation to the most frequent repercussions of domestic violence in the workplace. Design/methodology/approach A sample of 73 SME owners/managers was selected; a survey with 44 variables was used for data collection; and factorial and canonical analysis techniques were used to analyze the data. Findings The following were found: among the most frequent manifestations of domestic violence in SME customer services, there are four categories that explain 69.46 percent of the model of variance: threats and continuous absences, frequent mistakes and bad relationships, physical damage/lack of concentration and negative manifestation with low self-esteem; among observable behavior at the workplace, there are four categories that explain 65.35 percent of the model of variance: lack of concentration/tearfulness, fear/insecurity, limited attention to customers and continuous threats; finally there is a 96.70 percent probability of the SMEs’ productivity being affected (loss of customers and low production), through three manifestations of domestic violence detected in the employees: tiredness, sleepiness and tearfulness. Research limitations/implications This research is circumscribed to only one geographical zone in Puerto Rico. Practical implications Even only three manifestations of domestic violence in workers will significantly decrease productivity. When SME managers detect these, they can take action to mitigate the problem for the benefit of the workers. Originality/value This study is a pioneer proposal in its analytical quantitative approach on domestic violence in Puerto Rico and its repercussions on the productivity of the service sector, using canonical analysis.

Development and validation of knowledge management performance measurement constructs for small and medium enterprises

2015 ◽  
Vol 19 (4) ◽  
pp. 711-734 ◽  
Author(s):  
Cheng Sheng Lee ◽  
Kuan Yew Wong
Keyword(s):  
Knowledge Management ◽  
Performance Measurement ◽  
Service Sector ◽  
Small And Medium Enterprises ◽  
Reliability And Validity ◽  
Survey Instrument ◽  
Management Performance ◽  
Content Type ◽  
Measurement Models ◽  
Medium Enterprises

Purpose – This paper aims to address the lack of previous studies and to propose a reliable and valid knowledge management performance measurement (KMPM) model for small and medium enterprises (SMEs). Design/methodology/approach – A survey instrument containing 13 constructs and 49 items was initially developed and posted to small and medium-sized consultancy firms in Malaysia. Reliability and validity analysis was performed to ensure the quality of the instrument. Findings – The developed survey instrument was shown to be reliable, valid and suitable to be applied in SMEs to evaluate their knowledge management (KM) performance. Research limitations/implications – The present study is limited to SMEs in the service sector. The results are not suitable to be generalized to the manufacturing sector or larger organizations without further research. Practical implications – This study would provide SMEs with a better understanding on KMPM and also a guideline to refer to when measuring their KM performance. Academics can use this study as a basic model to explore KMPM in SMEs and develop new measurement models. Originality/value – This study is believed to be the first that has scientifically developed and empirically tested the constructs that represent a comprehensive KMPM model tailored for SMEs.

scholarly journals An Examination of Business Social Responsibility (BSR) On the Local Environment: A Proposed Framework on the Relationship between BSR and Small and Medium Enterprises (SMEs) Performance

2013 ◽  
Vol 5 (2) ◽  
pp. 66-72 ◽  
Author(s):  
Abdullahi Hassan Gorondutse
Keyword(s):  
Organizational Culture ◽  
Social Responsibility ◽  
Small And Medium Enterprises ◽  
Local Environment ◽  
Mediating Effect ◽  
Firm Level ◽  
Economic Agents ◽  
Medium Enterprises ◽  
The Relationship ◽  
Organizational Performances

Business social responsibility (BSR) is receiving an increasingly significant issue for economic agents all over the world, due to a new attention to all the aspects of firm’s activities and their relationships with stakeholders. However few studies have considered the influence of BSR and organizational performances. Even if any the finding reveals inconsistencies’. Hence a mediating mechanism is suggested. This paper aims to provide a propose framework that examine the relationship between BSR and SMEs performance with mediating effect of organizational culture. Based on literature review, this paper proposes four constructs which can be used to identify the implementation at firm level. The constructs are commitment, passiveness, organizational culture, and SMEs performance.

Sign in / Sign up

Export Citation Format

Share Document