The role of operational stickiness in impacting new venture survival

2019 ◽  
Vol 30 (5) ◽  
pp. 876-896 ◽  
Author(s):  
Yingjie Shi ◽  
Xuechang Zhu ◽  
Shuaishuai Zhang ◽  
Yu Lin

Purpose The purpose of this paper is to examine the existence of operational stickiness, and explores the relationship between operational stickiness and the likelihood of survival. Furthermore, the authors investigate this relationship in different manufacturing industries. Design/methodology/approach Using a large sample of more than 200,000 new manufacturing small and medium enterprises between 2000 and 2013 in China, the authors use the survival analysis method to investigate the non-linear relationship between operational stickiness and the likelihood of survival. Findings The authors demonstrate the existence of operational stickiness, such as inventory stickiness, property, plant, and equipment (PPE) stickiness, and labor stickiness. Next, the authors find the inverted U-shaped relationship between operational stickiness and the likelihood of survival. Furthermore, the authors document the differential effect of operational stickiness on the likelihood of survival in different industries. Practical implications Managers can improve the firm’s likelihood of survival by maintaining a moderate inventory stickiness and PPE stickiness. However, managers should not adopt sticky labor management in manufacturing industries. Originality/value This paper may be the first study to demonstrate the existence of operational stickiness, and confirm the inverted U-shaped relationship between operational stickiness and the likelihood of survival.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mansur Ahmed Kazaure ◽  
Abdul Rashid Abdullah ◽  
Dahlia Binti Zawawi ◽  
Amer Hamzah

Purpose The study aims is to examine the determinant factors of small and medium enterprises’ (SMEs’) intention to adopt the Islamic crowdfunding model as alternative sources of finance. Design/methodology/approach Using a survey questionnaire, 385 responses were received from owners and managers of SMEs in three states (Kano, Kaduna and Katsina) of northwestern Nigeria and analyses using PLS-SEM 3.0 software. Findings All hypotheses were found to be significant. Research limitations/implications The research focused only on northwestern Nigeria; there is a need for further research to focus on other geographical zones in Nigeria. Practical implications Crowd funders and policymakers can use these findings to enable the adoption of the Islamic crowdfunding model. Originality/value The previous study has not examined the role of technology acceptance model in the adoption of the financial model; these findings contribute to the crowdfunding literature by filling this gap.


2020 ◽  
Vol 30 (2) ◽  
pp. 265-278
Author(s):  
Channappa Santhosh

Purpose The purpose of this paper is to analyse the different drivers’ and its impact on the export entrepreneurship (EE) of small and medium enterprises (SMEs). Design/methodology/approach The proposed conceptual framework has been tested through analysis of a sample of 102 internationalized (exports) SMEs of the Engineering industry in the Bangalore district, Karnataka, India. Findings Results reveal that firms with younger entrepreneurs who have industry-specific experience and different social ties are able to achieve higher performance. Practical implications Overall, results facilitate understanding of the importance of entrepreneurial capabilities to successfully formulate and strategize their international efforts to achieve better performance in the international market. Originality/value The study enhances the importance of understanding the role of different drivers on EE in the context of an emerging economy where studies are limited and largely unexplored till date.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sthitaprajnya Pattanayak ◽  
Munindra Kakati

Purpose Enterprise success is driven by enterprise actions, which, in turn, is influenced by entrepreneurial behaviours. Behaviours are guided by traits. Hence, it is highly likely that personality traits of entrepreneur are critical to enterprise success. This paper aims at finding the relationship between entrepreneurial traits and enterprise success, identify underlying construct and examine how successful and unsuccessful entrepreneurs differ across traits. It also attempts enterprise profiling based on these traits and test predictive validity of entrepreneurial traits on enterprise success. Design/methodology/approach In this study, 396 micro, small and medium enterprises comprising both successful and unsuccessful ones are studied together across 11 personality traits. Data was analysed using various statistical techniques like co-relation, t-test, factor analysis, cluster analysis and regression to test hypothesis and arrive at given findings. Findings This study finds there is strong positive co-relations between traits and enterprise success. It establishes that successful and unsuccessful enterprises display distinct traits and significantly differ from each other. Entrepreneurial traits affect enterprise success, and the former has significant predictive value on the later (R-squared = 0.866). Practical implications The findings have implications to entrepreneurs in relation to enriching the existing traits and inculcating new ones. Financial institutions like banks can peruse the findings and include traits and behavioural aspects in borrower selection, credit appraisal, evaluation and credit decisioning, to make it more holistic. It also generates scope for further academic research. Originality/value This study contributes to existing literature and validates existing findings. It also finds that traits are contagious in nature, together of which can be grouped to build an entrepreneurs’ traits index which exerts strong influence on enterprise success.


2018 ◽  
Vol 31 (2) ◽  
pp. 268-285 ◽  
Author(s):  
Zahid Yousaf ◽  
Abdul Majid

Purpose The purpose of this paper is to address the key issues, how organizational networks influence the strategic business performance (SBP) through the mediating role of organizational flexibility, and the moderating role of entrepreneurial orientation (EO). Contextualizing small and medium enterprises in developing countries, the authors have developed and tested a theoretical model of SBP to provide a framework for analyzing its major antecedents. Design/methodology/approach This research used a quantitative approach with cross-sectional data. The authors used correlation, regression and Baron and Kenny Approach (Causal Step Approach) for analyzing the data collected from 737 CEOs/MDs/owners of different small and medium enterprises to test the theoretical model developed for this study. Findings Findings revealed that organizational flexibility mediates the relationship between organizational network and SBP. Furthermore, stronger EO strengthens the relationship between organizational flexibility and SBP. Originality/value This study contributes in two ways: first, it provides empirical evidences that how to flourish the mechanism of SBP in SMEs. Second, this work contributes to understand the effects of organizational networks, flexibility and EO on SBP.


2020 ◽  
Vol 47 (5) ◽  
pp. 643-662 ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Evelyn S. Devadason ◽  
Chandran Govindaraju

PurposeThis study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of Pakistan. The study also investigates the role of absorptive capacity in the relationship between human capital dimensions and export performance.Design/methodology/approachData from 586 manufacturing sector SMEs were collected for analysis. The study applied covariance-based structural equation modeling (SEM) to estimate the hypothesized relationships.FindingsAs a whole, human capital was found to exert a direct and indirect impact on export performance, particularly for the medium-sized firms and for firms with medium to high levels of export intensities. Nevertheless, not all dimensions of human capital mattered for export performance. Education and training were found to pose the greatest influence on export performance of those firms.Research limitations/implicationsThe results suggest that when devising appropriate policies for SMEs, the impact of different dimensions of human capital need to be considered for addressing challenges related to the internationalization of firms. In short, developing the right human capital is essential for SMEs to compete at the international level.Originality/valueUnlike previous studies, this study decomposed the influence of different dimensions of human capital on export performance and assessed the mediating role of absorptive capacity. The study is also among the pioneering studies in SMEs sector of Pakistan to analyze the role of absorptive capacity in the relationship between various dimensions of human capital and export performance.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2019-0198


2018 ◽  
Vol 26 (1) ◽  
pp. 150-167 ◽  
Author(s):  
Zulqurnain Ali ◽  
Bi Gongbing ◽  
Aqsa Mehreen

Purpose A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this paper is to examine how supply chain finance (SCF) assists the firms to improve their performance by utilizing the resource-based view (RBV). Furthermore, the present study also pursues to test the effect of trade digitization as a moderating variable in the relationship between SC finance and the firm performance. Design/methodology/approach Using data from the textile sector, the authors run confirmatory factor analysis in AMOS 24 and hierarchical linear regression model in SPSS 23 to measure the proposed model and hypotheses, respectively. Findings The study suggests that SCF significantly improves the SMEs performance. Moreover, trade digitization strengthens the relationship between SCF and SMEs performance. Thus, the current study significantly describes the firm RBV through SCF and trade digitization to predict the SMEs performance. Practical implications SMEs entrepreneurs or executives can optimize the working capital through SCF and enhance the visibility of transactions through digitization for improving SMEs performance. Moreover, SCF protects the SMEs due to its nature of risk mitigation strategy. Originality/value This study covered the unexplored gap in the previous literature of supply chain management by establishing the relationship between SCF and the firm performance empirically while identifying the role of trade digitization as moderating variable in the context of textile SMEs by employing RBV theory.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Amoako ◽  
Zhang Huai Sheng ◽  
Courage Simon Kofi Dogbe ◽  
Wisdom Wise Kwabla Pomegbe

PurposeThe paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.Design/methodology/approachCross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.FindingsThe results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.Practical implicationsPractically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.Originality/valueEngaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.


2014 ◽  
Vol 18 (1) ◽  
pp. 121-136 ◽  
Author(s):  
Alain Yee-Loong Chong ◽  
Keng-Boon Ooi ◽  
Haijun Bao ◽  
Binshan Lin

Purpose – The aim of this research paper is to evaluate the effect of knowledge management on the adoption of the e-business in the supply chain of small and medium enterprises (SMEs) in Malaysia. Design/methodology/approach – Questionnaires were distributed to 200 Malaysian SMEs with a response rate of 68 percent. Data were analyzed by employing multiple regression analysis. Findings – The results showed that knowledge management processes such as knowledge acquisition and knowledge application are significant in affecting Malaysian SMEs' decision to adopt e-business in their supply chain. Knowledge dissemination was found not to be significant in affecting the adoption of e-business among Malaysian SMEs. Practical implications – This study has addressed the previous lack of literature on the relationship between knowledge management processes and e-business adoption among Malaysian SMEs. Originality/value – Although existing literature has shown a relationship between knowledge management processes and technology adoption, this study empirically verifies an adoption model based on knowledge management processes. SMEs can use this model to do a pre-test baseline measurement and reassessment of effect by any KM changes on e-business adoption periodically. Organizations planning to adopt e-business would also be able to apply strategies based on the findings from this research.


2017 ◽  
Vol 8 (4) ◽  
pp. 558-577 ◽  
Author(s):  
Faiza Khan ◽  
Michelle Callanan

Purpose The purpose of this paper is to address the confusing use of terminology associated with tourism undertaken by Muslims and to identify key concerns associated with this type of tourism. Design/methodology/approach This is an exploratory study and adopts a critical review of literature following the evolutionary concept analysis method. Content analysis of popular UK media, UK-based tour operators’ websites and tourism strategies of destinations popular with Muslim tourists were conducted to examine the use of terminology. Findings There is no clear difference between the various terms (halal, Muslim friendly, Islamic, etc.) used. Overall, academia uses the term Islamic tourism, while the industry and media use various terms. Among destinations, however, there is no clear and consistent use of terminology. A key concern of Islamic tourism is the role of certification in assuring travellers and the lack of standardisation of halal certification. Research limitations/implications The paper is based on literature review and secondary data analysis. It lacks primary research. Practical implications This study highlights the need for consistent use of terminology across industry. Another implication is the issue surrounding halal certification of food and the importance of trust in the seller/service provide. Another trend that industry providers need to consider is the growth of the Muslim millennial traveller and the needs of this market segment. Originality/value The paper highlights the importance of studying the Muslim tourist market and provides a starting point for further research. It highlights several issues such as the need to develop a typology of Muslim tourists. Of particular interest is the concern whether halal values in danger of being commodified in the absence of a universal agreed criterion for halal certification.


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