Nexus between lean operations, eco-product innovativeness, social, green and business performances: an empirical evidence from Ghanaian manufacturing SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Afum ◽  
Yuan Gao ◽  
Yaw Agyabeng-Mensah ◽  
Zhuo Sun

PurposeThis paper explores the nexus between lean operations, eco-product innovativeness, social performance, green performance and business performance. Both direct and indirect effects are tested among the variables under consideration in this study.Design/methodology/approachData is garnered from 166 Ghanaian small and medium-sized enterprise (SME) manufacturers. All hypothesized relationships are tested using partial least square-structural equation modeling.FindingsThe results suggest that lean operations has a significant positive effect on eco-product innovativeness, social performance, green performance and business performance. The results further indicate that eco-product innovativeness significantly influences green performance and social performance, but does not significantly influence business performance. The mediation procedure performed shows that eco-product innovativeness plays a complementary partial mediation role between lean operations, social performance, green performance and business performance.Practical implicationsThe study provides enough evidence that informs managers that the application of lean operations should be a necessity instead of an afterthought when pursuing their sustainable performance targets. The study specifically enlightens Ghanaian managers and those in similar environs to substantially invest in lean operations to achieve eco-product innovativeness and contribute to the survival of the manufacturing sector.Originality/valueIn addition to expanding lean operations and environmental management literature, the study happens to be among the scant studies that has verified the direct and indirect effects between lean operations, eco-product innovativeness, social, green and business performances.

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


2007 ◽  
Vol 30 (12) ◽  
pp. 892-914 ◽  
Author(s):  
Glenn A. Metts

PurposeThe paper's purpose is to investigate the direct and indirect effects of industry competitive forces on strategy‐making and performance in small‐to‐medium‐sized manufacturing companies.Design/methodology/approachThe paper's approach is a survey design with structural equation modeling used for hypotheses testing.FindingsThe findings provide strong support for the mitigating role of managerial action through the strategy‐making process and indications that this is true regardless of small‐to‐medium‐sized enterprise (SME) size. Also, automotive‐manufacturing SMEs seem to exhibit higher levels of competitive factors compared with non‐automotive manufacturing SMEs.Research limitations/implicationsThe major limitation of this research is that the survey was taken in the Mid‐western USA and involved only SME manufacturing organizations. The research should be extended to other geographic regions, industry types, and larger organizations.Practical implicationsMany small company managers feel that they have little impact on industry‐wide macro‐economic and industry‐specific forces. This research indicates that managers in SMEs can mitigate some of the negative effects of industry competitive factors through strategy‐making activities.Originality/valueThis research is unique in several ways. It is the only research that has clearly identified and successfully measured the impact of managerial action in SMEs. It demonstrates that managerial action can be measured by comparing the direct and indirect effects of industry competitive forces on performance. It further identifies the need for a self‐assessment tool to measure the effectiveness of managerial action of top managers in SMEs.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bambang Tjahjadi ◽  
Noorlailie Soewarno ◽  
Viviani Nadyaningrum ◽  
Aisyah Aminy

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.


2018 ◽  
Vol 35 (1) ◽  
pp. 164-185 ◽  
Author(s):  
Sam Zisuh Njinyah

Purpose The purpose of this paper is to examine the significance of the direct and indirect effects (through country and firm’s specific advantages) of government policies for export promotion (GPEP) on the export performance of small and medium-size enterprise (SME) Cocoa exporters in Cameroon. Design/methodology/approach To test the proposed model, data were obtained through self-administered questionnaires using snowball sampling technique to 101 SME Cocoa exporters. This was analyzed using structural equation modeling (SEM) techniques to examine both the direct and indirect effects of GPEP on the export performance of SME Cocoa exporters in the South and Centre Regions of Cameroon. Findings The findings suggest that GPEP had both direct and indirect effects on the export performance of SME Cocoa exporters. Direct effect was on the usage of GPEP which reduces operating cost and increase performance. The indirect effects were through the provision of country and firms specific advantages. However, the only significant path was through the provision of export marketing information. Research limitations/implications The research is limited to one country, one sector, and two regions and does not take into consideration other factors that may influence the effect of GPEP, country, and firms specific advantages on export performance. Moreover, the non-significant paths should be interpreted with caution and further testing required in a different context. Practical implications Empirical findings are relevant for the government and SME Cocoa exporters. It informs the government about the effectiveness of GPEP and the need to disseminate marketing information using every possible medium best understood by the SMEs. It suggests an opportunity for engagement of both SMEs and government authorities in accessing the outcome of GPEP which will increase transparency, awareness, usage, and export performance. Originality/value The research has successfully developed and tested a model for analyzing the direct and indirect effects of GPEP on export performance based on the resource-based view and SEM in a context where there is a call for more empirical and theoretical work on export performance due to limited studies. The framework reveals positive effects of GPEP, country, and firms’ specific advantages as determinants of export performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hussein-Elhakim Al Issa

PurposeThis paper aims to examine the effect of financial bootstrapping strategies (FBS) and strategic improvisation (SI) on business performance (BP). The study enriches our understanding of the contributions of bootstrapping and improvisation strategies toward resource-constrained small businesses during real economic downturns and crises. The potential moderating effect of SI on the relationship between FBS and its dimensions and performance were also examined.Design/methodology/approachUsing the convenience snowball sampling technique, data were collected from entrepreneurs in Tripoli, Libya. Structural equation modeling by means of partial least square bootstrapping resampling was used for the hypotheses testing of the 147 useable responses.FindingsStatistically significant positive relationships were found in the direct relationships between bootstrapping and improvisation with performance. However, there was no significant association found between the delaying payment related bootstrapping and the owner-related bootstrapping with performance. The moderating effect of improvisation had a significant relationship between bootstrapping as an aggregate construct and its dimensions and performance.Research limitations/implicationsDue to the cross-sectional nature of this study which used a small sample that was randomly selected, generalization to the entire population of business ventures should be made with caution.Practical implicationsThe negative moderation effect of improvisation on FBS-BP association suggests that entrepreneurs need to be careful in balancing the two strategies so that efforts are no wasted.Originality/valueWhile business performance has been studied in various organizations, its examination with financial bootstrapping strategies as a predictor and strategic improvisation as a moderator contribute nascent theoretical insights.


2018 ◽  
Vol 118 (9) ◽  
pp. 1787-1803 ◽  
Author(s):  
Xueyuan Liu ◽  
Haiyun Zhao ◽  
Xiande Zhao

PurposeThe purpose of this paper is to examine the multiple paths of absorptive capacity’s (AC) effect on business performance (BP): direct effect and indirect effects through innovation and mass customization (MC).Design/methodology/approachThe authors examined the role of innovation and MC capability on the relationship between AC and BP. Data from 278 Chinese firms in four manufacturing industries collected by questionnaire are used to empirically examine the proposed model by Structural equation modeling.FindingsThe results show that AC can directly enhance BP, and indirectly through innovation and MC capability. The study also finds that MC capability has a stronger mediating effect than innovation.Originality/valuePrior studies have not yet built linkages between AC and BP with both innovation and MC’s effects. This study provides empirical evidence of the effects of AC on BP and three paths are discussed including AC’s direct effect and indirect effects through innovation and MC to firm’s BP. This study provides a new direction for executives to better understand the movement of knowledge along supply chain and in intra-organizational environment, and of the importance of innovation and MC capability since they are essential carriers for BP enhancement.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihad Mohammad ◽  
Farzana Quoquab ◽  
Nur Zulaikha Mohamed Sadom

PurposeThis study aims to examine the direct and indirect effects of electronic word of mouth (eWOM) on mindful consumption behaviour (MCB) in a sustainable clothing purchase context. In addition, it examines the mediating effect of “consumer engagement” and “attitude towards second-hand clothes”.Design/methodology/approachThe data were gathered through a self-administered questionnaire survey from Malaysian consumers who had experience in purchasing second-hand clothes. A total of 175 complete and useable questionnaires were obtained, which were then analysed by using the structural equation modelling-partial least square (SEM-PLS) technique.FindingsThe results of this study indicate support for the direct effect of eWOM on consumers' attitude towards second-hand clothes, consumer engagement and consumers’ MCB. The results also supported the relationship between consumer engagement and MCB, but the link between attitude and mindful consumption (MC) was not supported. Furthermore, the study confirmed the mediating effect of consumer engagement between eWOM and consumers’ MCB but did not support the mediating effect of attitude towards second-hand clothes.Originality/valueThis study is amongst the pioneers to elucidate MCB in the context of sustainable clothing. It examines the direct and indirect effects of eWOM on MCB, which has not been tested in the past literature. The mediating effects of consumer engagement and attitude towards second-hand clothes on the relationship between eWOM and MCB are also comparatively new links.


2019 ◽  
Vol 26 (2) ◽  
pp. 489-512 ◽  
Author(s):  
Ayman Bahjat Abdallah ◽  
Wafaa Shihadeh Al-Ghwayeen

Purpose The purpose of this paper is to examine the impact of green supply chain management on environmental performance (EP), operational performance (OP), and business performance in the context of a developing country, Jordan. In addition, the mediating effects of environmental and OP on the relationship between green supply chain management and business performance are investigated. Design/methodology/approach The study is based on survey data collected from 215 manufacturing firms from different industries in Jordan. Validity and reliability analyses were carried out using SPSS and Amos. Direct and indirect effects were tested using structural equation modeling. Findings The results revealed that green supply chain management positively and significantly affects both EP and OP. The results also demonstrated that the total effect of green supply chain management on business performance is positive and significant. The direct effect of green supply chain management on business performance proved to be negative, but insignificant. Thus, the total positive effect of green supply chain management on business performance is indirect and fully goes through EP and OP. Originality/value This study is one of the first to examine the direct and indirect effects of green supply chain management on business performance, especially in a developing country and the Middle East in particular. Furthermore, this study contributes to the existing body of knowledge by investigating the mediating effects of EP and OP on the green supply chain management and business performance relationship.


2020 ◽  
Vol 3 (3) ◽  
pp. 385-410
Author(s):  
Mohitul Ameen Ahmed Mustafi ◽  
Md Sajjad Hosain

PurposeThe paper aims at identifying the role of online advertising on the purchase intention (PI) of smartphones of Bangladeshi customers. The independent variable (online advertising) has been divided into five dimensional segregations: informativeness (INFO), irritation (IRR), entertainment (ENT), incentives (INC) and credibility (CRD). For increasing the value of investigation to further extent, the authors included two mediators termed as flow experience (FE) and advertising value (ADD).Design/methodology/approachThe study has been conducted on primary data collected through a structured questionnaire received from a valid sample of 281 smartphone users selected on a random basis. SPSS (Version 24) has been used for descriptive statistical analysis, while structural equation modeling technique (utilizing AMOS 24) has been used to test the hypothetical relationships among the variables.FindingsAfter a careful and bias-free statistical analysis, the results indicate that purchase intention is positively and significantly affected by all the independent components INFO, IRR, ENT, INC and CRD. Regarding the mediating effect, FE can partially mediate the relationships between IRR and PI and ENT and PI as both the direct and indirect effects are significant. On the other hand, ADD can partially mediate the relationships between IRR and PI and INC and PI, respectively, since both the direct and indirect effects are significant.Research limitations/implicationsThis empirical study is expected to be beneficial for the academicians in finding some unique dimensional aspects regarding online advertising and purchase intentions.Practical implicationsThe policymakers can formulate some unique online advertising policies with a view to identifying customer psychology and increase sales volume based on the findings.Originality/valueSmartphone market in Bangladesh is growing steadily. This empirical paper has shed some lights on the unique role of online advertising on PI of smartphones of Bangladeshi customer base. Since the market scenario in Bangladesh is somewhat unique than those of Western and Eastern countries, the authors hope that the findings will add numerical theoretical and practical values for further investigation in South Asian markets.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaw Agyabeng-Mensah ◽  
Liang Tang

PurposeThe study explores the role of green human capital in the implementation of green logistics practices to build green competitiveness and achieve improved social performance and financial performance.Design/methodology/approachThis study employs structured questionnaires to gather data from 152 managers from manufacturing small and medium enterprises in Ghana. The data are analyzed and the hypotheses are tested using the partial least square structural equation modeling.FindingsThe findings reveal that green human capital does have significant influence on financial performance. However, green human capital does not have significant influence on social performance and green competitiveness. Besides, green logistics practices significantly improve social performance, financial performance and green competitiveness. Green logistics practices mediate the relationship between green human capital and green competitiveness, social performance and financial performance. Hence, green human capital influences the successful implementation of green logistics practices, which results in building stronger green competitiveness and better social and financial performances.Originality/valueThis paper is among the dearth of studies that examine the role of green human capital in the implementation of sustainable supply chain practices. This study pioneers the exploration of the role of green human capital in the implementation of green logistics practices to improve social performance, financial performance and green competitiveness among manufacturing SMEs in sub-Saharan Africa. Besides, the study's findings expand literature by providing new insights into the effect between green logistics practices, financial performance, social performance and green competitiveness from Ghanaian SMEs.


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