Performance outcome of entrepreneurial behavior of SMEs in a developing economy: the role of international mindset

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Agyapong ◽  
Patience Dakora Maaledidong ◽  
Henry Kofi Mensah

PurposeDespite the burgeoning stream of research on the relationship between entrepreneurial behavior (EB) and performance, the linkage between entrepreneurial behaviour, international mindset and performance is still underexplored. Therefore, this study investigates how the international mindset moderates the relationship between entrepreneurial behavior and performance.Design/methodology/approachThe study's model is tested on a sample of 257 small and medium enterprises (SMEs) in an emerging economy – Ghana – using a three-stage least squares estimator.FindingsResults indicate that an international mindset primarily fosters entrepreneurial behavior in driving performance over and above the unique positive contributions of entrepreneurial behavior and international mindset. Specifically, the study finds that at high levels of international mindset, the positive effects of innovativeness and risk-taking elements of entrepreneurial behavior becomes strengthened. The international mindset's moderating role on the entrepreneurial behavior-performance linkage shows that the international mindset makes SMEs more innovative and open to risk, hence affecting performance positively.Originality/valueThe study demonstrates that, in the SME sector in the emerging economies, the relationship between the individual dimensions of entrepreneurial behavior and performance is contingent upon the role international mindset play in such a relationship. Further, this study explores how international mindset interacts uniquely with the EB (innovativeness, risk-taking and proactiveness) to predict performance.

Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.


2020 ◽  
Vol 123 (1) ◽  
pp. 279-299
Author(s):  
Antonietta Cosentino ◽  
Paola Paoloni ◽  
Barbara Iannone ◽  
Valerio Temperini

PurposeThe purpose of this study is to analyze the link between innovation technology (IT), relationships which affect the relational capital (RC), and intangible value for the environment, focusing on small and medium enterprises (SMEs) of agro-food sector (AFS) in which these topics are prominent.Design/methodology/approachThis paper adopts a qualitative research methodology, based on a multiple case study. The empirical data were obtained from interviews designed to reveal the determinants of the Paoloni's CAOS model (characteristics, ambience, organization, start-up) useful to analyze the relational capital from the firm's perspective. The content analysis shows the most important factors influence the relationships of the companies analyzed.FindingsThe empirical analysis highlights the strong link between tradition and innovation in the AFS and its positive effects on corporate sustainability and company relationships as well as in enhancing knowledge. The introduction of ITs and the positive effects it produces in terms of efficiency, product quality, environmental sustainability and new communication channels is an important factor that influences business's relationships.Originality/valueThis paper contributes to the RC literature by stressing how ITs improve not only the executive process and performance of SMEs, but also the intangible resources of the territory. Accordingly, it provides both triggers for future research in the AFS, as well as suggestions to SMEs decision-makers to enhance their competitiveness. Furthermore, the paper offers insights to push policy makers in adopting policies that favor ITs investments in the AFS.


2016 ◽  
Vol 39 (7) ◽  
pp. 830-850 ◽  
Author(s):  
Gonzalo Maldonado-Guzmán ◽  
Gabriela Citlalli Lopez-Torres ◽  
Jose Arturo Garza-Reyes ◽  
Vikas Kumar ◽  
Juan Luis Martinez-Covarrubias

Purpose The purpose of this paper is to explore the relationship between knowledge management and creation of intellectual property within the context of small and medium size manufacturing enterprises. Design/methodology/approach A hypothesis was formulated and tested using structural equation modelling. Data were collected through an instrument that was developed based on key constructs adapted from the literature and that was first validated using Confirmatory Factor Analysis. A Cronbach’s alpha test was also conducted and the Composite Reliability Index was calculated to ensure reliability of the theoretical model. The instrument was distributed among manufacturing small and medium enterprises (SMEs) in the Aguascalientes region of Mexico, from were 125 valid responses were obtained. Findings In general, the results indicate that knowledge management has positive effects on the creation of intellectual property in manufacturing SMEs. This suggests that SMEs can create more intellectual property if they dedicate more efforts to the management of knowledge. Practical implications The implication of this research and its findings may inform the strategies formulated by policy makers, and the managerial practices that manufacturing SMEs can adopt to protect their knowledge. Originality/value Evidence suggests that studies focused on investigating the relationship between knowledge and intellectual property are limited. This paper provides a refined understanding of the relationship between knowledge management and intellectual property creation.


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.


2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.


2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir

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.


Author(s):  
T. Ramayah ◽  
Osman Mohamad ◽  
Azizah Omar ◽  
Malliga Marimuthu ◽  
Jasmine Yeap Ai Leen

Due to the rise in environmental awareness, green technologies and practices have become the conscientious imperative expected from all manufacturing industries. Consequently, environmental initiatives are becoming an essential part of the strategic planning in organizations, including the small and medium enterprises (SMEs). Thus, the objectives of this study were to determine the extent of implementation in green manufacturing practices among the SMEs as well as to examine the relationship between those practices and manufacturing performance. Data was collected via a survey from 544 SMEs across all types of industries located throughout Malaysia. Results of the analysis showed that there is an encouraging level of implementation in green practices among the SMEs, with the optimization of processes to reduce solid waste being the top practice. The results also revealed that green practices within the inbound and production phase of the manufacturing lifecycle significantly affected manufacturing performance but not practices within the outbound phase.


2013 ◽  
pp. 1026-1043
Author(s):  
T. Ramayah ◽  
Osman Mohamad ◽  
Azizah Omar ◽  
Malliga Marimuthu ◽  
Jasmine Yeap Ai Leen

Due to the rise in environmental awareness, green technologies and practices have become the conscientious imperative expected from all manufacturing industries. Consequently, environmental initiatives are becoming an essential part of the strategic planning in organizations, including the small and medium enterprises (SMEs). Thus, the objectives of this study were to determine the extent of implementation in green manufacturing practices among the SMEs as well as to examine the relationship between those practices and manufacturing performance. Data was collected via a survey from 544 SMEs across all types of industries located throughout Malaysia. Results of the analysis showed that there is an encouraging level of implementation in green practices among the SMEs, with the optimization of processes to reduce solid waste being the top practice. The results also revealed that green practices within the inbound and production phase of the manufacturing lifecycle significantly affected manufacturing performance but not practices within the outbound phase.


Author(s):  
Orlando Manuel Martins Marques Lima Rua

The main objective of this chapter is to analyze the relationship between entrepreneurial orientation and competitive advantage on Portuguese exporting textiles small and medium enterprises (SMEs). Therefore, a quantitative methodological approach was used, conducting a descriptive, exploratory, and transversal empirical study, having applied a questionnaire to a sample of Portuguese SMEs, associated of the Portuguese textile association (ATP). The structural equations model was used for this purpose, using the partial least squares (PLS). Based on survey data from 247 firms, the empirical results indicate that 1) innovation have a positive and significant impact on differentiation, 2) proactivity and risk-taking does not have a positive and significant impact on differentiation, and 3) innovation, proactivity, and risk-taking does not have a positive and significant impact on cost leadership. This study shows that Portuguese textile SMEs seek to support and stimulate new ideas, experimentation, and creativity that surely result in new products, services, and processes.


2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.


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