Linking entrepreneurial orientation and small service firm performance through marketing resources and marketing capability

2017 ◽  
Vol 27 (1) ◽  
pp. 231-249 ◽  
Author(s):  
Phyra Sok ◽  
Lan Snell ◽  
Wai Jin (Thomas) Lee ◽  
Keo Mony Sok
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Marketing Capability ◽  
Content Type ◽  
Service Firm ◽  
Moderation Effects ◽  
Marketing Resources ◽  
And Performance ◽  
Mediation And Moderation

Purpose The literature establishes complex relationships between entrepreneurial orientation (EO) and performance, with mixed findings suggesting the variability of the magnitude of the relationship between the two. Some studies report a positive relationship, some negative, while some report an insignificant relationship between EO and performance. These conflicting findings suggest that the EO-performance relationship is more complex than a simple main-effects-only relationship. The literature offers two distinct approaches – integrating moderating or mediation variables in advancing the EO-performance relationship. The purpose of this paper is to extend current knowledge by examining underlying processes through which EO contributes to performance and the specific conditions under which this process is facilitated. Design/methodology/approach To test the hypotheses the authors chose small service firms in Australia. Industry representation included: accommodation and food services; health care services; rental, hiring and real estate services; transport, postal and warehousing; arts and recreation services; retail trade; construction and training services; and professional, scientific and technical services. The services sector offers a unique opportunity to analyze variances in entrepreneurial engagement and organizational outcomes given the competitive intensity within the service sector which requires firms to engage in venturing, renewal and innovation. The proposed hypotheses were tested through a hierarchical regression analysis. Findings This study finds the support for the mediation effect of marketing capability on the EO-performance relationship. Critically, this study also finds that marketing resources moderates on the indirect effect of EO on performance via marketing capability. The findings supporting both the mediation and moderation effects of marketing capability and marketing resources on the EO-performance relationship (moderated mediation model) suggests that greater insight into how EO influences small service firm performance can be achieved through considering in combination with other firm-level constructs (marketing capability and marketing resources in this study). Originality/value It addresses the call by prior studies to link the EO construct to theory by embedding marketing resources and marketing capabilities in the EO-performance relationship. Importantly, by accounting for both mediation and moderation effects the authors provide a more complete picture of the EO-performance relationship that highlights the mediating role of marketing capability and the moderating role of marketing resources. This approach helps to reconcile the critical but separate directions proposed by prior studies in advancing the EO-performance relationship.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation

2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
Positive Direct ◽  
Moderating Role

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

scholarly journals The performance of export manufacturing firms: roles of international entrepreneurial capability and international opportunity recognition

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Imtiaz Mostafiz ◽  
Murali Sambasivan ◽  
See Kwong Goh
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Firms ◽  
Opportunity Recognition ◽  
Entrepreneurial Firms ◽  
Marketing Capability ◽  
Content Type ◽  
Export Manufacturing

PurposeThe international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.Design/methodology/approachStructural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.FindingsThe results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.Originality/valueMerely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.

scholarly journals Dynamics in rural entrepreneurship – the role of knowledge acquisition, entrepreneurial orientation, and emotional intelligence in network reliance and performance relationship

2019 ◽  
Vol 13 (2) ◽  
pp. 247-262 ◽  
Author(s):  
Thomas Bilaliib Udimal ◽  
Zhuang Jincai ◽  
Isaac Akolgo Gumah
Keyword(s):  
Emotional Intelligence ◽  
Knowledge Acquisition ◽  
Entrepreneurial Orientation ◽  
Extension Education ◽  
Business Network ◽  
Content Type ◽  
The Social ◽  
And Performance ◽  
The Relationship

Purpose Social network and being a part of an established business network helps in the acquisition of resources. The purpose of this study specifically looked at the mechanisms through which network reliance (NR) influences the entrepreneurial performance (PERF) among rural farmer entrepreneurs in China. Design/methodology/approach The paper looks at the economic sociology perspective of social networks. A total of 450 rural farmer entrepreneurs were interviewed for the study. The study introduces emotional intelligence (EI) and entrepreneurial orientation (EO) into the relationship between NR, knowledge acquisition (KA) and entrepreneurial PERF. Findings The result shows that KA partially and positively mediates the relationship between NR and entrepreneurial PERF. EO is shown to moderate the relationship between KA and entrepreneurial PERF apart from its direct effect on entrepreneurial PERF. The EI of rural farmer entrepreneurs has a direct and significant effect on KA but does not moderate the relationship between NR and KA. Originality/value This study provides a new direction for extension education to rural farmer entrepreneurs. Knowledge building capacity programmes for rural farmer entrepreneurs should be an area of priority for extension education. Building the social capital and entrepreneurial capacities of rural farmer should be a new area of focus for policymakers. These measures will go a long to improving the capabilities of rural farmer entrepreneurs, which will, in turn, impact positively on their PERF.

Electronic commerce adoption, entrepreneurial orientation and small- and medium-sized enterprise (SME) performance

2014 ◽  
Vol 21 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Michael Abebe
Keyword(s):  
Growth Rate ◽  
Entrepreneurial Orientation ◽  
Positive Influence ◽  
Sales Growth ◽  
Content Type ◽  
And Performance ◽  
The Relationship ◽  
Significant Positive Influence ◽  
Structured Questionnaire

Purpose – This study aims to contribute to the literature by addressing two research questions: is there a relationship between e-commerce adoption and performance of SMEs? And, more importantly, does the degree of entrepreneurial orientation moderate the relationship between e-commerce adoption and SME performance? Design/methodology/approach – Data were collected from a sample of 55 manufacturing and service SMEs located in the state of Texas, USA, between 2008 and 2009 using a structured questionnaire. Customized questionnaires were mailed out to the owner-managers of 55 SMEs. A moderated regression analysis was conducted to test the two hypotheses. Findings – The results suggest that e-commerce adoption has a significant, positive influence on SMEs' average sales growth rate and that adopters of e-commerce technology have significantly higher average sales growth rate than non-adopters. The results also indicate that e-commerce adoption positively affects SMEs' annual sales growth rate even more when the sample firms have higher level of entrepreneurial orientation. Overall, the results of this analysis indicate the importance of e-commerce adoption as well as SMEs' entrepreneurial orientation on the performance of SMEs. Research limitations/implications – The findings of this study can be useful for SMEs in general as a means of understanding how e-commerce adoption positively affects the firm's performance. Such a relationship suggests that e-commerce adoption is an important factor that can enhance firm's internal processes and ultimately performance. Therefore, e-commerce adopters should continue to utilize this technology while non-adopters should consider harnessing the potential of this technology to further streamline their operations and effectiveness. Originality/value – This study contributes to the literature by providing empirical evidence on the role of e-commerce adoption and entrepreneurial orientation in small firm performance.

Entrepreneurial orientation of SMEs, total quality management and firm performance

2017 ◽  
Vol 28 (7) ◽  
pp. 892-912 ◽  
Author(s):  
Saumyaranjan Sahoo ◽  
Sudhir Yadav
Keyword(s):  
Firm Performance ◽  
Quality Management ◽  
Total Quality Management ◽  
Direct Effect ◽  
Entrepreneurial Orientation ◽  
Total Quality ◽  
Content Type ◽  
Manufacturing Performance ◽  
World Class ◽  
And Performance

Purpose The purpose of this paper is to investigate the effects of entrepreneurial orientation (EO) and total quality management (TQM) on the performance of small- and medium-sized manufacturing enterprises. Design/methodology/approach Frameworks for describing EO and TQM derived from the literature were reviewed and used to develop a questionnaire. The hypothesized relationships of this model are tested with the data collected from 121 manufacturing small and medium enterprises (SMEs) by using AMOS. The approach has been directed toward justification of EO and TQM strategy for its support to competitive manufacturing in the context of Indian manufacturing industries. Findings The results indicate that EO plays an influential role on the adoption of TQM strategy, and also has a direct effect on firm performance (FP). The results also indicate that the significance of the direct effect of EO on FP is reduced when the indirect effect of EO through TQM is included in the total effect model. Firms with higher level of EO will be more successful in adopting TQM strategy, which helps them in developing new capabilities that allow them to achieve better performance. Research limitations/implications The research is cross-sectional in nature and, therefore, it does not permit us to account for the lag between implementation and performance. Second, the performance measures are subjective and may be subject to response bias. Practical implications The study presented in this paper offers entrepreneurs, academics and practitioners a better understanding of the relationship and impact of the EO and TQM on the manufacturing performance. Thus, entrepreneurs and practitioners will be able to make better and more effective decisions about the implementation of TQM practices. Originality/value By linking EO strategy and TQM practices to world-class manufacturing practices and performance in Indian manufacturing SMEs, this research adds a new dimension to study of world-class manufacturing and more generally to the best practices and practice-performance debates. This knowledge is important and unique, because it emphasizes that in addition to quality management practices, which are focused on efficient process management aspects of the organization, EO should also be given equal emphasis, in order to improve manufacturing performance of SMEs.

scholarly journals Moderating role of productivity on diversified conglomerates and performance: the case of Malaysia

2017 ◽  
Vol 9 (2) ◽  
pp. 118-133 ◽  
Author(s):  
Alex Kwaku Gyan
Keyword(s):  
Firm Performance ◽  
Content Type ◽  
Industrial Diversification ◽  
And Performance ◽  
Diversified Firms ◽  
The Relationship ◽  
Subsequent Modification ◽  
Moderating Role ◽  
Significant Moderator

Purpose The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study. Design/methodology/approach This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm. Findings The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact. Originality/value The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

Knowledge management processes and organizational performance: the mediating role of organizational learning

2020 ◽  
Vol 24 (8) ◽  
pp. 1859-1880 ◽  
Author(s):  
María Obeso ◽  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Firm Performance ◽  
Organizational Performance ◽  
Knowledge Generation ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
And Performance

Purpose The purpose of this paper is twofold. First, it aims to analyze the individual influence of different knowledge management practises (KMP) on firm performance. Second, it aims to analyze the mediating role of organizational learning (OL) between each KMP and performance. Design/methodology/approach A telephone-survey was applied in 2018 to the managers of 400 Spanish firms. The data retrieved was analyzed by using multiple regression analysis. Findings Knowledge generation (KG) and knowledge flow (KF) promote firm performance, while there is not a direct association between knowledge storage and performance. OL mediates the relationship between KG and performance, as well as between KF and performance. Research limitations/implications First, this research confirms that not all the KMP have a direct effect on firm performance, thus, future research would need to differentiate between different KMP. Second, this paper is pioneering in providing empirical evidence that OL mediates the KMP – performance relationship. Third, the empirical study was performed in a context non-researched yet by the literature considering KMP individually: Spain. Practical implications First, besides the results managers should focus their efforts in practises related to KG and application. Second, OL mediating suggests that managers should invest in managerial commitment to promote a shared culture, shared vision, open-mind to new ideas and a lot of dialogue. Originality/value This is the first study that investigates how KMP contribute to firm performance by incorporating the mediating impact of OL. The results will help organizations to identify the KMP improving the performance.

scholarly journals The role of firm characteristics on the relationship between gender diversity and firm performance

2016 ◽  
Vol 54 (6) ◽  
pp. 1407-1419 ◽  
Author(s):  
Mehmet Nihat Solakoglu ◽  
Nazmi Demir
Keyword(s):  
Firm Performance ◽  
Emerging Market ◽  
Gender Diversity ◽  
Firm Level ◽  
Content Type ◽  
Specific Factors ◽  
And Performance ◽  
The Relationship ◽  
Measures Of Performance

Purpose – The purpose of this paper is to understand the effect of gender diversity on firm performance and evaluate how that relationship is influenced by some firm-specific factors for firms in an emerging market. Design/methodology/approach – The authors collected firm level financial data and firm level characteristics for the firms listed in BIST100 index of Borsa Istanbul for the period between 2002 and 2006. Due to endogeneity of gender diversity and firm performance, the authors utilize unbalanced panel data with 2SLS specification. To observe the sensitivity of results across measures of performance, three measures of performance, two accounting-based and one market-based, are utilized. Findings – Overall, the authors find some weak evidence that gender diversity impacts firm performance. In particular, the findings imply significant association between gender diversity and firm performance for firms that are targeting local markets, for firms in the financial sector and for firms that are family or block-owned. Moreover, findings are fragile with respect to the measures of diversity and performance selected. Originality/value – Although the relationship between gender diversity and firm performance are investigated several times in the past, there are not many studies that examines the role of firm-specific factors on that relationship. By revealing the factors that are important, this study provides an explanation why the existing literature leads to mixed results.

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