Impact of network capability on small business performance

2015 ◽  
Vol 53 (1) ◽  
pp. 2-23 ◽  
Author(s):  
Robert Zacca ◽  
Mumin Dayan ◽  
Thomas Ahrens

Purpose – The purpose of this paper is to measure the impact of network capability (NC) on small enterprise performance via knowledge creation, and two dimensions of entrepreneurial orientation (EO): competitive aggressiveness and innovativeness. Design/methodology/approach – The authors propose a theoretical model that was tested using a survey instrument administered to owners and managers of small-sized enterprises within the United Arab Emirates. Theory development was assisted by semi-structured interviews with an independent sample of owners and managers of small enterprises. Findings – The results show that NC is positively related to knowledge creation and that competitive aggressiveness and innovativeness are key mediators between knowledge creation and firm performance. Research limitations/implications – The study contributes to theoretical development by integrating the domains of NC and knowledge creation to EO and small business performance. The authors show that the conversion from NC to small business performance is mediated by knowledge creation and the two dimensions of EO: innovativeness and competitive aggressiveness. Practical implications – The study findings present interesting practical implications for small business owners seeking to shift their firm’s orientation toward being more entrepreneurial. Originality/value – The study highlights the crucial role innovativeness and competitive aggressiveness play as mediators when the relation between knowledge creation and small business performance is examined.

1984 ◽  
Vol 9 (1) ◽  
pp. 34-43 ◽  
Author(s):  
Joseph R. Rocha ◽  
M. Riaz Khan

This paper assesses the effect of the Small Business Institute's counseling program at the University of Lowell on small business performance as perceived by client firms located in New England. In analyzing data gathered from a population of 52 firms, the authors initially classify recommendations made by counseling teams for the purpose of improving business operations. The impact of the suggestions is examined primarily by considering various dimensions of their implementation. After weighing results of an evaluation of the counseling service as discerned by the client firms, the authors summarize their findings and draw conclusions.


2017 ◽  
Vol 19 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Rujirutana Mandhachitara ◽  
Siriporn (NaPombhejara) Allapach

Purpose This paper investigates how affirmative leadership management styles, market orientation and marketing intelligence drive the performance of small business enterprises in Bangkok, Thailand. Design/methodology/approach Small business performance is a formative measurement consisting of financial and marketing metrics. Other constructs are reflective. Some 200 manager-owners of small businesses were interviewed. The authors use structural modeling, partial least squares (PLS). Research limitations/implications The data were collected from two of 50 districts in Bangkok. The study is cross-sectional. Performance measures were self-reported. Practical implications Building and exercising affirmative leadership skills and behaviors in small business operations is crucial. Small businesses should focus their recruitment on this quality. Affirmative leaders must create and promote a systematic approach to gathering and analyzing market intelligence on customers and competitors and utilize this strategically. Originality/value This empirical paper establishes two important mediating roles of market orientation. First, affirmative leadership is necessary to motivate a market-oriented enterprise in its successful performance. Second, marketing intelligence contributes to business performance when it is driven by market orientation.


2020 ◽  
Vol 14 (1) ◽  
pp. 47-59 ◽  
Author(s):  
Wail Alhakimi ◽  
Mohammed Mahmoud

Purpose This study aims to investigate the impact of market orientation on small and medium-sizedenterprises (SMEs) innovativeness in Yemen. Design/methodology/approach The study uses empirical data collected from 206 managers, owners and operators of SME in Sana'a. By using exploratory and quantitative methods, the collected data was examined using descriptive, correlation and regression analyses. Findings The results indicated that market orientation, as a whole, has a significant impact on SME innovativeness. Specifically, while the two dimensions – customer orientation and supplier orientation – have a significant impact on SME innovativeness, the other two dimensions – competitor and inter-functional coordination – do not have a significant impact on SME innovativeness. Research limitations/implications The study focuses only on four factors that have an influence over SME innovativeness based on the perspective of managers. Practical implications SMEs represent the largest portion of businesses in Yemen’s private sector. It is anticipated that the findings of this study will help SMEs’ owners and managers to better understand market orientation and the significant impact it has on SME innovativeness. Originality/value The value of this research work is evident from the fact that the market orientation models have neglected the part of suppliers (upstream supply chain) in generating superior value for customers, even though they have concentrated on the role of customers (downstream supply chain) and competitors.


2019 ◽  
Vol 06 (01) ◽  
pp. 301-313
Author(s):  
Noor Fzlinda Fabeil ◽  
Kamarul Mizal Marzuki ◽  
Izyanti Awang Razli ◽  
Mohd Rizwan Abd Majid ◽  
Marry Tracy anak Pawan

2002 ◽  
Vol 3 (3) ◽  
pp. 201-210 ◽  
Author(s):  
Emma H. Wood

The data from a national survey into small tourism and hospitality firms were analysed to provide a deeper understanding of small business performance. The analysis used logistic regression to determine the model that best predicts the performance of these firms. The model identifies those organizational variables that greatly influence performance, as well as identifying the business activities that have little or no effect on performance. The practical implications of the findings are discussed, resulting in recommendations for improving the performance of small firms in the tourism and hospitality sector.


2017 ◽  
Vol 9 (3) ◽  
pp. 300-314 ◽  
Author(s):  
Hande Karadag

Purpose Small- and medium-sized enterprises (SMEs) are crucial for socio-economic growth due to their significant role in creating new workforce, gross domestic product increase, innovation and entrepreneurship. This paper aims to examine financial management performance in SMEs with regard to industry, firm age and education level of owner/managers differences. Design/methodology/approach The data used in the study are collected from 188 SMEs through structured questionnaires, and three hypotheses regarding the associations are tested by using structural equation modeling. Findings Findings of one-way ANOVA tests indicate that performance in financial management practices has a strong and positive correlation with education level of small business owner/managers, whereas no significant difference is found regarding SMEs operating in different industries. For the impact of company age, independent samples t-test is conducted, and a meaningful difference between small- and medium-sized companies which are five years or older and younger is found. Research limitations/implications This study shows that a significant difference for age of an SME is present between over and under five-year-old SMEs, with respect to financial management performance, which is an important finding for both small business and financial management literatures. The tests regarding the particular hypotheses about education level of SME owner/managers indicate that education level of SME owner/managers significantly impacts financial management performance. Practical implications The present study provides important practical implications. First, the importance of education level of owner/managers on SME financial performance is highlighted. Second, strong empirical support is found for the impact of company age on SME performance, which might be discussed as the importance of accumulation of knowledge of the owner/managers and the changes required with the growth patterns of the company, with increasing company age. Third, the study shows that industry differences do not exhibit a significant performance variation factor in financial management of SMEs, with respect to other demographic factors. Overall, these contributions help us better understand the financial management performance indicators in small and medium sized businesses. Originality/value This study focuses on company age, education level and industry differences with respect to financial management performance in SMEs in emerging economies, therefore provides additional empirical evidence to a research area where very few empirical studies exist.


2008 ◽  
Vol 13 (02) ◽  
pp. 117-132 ◽  
Author(s):  
MATS WESTERBERG ◽  
JOAKIM WINCENT

This study examines CEO succession in small firms and the impact of CEO honing and enterprising competence on firm performance within a contingency framework. In a study of 162 small firms, we hypothesize that a newly appointed CEO will bring entrepreneurship to its small firms, but the results do not support this. Instead, the results indicate that a new CEO tends to introduce honing in the firm. Only CEO market enterprising had a direct relation to better performance. However, we find several instances of moderation effects attributable to strategic competence, environmental uncertainty, and the nature of tasks in the company.


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