The core competence of successful owner-managed SMEs

2018 ◽  
Vol 56 (1) ◽  
pp. 252-272 ◽  
Author(s):  
Hee Song Ng ◽  
Daisy Mui Hung Kee
Keyword(s):  
Transformational Leadership ◽  
Firm Performance ◽  
Structural Equation ◽  
Core Competence ◽  
Self Report ◽  
Technical Competence ◽  
Content Type ◽  
The Core ◽  
The Core Competence ◽  
The Impact

Purpose The purpose of this paper is to measure the impact of transformational leadership, entrepreneurial competence and technical competence on firm performance via innovativeness in owner-managed small- and medium-sized enterprises (SMEs). Design/methodology/approach Data were gathered from 178 owner-managers of SMEs operating in Malaysia using a self-report questionnaire. The data were analysed using partial least squares structural equation modelling. Findings The results show that, except in the link between transformational leadership and process innovativeness, all relationships linking transformational leadership, entrepreneurial and technical competence with innovativeness, and linking innovativeness with firm performance are significant. Research limitations/implications The self-report questionnaires that were administered to owner-managers of SMEs constitute a limitation for this research, as they may not always produce reliable and valid responses due to single informant response and common method bias. Practical implications The study findings have strong theoretical and managerial implications for owner-managed SMEs seeking to adopt the four core metrics, namely, transformational leadership, entrepreneurial competence, technical competence and innovativeness, as the management core, all of which are necessary for meaningful, sustainable, disruptive transformation to do well in business, even with limited resources. Originality/value The value of this study lies in its effort to focus on the core competence of owner-managed SMEs, which remains relatively underexplored in the context of developing countries. Moreover, little is yet known about their combined effects on firm performance.

A Jordanian empirical study of the associations among transformational leadership, transactional leadership, knowledge sharing, job performance, and firm performance

2016 ◽  
Vol 35 (5) ◽  
pp. 681-705 ◽  
Author(s):  
Ra'ed Masa'deh ◽  
Bader Yousef Obeidat ◽  
Ali Tarhini
Keyword(s):  
Transformational Leadership ◽  
Firm Performance ◽  
Job Performance ◽  
Knowledge Sharing ◽  
Leadership Styles ◽  
Transactional Leadership ◽  
Structural Equation ◽  
Content Type ◽  
Transformational And Transactional Leadership ◽  
The Impact

Purpose – Knowledge sharing adoption has been considered as a significant practice for organizations. However, there is a modest empirical confirmation to indicate how these organizations value the richness of their knowledge capabilities. The purpose of this paper is to investigate both transformational and transactional leadership styles that influence employees’ knowledge sharing practices, and the impact of the latter on job performance, and then on firm performance. Design/methodology/approach – Data collected from 179 employees at the higher council of youth in Jordan were empirically tested using structural equation modelling. Findings – The findings revealed that both transformational and transactional leadership styles have significant impact on job performance, and the latter on firm performance. Also, it was found that transactional leadership impacted knowledge sharing, whereas transformational leadership did not. Originality/value – This research proposes a new approach to understand knowledge sharing adoption, and outlines some theoretical and managerial implications of the findings.

Research on the construction mechanism of the core competence of Chinese enterprises in the transition period

2020 ◽  
Vol 11 (1) ◽  
pp. 69-86
Author(s):  
Hailin Lan ◽  
Shuo Liu ◽  
Manli Huang ◽  
Ping Zeng
Keyword(s):  
Driving Force ◽  
Core Competence ◽  
Theoretical Research ◽  
Construction Process ◽  
Chinese Enterprises ◽  
Dual Nature ◽  
Content Type ◽  
The Core ◽  
The Core Competence ◽  
The Impact

Purpose The past 40 years of reform and opening up have seen the role of core competence receive unprecedented attention because of the impact of the new normal economy as well as the pressure of transformation and upgrading. Few Chinese enterprises have effectively constructed core competence, and there is also a lack of strategic perspective and contextual embedding of its construction process in theory. This study aims to analyse the unique contextual characteristics of China in the transitional period and the impact on the core competence construction of Chinese enterprises and proposes its construction mechanism for Chinese enterprises. Design/methodology/approach Through theoretical deduction and speculation, this paper analyses the process of concept formation, clarifies the concept, analyses its connotations and structure and emphasises its relativity. Based on a review of the theoretical research on the core competence construction process and an analysis of dual contextual impact, this paper puts forward a mechanism for core competence construction. Findings The results reveal that four specific characteristics of entrepreneurs in balancing and coping with the dual nature of external context constitute the key driving force for a Chinese enterprises’ core competence construction; under the influence of this driving force, the core competence construction mechanism includes process mode, knowledge source, management mode and key success factors. Originality/value Approaching it from a Chinese context, this study deepens the concept of core competence; enriches and develops the research related to the core strategic research proposition of its construction; and provides positive significance for Chinese enterprises to effectively build, develop and strengthen core competence and enhance their international competitiveness.

scholarly journals Follower emotional intelligence

2019 ◽  
Vol 48 (5) ◽  
pp. 1239-1260
Author(s):  
J. Irudhaya Rajesh ◽  
Verma Prikshat ◽  
Paul Shum ◽  
L. Suganthi
Keyword(s):  
Emotional Intelligence ◽  
Structural Equation ◽  
Theoretical Perspective ◽  
Self Report ◽  
Content Type ◽  
Proposed Model ◽  
One Step ◽  
Cognitive Speed ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to understand the impact of transformational leadership (TL) on follower emotional intelligence (EI) and examine the potential mediation role played by follower EI in the relationship between TL and follower outcomes (i.e. growth satisfaction in the job and job stress (JS)). Design/methodology/approach Data were obtained through survey using questionnaire collected from 908 employees who worked across six different sectors, i.e. manufacturing, IT, healthcare, hospitality, educational and public services in Southern India. The mediation model proposed in this study was tested using structural equation modelling and bootstrapping method. Findings The relationship between TL and Follower EI was significant. Follower EI was found to partially mediate the relationship between TL and followers’ growth satisfaction in job. Contrary to expectations, the follower EI did not significantly predict JS in this study and hence the follower EI did not mediate in the proposed model. However, follower EI and growth satisfaction in the job jointly mediated the relationship between TL and follower JS fully. Research limitations/implications Self-report bias about supervisors’ TL behaviours and followers’ own EI assessment and collection of data from the mono-source (subordinate self-report) might have impacted the results of this study. Moreover, some items were negatively worded and reverse coded as cognitive speed bumps to restrain the respondent’s tendency to rush through answering the survey questionnaire. Practical implications This study established a partial and joint mediation of follower EI on the relationship between TL and follower outcomes. Basing on these findings, this study highlights the need for the practitioners to better understand the importance of EI training for the leaders in the organisations for obtaining better outcomes in the followers. Social implications The study establishes the fact that the attunement of transformational leaders’ EI and follower EI help leaders as well as followers to guide their behaviour towards positive outcomes. Originality/value This study is among the first to examine the impact of TL on follower EI and the potential mediation of follower EI between TL and follower outcomes. From a theoretical perspective, this study is one step closer to fully understand the intervening process between TL and follower outcomes.

The influence of transformational leadership on employees’ creative process engagement

2019 ◽  
Vol 57 (3) ◽  
pp. 741-764 ◽  
Author(s):  
Monowar Mahmood ◽  
Md. Aftab Uddin ◽  
Luo Fan
Keyword(s):  
Transformational Leadership ◽  
Intrinsic Motivation ◽  
Creative Process ◽  
Structural Equation ◽  
Task Complexity ◽  
Organizational Level ◽  
Content Type ◽  
Support For Innovation ◽  
Multi Level ◽  
The Impact

PurposeUsing a multi-level perspective, the purpose of this paper is to investigate impact of transformational leadership on employees’ creative process engagement and mediating roles of intrinsic motivation, task complexity and innovation support in the process of influence.Design/methodology/approachThis study follows a quantitative method. Using a multi-item survey instrument, a total of 400 questionnaires were distributed among employees of small and medium enterprises registered with the Chittagong Chamber of Commerce and Industry in Bangladesh. Collected data were analyzed using structural equation model as well as factor analysis and path analysis to test the hypotheses and to assess the moderating and mediating effects of the variables.FindingsThe findings reveal that transformational leadership has a significant impact on employees’ creative process engagement. The study further shows that task complexity and support for innovation moderate the relationship between transformational leadership and employees’ creative process engagement.Research limitations/implicationsBased on the premises of interactionist perspectives on creativity, this study integrates multi-level variables to investigate leaders’ influences on followers’ creative process engagement. This study contributes to the existing literature by providing empirical evidence on influence of transformational leadership on employees’ creative process engagement as well as the impact of both individual- and organizational-level variables.Originality/valueThe study adopts a distinct model comprising five different variables to investigate creative process engagement from a multi-level perspective, i.e., creative process engagement and intrinsic motivation at the individual level, task complexity at the unit level, and support for innovation and leadership at the organizational level. This integrated model of using predictors from multiple levels supports the theoretical assumptions that creative process engagement results from the interaction of individual-, group- and organizational-level factors.

Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  
Keyword(s):  
Longitudinal Study ◽  
Firm Performance ◽  
Structural Equation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Significant Relationships ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Competitive Intensity ◽  
Content Type ◽  
The Impact

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

The impact of transformational leadership on employees’ creativity

2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini
Keyword(s):  
Transformational Leadership ◽  
Organizational Support ◽  
Structural Equation ◽  
Perceived Organizational Support ◽  
Banking Sector ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.

scholarly journals A contextual analysis of the impact of strategic sourcing and E-procurement on performance

2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer
Keyword(s):  
Firm Performance ◽  
Product Life Cycle ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Sourcing ◽  
Research Results ◽  
Positive Effects ◽  
The Impact

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Transformational leadership and employee turnover intention

2016 ◽  
Vol 12 (3) ◽  
pp. 243-266 ◽  
Author(s):  
Michael Asiedu Gyensare ◽  
Olivia Anku-Tsede ◽  
Mohammed-Aminu Sanda ◽  
Christopher Adjei Okpoti
Keyword(s):  
Transformational Leadership ◽  
Turnover Intention ◽  
Employee Turnover ◽  
Structural Equation ◽  
Affective Commitment ◽  
Turnover Intentions ◽  
Bootstrap Analysis ◽  
Content Type ◽  
Employee Turnover Intention ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of transformational leadership on employee turnover intention through the mediating role of affective commitment. Design/methodology/approach – The study examines conceptual relationships in the Ghanaian context, based on structural equation modelling with maximum likelihood estimation, using sample employees from the private sector organizations. In addition, the mediation analysis is conducted with Sobel’s test and 95 per cent CI bootstrap analysis. Findings – The study shows that affective commitment would decline workers’ quitting intention and serves to promote a degree of trust and willingness to follow their leaders’ philosophy, ideology, vision and guidance in the organization. Hence, affective commitment fully mediates the relationship between transformational leadership and employee turnover intention. Practical implications – To help lessen employees quitting intentions, both middle and top-level managers should endeavour to create an atmosphere of trust, admiration, loyalty and respect for their employees. Originality/value – Overall it is shown that affective commitment was the mechanism through which transformational leadership influences employees’ turnover intentions in the SLCs in Ghana.

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