Strategic orientations and capabilities' effect on SMEs' performance

2020 ◽  
Vol 38 (7) ◽  
pp. 829-845 ◽  
Author(s):  
Ibrahim Alnawas ◽  
Allam Abu Farha
Keyword(s):  
Structural Equation ◽  
Survey Methodology ◽  
Small And Medium Enterprises ◽  
Suppressive Effect ◽  
Marketing Capabilities ◽  
Complementarity Effect ◽  
Content Type ◽  
Strategic Orientations ◽  
And Performance ◽  
Medium Enterprises

PurposeThis study aims to: first, examine the effect of interaction orientation (IO) and brand orientation (BO) on marketing capabilities and small and medium enterprises' (SMEs') performance, and second, assess the complementarity effect of IO and BO on marketing capabilities and SMEs' performance.Design/methodology/approachA model was developed and tested using a survey methodology. Data were collected from 538 SMEs located in Qatar and analysed by structural equation modelling with AMOS.FindingsFirst, IO affects SMEs' performance only indirectly via marketing capabilities, whereas BO affects SMEs' performance both directly and indirectly. Second, contrary to expectations, the complementarity between IO and BO produced a destructive/suppressive effect, rather than a synergistic effect, on both marketing capabilities and SMEs' performance, reflecting the importance of a trade-off to enhance both marketing capabilities and SMEs' performance.Originality/valueTo the authors' knowledge, this is the first paper to examine the complementary effect of BO and IO on marketing capabilities and performance.

Organization-stakeholder relationship and performance of Iranian SMEs

2020 ◽  
Vol 13 (3) ◽  
pp. 417-436
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah
Keyword(s):  
Risk Taking ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cluster Sampling ◽  
Content Type ◽  
Stakeholder Relationships ◽  
And Performance ◽  
Medium Enterprises ◽  
Stakeholder Relationship

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.

Servitization and performance: impacts on small and medium enterprises

2020 ◽  
Vol 35 (7) ◽  
pp. 1237-1249
Author(s):  
Stefania A.B. Queiroz ◽  
Glauco H.S. Mendes ◽  
Jorge H.O. Silva ◽  
Gilberto M.D. Ganga ◽  
Paulo A. Cauchick Miguel ◽  
...  
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Critical Mass ◽  
Equation Modeling ◽  
Environmental Pressures ◽  
Content Type ◽  
Size Limitation ◽  
And Performance ◽  
Medium Enterprises ◽  
The Impact

Purpose This study aims to examine the impact of the servitization on the performance of small and medium enterprises (SMEs) in Brazil. Design/methodology/approach The study uses data from Brazilian SMEs and applies partial least squares structural equation modeling (PLS-SEM) to test the research hypotheses. Findings The findings suggest a positive relationship between servitization and SME performance. It is found that the strategy of offering base services does impact SME performance. Furthermore, servitization aims to promote a fit between environmental pressures and SME performance. Practical implications SMEs can use servitization to increase their performance in spite of their resources restrictions, size limitation and low level of service revenue. However, the adoption of servitization should be accompanied by managerial adjustments in servitization practices. Originality/value This paper is dedicated to investigating the servitization-performance relationship in the context of SMEs, which is not a usual research publication. Moreover, it adds to the servitization theory by demonstrating that it is not necessary to reach a critical mass of services to be profitable and base services may be also a source of revenues and profits.

Determinants and outcomes ofe-business adoption among manufacturing SMEs: Insights from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muneer Abbad ◽  
Ibrahim Hussien Musa Magboul ◽  
Kholoud AlQeisi
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Ease Of Use ◽  
Government Support ◽  
Relative Advantage ◽  
Perceived Ease Of Use ◽  
Content Type ◽  
Business Practitioners ◽  
Using Data ◽  
Medium Enterprises

Purpose In response to a turbulent industrial environment, especially for small and medium enterprises (SMEs), organizations have widely adopted e-business to improve their processes. This study aims to propose a model that encapsulates the determinants and outcomes of e-business adoption. Design/methodology/approach The determinants and outcomes of e-business adoption were tested using data gathered from 282 managers and analysed using structural equation modelling techniques. Findings The results indicated that owner support, perceived ease of use and government support were important determinants that influence e-business adoption. Attitude, competitive pressureand relative advantage were not significant. Regarding outcomes, e-business adoption had a major impact on SME functioning and operational progress; however, it had no influence on competitive advantage. Originality/value By ascertaining the determinants and outcomes of e-business adoption, the findings provide e-business practitioners and managers with guidelines that can encourage more efficient and effective e-business adoption within their organizations. The results also provide a basis for more precise e-business studies to be conducted in developing countries.

Intellectual capital and innovative performance: a mediation-moderation perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafique Ur Rehman ◽  
Hamzah Elrehail ◽  
Abdallah Alsaad ◽  
Anam Bhatti
Keyword(s):  
Intellectual Capital ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Management Control ◽  
Business Strategies ◽  
Content Type ◽  
Innovative Performance ◽  
Innovative Capabilities ◽  
Medium Enterprises

PurposeThis study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating role of management control systems (MCS) and business strategies, as well as the moderating role of innovation capabilities.Design/methodology/approachThe data was collected from the managers of small and medium enterprises (SMEs) through a structured questionnaire. Out of 1,152 questionnaires distributed, only 415 were used for analysis purposes. Structural equation modelling (SEM) was used to test the study hypotheses.FindingsIntellectual capital significantly influences MCS, business strategies and innovative performance. Moreover, MCS, business strategies and innovative capabilities significantly improve innovative performance. MCS and business strategies significantly mediate the relationship between intellectual capital and innovative performance. Finally, innovative capabilities significantly moderate that between intellectual capital and innovative performance.Practical implicationsThe current research examines how management should use MCS, business strategies, and innovative capabilities to take maximum benefit from intellectual capital in order to improve innovative performance.Originality/valueThis is pioneering research that develops a theoretical model to incorporate intellectual capital, MCS, business strategies, innovative capabilities and innovative performance. Even though the influence of various kinds of intangible assets/resources on innovative performance has been widely examined in the literature, scant attention has been paid to the role of MCS, business strategies, and innovative capabilities in leveraging the firm's intellectual capital.

scholarly journals Innovative CRM and Performance of SMEs: The Moderating Role of Relational Capital

2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Customer Relationship ◽  
Relational Capital ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship ◽  
Key Customer

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.

Modelling strategic orientation dimensions and performance of small and medium enterprises

2019 ◽  
Vol 14 (3) ◽  
pp. 754-772 ◽  
Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel
Keyword(s):  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Strategic Orientation ◽  
Decision Makers ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Manufacturing Performance ◽  
Different Dimensions ◽  
And Performance ◽  
Medium Enterprises

Purpose The purpose of this paper is to identify and rank different dimensions of strategic orientation and firm’s performance using the approach of interpretive structural modeling. Design/methodology/approach The study uses interpretative structural modeling and the MICMAC technique to establish a hierarchical relationship among different dimensions of entrepreneurial orientation and manufacturing performance of Indian SMEs. Findings The final outcome of interpretative structural modeling and the MICMAC analysis revealed a relationship between the variables under study along with the categorization of all in two different categories, depending upon their driving power and dependency, which decision-makers can also use while devising their strategy to improve performance. Originality/value To date, to the best of the authors’ knowledge, no significant contribution about such interrelationship was reported; therefore, this study is one of its types to fill this gap.

The functional role of entrepreneurial orientation and entrepreneurial bricolage in ensuring sustainable entrepreneurship

2016 ◽  
Vol 39 (12) ◽  
pp. 1616-1638 ◽  
Author(s):  
Ho Chea Hooi ◽  
Noor Hazlina Ahmad ◽  
Azlan Amran ◽  
Syed Abidur Rahman
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Sustainable Entrepreneurship ◽  
International Regulation ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Entrepreneurial Bricolage ◽  
Medium Enterprises ◽  
Corporate Social

Purpose The purpose of the study is to delve the influencing factors of sustainable entrepreneurship among SMEs in Malaysia. The heightened awareness in sustainable development coupled with globalisation has created immense aspiration, enthusiasm and interest in the trajectory of sustainable entrepreneurship. With this set of circumstances, the objective of the study is to explore the possible predictive factors that enhance sustainable entrepreneurship among Malaysian small and medium enterprises (SMEs). Design/methodology/approach This study examined the relationships between sustainable entrepreneurship, entrepreneurial orientation, sustainability orientation and entrepreneurial bricolage through the lens of a resource-based view, upper echelons theory and corporate social responsibility. A total of 102 responses from a survey instrument from Malaysian SMEs were analysed using partial least squares-structural equation modelling. Findings The results indicated that the entrepreneurial orientation is associated with the degree of sustainable entrepreneurship, and is mediated by the role and degree of entrepreneurial bricolage. Originality/value This study highlights the importance of sustainable entrepreneurship among SMEs with respect to the heightened societal and environmental awareness among consumers and international regulation concerning environmental protection.

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Farhan Alshira'h ◽  
Hasan Mahmoud Al-Shatnawi ◽  
Manaf Al-Okaily ◽  
Abdalwali Lutfi ◽  
Malek Hamed Alshirah
Keyword(s):  
Developing Countries ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Arab Countries ◽  
Sales Tax ◽  
Public Governance ◽  
Content Type ◽  
The Public ◽  
Medium Enterprises

PurposeThe purpose of this study is to better understand the issues on tax compliance. This study aims to examine the influence of patriotism and public governance on the sales tax compliance of small and medium enterprises (SMEs) and to examine the interaction between patriotism and public governance on sales tax compliance.Design/methodology/approachThis study was carried out by soliciting the opinions of owner-managers of SMEs in Jordan through a survey that was distributed by self-administered. This paper uses partial least squares structural equation modelling to investigate the influence of patriotism, public governance and the interaction of these two mechanisms on sales tax compliance for a sample of 385 SMEs.FindingsThis paper finds that patriotism and the public governance increase and improve the level of sales tax compliance. The findings also supported the interaction effect of patriotism on the relationship between public governance with sales tax compliance. Thus, all the hypothesised relationships were supported.Practical implicationsTax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan, may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen the compliance of eligible SMEs to further boost their sales collections.Originality/valueVery few studies have examined the determinants of sales tax compliance, and there has been an absence of work that examines the influence of the patriotism and public governance on sales tax compliance. This paper, therefore, fills a gap in the literature by providing the first empirical evidence about the influence of patriotism and public governance on sales tax compliance of SMEs in developing countries. This study is the initial paper to examine the interaction between patriotism and public governance on sales tax compliance among SMEs in developing countries

Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Northern India ◽  
Indian Setting ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

Practice of information systems

2006 ◽  
Vol 17 (2) ◽  
pp. 199-223 ◽  
Author(s):  
Milind Kumar Sharma ◽  
Rajat Bhagwat
Keyword(s):  
Operations Management ◽  
Survey Methodology ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Cross Sectional ◽  
Content Type ◽  
Business Operations ◽  
Current Trends ◽  
Day To Day Operations ◽  
Medium Enterprises

PurposeTo provide the outcome of information system (IS) related practice survey designed to identify current trends in Indian small and medium enterprises (SMEs).Design/methodology/approachThis research is exploratory in nature, a survey methodology is used for study and the focus of study is cross‐sectional. Two companies have been selected for detailed case studies. The objective of the study was to become more familiar through survey and information collected to one point in time. The methodology was based on a questionnaire survey and personal interviews.FindingsThe outcomes, based on a survey of 210 SMEs, reveal that though SMEs understand and acknowledge the importance of the IS in day‐to‐day operations management in the present dynamic and heterogeneous business environment but these are yet to implement, operate and exploit it fully in a formal and professional manner so as to enable them to derive maximum business gains out of it. SMEs are not found equipped adequately with the IS resources to suit their needs.Research limitations/implicationsThe target of the study is the SMEs operational in the western part of India and hence it has the limitation in terms of the scope. However, the overall results are encouraging with 70 percent response rare in the survey and underline the need for more such studies. The results have implications for all managers responsible for IS, any SME in the era of globalization.Originality/valueThe paper presents IS‐related practices going on in Indian SMEs. Findings reported in the paper provide SMEs operators the utility of IS in day‐to‐day business operations.

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