Strategic performance through inter-firm networks

Author(s):  
Zahid Yousaf ◽  
Abdul Majid

Purpose The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and environmental dynamism. Design/methodology/approach Drawing on the live experiences of 757 respondents, including managing directors/owners and CEOs of different SMEs, the authors proposed a theoretical model representing how firms could attain strategic performance through inter-firm networks with a mediating role of strategic alignment. Findings The current study demonstrated that SMEs with strong inter-firm networks have the ability to align business activities with strategies and get earlier strategic performance. Strategic performance looks skeptical to ever gain acceptance until strategic alignment is adopted by small and medium enterprises. The findings of this study indicated that environmental dynamism strengthens the relationship between strategic alignment and strategic performance. Originality/value This research extended the understanding about the inter-firm networks, strategic alignment and environmental dynamism surrounding strategic performance. This study identified and empirically tested how the inter-firm networks impact on strategic performance through the mediating effect of strategic alignment.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaobo Li ◽  
Bao Jiang ◽  
Jian Li

PurposeSupply chain finance (SCF) is a promising financing solution for small and medium enterprises (SMEs). The study aims to highlight the determinants of the adoption of SCF and the theoretical implications for SCF in SMEs.Design/methodology/approachDrawing on the theory of planned behaviour (TPB), the authors develop a model and test hypotheses about the factors (1) SE, (2) attitude toward SCF, (3) social influence (SI), (4) adoption intention (AI) and (5) actual adoption (AA) of SCF. Data collected from a survey of 211 managers in SMEs in China were used to conduct a partial least squares (PLS) estimation.FindingsThe empirical results indicate that attitude toward SCF and SI positively affect AI towards SCF, whereas AI positively affects the AA of SCF. Specifically, the authors find that AI plays a mediating role in the relationship between SE and AA of SCF, whereas attitude toward SCF plays a mediating role between SI and AI.Originality/valueFirst, the authors use the TPB to study the adoption of SCF in SMEs. Second, the authors apply PLS to clarify the influence mechanism of behavioural factors on the adoption of SCF. The authors provide a useful approach for practitioners in examining the adoption of SCF by SMEs.


Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.


2016 ◽  
Vol 24 (1) ◽  
pp. 47-61 ◽  
Author(s):  
So Won Jeong

Purpose The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance. Design/methodology/approach To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs. Findings The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets. Originality/value The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed A. Al-Hakimi ◽  
Dileep B. Borade ◽  
Moad Hamod Saleh

PurposeThe purpose of this paper is to explore whether innovation mediates the relationship between entrepreneurial orientation (EO) and supply chain resilience (SCR) in the context of small and medium enterprises (SMEs).Design/methodology/approachBased on the structural equation modeling the relationships were tested in the proposed model. A self-administered questionnaire was used to collect data from SMEs owners/managers in Yemen. Out of 384 questionnaires, 229 have been used in statistical analysis.FindingsThe results obtained reveal that both EO and innovation have positive and significant effects on SCR. In addition, innovation partially mediates the effects of EO dimensions (risk-taking and proactiveness) on SCR.Practical implicationsManagers and decision-makers of SMEs who want to enhance their firms' resilience to any supply chain disruptions are highly recommended to adopt EO, as well as to develop the innovative capability resulting from it.Originality/valueThe present study emphasizes previous results and provides additional evidence that SMEs' adoption of EO can reinforce their resilience within the supply chain through innovation in light of the disruptions facing supply chains in developing countries.


2019 ◽  
Vol 11 (1) ◽  
pp. 2-29 ◽  
Author(s):  
Shehnaz Tehseen ◽  
Farhad Uddin Ahmed ◽  
Zuhaib Hassan Qureshi ◽  
Mohammad Jasim Uddin ◽  
Ramayah T.

PurposeThe purpose of this paper is twofold. First, to examine the influence of two dimensions of entrepreneurial competencies, namely, strategic competency and ethical competency on the growth of small and medium enterprises (SMEs); and second, to explore the role of network competence as a mediator among these understudied variables.Design/methodology/approachThe data for this study were collected from wholesale and retail-based SMEs in Malaysia through a standard structured questionnaire. PLS–SEM approach was utilised to analyse the data.FindingsAlthough the findings did not reveal a direct effect of strategic and ethical competencies of entrepreneurs on SMEs’ growth, these competences, however, were found to be influential in driving their growth when network competence was used as a mediator.Originality/valueThe existence of a mediation effect between strategic and ethical competencies and SMEs’ growth via network competence has provided insights which add new knowledge to the extant entrepreneurship and SMEs’ performance literature.


Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel

Purpose The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs). Design/methodology/approach Following a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis. Findings The outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context. Research limitations/implications This study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship. Practical implications The research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance. Originality/value The study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.


Author(s):  
Juliansyah Noor ◽  
Musa Alkadhim Alhabshy ◽  
Mohd Rafi Bin Yaacob

This research aims to evaluate the link between human resource practices (HRPs) and innovation with mediating effect of entrepreneurial creativity. This research uses the hierarchical analysis to examine data collected from entrepreneurs running 172 small and medium enterprises. The results show that (a) HRPs have a positive and significant effect on entrepreneurial creativity; (b) HRPs have statistically significant impact on innovation. These results provide empirical evidence that entrepreneurial creativity mediates the relationship between HRPs and innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity causes improving employees' innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity cause improving employees' innovation. By providing a cross-sectional examination of our model, we showed that HRPs and entrepreneurial creativity are of essence in shaping an innovative context. A comprehensive view on the triggers and outcomes of entrepreneurial creativity and innovation are needed, as the traditional unidirectional cause-effect rationale short in explaining how these concepts relate to one another and to entrepreneur experiences of HRPs.  


2020 ◽  
Vol V (I) ◽  
pp. 234-244
Author(s):  
Nida Habib ◽  
Zahid Awan

The purpose of this paper is to investigate the effect of Microfinance Services and Networking relationship on Micro Small and Medium Enterprises Performance with the mediating role of Social capital. This study was a descriptive survey design. The target population was 584,572 MSMEs in the province, and owner-managers of MSMEs were the unit of analysis and were targeted for information because they are likely to be the decision-makers in these businesses and are actively involved in their day to day operations. 356 MSME owner-managers were sampled. Data were obtained through adapted construct and measured from a five-point Likert scale, and interview schedules were used to collect data from the field. Qualitative data analyzed by using Statistical Package for Social Sciences (SPSS). The study found that there was a positive effect on MSME performance by Microcredit and Networking with the mediating effect of Social capital.


Author(s):  
Samuel Mayanja ◽  
Michael Omeke ◽  
Josue Vajeru Tibamwenda ◽  
Henry Mutebi ◽  
Fredrick Mufta

AbstractThis paper examines the mediating effect of the novelty ecosystem in the relationship between personality traits, entrepreneurial networking and entrepreneurial ambidexterity. Three hundred eighty-two SMEs in Kampala, Uganda, were studied to explore the influence of the novelty ecosystem. The results show that novelty ecosystem mediates the relationship between personality traits, entrepreneurial networking and entrepreneurial ambidexterity. This suggests that novelty ecosystem is a conduit through which personality traits and entrepreneurial networking relate to entrepreneurial ambidexterity. Business owners/managers should, therefore, create an enabling environment for employees to interact, learn from others through constructive feedback and tolerate learning through slip-ups and putting in place flexible policies to allow creativity. In effect, business owners/managers should create environments that are conducive to opportunity exploration, tension and exploitation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qaisar Iqbal ◽  
Noor Hazlina Ahmad ◽  
Zeyun Li

PurposeThis study draws on the upper echelon perspective and effectuation theory to put insights on the relationship between sustainable leadership and sustainable performance.Design/methodology/approachThe study had adopted the cluster-sampling approach to collect data from 500 small and medium enterprises (SMEs) established in China and India with 46.60% response rate. The SmartPLS 3.0 was employed for data analysis.FindingsThis study verified the mediating role of frugal innovation in emerging markets. Both market and technological turbulence significantly moderated the sustainable leadership-frugal innovation relationship. Nevertheless, the effect of sustainable leadership on frugal innovation did not vary for the different values of entrepreneurial bricolage.Originality/valueThis article contributes by revealing the moderating effect of market and technological turbulence as moderator. Greater market and technological turbulence led to greater impact of sustainable leadership practices on frugal innovation.


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