Factors affecting the entrepreneurial leadership in small- and medium-sized enterprises (SMEs) of Pakistan

Author(s):  
Bahadur Ali Soomro ◽  
Naimatullah Shah ◽  
Shahnawaz Mangi

PurposeThe purpose of this paper is to examine the factors that affect the entrepreneurial leadership in small and medium enterprises (SMEs) of Pakistan.Design/methodology/approachA conceptual framework is developed after reviewing a vigorous literature. This is a quantitative methodology in which cross-sectional data are collected from top managers and founders in SMEs of Pakistan through a survey questionnaire. The random technique is applied for the collection of data. The total samples are 352. Initially, 500 survey questionnaires are distributed through personal visits in different cities of Pakistan. The returned rate is noticed as 70 percent.FindingsThe data are analyzed through Statistical Package for Social Sciences version 24.0. The overall Cronbach’sαreliability is 0.866. On the other hand, theαfor all variables (dependent and independent) is observed within the adequate ranges. The overall findings reveal that there is a positive and significant relationship among strategic factor, motivational factor, personality factor, communicative factor and entrepreneurial leadership.Practical implicationsThis study may contribute to existing efforts to assimilate the arenas of strategy, motivation, communication, leadership and entrepreneurship. In addition, by reviewing the outcomes of present study, the policy makers and planners may further concentrate for promoting SMEs sector that is famous as a backbone for economic development.Originality/valueThis study is original and valuable with respect to data and context. The findings of such study may play a substantial role in the stability of the economy in Pakistan through enriching the SMEs sector.

2020 ◽  
Vol 20 (4) ◽  
pp. 377-401 ◽  
Author(s):  
Carmela Di Mauro ◽  
Alessandro Ancarani ◽  
Tara Hartley

Purpose This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders. Design/methodology/approach The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success. Findings Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms. Research limitations/implications Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders. Social implications Findings may inform policies for the inclusion of smaller firms in the public marketplace. Originality/value To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.


2015 ◽  
Vol 21 (1) ◽  
pp. 126-151 ◽  
Author(s):  
Hind El Makrini

Purpose – The purpose of this paper is to examine the managerial determinants of the export success of Moroccan small and medium enterprises (SMEs) based on resource-based view (RBV) of a firm. Design/methodology/approach – The quantitative design was employed involving a questionnaire completed by 100 managers of Moroccan SMEs. Multiple regression analyses were carried out to confirm or reject eight hypotheses. Findings – It was found that management export commitment and management customer orientation are the main managerial factors in the export success of Moroccan SMEs. Research limitations/implications – The study was limited to one context, and it followed a cross-sectional approach. Export success was measured by only subjective method with Likert scale. The study suggests that further investigations can be made to incorporate other factors affecting export success. Practical implications – The results offer insights into the practices of Moroccan exporting SMEs and recommendations for policy makers as well as an indication for further research. The research can also be used in teaching. Originality/value – First, the tested model is one of few that consider developing country contexts. Second, this research can serve as a guide for future researchers who intend to study export success in other developing countries, particularly in Maghreb regions where there is a gross dearth of research. Therefore, the study is of significant value to practitioners and scholars alike.


2006 ◽  
Vol 17 (2) ◽  
pp. 199-223 ◽  
Author(s):  
Milind Kumar Sharma ◽  
Rajat Bhagwat

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.


2016 ◽  
Vol 11 (1) ◽  
pp. 65-88 ◽  
Author(s):  
Monika Golonka ◽  
Dominika Latusek

Purpose – The purpose of this paper is to explore the forming and configuring of interfirm cooperation in small and medium enterprises (SMEs) characterized by different rates of growth. Design/methodology/approach – The study applies a qualitative approach. A multi-site case study was conducted in 26 Polish ICT firms. Findings – The research indicates that SMEs manage alliances ad hoc and are characterized by a constantly emerging portfolio of partners. The results also indicate that “stable-growth” and “hyper-growth” firms adopt different approaches to managing alliances and they are characterized by different attitude of top managers towards uncertainty. Practical implications – The results suggest that the managers’ attitude affects the formation and management of alliance portfolio in SMEs. The authors further highlight the importance of managerial agency within the firms and indicate that managers can actively shape the alliance portfolio of their firms. Originality/value – The paper theoretically contributes to alliance portfolio literature through the adoption of both managerial and structural perspectives. More precisely, this study provides the factors related to managers that might affect a firm’s alliance portfolio configuration. All of these factors relate to managers’ approach to uncertainty. Furthermore, this study extends the previous research through focusing on SMEs.


Author(s):  
Raavee Kadam ◽  
Srinivasa Rao ◽  
Waheed Kareem Abdul ◽  
Shazi Shah Jabeen

Purpose In environments characterized by high cultural diversity, the ability to understand the cultural makeup of the workforce and the environment would equip business owners with knowledge required to innovate, take risks and proactively change their business offerings. Drawing on the upper echelons theory and action-characteristics model of entrepreneurship, the purpose of this paper is to test how competencies of small business owners, namely, cultural intelligence (CQ) and entrepreneurial orientation (EO) contribute to the performance of their firms. Design/methodology/approach Using a sample of 106 small and medium enterprises (SMEs) from the UAE, the data were collected through structured questionnaires and analyzed using partial least squares–structural equations modeling. Findings Results showed that CQ of the SME owner has a positive effect on firm performance (FP) through the mediating role of EO. Also, CQ of the SME owner was found to have a direct effect on FP, thus asserting its importance as a valuable competency that SME owners need to cultivate when operating in a multicultural environment. Practical implications Skills of the top managers greatly influence the choices and decisions they make, which in turn impact the effectiveness of their organizations. This study focuses on the role of managerial competencies that need to be cultivated among SME owners that would contribute to the growth of their firms. Originality/value This research studies the role of an individual’s cross-cultural and entrepreneurial competencies that enable the organization to achieve higher performance.


2015 ◽  
Vol 53 (2) ◽  
pp. 318-337 ◽  
Author(s):  
HanGyeol Seo ◽  
Yanghon Chung ◽  
Dongphil Chun ◽  
Chungwon Woo

Purpose – The purpose of this paper is to examine which value capture strategies are efficient in the invention stage and commercialization stage for small and medium enterprises (SMEs). Design/methodology/approach – According to the characteristic of four primary value capture strategies, the authors categorized the formal-oriented strategy (patent), informal-oriented strategies (secrecy, lead-time), mix strategies (both formal and informal strategies), and whether to invest in complementary assets. In order to assess R & D productivity based on value capture strategy, this paper applied the two-stage data envelopment analysis for data collected from Korea Innovation Survey 2010. The sample was made up of 640 SMEs in manufacturing industry. Findings – The results suggest that informal strategy (secrecy, lead-time) is efficient in the invention stage. Furthermore, mixed use of formal (patent) and informal strategies results in higher productivity in the commercialization stage. Lastly, the results suggest that productivity may vary depending on the investment in complementary assets. Whereas the investment in complementary assets may reduce R & D productivity at the invention stage, it may increase the productivity at the subsequent commercialization stage. Research limitations/implications – This paper did not consider external conditions such as institutional environment, industry characteristics and complexity of technology, as possible factors affecting their firm performance that need future studies. Practical implications – For practitioners, the results seem to stress that should be good at combining value capture strategies in order to capture financial performance from the invention. Originality/value – This study is a novel attempt to analyze R & D productivity in terms of each value capture strategy throughout the two stages: invention stage; commercialization stage.


Author(s):  
Joseph Mpeera Ntayi ◽  
Henry Mutebi ◽  
Kenneth Byangwa ◽  
Susan Georgina Kamanyi

Purpose – The purpose of this paper is to provide policy and managerial implications required in solving the daunting problem of the existing low-entrepreneurial capital in Uganda. Design/methodology/approach – A large-scale comprehensive survey using a sample of 11,105 small and medium enterprises (SMEs) from 40 high-growth towns was selected and undertaken from five regions of Uganda. The response rate was 40.5 per cent, translating into 4,498 usable questionnaires. Findings – Results reveal that institutional framing, entrepreneurship human capital and entrepreneurial moral values predict entrepreneurship capital in Uganda. These results are presented and discussed in detail in this paper. Research limitations/implications – The study applied a cross-sectional approach to study behaviour, yet studying behaviour requires time. Therefore, there is need for scholars to undertake a follow up study to test the hypotheses using longitudinal data. Practical implications – The paper provides implications for the review and development of supporting institutional frames for entrepreneurship, promoting generalized forms of human capital and entrepreneurial ethics moral values. Originality/value – The motivation for the study is derived from the observation that the legal and regulatory framework in Uganda is biased against SMEs. This is manifested in the high-regulatory burden of registering and running enterprises in Uganda. For example, the cost of registering a business in Uganda is high. Legal proceedings in Uganda are inefficient, complex and costly only favouring firms with resources and connections. This may restrict enterprise development and increase the costs of running businesses, distort human capital and entrepreneurial moral values thereby affecting entrepreneurship capital.


2020 ◽  
Vol 14 (2) ◽  
pp. 161-173
Author(s):  
Muhammad Asif Khan ◽  
Asima Siddique ◽  
Zahid Sarwar ◽  
Le Thi Minh Huong ◽  
Qaiser Nadeem

Purpose The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance. Design/methodology/approach In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance. Findings The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance. Originality/value The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.


2016 ◽  
Vol 14 (2) ◽  
pp. 277-288 ◽  
Author(s):  
Sharmilee Sitharam ◽  
Muhammad Hoque

Small and medium enterprises (SMEs) have an important role to play in the development of the country. A strong SME sector contributes highly to the economy, contributing to the gross domestic product, by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. In South Africa (SA), the growth of SMEs and prevalence of SMEs is significantly low. Therefore, the aim of the study is to identify the internal and external factors affecting the performance of SMEs in KwaZulu-Natal, SA. This was a cross-sectional study conducted among 74 SMEs owners/managers who were members of the Durban Chamber of Commerce via online using anonymous questionnaire. The results revealed technological advancement would improve the performance of the business. With regards to challenge, the majority of the respondents viewed competition as a major challenge. Almost all the respondent indicated that crime and corruption affecting business performance. Competition was the only factor amongst the studied internal and external factors that revealed a significant association with the performance of SMEs in KwaZulu-Natal (p = 0.011). SMEs need to recognize they must prepare for both domestic


2018 ◽  
Vol 56 (1) ◽  
pp. 219-232 ◽  
Author(s):  
Namrata Gupta ◽  
Anita Mirchandani

Purpose The purpose of this paper is to investigate the key factors affecting the success of women entrepreneurs who own and manage Small and Medium Enterprises (SMEs) in UAE. The extant literature on the relationship between determinants of entrepreneurial success points to a lack of clarification of the link between success factors (Personal, environmental and other) and performance of women-owned SMEs particularly in UAE. Design/methodology/approach A self-administered questionnaire, through mail survey, is used to collect the data. Cronbach’s α test and factor analysis have been carried out to test the reliability of data and validate the hypothesis. Findings The results suggested that the personal, environmental factors and government support affect positively and significantly to the success of women-owned SMEs in UAE. Research limitations/implications The study has some limits as to its potential for generalization owing to the sample size, wide geographic spread of respondents and time limitations with the respondents. Practical implications The results indicate that several factors including personal, environmental and government support are linked with the success of women entrepreneurs of UAE. The results of this study will provide some insights to policymakers and business practitioners to formulate the strategies intended to promote unveiled potential among women entrepreneurs in UAE. Originality/value Most of the studies focused on women entrepreneurship have taken either their motives or the hurdles faced by them into consideration. Moreover, only a few studies have been carried out in Arab world particularly in UAE. Therefore, this study is an attempt to fill the gap and contribute to a better understanding of UAE’s women-owned SMEs.


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