The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

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.

The mediating role of innovation between entrepreneurial orientation and supply chain resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed A. Al-Hakimi ◽  
Dileep B. Borade ◽  
Moad Hamod Saleh
Keyword(s):  
Supply Chain ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Supply Chain Disruptions ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Mediating Role ◽  
Medium Enterprises

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.

Managerial ties and open innovation: examining the role of absorptive capacity

2016 ◽  
Vol 54 (9) ◽  
pp. 2256-2276 ◽  
Author(s):  
M. Muzamil Naqshbandi
Keyword(s):  
United Arab Emirates ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Managerial Ties ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to develop and test an integrated model to examine the relationship between managerial ties and two types of open innovation (OI). It takes into account the mediating role of realized absorptive capacity and explains how a firm’s ability to recognize the value of new information, assimilate it and apply it to commercial ends can facilitate OI. Design/methodology/approach Data were collected from 259 middle and top managers working across different sectors in the United Arab Emirates. Findings Results obtained using structural equation modeling show that managerial ties facilitate both in-bound and out-bound OI. Results also establish the mediating role of realized absorptive capacity in these relationships. Research limitations/implications Use of cross-sectional data as was done in this study has been criticized for being inappropriate to test causal models. Besides the findings may not be generalizable to different industries/cultures/regions. Practical implications This study suggests that managerial ties act to support OI in firms thus giving the insight that managers should be appreciated to build ties with managers of other firms, universities and government officials. Doing so can help firms achieve better OI outcomes. Firms should arrange means of interaction of their managers with these external knowledge sources such as events and occasions where managers of different firms can interact with each other to foster strong ties among them. Originality/value The above findings contribute theoretically to OI and managerial ties literature while providing insights for practitioners on how to succeed or avoid failure in their OI initiatives. These insights are novel and are new to the OI and managerial ties theory.

Business intelligence and competitiveness: the mediating role of entrepreneurial orientation

2018 ◽  
Vol 28 (2) ◽  
pp. 213-226 ◽  
Author(s):  
Nuno Caseiro ◽  
Arnaldo Coelho
Keyword(s):  
Business Intelligence ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Point Of View ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Impact

Purpose This study aims to investigate the influence of business intelligence (BI) in startups competitiveness, contributing to a gap in literature as this relationship is normally more focused on stablished businesses. The mediating role of entrepreneurial orientation (EO) was taken in to account in the proposed research model. Design/methodology/approach The model was tested using structural equation modeling. A total of 228 valid questionnaires were collected from a research sample comprised of incubated startups from several European countries. Findings The results point to significant mediating role of EO in the impact of BI on competitiveness. The direct impact of BI on competitiveness was not confirmed. Research limitations/implications The results highlight the importance that BI can have in startups competitiveness, namely, reinforcing the role of pro-activeness, innovativeness and risk taking – the traditional dimensions of EO, providing the information needed for more supported decisions. Originality/value Although there are several approaches to BI, namely, in a more technical perspective, this paper addresses the topic in a managerial and decisional point of view, and studies it regarding his impact in startups competitiveness, thru the mediating effect of EO.

scholarly journals Export promotion programmes and SMEs’ performance

2017 ◽  
Vol 24 (1) ◽  
pp. 68-87 ◽  
Author(s):  
Mohamed Yacine Haddoud ◽  
Paul Jones ◽  
Robert Newbery
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Export Performance ◽  
Export Promotion ◽  
Integrative Model ◽  
Content Type ◽  
Support Provision ◽  
Medium Enterprises

Purpose The purpose of this paper is to investigate the network promotion role of export promotion programmes in driving small and medium enterprises’ (SMEs) export performance. Design/methodology/approach Drawing on a dual institutional and network-based approaches to internationalisation, the study tests an integrative model that explores the mediating role of SMEs’ relationships in the link between government export promotion programmes (both informational and experiential forms) and export performance. The model was tested using a sample of 160 UK small and medium exporter firms. The data were analysed through a structural equation modelling technique. Findings The study finds that whilst both informational and experiential export promotion programmes improved all forms of SMEs’ relationships, only experiential forms had an indirect effect on export performance. Further, only relationships with foreign buyers had a positive impact on export performance. Research limitations/implications The results of this research provide directions for export promotion organisations in targeting their network support provision and for SMEs in utilising such a support. The study calls for similar research in different contexts to validate the proposed model. Originality/value This study brings novel findings to the extant literature by conceptualising and validating the importance of the “network promotion” element of export promotion programmes.

Effect of internal integration on SMEs’ performance: the role of external integration and ICT

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Amoako ◽  
Zhang Huai Sheng ◽  
Courage Simon Kofi Dogbe ◽  
Wisdom Wise Kwabla Pomegbe
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Information And Communication ◽  
Internal Integration ◽  
Medium Enterprises ◽  
The Relationship

PurposeThe paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.Design/methodology/approachCross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.FindingsThe results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.Practical implicationsPractically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.Originality/valueEngaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.

scholarly journals Diffusion of innovation through individual and collective entrepreneurship

2019 ◽  
Vol 13 (1) ◽  
pp. 89-107 ◽  
Author(s):  
Habib ur Rehman Makhdoom ◽  
Cai Li ◽  
Shoaib Asim
Keyword(s):  
Decision Making ◽  
Diffusion Of Innovation ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Positive Association ◽  
Equation Modeling ◽  
Content Type ◽  
Collective Entrepreneurship

PurposeThis paper aims to develop an original framework of innovation and to explore the complexity of association between individual and collective (team-based) entrepreneurship, and their simultaneous impacts on innovation in context of small and medium enterprises (SMEs).Design/methodology/approachAn integral theoretical framework is developed to encourage innovation and the hypothetical relations are tested with the help of structural equation modeling (SEM) through AMOS. Data were gathered through survey technique and the questioners were distributed through email among 700 entrepreneurs from SMEs operating in five major industrial cities of Punjab province Pakistan.FindingsThe results of SEM analyses confirm that both the individual entrepreneur and the collective efforts of all the business members contribute to innovation in SMEs. Entrepreneur’s personality traits have a direct positive impact on innovation while the centralized decision-making by entrepreneur is not associated with innovation. Centralized decision-making is found to be negatively associated with communication and have insignificant positive association with collaboration. Factors associated with the team-based entrepreneurship like communication and collaboration among members of the SME’s contribute to the entrepreneurial orientation and collective entrepreneurship. Entrepreneurial orientation and collective entrepreneurship have direct positive impact on innovation in SMEs.Practical implicationsIt is imperative for SMEs to encourage decentralized organizational culture and participative leadership to bring innovation into their products and processes and further to improve their competitive advantage.Originality/valueTo the best of author knowledge, present study is a first attempt that explores the complex association between individual and team-based entrepreneurship and further, empirically investigate the simultaneous impacts of these variables on innovation in context of SMEs.

scholarly journals The Role of Akhlak Intelligence: Mediation Between Self-Efficacy and Entrepreneurial Orientation

2021 ◽  
Vol 3 (1) ◽  
pp. 1-18
Author(s):  
Rahman El Junusi
Keyword(s):  
Entrepreneurial Orientation ◽  
Self Efficacy ◽  
Structural Equation ◽  
Online Survey ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Moral Intelligence ◽  
Medium Enterprises ◽  
The Relationship

This study attempts to fill the gap in the literature between self-efficacy and entrepreneurial orientation (EO). The purpose of this study was to determine the effect of self-efficacy and EO mediated by moral intelligence. Data collection was carried out from a population of 17,603 Muslim entrepreneurs in the city of Semarang who are engaged in the Micro, Small, and Medium Enterprises (MSMEs) sector. The data collected from the online survey was applied to structural equation modeling (SEM). From this study, it was found that self-efficacy has a significant effect on EO and moral intelligence, while moral intelligence affects EO. This study contributes to the literature on the role of self-efficacy and moral intelligence in increasing EO. The originality of this study is to offer the concept of moral intelligence which plays a central role in the relationship between self-efficacy and EO. Thus, no studies have investigated this causality.

The mediating role of absorptive capacity on the relationship between entrepreneurial orientation and technological innovation capabilities

2018 ◽  
Vol 24 (4) ◽  
pp. 818-841 ◽  
Author(s):  
AbdulQadir Rahomee Ahmed Aljanabi
Keyword(s):  
Technological Innovation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Equation Model ◽  
Content Type ◽  
Mediating Role ◽  
Unstable Environment ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationships between entrepreneurial orientation (EO), absorptive capacity (ACAP), and technological innovation capabilities (TIC) among industrial SMEs operating in an unstable environment. The research also aims to determine whether ACAP has a mediating role in the relation between EO and TIC. Design/methodology/approach A structural equation model was designed to examine the relationships. On the basis of a research framework, a self-administered questionnaire was used to gather data from SMEs owners in the Kurdistan region of Iraq. There were 432 out of 676 questionnaires returned and subsequently used for statistical analysis. Findings The outcomes of the present research indicate both EO and ACAP have significant effects on TIC. Furthermore, the outcomes suggest that ACAP has a mediation role in the nexus between EO and TIC and that indicates the ability of EO to strengthen TIC via ACAP. Originality/value The research contributes to the literature through three aspects. First, it provides some empirical evidence on the relationships between EO, ACAP and TIC of SMEs. Second, the research sheds light on the insights that firms can use externally generated knowledge as a mechanism to enhance their proactivity and willingness toward innovation. Third, for the innovation literature, it is valuable contribution to placing ACAP within the frame of EO. Thus, they can be advantageous to more development in innovation literature.

scholarly journals Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Nawal Abdalla Adam ◽  
Ghadah Alarifi
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
External Support ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Business Survival ◽  
Medium Enterprises ◽  
Innovation Practices

AbstractGlobal epidemic crises, such as the coronavirus (COVID-19), usually expose small and medium enterprises (SMEs) to various kinds of challenges and may put their lives at risk. This study aims to develop a theoretical model to provide insights about the association between innovation practices and the SMEs’ performance and survival while underlining the auxiliary role of external support in such a relationship. Online questionnaire has been used to collect the data from 259 randomly selected SME managers in Saudi Arabia, and the data was analyzed using the SmartPLS3 software. The structural equation modeling results showed that the innovation practices adopted by SMEs to face the repercussions of COVID-19 had a positive impact on the performance and likelihood of business survival. PLS-SEM bootstrap results indicated that external support aids strengthen the positive impact of SMEs’ innovation practices on business survival rather than its performance. The study has several significant practical implications for SME managers, governments, and policy makers that have been stated.

scholarly journals Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Ayman Abu-Rumman ◽  
Ata Al Shraah ◽  
Faisal Al-Madi ◽  
Tasneem Alfalah
Keyword(s):  
Strategic Alliances ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Networks ◽  
Mediating Role ◽  
And Performance ◽  
Medium Enterprises

AbstractPerformance of small and medium enterprises (SMEs) has been addressed widely in the literature. Both developed and developing countries are highly concerned about the growth and performance of SMEs. The literature exploring performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study was conducted with the aim being to identify the mediating role of dynamic capabilities which are developed by entrepreneurial networks and entrepreneurial orientation. The study collected the data from a sample of SMEs based in Jordan which were connected through a closed network and were the part of groups. The data was collected via an electronic questionnaire, and100 SMEs were contacted and invited to participate in the survey on a purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that amongst the chosen firms, entrepreneurial networking has an insignificant impact; however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

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