BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?

2018 ◽  
Vol 22 (07) ◽  
pp. 1850057 ◽  
Author(s):  
MUHAMMAD ANWAR

In the era of globalisation and dynamic market, firms look for competitive advantage and survival using different sources and resources. Prior studies have indicated that Business Model Innovation (BMI) is a core driver for firm’s survival and superior performance especially in growing industries. However, the role of BMI has been discussed theoretically and exploratory while empirical studies are still lacking. Hence, this study examines the importance of BMI in SME performance and the mediating role of competitive advantage. Data were collected through structured questionnaires using a sample size of 303 manufacturing SMEs operating in the emerging market of Pakistan. Hypotheses were tested through Structural Equation Modelling (SEM) using AMOS.21. The results indicate that BMI has a significant positive impact on competitive advantage and SME performance. Competitive advantage partially mediates the relationship between BMI and SME performance. Firms are required to create an effective business model to acquire competitive advantage and superior financial performance. Implications for practice have been discussed.

2018 ◽  
Vol 17 (04) ◽  
pp. 1850045 ◽  
Author(s):  
Muhammad Anwar ◽  
Sher Zaman Khan ◽  
Syed Zulfiqar Ali Shah

Big data (BD) capabilities have now grabbed the attention of strategic management researchers because of their significant role in firm’s performance and success. Nonetheless, very little empirical evidence has so far been put forward about the contribution of BD capabilities towards a firm performance and Competitive Advantage (CA). This research examines the impact of Big Data Technological Capabilities (BDTC) and Big Data Personal Capabilities (BDPC) on firms’ performance with a mediating role of CA among the firms operating in the world’s top emerging economy such as China. Data were collected through structured questionnaires using a sample size of 312 firms. The hypotheses were tested in AMOS.21 using Structural Equation Modelling (SEM). The results indicate that BDTC and BDPC have significant positive impact on firm performance and CA and there is also significant positive relationship between CA and firm performance. The study highlights that CA partially mediates the relationship between BDTC and firm performance as well as between BDPC and firm performance. Hence, BD-oriented firms achieve CA which in turn leads to superior performance in dynamic markets. This study discussed implications for managerial practices.


Author(s):  
Muhammad Farhan Jalil ◽  
Azlan Ali ◽  
Rashidah Kamarulzaman

SMEs still need innovation to boost their performance in the age of globalisation and fierce market rivalry. Previous studies have identified that innovation capability is an essential driver in manufacturing industries for their survival. Yet, the featuring role of innovation capability has been considered theoretically in developed economies whereas empirical studies in emerging economies are still lacking. Therefore, the purpose of this study to examines the importance of innovation capability towards SME performance and the mediating role of technology-adoption. Structured questionnaires were used to collect the data from a sample size of 611 SMEs operating in the developing market of Malaysia. Derived hypotheses were verified through Structural Equation Modelling (SEM) using AMOS 21. The findings of the study indicated that innovation capability has a significant positive impact on SME performance. Technology- adoption partially mediates the relationship between innovation capability and SME performance. SMEs are required to generate an operative innovation model to gain sustainable performance and competitive advantage in the Malaysian market.


2019 ◽  
Vol 6 (2) ◽  
pp. 100-105 ◽  
Author(s):  
Sandra Dewi ◽  
Amiruddin Ahamat

Purpose of the study: This study examines the role of entrepreneurial orientation in achieving the best performance of the firm through the mediation of business model innovation and strategic relational assets as intangible assets that are inimitable. Methodology: The study was conducted in 105 private hospitals in Indonesia, affected by the reform of the regulation and influenced by digital disruption, which triggered the disruptive change. This study used a quantitative method and processed by Structural Equation Modelling program for quantitative data analysis. Main Findings: The results of this study concluded that the entrepreneurial orientation of the hospital has a significant positive impact on the achievement of organizational performance, either directly or with the mediation of business model innovation and the collaboration between hospital management and the physicians. Applications of this study: This study proved to be a critical determinant for the business model innovation and the growth of hospital performance. Novelty/Originality of this study:As the theoretical contribution of this study is to enrich the development of entrepreneurial orientation concept as a part of organizational entrepreneurship which emphasizes the relationship of the stakeholders of an industry, through integration with some concepts and theories in strategic management such as resource-based theory, business model innovation and stakeholder theory.


2019 ◽  
Vol 10 (4) ◽  
pp. 1
Author(s):  
Son Thanh Than ◽  
Cung Huu Nguyen ◽  
Thang Quang Tran ◽  
Phong Ba Le

The purpose of this study is to investigate the influence of knowledge sharing (KS) and two specific types of innovation on competitive advantage in Vietnamese firms. Based on using structural equation modeling (SEM) and survey data collected from 225 participants, the findings reveal that KS directly and indirectly affects firm’s competitive advantage through the mediating role of innovation speed and innovation quality. The findings stress the important role of building a positive climate to stimulate employees for sharing knowledge aimed at improving firm’s innovation capability, and sustaining competitive advantage. Future research needs to explore the relationship between three components of knowledge management namely knowledge acquisition, KS, and knowledge application, innovation, and specific aspects of competitive advantage (such as low cost advantage, differentiation advantage, and time advantage) to provide deeper the mechanism of how specifics aspects of knowledge management connected with firm’s certain types of competitive advantage through innovation.


2019 ◽  
Vol 27 (2) ◽  
pp. 102-121 ◽  
Author(s):  
Winfred Yaokumah ◽  
Daniel Okyere Walker ◽  
Peace Kumah

This article contends that information security education, training and awareness programs can improve employee security behavior. Empirical studies have analyzed the direct effects of employee security training on security behavior without taking into account the mediating role of employee relations, monitoring, and accountability. Based on employee relations and accountability theories, this study proposes and tests a causal model that estimates the direct effect of employee security training on security behavior as well as its indirect effects as mediated by employee relations, monitoring, and accountability. The empirical analysis relies on a survey data from a cross section of employees from five major industry sectors and a structural equation modeling approach via SmartPLS 3.0. The results show that employee security training has indirect and significant effects on security behavior through its influence on employee relations, monitoring, and accountability. However, the result does not indicate direct and significant effect of security training on employee security behavior.


2020 ◽  
Vol 2 (2) ◽  
pp. 82-104
Author(s):  
Felix Kwame Opoku

The main purpose of this study was to examine the effect of strategic HR practices on the competitiveness of hotels in the Central Region of Ghana. A secondary objective was to assess the mediating role of employee competencies on the link between strategic HR practices and competitive advantage. The study adopted an explanatory research design, using a purely quantitative approach. The target population comprised of all managers of registered hotels in the Central Region of Ghana. Data were collected through a self-administered survey questionnaire. The available data were analyzed using Structural Equation Modelling. It was established that strategic HRM practices have a positive influence on employee competencies, which in turn has a significant positive effect on competitive advantage. As a consequence, it was concluded that internal capabilities and competencies are the major sources of sustainable competitive advantage in the hospitality industry in Ghana. The effect of strategic HR practices on competitive advantage was, however, found to be insignificant. These findings require managers in the hospitality industry to continuously employ strategic HR practices such as training and development activities, linking incentive pay to performance, providing staff with a flexible compensation structure and promoting skill-based pay elements in employees’ pay package.


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 20 (03) ◽  
pp. 1650040 ◽  
Author(s):  
AYDA AMNIATTALAB ◽  
REZA ANSARI

In the recent, the aspect of foresight is considered globally important. Specially, it has gained a meaningful position in strategic planning. This study examines the quantitative relationships between strategic foresight, ambidexterity and competitiveness of firms. Based on the literature review, it appears that strategic foresight has positive impact on organisational ambidexterity which in turn contributes to competitive advantage. We have utilised structural equations modeling (SEM) to empirically test the mentioned relationships in Iran’s nanotechnology firms. Results show that the degree of strategic foresight has a direct effect on organisational ambidexterity which in turn affects competitive advantage.


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