The Role of Management Capabilities on Entrepreneurial Orientation and Firm Growth Relationship

2017 ◽  
Vol 23 (4) ◽  
pp. 3013-3015
Author(s):  
Musli Sahimi ◽  
Adriana Mohd. Rizal ◽  
Maizaitulaidawati Md Husin ◽  
Suzilawati Kamarudin
Author(s):  
Jamie D Collins ◽  
Christopher R Reutzel

This article examines the role of top managers in shaping the innovation investment actions of small and medium-sized enterprises (SMEs) in India. Survey responses from 477 top managers of Indian SMEs suggest that investment in innovation is influenced by top manager perceptions of innovation opportunity attractiveness, as well as ability to appropriate innovation investment value. Specifically, the results indicate an inverted U-shaped relationship between top manager entrepreneurial orientation and firm investment in innovation. They also suggest that top manager perceptions of environmental munificence, firm resource management capabilities, and organizational controls are positively related to firm investment in innovation.


2019 ◽  
Vol 11 (19) ◽  
pp. 5178 ◽  
Author(s):  
Chiho Ok ◽  
He Soung Ahn

The answer to the question, “Which factors determine the sustainable growth of small- and medium-sized enterprises (SMEs)?” is still fragmented. While previous studies have paid attention to a firm’s entrepreneurial orientation (EO) as a key driver of SME growth, it is often overlooked that contextual factors can be crucial in order for EO to be effective in yielding sustainable growth in SMEs. This paper focuses on the role of relative performance as a boundary condition in the relationship between EO and sustainable growth of SMEs. We predict that the effect of EO on SMEs’ sustainable growth would differ depending on performance feedback based on their past performance. Our empirical analysis based on panel analysis shows that SMEs strongly pursue sales growth immediately after they achieve lower levels of performance than historical aspiration. However, when their performance goes beyond the historical aspiration level, their growth patterns appear to show a different pattern depending on their level of EO. SMEs with greater EO are more likely to pursue firm growth when performance is above historical aspirations while those with lesser EO are not. Our findings suggest that relative performance is an important boundary condition in the relationship between EO and SMEs’ sustainable growth.


2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Michael Christian ◽  
Merisa Merisa

Business performance is influenced by several factors, one of which is the innovation of sales ideas. Previous studies also explain the role of innovation in determining the performance of the business being undertaken. Some researches on the role of innovation in determining business performance emphasizes aspects of top management involvement, resources, existing technological capabilities and organizational culture. This research aims to analyse the determinants of business performance factors, especially on the role of innovation as a mediating factor. This research is quantitative using Partial Least Square (PLS)-Structural Equation Modelling (SEM) models. The results of this study explain that Innovation and Management Capability do not have an influence on business performance in the SME accessories gadget at ITC Roxy Mas. However, entrepreneurial orientation has an influence on business performance in the gadget accessories SMEs at ITC Roxy Mas. Furthermore, entrepreneurial orientation and management ability have an influence on innovation in the gadget accessories SMEs at ITC Roxy Mas. The results of the indirect effect explain the entrepreneurial orientation and management capabilities that are mediated by innovation do not have an influence on business performance in the gadget accessories SMEs at ITC Roxy Mas. Keywords: Business performance, SMEs, innovation, entrepreneurship


2016 ◽  
Vol 32 (2) ◽  
pp. 182-208 ◽  
Author(s):  
Tony Kang ◽  
Gerald J. Lobo ◽  
Michael C. Wolfe

Previous research shows that accounting conservatism facilitates debt contracting. Extending this line of literature, we examine whether the role of accounting conservatism in accessing external debt to attain firm growth varies with its maturity. We find evidence of a positive relationship between conservatism and debt maturity. We also observe a positive relationship between conservative accounting and future growth funded by all classes of debt, but this relation is due to long-term rather than short-term debt, which is less prone to agency risk. Furthermore, the associations between conservatism and debt maturity and conservatism and growth financed by long-term debt are mostly observed for firms with fewer anti-takeover provisions in place. These findings suggest that the demand for accounting conservatism is not uniform across different debt maturity horizons.


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