The Outsourcing Dilemma on Decision to Outsource Among Small and Medium Enterprises in Malaysia

2017 ◽  
Vol 18 (2) ◽  
pp. 348-364 ◽  
Author(s):  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Theresa C. F. Ho ◽  
T. Ramayah
Keyword(s):  
Least Squares ◽  
Partial Least Squares ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Business Owners ◽  
Strategic Orientation ◽  
Environmental Dynamism ◽  
Unexpected Findings ◽  
Medium Enterprises ◽  
The Relationship

Making a decision on outsourcing has posed many difficulties among many organizations, particularly the small and medium enterprises (SMEs). The outsourcing dilemma surrounds the issue on the factors that influence the outsourcing decisions. Therefore, this study attempts to examine what factors may influence the decision of the SME owners to outsource their business processes. A data sample of 100 SMEs was analyzed to examine the relationship between the factors (business owners’ characteristics, environmental dynamism and strategic orientation) and the decision to outsource more of their business processes which is measured through degree of outsourcing of the respondents. The analysis was then conducted via partial least squares. The results showed several interesting findings: (i) business owners’ characteristics encouraged SME founders/owners to outsource more of their business processes, (ii) environmental dynamism has a negative significant impact on the degree of outsourcing and (iii) the relationship between strategic orientation and outsourcing was not supported. Rational explanations of the unexpected findings were then discussed in this study.

scholarly journals Slack Resources and Innovation in Vietnamese SMEs

2020 ◽  
pp. 158-182
Author(s):  
Tam Thanh Nguyen ◽  
Chieu Duc Trinh
Keyword(s):  
Human Resource ◽  
Business Processes ◽  
Negative Impact ◽  
Small And Medium Enterprises ◽  
Slack Resources ◽  
Financial Slack ◽  
Innovation Activities ◽  
Resource Slack ◽  
Medium Enterprises ◽  
The Relationship

Slack resources are usually identified as an endogenous motivation for firms to innovate, but it is crucial to assess this relationship, especially in different institutional contexts. Therefore, the chapter investigates the relationship by exploring a longitudinal dataset of 15,589 observations from about 2,500 surveyed manufacturing small and medium enterprises (SMEs) in Vietnam. The analysis reveals that slack resources promote innovation in different ways. While the financial slack harms the efforts of innovating, the presence of human resource slack encourages firms to engage more in innovation activities resulting in the introduction of new products or business processes. The authors further found that for firms located in a more favourable business environment the impact of human resource slack on innovation is less pronounced whereas the negative impact of financial slack is lessened. The above results enrich the literature on the relationship between slack and innovation within an institutional context in emerging economies.

scholarly journals Strategic Orientation and Performance of Small and Medium Enterprises (SMEs) in Sabah, Malaysia

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Yusak Yumboris ◽  
◽  
Imelda Albert Gisip ◽  
Nabila Azwa Ambad ◽  
◽  
...  
Keyword(s):  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Strategic Orientation ◽  
Sources Of Information ◽  
Secondary Sources ◽  
And Performance ◽  
Main Components ◽  
Medium Enterprises ◽  
Technology Orientation ◽  
The Relationship

This paper seeks to examine the effects of strategic orientation (SO) to Small and Medium Enterprises (SMEs) performance in Sabah, Malaysia context. Specifically, the effects of two components of SO namely Market Orientation (MO) and Entrepreneurial Orientation (EO) towards SMEs performance in in Sabah, Malaysia context are discussed. In addition, Technology Orientation (TO) as moderator to the relationship between the two SO components and SMEs performance will also be deliberated. This paper is mainly based on secondary sources of information, through references and review of articles in selected journals pertaining to strategic orientation and SMEs performance.This paper highlights past studies on the relationship between the two main components of SO and its effects to SMEs performance. The reviews also address the related gaps from previous studies.The work of the researcher is genuine reference to published literatures and seeks to contribute to the development of knowledge by adapting and testing the moderating effect of technology orientation in the relationship between SO and SMEs performance.

scholarly journals The mediating role of the novelty ecosystem between personality traits, entrepreneurial networks and entrepreneurial ambidexterity among small and medium enterprises

2021 ◽  
Author(s):  
Samuel Mayanja ◽  
Michael Omeke ◽  
Josue Vajeru Tibamwenda ◽  
Henry Mutebi ◽  
Fredrick Mufta
Keyword(s):  
Personality Traits ◽  
Small And Medium Enterprises ◽  
Business Owners ◽  
Mediating Effect ◽  
Entrepreneurial Networks ◽  
Constructive Feedback ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship ◽  
Entrepreneurial Networking

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.

scholarly journals Examining the Aspects Decrease the Development of the Small and Medium Enterprises in Al Batinah Province - Oman

2021 ◽  
pp. 77-90
Author(s):  
Kholood Al Farsi ◽  
Nebras Alattar
Keyword(s):  
Significant Relationship ◽  
Financial Management ◽  
Resource Constraints ◽  
Small And Medium Enterprises ◽  
Business Owners ◽  
Simple Random Sample ◽  
Well Design ◽  
Medium Enterprises ◽  
Relationship Of ◽  
The Relationship

Small and medium-sized enterprises (SMEs) play an important role in any developing economy. In Oman, about 60% of SMEs are the source of employment. There is an increase in SMEs, but there are also challenges linked with growth; this research project explores the specific challenges faced by small and medium business owners. This study used a simple random sample with data from 200 SME owners, and data was collected using a well-design questionnaire. The data was analyzed in more detail by descriptive statistics and ANOVA statistics. A reliability test was performed to determine how reliable the data collecting instrument was. The limitations of this work and several suggestions are recorded. Several hypotheses are tested, and the results show a significant relationship between Financial management constraints and SME growth. And, also, there is a significant relationship between Marketing management constraints and the growth of SMEs. And, also, there is no significant relationship between the relationship of statistical importance between the Human resource constraints and the growth of SMEs in Oman.

scholarly journals MEDIATING ROLE OF ACCESS TO FINANCE ON THE RELATIONSHIP BETWEEN STRATEGIC ORIENTATION ATTRIBUTES AND SMEs PERFORMANCE IN NIGERIA

2017 ◽  
Vol 17 (3) ◽  
Author(s):  
Murtala Aminu Ibrahim ◽  
Mohd Noor Mohd Shariff
Keyword(s):  
Firm Performance ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Modern Technology ◽  
Strategic Orientation ◽  
Access To Finance ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

In spite of recognized significant contribution of SMEs to nations’ economy, Nigerian SMEsperformance is below expectation. This is because SMEs in Nigeria today faces severe limitationsin financing, management skill, marketing, modern technology and technical expertise. Theobjective of this study is to investigate the mediating role of access to finance on the positiverelationship between entrepreneurial orientation (EO), market orientation (MO), learningorientation (LO), technology orientation (TO) and SMEs performance in Nigeria. A sample sizeof 522 SMEs operating in Kano, Kaduna and Sokoto states of Nigeria were selected usingstratified simple random sampling techniques. Partial Least Squares-Structural EquationModelling was used to analyze the data. Hence, the data analysis was conducted using SmartPLS3.0. The results of path analysis indicate that access to finance mediates the positive relationshipbetween MO, LO, TO and the performance of small and medium enterprises in Nigeria. This isan important additional explanation for the existence of the relationship between these strategicorientations and firm performance. The results further suggest that SMEs need to use theirstrategic activities to improve their ability to obtain finances in order to perform well. Finally,recommendations for further research are also discussed.Keywords: SMEs; Strategic Orientation; Nigeria; Access to Finance; Firm Performance.

Structural Modeling of Institute of Entrepreneurship in Russia

2019 ◽  
pp. 34-48
Author(s):  
Svetlana L. Sazanova
Keyword(s):  
Global Economy ◽  
Structural Model ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Entrepreneurial Activity ◽  
Pattern Modeling ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

Entrepreneurship plays an important role in the modern global economy; the share of products of small and medium enterprises in the gross product and exports not only of the developed but also of developing countries is growing. Innovation processes cover all sectors of the economy, and more and more people are involved in entrepreneurial activity, which contributes to the penetration of entrepreneurial thinking and business values in all areas of the socioeconomic life of society. The Institute of Entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. This actualizes the problem of studying the relationship of the institution of entrepreneurship with the institutions of law, culture, management. This requires a methodology that allows you to explore the impact on the institute of entrepreneurship not only economic, but also non-economic factors. The methodology of the “old” institutionalism possesses such a tool, it is structural modeling (pattern modeling), which allows to explore the diversity of interrelationships of the institution of entrepreneurship with other components of the institutional and economic environment. The article explored the features of the development of the institution of entrepreneurship in Russia, established the relationship between the institution of entrepreneurship, values, motives and incentives for entrepreneurial activity, built a structural model of the institution of entrepreneurship based on the methodology of the old institutionalism (pattern modeling). The structural model of the institution of entrepreneurship reveals the relationship between the institution of entrepreneurship, the values of entrepreneurial activity, its motives and incentives; as well as the relationship between the institution of entrepreneurship with the institutions of governance, cultural and religious institutions, legal institutions and society.

THE ACCESS TO GOVERNMENT FINANCIAL SUPPORT THROUGH LEGAL CHANNELS OF SMALL AND MEDIUM ENTERPRISES IN FOUR ASIA PACIFIC COUNTRIES

2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan
Keyword(s):  
Financial Support ◽  
Small And Medium Enterprises ◽  
Mediation Effect ◽  
Asia Pacific ◽  
Survey Questionnaire ◽  
Access To Finance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

scholarly journals Open Innovation with Relational Capital, Technological Innovation Capital, and International Performance in SMEs

2021 ◽  
Vol 13 (6) ◽  
pp. 3418
Author(s):  
Dongwoo Ryu ◽  
Kwang Ho Baek ◽  
Junghyun Yoon
Keyword(s):  
Technological Innovation ◽  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Hierarchical Regression ◽  
Relational Capital ◽  
Innovation Capability ◽  
Perspective View ◽  
International Performance ◽  
Medium Enterprises ◽  
The Relationship

The importance of international markets is constantly emphasized for small and medium enterprises(SMEs). In previous studies, technological innovation capabilities were emphasized as a factor that enables SMEs to compete in the international market. To this end, SMEs need to cooperate with external partners to strengthen their technological innovation capabilities to thus improve their international performance. With the perspective view of open innovation, this research explores the effects of relational capital and technological innovation capability on international performance, with a particular focus on the moderating effect of alliance proactiveness. Building on previous literature regarding internationalization, technological innovation, and alliance proactiveness, research hypotheses were developed and tested using data collected from 175 SMEs. A hierarchical regression analysis was applied. The analysis showed that, first, relational capital had a significant effect on the technological innovation capability. Second, technological innovation capability has a significant influence on the international performance. Third, technological innovation capability mediated the relationship between relational capital and international performance. Finally, alliance proactiveness was found to moderate the relationship between technological innovation capability and international performance. The key research findings imply that relational capital and alliance proactiveness are the key factors of international performance, as they improved the development of the technological innovation capability.

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