Does innovation capability improve SME performance in Malaysia? The mediating effect of technology adoption

2021 ◽  
pp. 146575032110489
Author(s):  
Muhammad Farhan Jalil ◽  
Azlan Ali ◽  
Rashidah Kamarulzaman
Keyword(s):  
Technology Adoption ◽  
Structural Equation ◽  
Positive Impact ◽  
Empirical Studies ◽  
Mediating Effect ◽  
Innovation Capability ◽  
Performance Technology ◽  
Mediating Role ◽  
Innovation Model

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.

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

2018 ◽  
Vol 22 (07) ◽  
pp. 1850057 ◽  
Author(s):  
MUHAMMAD ANWAR
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Structural Equation ◽  
Positive Impact ◽  
Emerging Market ◽  
Empirical Studies ◽  
Business Model Innovation ◽  
Superior Performance ◽  
Mediating Role

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.

Does Zhongyong thinking affect voice behavior? The mediating role of psychological safety

2021 ◽  
Vol 49 (8) ◽  
pp. 1-8
Author(s):  
Guodong Yang ◽  
Yingwei Ji ◽  
Qiumeng Xu
Keyword(s):  
Structural Equation ◽  
Psychological Safety ◽  
Mediating Effect ◽  
Master Of Business Administration ◽  
Equation Modeling ◽  
Voice Behavior ◽  
Mediating Role ◽  
Business Administration Students ◽  
Part Time

Zhongyong, as a typical Confucian thinking model, is related to employees' voice behavior. In this research we explored the relationship between Zhongyong thinking and employees' voice behavior, and examined the mediating effect of psychological safety in this relationship. Survey data were collected from 218 part-time Master of Business Administration students from two Chinese universities. The structural equation modeling results demonstrate that Zhongyong thinking was positively related to psychological safety, and that psychological safety was positively related to voice behavior. Further, psychological safety mediated the Zhongyong thinking–voice behavior relationship. These results suggest that organizations can encourage voice behavior by enhancing employees' Zhongyong thinking and by boosting their perception of psychological safety in the workplace.

SETA and Security Behavior

2019 ◽  
Vol 27 (2) ◽  
pp. 102-121 ◽  
Author(s):  
Winfred Yaokumah ◽  
Daniel Okyere Walker ◽  
Peace Kumah
Keyword(s):  
Structural Equation ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Employee Relations ◽  
Mediating Role ◽  
Security Behavior ◽  
Security Training ◽  
Awareness Programs ◽  
Industry Sectors

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.

The relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change

2017 ◽  
Vol 30 (4) ◽  
pp. 610-631 ◽  
Author(s):  
Parul Malik ◽  
Pooja Garg
Keyword(s):  
Knowledge Sharing ◽  
Structural Equation ◽  
Affective Commitment ◽  
Learning Culture ◽  
Mediating Effect ◽  
Commitment To Change ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Also, the paper examines the mediating effect of employee resilience on the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Design/methodology/approach The sample comprised of responses from 510 employees’ working in information technology companies based in India. Confirmatory factor analysis was employed to analyse the proposed measurement model and structural equation modelling was used to test the study hypotheses. Additionally, the study utilized mediation analyses proposed by Preacher and Hayes (2004) to investigate the mediating role of employee resilience. Findings The results show significant relationship between the study variables. Employee resilience was found to partially mediate the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change. Practical implications Examining the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and employee resilience can have significant implications for organizations. The proposed study framework can be utilized by the researchers and human resource practitioners to frame organizational practices and interventions to develop a pool of resilient and change committed workforce. Originality/value First, the general understanding of the relationship between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change is scant in literature. Second, the study extends the previous research by investigating the mediating role of employee resilience between learning culture, inquiry and dialogue, knowledge sharing structure and affective commitment to change.

Examining the impact of socialization and information sharing and the mediating effect of trust on innovation capability

2016 ◽  
Vol 36 (11) ◽  
pp. 1601-1624 ◽  
Author(s):  
Nisha Paul Kulangara ◽  
Sherry Avery Jackson ◽  
Edmund Prater
Keyword(s):  
Information Sharing ◽  
Business Environment ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the interrelationship between trust, socialization, and information sharing on the buying firm’s innovation capability in the context of the buyer-supplier relationship (BSR). A nomological model is developed that examines the mediating role of relational capital (supplier trust) on the relationship between structural capital (socialization and information sharing) and innovation capability. Design/methodology/approach A survey was conducted on 357 US executives. Structural equation modeling was used to analyze the hypothesized relationships. Findings Information sharing and formal socialization activities increased the buying firm’s trust in its key supplier. However, formal socialization activities within the context of the business environment did not have a significant direct impact on buyer’s innovative capabilities; but when mediated by trust, it positively impacted innovation capabilities. Informal socialization within the context of the social environment directly impacted innovation capabilities but trust did not mediate the relationship. Information sharing impacted trust and innovation significantly and trust mediated the impact of information sharing on innovation capabilities. Originality/value This study defines the formal and informal aspects of socialization and investigates its impact on trust and buyer innovation capabilities. This is one of the few studies that highlights the mediating role of trust between firms to facilitate innovation capability.

scholarly journals Good Governance and Public Trust: Assessing the Mediating Effect of E-Government in Pakistan

2019 ◽  
Vol 17 (2) ◽  
pp. 299-320 ◽  
Author(s):  
Arif Jameel ◽  
Muhammad Asif ◽  
Abid Hussain
Keyword(s):  
Structural Equation ◽  
Good Governance ◽  
Public Trust ◽  
Mediating Effect ◽  
Administrative Practices ◽  
Mediating Role ◽  
Confirmatory Factor ◽  
The Relationship ◽  
Research And Policy

Administrative practices have always been acknowledged as a crucial tool for establishing good governance. Strong evidence shows that good governance extensively influences citizens’ behaviors toward government. This study empirically examines how good governance promote public trust with possibly mediating role of e-government. A field survey was conducted by distributing questionnaires to 1000 Pakistani individuals. The response rate was 76.3%. Confirmatory factor analysis and structural equation modelling were used to analyze the data. The results confirmed the casual relationship between good governance and public trust. The results also reveal that e-government plays a mediating role in the relationship between good governance and public trust. The findings may be practically useful for both research and policy making, since it investigated the citizens' perspective of good governance, public trust and e-government.

How transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital

2020 ◽  
Vol 12 (3/4) ◽  
pp. 205-222
Author(s):  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Psychological Capital ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Service Firms ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeGiven the important role of innovation capability in helping firms to innovate and adapt to a fast-paced and unpredictable environment, the purpose of this study is to investigate and deepen knowledge of how transformational leadership affects radical and incremental innovation via the mediating role of positive psychological capital.Design/methodology/approachThe paper used structural equation modeling and cross-sectional design to test proposal hypotheses based on the empirical data collected from 379 participants in 89 manufacturing and service firms.FindingsThe results of this study revealed the positive and significant influence of transformational leadership on radical and incremental innovation. The findings highlighted the mediating role of individual psychological capital in the relationship between transformational leadership and aspects of innovation capability.Practical implicationsOrganizations should invest and stress on practicing transformational leadership style for their managers/directors to foster and enhance individual psychological capital and innovation capabilities.Originality/valueThe paper has extended theory of innovation management by discussing and highlighting the important role of transformational leadership and psychological capital in fostering specific aspects of innovation namely radical and incremental innovation.

How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital

2020 ◽  
Vol 41 (4) ◽  
pp. 481-499 ◽  
Author(s):  
Hui Lei ◽  
Lathong Leaungkhamma ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Self Efficacy ◽  
Structural Equation ◽  
Psychological Capital ◽  
Working Environment ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.Design/methodology/approachStructural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.FindingsThe research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.Practical implicationsThe findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.Originality/valueThe paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

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 impact of perceived brand interactivity on customer purchases. The mediating role of perceived brand fairness and the moderating role of brand involvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Gligor ◽  
Sıddık Bozkurt
Keyword(s):  
Process Model ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Brand Involvement ◽  
Customer Purchases ◽  
The Impact ◽  
Moderating Role

Purpose This study aims to investigate the effect of perceived brand interactivity on customer purchases along with the mediating effect of perceived brand fairness. To increase the explanatory power of the model, this study also examines the moderating role of brand involvement. Design/methodology/approach An online survey was conducted to measure the constructs of interest. The direct, indirect (mediation) and conditional (moderation) effects were evaluated using linear regression, PROCESS Model 4 and PROCESS Model 59, respectively. Further, the Johnson Neyman (also called floodlight analysis) technique was used to probe the interaction terms. Findings The study results indicate that perceived brand interactivity directly and indirectly (via perceived brand fairness) impact customer purchases. The results also reveal that the positive impact of perceived brand interactivity on perceived brand fairness is greater when brand involvement is lower. In the same vein, the positive impact of perceived brand fairness on customer purchases is greater when brand involvement is lower. However, brand involvement does not moderate the impact of perceived brand involvement on customer purchases. Originality/value This study examines the effect of perceived brand interactivity on customer purchases (as a customer engagement behavior) while accounting for the mediating role of perceived brand fairness and the moderating role of brand involvement. The results provide noteworthy theoretical and managerial implications.

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