Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises

2021 ◽  
pp. 231971452110422
Author(s):  
Jalal Rajeh Hanaysha ◽  
Mohammed Emad Al-Shaikh ◽  
Shanmugan Joghee ◽  
Haitham M. Alzoubi
Keyword(s):  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Service Innovation ◽  
Partial Least Square ◽  
Least Square ◽  
Kingdom Of Saudi Arabia ◽  
Business Sustainability ◽  
Marketing Innovation ◽  
Least Square Approach ◽  
Medium Enterprises

The rationale of this study was to investigate the effect of innovation types on business sustainability in the small and medium enterprises (SMEs). Quantitative approach was used for collecting the data and fulfilling the stated objective. Specifically, the data was collected from 171 employees in SMEs in the Kingdom of Saudi Arabia. The analysis for the collected data was conducted using the partial least square approach (PLS-SEM). The findings showed that product innovation as well as service innovation have significant positive impacts on business sustainability. The results further confirmed that process innovation is vital for achieving business sustainability. Finally, the outcomes verified that marketing innovation has a significant impact on business sustainability. The results confirmed the significance of innovation capabilities in helping entrepreneurs in SMEs to sustain their businesses and improve their competitive strengths.

scholarly journals PENGARUH EXPERIENTIAL SHARING TERHADAP KINERJA BISNIS MELALUI INOVASI PRODUK SEBAGAI VARIABEL INTERVENING

2020 ◽  
Vol 12 (1) ◽  
pp. 62-82
Author(s):  
Fauji Sanusi ◽  
Gerry Ganika
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Metal Casting ◽  
Knowledge And Skills ◽  
Central Java ◽  
Level Of Knowledge ◽  
Medium Enterprises

Abstract- Internal problems of small and medium enterprises (SMEs) have been extensively studied, especially those related to low level of knowledge and skills of their workforce, thus impacting company's business performance. This study aims to examine whether experiential sharing can improve business performance of SMEs through product innovation as an intervening variable. This research develops a concept of experiential sharing or sharing experiences as a process that can improve a company's business performance through product innovation variables. This study show that experiential sharing will have a stronger influence on company's business performance if it is mediated by product innovation. Samples taken in this study were 173 managers and / or metal casting SME owners in Central Java. To test research hypothesis, data is processed by using Smart PLS. Experiential sharing can directly influence product innovation and business performance of SMEs. Similarly, product innovation can directly affect business performance and can partially mediate relationship between experiential sharing and business performance. SMEs can improve business performance by increasing experiential sharing as a antecendent factor. In addition, experiential sharing can improve product innovation which can then improve the performance of SME businesses. Keywords: experiential sharing, innovation, business performance, partial least square

scholarly journals PENGARUH ORIENTASI KEWIRAUSAHAAN DAN INOVASI PRODUK TERHADAP KINERJA USAHA KECIL MENENGAH DENGAN VARIABEL INTERVENING KEUNGGULAN BERSAING (STUDI PADA UKM DI BANJARMASIN)

2020 ◽  
Vol 4 (3) ◽  
pp. 392-407
Author(s):  
Isra Ul Huda ◽  
Anthonius Karsudjono ◽  
Pupita Nia Maharani
Keyword(s):  
Competitive Advantage ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Role ◽  
Analysis Technique ◽  
Small Medium Enterprises ◽  
Medium Enterprises

This study aims to determine and analyze the effect of Entrepreneurship Orientation and Product Innovation on the Performance of Small and Medium Enterprises with Intervening Competitive Advantage Variable. This study uses quantitative data analysis methods, the analysis technique is Partial Least Square (PLS). The reason for choosing to use the PLS method is the testing of the mediating role of an intervening variable. The results of the analysis conducted stated that the Entrepreneurship Orientation did not significantly influence Competitive Advantage and also the Performance of Small and Medium Enterprises. Product Innovation has a significant effect on Competitive Advantage and does not have a significant effect on the Performance of Small and Medium Enterprises and Competitive Advantage does not have a significant effect on the Performance of Small and Medium Enterprises. Entrepreneurship Orientation does not significantly influence Small Medium Enterprises Performance with Intervening Variable Competitive Advantage and Product Innovation has no significant effect on Small Medium Enterprises Performance with Intervening Competitive Advantage Variable

scholarly journals Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance

2020 ◽  
Vol 13 (5) ◽  
pp. 97 ◽  
Author(s):  
Ploypailin Kijkasiwat ◽  
Pongsutti Phuensane
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Capital ◽  
Medium Enterprise ◽  
Medium Enterprises ◽  
The Impact

This study examines the moderating effect of firm size on the relationship between innovation and firm performance of small and medium enterprises in 29 countries in Eastern European and Central Asia. The study also investigates whether the impact of innovation in products and processes on firm performance is affected by financial capital. The method applied is partial least square structural equation modelling. The findings indicate that firm size and the financial capital both moderate and mediate the impact of innovation on firm performance, positively or negatively. The findings have implications for decision makers by highlighting the significance of firm size and financial sources when planning to introduce innovations to enhance firm performance.

How Can Small and Medium Enterprises Effectively Implement Corporate Social Responsibility?: An Indian Perspective

2020 ◽  
pp. 097215091986508
Author(s):  
Gaurav Dawar ◽  
Seema Singh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Small And Medium Enterprises ◽  
Research Work ◽  
Partial Least Square ◽  
Least Square ◽  
Partial Least Square Regression ◽  
Business And Society ◽  
Medium Enterprises ◽  
Corporate Social

The current study is a strategic approach to corporate social responsibility (CSR); the aim is to put forward the factors of CSR activities that enhance its effectiveness for small and medium enterprises (SMEs). To achieve this objective, the factors were extracted from the literature and described along with trusteeship theory of Mahatma Gandhi, and an exploratory study was conducted and data were collected using structured questionnaire based on pretested scale from 158 SMEs and tested using partial least square regression (PLSR). The statistics shows the overall model fit, and the findings indicate a significant relationship with effective CSR. The results of the study are in accordance with the previous research work, and we also find that environment-related CSR and partnership are crucial for the effectiveness of CSR in SMEs, stakeholders’ role are important and SMEs’ CSR practice is still informal. The variables identified from study will help SMEs in establishing a formal approach towards CSR and meeting the needs of business and society in the twenty-first century.

Exploring the barriers to SMEs’ open innovation adoption in Ghana

2020 ◽  
Vol 12 (1) ◽  
pp. 21-51 ◽  
Author(s):  
Stephen Oduro
Keyword(s):  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Emerging Market ◽  
Partial Least Square ◽  
Least Square ◽  
Research Approach ◽  
Content Type ◽  
Survey Interviews ◽  
The Right ◽  
Medium Enterprises

Purpose Open innovation (OI) is now recognized as one essential innovation paradigm to help small and medium enterprises (SMEs) quell their liability of newness and smallness. However, little is known about SMEs’ OI barriers, particularly in emerging economies. Drawing on both network and transaction cost theory, this study aims to explore the barriers to SMEs’ OI adoption in Ghana. Design/methodology/approach The study adopted an exploratory sequential research design that involved both qualitative and quantitative study methodologies. A total of 644 responses (21 survey interviews and 623 usable questionnaires) across SMEs in Ghana were collected and analyzed in the study. A qualitative analysis involving quotations extracted from the respondent’s statement was used to present the qualitative findings, whereas SEM-partial least square, co-variance approach, was used to analyze the formulated hypotheses. Findings Results show that significant barriers to SMEs OI adoption are collaboration barriers – difficulty in finding the right partners and problems of cooperation and coordination of operational functions; organizational barriers – lack of flexible internal procedures and structures and organizational inertia; and strategic barriers – opportunistic behavior of partners and lack of strategic and resource fit. Contrary to existing findings, financial and knowledge barriers were disclosed as driving factors, rather than barriers, to SMEs’ OI adoption; these findings challenge conventional thinking about SMEs’ major OI barriers. Research limitations/implications This study focuses on only SMEs in one emerging economy, namely, Ghana, which may limit the generalization of the findings. Practical implications The findings of this study, while limited to Ghana, offer useful insights to SMEs managers, development practitioners and policymakers respecting the overall importance of the OI model, its associated impediments, as well as the strategic measures to quell those barriers. Originality/value This study provides a pioneering empirical investigation into the main barriers to SMEs’ OI adoption in a less-explored emerging market context through a mixed research approach.

scholarly journals Five Competitive Forces Model and the Implementation of Porter’s Generic Strategies to Gain Firm Performances

2017 ◽  
Author(s):  
Sirajuddin Omsa ◽  
Ibrahim H. Abdullah ◽  
Hisnol Jamali
Keyword(s):  
Bargaining Power ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Differentiation Strategy ◽  
Medium Enterprises ◽  
Wooden Furniture ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Competitive Forces

Five competitive forces that comprise bargaining power of buyers, bargaining power of suppliers, threat of newentrants, threat of substitute products or services, and intensity of rivalries have been studied by many researchers for several years. However, linking them with Porter’s generic strategy in order to gain financial and market performance in the Micro, Small and Medium Enterprises (MSMEs) context is very rare. The main purpose of this study is to analyze how those fivecompetitive forces affect generic strategies developed by Porter and how the generic strategies affect firm performances. Questionnaire, survey and deep interview were conducted to figure out the implemented generic strategies by the owners of MSMEs of wooden furniture in East Java, Indonesia. Smart partial least square (PLS) was used to analyse the data. The results show that power of buyers (PoB) significantly affects only differentiation strategy (DS), power of supplies (PoS) significantly affects cost leadership strategy (CLS) and focus strategy (FS) but does not significantly affect differentiation strategy (DS), and threat of rivalries (ToR) significantly affects differentiation strategy (DS) and focus strategy (FC). In regards to the relationship between generic strategies and firm performances (FP), the results of this study show that both DS and FS significantly affect FP, while CLS does not significantly affect FP. Based on these findings, it is suggested that the owners of MSMEs wooden furniture in East Java (Indonesia) consider PoB, PoS, and ToR before performing DS and FS to gain much greater firm performances in the future.

scholarly journals The Effect of Productivity and Innovation on the Competitiveness of Batik SMEs in West Java Indonesia

2019 ◽  
Vol 4 (1) ◽  
pp. 19-26
Author(s):  
Yana Hendayana ◽  
Suryana Suryana
Keyword(s):  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Jel Classification ◽  
Partial Least Square ◽  
Least Square ◽  
West Java ◽  
Production Methods ◽  
The Past ◽  
The Government ◽  
Medium Enterprises

Objective - This research aims to test the effect of productivity and innovation toward competitiveness of batik SMEs in West Java. Methodology/Technique - The study uses Partial Least Square (PLS) for data analysis, as well as an explanatory method and simple random sampling. Findings - The results of the data testing show that competitiveness is effected by productivity and innovation by 71.7%. Novelty - The objective of this study is to analyse the gap in productivity and innovation and its effect on the competitiveness of batik SMEs in West Java Indonesia. Batik centre in West Java was developed by the government in collaboration with the private sector to increase the level of production of batik SMEs. In reality, there is a gap in productivity between written batik and stamped batik. Written batik design innovations and production methods need to be improved to compete and survive in the batik industry. Porter (1995:5) describes competition as the core of the success or failure of firms. Productivity of written batik has declined in the past 5 years. From recent BPS data, processed by the Pusdatin Ministry of Industry 2017, the industry has declined by around 10% per year between 2012 and 2017. Type of Paper: Empirical. Keywords: Productivity; Innovation; Competitiveness; Batik; Small and Medium Enterprises. JEL Classification: M10, M11, M19.

scholarly journals Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Pengaruh Orientasi Kewirausahaan dan Kapasitas Inovasi terhadap Kesuksesan Proyek pada Bidang Fashion

2020 ◽  
Vol 2 (3) ◽  
pp. 690
Author(s):  
Fernando Gho Danny ◽  
Louis Utama
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Creative Industries ◽  
Partial Least Square ◽  
Least Square ◽  
Firm Level ◽  
Entrepreneurial Marketing ◽  
Medium Enterprises ◽  
The Relationship

Purpose – This paper examines the relationship between entrepreneurial orientation, innovation capacity, and firm performance in the creative industries context. Design/methodology/approach – The developed conceptual model is tested using partial least square ( PLS ) using a sample of 30 creative industries small medium enterprises owners. Findings – The result of the PLS model shows that both EO and IC act as a basis for improved business performance among small and medium enterprises. Based on the research findings, it can be argued that both EO and EO fully unlock their value-creating potential among small and medium enterprises. Originality/value – In addition to providing initial insight on the relationship between entrepreneurial action, innovative capacity, and performance with the creative industries, the paper also is one of the first on the creative industries to focus on firm-level strategy.Tujuan dari makalah ini adalah membahas hubungan antara orientasi kewirausahaan, kapasitas inovasi, dan kinerja perusahaan dalam konteks industri kreatif. Desain / metodologi / pendekatan - Model konseptual yang dikembangkan diuji menggunakan partial least square (PLS) menggunakan sampel 30 pemilik UKM industri kreatif. Temuan - Hasil model PLS menunjukkan bahwa baik EO dan IC bertindak sebagai dasar untuk meningkatkan kesuksesan proyek di antara usaha kecil dan menengah. Berdasarkan temuan penelitian, dapat dikatakan bahwa EO dan IC sepenuhnya membuka kunci potensi penciptaan nilai mereka di antara perusahaan kecil dan menengah. Orisinalitas / nilai – Dalam studi ini selain memberikan wawasan awal antar tindakan kewirausahaan, kapasitas inovaif dan kinerja dalam indsutri kreatif. Makalah ini juga merupakan salah satu yang pertama di industri kreatif untuk fokus pada tingkat perusahaan. Kata kunci: Entrepreneurial marketing, Innovation, Competitive Advantage, Creativity in Marketing, Entrepreneurial orientation.

scholarly journals Orientasi Kewirausahaan dalam Kinerja UMKM di Jember

2021 ◽  
Vol 9 (1) ◽  
pp. 54
Author(s):  
Enny Hindarwati ◽  
Agus Rahayu ◽  
Lili Adi Wibowo
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Study Population ◽  
Medium Enterprises

The entrepreneurial orientation that affects the performance of Micro, Small and Medium Enterprises (MSMEs) in Jember is a research objective. The study population was 172 micro, small and medium enterprises in Jember. This research uses 100 respondents with simple random sampling technique. The research respondents were the owners of the MSME as informants. Collecting data by distributing questionnaires to 100 respondents. The collected data were analyzed using Structural Equation Modeling (SEM) Partial Least Square (PLS) software. The results showed that the autonomous dimension had a significant effect on the performance of MSMEs, while the other dimensions of entrepreneurial orientation: innovation, proactivity and risk had no significant effect.

Sign in / Sign up

Export Citation Format

Share Document