scholarly journals Strategic Innovation and Competitive Advantage of Manufacturing SMEs: The Mediating Role of Human Capital

2020 ◽  
Vol 24 (3) ◽  
pp. 70
Author(s):  
Nagwan Abdulwahab AlQershi ◽  
Mohd Lizam Bin Mohd Diah ◽  
Aryani Binti Ahmed Latiffi ◽  
Wan Nurul Karimah Wan Ahmad

<p><strong>Purpose:</strong> The purpose of this paper is to examine the mediating effect of human capital on the relation between the strategic innovation and competitive advantage of SMEs in Yemen.</p><p><strong>Methodology/Approach:</strong> The PLS-SEM analysis is performed to test the hypotheses by using data collected from 238 SMEs in Yemen. The results support the hypotheses.</p><p><strong>Findings:</strong> The results of the PLS-SEM analysis are as follows: strategic innovation had a significant effects on SMEs’ competitive advantage; also human capital had a significant effects on SMEs’ competitive advantage; human capital mediated the effect of strategic innovation on competitive advantage; and strategic innovation had a positive and significant effect on human capital.</p><p><strong>Research Limitation/Implication:</strong> The population of the study was limited to manufacturing SMEs, so the results cannot be generalized to other types of industry such as services, whose structure and vision differ from those of manufacturing companies.</p><strong>Originality/Value of paper:</strong> The paper is one of the first to highlight human capital as a mediator between strategic innovation and competitive advantage of manufacturing SMEs in Yemen and the Middle East, describing a single study applied in the context of a developing country.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.


2017 ◽  
Vol 8 (2) ◽  
pp. 73 ◽  
Author(s):  
Hui Lei ◽  
Phong Ba Le ◽  
Hanh Thi Hong Nguyen

The paper aims to clarify the influences of collaborative culture and specific aspects of organizational learning on competitive advantage. Structural equations modeling (SEM) is applied to test degree of influence of each variable has on each other through using data collected from 298 participants at 150 large manufacturing and service firms. The result shows that organizational learning act as mediating roles in the relationship between collaborative culture and competitive advantage. Our results indicate that collaborative culture practices will yield significant effects to competitive advantage directly or indirectly through improving specifics aspects of organizational learning. The findings of this study provide a theoretical basis, which can be used to analyze relationships between collaborative culture, specifics aspects of organizational learning and competitive advantage. From a practical perspective, the study brings more deeply understanding for CEOs/managers about the necessary factors to encourage and promote firm’s competitive advantage.


2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.


Author(s):  
Ting-Ting Rao ◽  
Shen-Long Yang ◽  
Xiaowen Zhu

The COVID-19 pandemic is profoundly affecting the minds and behaviors of people worldwide. This study investigated the differences in the need for structure among people from different social classes and the psychological mechanisms underlying this need, as well as the moderating effect of the threat posed by the pandemic. Using data collected from non-student adults in China, we found that the lower an individual’s social class, the lower their need for structure, and this effect was based on the mediating role of perceived control. However, the mediating effect was moderated by pandemic threat, and the above relationship existed only when this threat was low. When the level of pandemic threat was higher, neither the effect of social class nor of perceived control on the need for structure were significant. Specifically, in higher-threat situations, the need for structure among individuals from higher social classes and who had a higher sense of control increased significantly, meaning the mediating effect was no longer significant. This finding showed that under the threat of a pandemic, individuals who have a lower need for structure will still pursue and prefer structure and order. The theoretical and practical implications of the research are also discussed.


Author(s):  
Theresia Woro Damayanti ◽  
Ronny Prabowo ◽  
Usil Sis Sucahyo ◽  
Supramono Supramano

The article describes a new idea: the effect of top managers’ gender on tax compliance that is mediated by perceived tax burdens. This study also analyses the impact of perceived tax burdens on tax compliance as moderated by perceived corruption practices. Using data from the World Bank’s survey on 6,533 firms in the Association of Southeast Asian Nations countries and analyzing the data using a multiple regression analysis and Haye’s bootstrapping, the results confirm the mediating effect of perceived tax burdens on the effect of gender on tax compliance. The study also empirically shows that corruption strengthens the negative impact of perceived tax burdens on tax compliance. The contribution of this study is twofold. First, we fill in the research gap on the mediating role of perceived tax burdens and the moderating role of perceived corruption practices in the tax compliance context. Second, this study informs policymakers that they need to balance their gender equality policies with serious efforts to instill awareness on tax obligations and support anti-corruption institutions to prevent and crack down on corruption cases.


2021 ◽  
pp. 1003-1012 ◽  
Author(s):  
Nagwan AlQershi

Strategists have unique skills and abilities to connect the past and the present in order to predict what might happen in the future. The current study is the culmination of a number of research ideas in the field of Strategic Thinking (ST), Strategic Planning (SP) and Strategic Innovation (SI) in relation of Human Capital (HC). The survey method was used to collect data from 235 SMEs in the manufacturing industry of Yemen. Results indicate that ST, SP and SI have a significant effect on HC. The mediating effects of HC on the relationship between ST, SP and SI and SMEs’ performance were also examined. Results indicate that HC mediates the relationship between ST, SP and SI and firm performance. The findings of this study offer important insights for managers of SMEs, researchers and policymakers to further understand the effects of ST, SP SI, HC and SMEs’ performance. SMEs should also be encouraged to develop their ST, SP, SI and HC to improve their performance. Finally, this study serves not only to clarify the mechanism between HC and SMEs’ performance, but also to generalize the ST, SP and SI results in the Yemen and Middle East context.


2019 ◽  
Vol 8 (3) ◽  
Author(s):  
Baiq Ayu Ningsih ◽  
Surati Surati ◽  
Siti Nurmayanti

This study examined the effect of spiritual intelligence and organizational commitment on job satisfaction and OCB on Non-PNS Leading Sector Assistant III East Lombok Regency employees. Specifically the purpose of this study was to determine the significance of the influence of spiritual intelligence, organizational commitment and job satisfaction on OCB, determine the significance of the influence of spiritual intelligence and organizational commitment on job satisfaction, and find out the mediating role of the variable job satisfaction. The population of this study were all Non-PNS employees who served in the Leading Sector Assistant III of East Lombok Regency as many as 98 respondents. This study uses structural equation model analysis (SEM analysis) with smartPLS applications. The results showed that spiritual intelligence and organizational commitment had a significant positive effect on job satisfaction, job satisfaction had a significant effect on OCB, while spiritual intelligence and organizational commitment did not significantly influence OCB. For the mediating effect of job satisfaction, there is a full mediation role in the significant influence of organizational commitment on OCB, whereas the influence of spiritual intelligence on OCB has not found a significant mediating effect of the variable job satisfaction.Keywords:Spiritual Intelligence, Organizational Commitment, Job Satisfaction, OCB.


2019 ◽  
Vol 15 (8) ◽  
pp. 1
Author(s):  
Mohamed Ismail Mujahid Hilal ◽  
Selvaratnam Gunapalan

The major objective of this study was to examine the impact of drivers of impulse buying on the customers’ loyalty and to assess the mediating effect of customers’ loyalty to the impulse buying at the retail stores. In order to meet the objective, a questionnaire survey was conducted among 529 customers of retail stores. SMARTPLS3 was used to analyze the data collected from the survey. Findings suggest that CSR, store attractiveness and trust positively contribute to create loyalty of retailers and it positively impact on impulse buying at stores. The model tested in this study was significant and can be used by retailers to enjoy competitive advantage. Further, it was found that loyalty is mediating between these drivers of impulse buying and impulse buying. While loyalty positively mediating between all variables, loyalty negatively mediates between commitment and impulse buying. The model tested in this study is significant and useful for retailers to create loyalty and trigger impulse buying enabling to achieve competitive advantage in retailing. When retailers adopt this model in their business, retailers can establish loyalty and generate impulse buying. Therefore, retailers need to build up trust among customers, engaging in CSR activities, keeping their stores very attractive and having long term relationship to create commitment with customers.


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