scholarly journals Moderating Effect of Dynamic Capabilities on the Relationship between Entrepreneurial Orientation and Business Performance of Small and Medium Enterprises.

2018 ◽  
Vol 6 (5) ◽  
Author(s):  
Joan Bii ◽  
Robert Onyango
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Performance Metrics ◽  
Empirical Studies ◽  
Business Environment ◽  
Moderating Effect ◽  
Common View ◽  
The Relationship

This paper reviewed past literature with the aim of establishing the trends in published literature on dynamic capabilities, entrepreneurial orientation (EO) and business performance of Small and Medium Enterprise’s (SMEs). Based on this review the relationship between dynamic capabilities, entrepreneurial orientation and business performance of SMEs is hinged on Schumpeter theory of innovations, (Schumpeter, 1942) and dynamic capability theory by Teeceet al (1997). Scholars have a common view that the association between EO and business performance is too complex hence moderated by variables. Dynamic capabilities (DC) have a moderating role between predictors of competitive advantage and business performance. The literature reviewed therefore presents the empirical studies globally and locally on moderation of dynamic capabilities on EO and business performance of SMEs. From the review it has been established that there are inconsistent findings in terms of relationships between DCs, EO and performance of SMEs which is justified by the fact that DCs, EO dimensions vary independently and may not be equally valuable across performance metrics or different stages of development of SMEs, besides different situations impacts on the relationship between DCs, EO and business performance of SMEs. In addition there is a dearth of literature on the moderating effect of dynamic capabilities on the relationship between EO and business performance thus calling for further interrogation in the context of developing countries. In conclusion there are mixed results in the linkage between EO and business performance, however effective integration and implementation of EO and DC would help the organization secure competitive advantage in the face of dynamic business environment to foster high business performance.

scholarly journals Manager’s Age, Sustainable Entrepreneurial Orientation and Sustainable Performance: A Conceptual Outlook

2020 ◽  
Vol 12 (8) ◽  
pp. 3196
Author(s):  
Farah Ameer ◽  
Naveed R. Khan
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Local Community ◽  
Holistic Approach ◽  
Capabilities Approach ◽  
Sustainable Business ◽  
Sustainable Performance ◽  
The Relationship

Scholars have investigated the direct linkage between manager’s age and sustainable corporate performance, however, the mixed results and conflicting findings on the nature of the relationship demand further explanation through the missing constructs. Therefore, the purpose of this paper is to examine the mediating role of sustainable entrepreneurial orientation in the manager’s age and sustainable performance. This study develops a conceptual link by using a dynamic capabilities approach and upper echelon perspective, indicating that younger managers can adopt a more holistic approach towards sustainable practices which can enhance the environmental, social and economic performance of firms. This implies that the relationship between manager’s age and sustainable performance can be explained through sustainable entrepreneurial orientation (SEO) which can play a key role in setting organizational direction towards sustainable development and achieving sustainable business performance. This study contributes to the literature by examining the role of SEO in the relationship between the manager’s age and sustainable performance. This research will help practitioners recognize the importance of minimizing environmental and social problems generating due to organizational production activities. This will lead to profit generation as well as value creation for nature and the local community.

scholarly journals Determinants of small business performance in a selected region in South Africa: the role of entrepreneurial orientation and competitive advantage

2021 ◽  
Vol 18 (1) ◽  
pp. 1-20
Author(s):  
S.S. Mtshali ◽  
◽  
WT Chinyamurindi ◽  
Keyword(s):  
South Africa ◽  
Small Business ◽  
Competitive Advantage ◽  
Failure Rate ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Business Performance ◽  
Mediating Effect ◽  
Managerial Implication ◽  
The Relationship

Background: Small businesses in South Africa are an important engine for economic growth. However, the failure rate amongst such businesses remains high. Purpose of study: There is an increasing need for research that explores how small business performs especially on the African continent noted to have a high failure rate of enterprises. The aim of the study was two-fold. Firstly, to ascertain the relationship between entrepreneurial orientation and business performance. Secondly, the study sought to ascertain the mediating effect of competitive advantage on the relationship between entrepreneurial orientation and performance. Design/Methodology/Approach: The study adopted a positivist approach utilising the quantitative methodology to survey a sample of 177 small business owners/managers. Results/Findings: The findings show the existence of a positive and significant relationship between entrepreneurial orientation and business performance. Further, the findings also show that competitive advantage mediates the relationship between entrepreneurial orientation and business performance. Recommendations: Based on these findings, interventions are proposed that relate to how business performance can be improved within an African small business context. Managerial implication: In addressing the failure rate challenge faced by small businesses, the study encourages continued quests and interventions that promote competitive advantage and entrepreneurial capability development.

scholarly journals The Relations between Dynamic Capabilities and Core Competencies on the Case of Polish Companies

2020 ◽  
Vol 10 (3) ◽  
pp. 48
Author(s):  
Paweł Cegliński
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Core Competencies ◽  
Business Environment ◽  
Future Research ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
End Products ◽  
The Impact ◽  
The Relationship

This article deals with the relationship between dynamic capabilities and core competencies of companies. Both categories extend the resource-based view of the firm. They are difficult to work out, but thanks to their durability and universality they enable to achieve a sustainable competitive advantage. Due to intensive changes in the business environment and increasing difficulty in forecasting them, the importance of adaptability based on both categories increases. The presented results of the research of two leading Polish companies—Panek S.A. and Cukiernia Sowa—are practical examples of the impact of dynamic capabilities on the creation of core competencies and indirectly core and end products and services. The analysis is the basis for improvement of future research.

scholarly journals Managing Knowledge, Dynamic Capabilities, Innovative Performance, and Creating Sustainable Competitive Advantage in Family Companies: A Case Study of a Family Company in Indonesia

2020 ◽  
Vol 6 (3) ◽  
pp. 90 ◽  
Author(s):  
Sugiarto Koentjoro ◽  
Sri Gunawan
Keyword(s):  
Competitive Advantage ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Single Case ◽  
Business Management ◽  
Sustainable Competitive Advantage ◽  
Innovative Performance ◽  
New Ideas ◽  
The Relationship

Family businesses often face significant challenges while trying to develop and increase their sustainability throughout generations. This is often due to their inability to properly manage the knowledge required to develop their resources to increase sustainability. Therefore, this study examines the relationship between processes of managing knowledge, dynamic capabilities, and innovative performance in an Indonesian family company in order to improve business performance. This is qualitative research with a single case study used to obtain data from nineparticipants in an Indonesian family company (“Ardiles”) that focuses on footwear. The findings showed that a family company that mobilizes knowledge can improve its members’ dynamic capabilities for proper business management and growth. Furthermore, the frequent process of mobilizing knowledge improves family members’ dynamic capabilities to create new ideas. This creative process helps to improve its innovative performance, thereby creating a sustainable competitive advantage among family companies.

scholarly journals The effect of socioemotional wealth on the relationship between entrepreneurial orientation and family business performance

2020 ◽  
Vol 23 (3) ◽  
pp. 174-192
Author(s):  
Remedios Hernández-Linares ◽  
Franz W Kellermanns ◽  
María Concepción López-Fernández ◽  
Soumodip Sarkar
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Firms ◽  
Jel Classification ◽  
Moderating Effect ◽  
Socioemotional Wealth ◽  
Competitive Aggressiveness ◽  
The Relationship

This study examines how five key entrepreneurial orientation (EO) dimensions—risk taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy—affect family business performance, as well as the moderating effect of socioemotional wealth (SEW) on these relationships. The findings, based on a sample of 609 Spanish and Portuguese family firms, reveal that not all EO dimensions are equally important for performance, as only proactiveness, competitive aggressiveness, and autonomy were significant. However, we also find that the EO–performance relationship is affected by concern for SEW preservation, as our SEW measure moderates risk taking positively and innovativeness negatively. JEL CLASSIFICATION: L20; L26; M10

scholarly journals MEMAHAMI KINERJA STARTUP : STUDI PADA STARTUP DI JAWA BARAT

AdBispreneur ◽  
2021 ◽  
Vol 5 (3) ◽  
pp. 297
Author(s):  
Sunu Puguh Hayu Triono ◽  
Adryan Rachman
Keyword(s):  
Absorptive Capacity ◽  
Business Intelligence ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Positive Association ◽  
Data Utilization ◽  
Innovation Activities ◽  
Use Of Data ◽  
The Relationship

One characteristics of startups compared to conventional MSMEs is the use of data. Utilization of data starts from business intelligence & analytics. The knowledge generated together with other dynamic capabilities will support each other in creating value to improve startup business performance. The purpose of this study was to determine the relationship between business intelligence & analytics, absorptive capacity, innovation ambiance, and entrepreneurial orientation towards startup business performance.Data obtained by survey distributed by email to 194 startups in West Java. PLS-SEM was used to estimate model in this study. We propose and test a model that integrates the domains of dynamic capability, knowledge management, and entrepreneurship. The main findings show that the use of BI&A has a positive association with the ability to balance competitive innovation activities, supported by entrepreneurial orientation, in turn improving startup performance.This study integrates insights gained from the application of IT value creation and dynamic capabilities perspectives to explain how the use of BI&A is associated with the ambidexterity of innovation and business performance and through entrepreneurial orientation. Salah satu ciri startup dibandingkan UMKM konvensional adalah penggunaan data. Pemanfaatan data dimulai dari business intelligence & analytics. Pengetahuan yang dihasilkan bersama dengan kapabilitas dinamis lainnya akan saling mendukung dalam menciptakan nilai guna meningkatkan kinerja bisnis startup. Tujuan dari penelitian ini adalah untuk mengetahui hubungan antara business intelligence & analytics, absorptive capacity, innovation ambidexterity, dan entrepreneurial orientation terhadap kinerja bisnis startup. Data didapatkan dari survei yang disebarkan melalui email kepada 194 startup di Jawa Barat. PLS-SEM digunakan untuk mengestimasi model dalam penelitian ini. Kami menguji model yang mengintegrasikan domain dynamic capabilities, manajemen pengetahuan, dan kewirausahaan. Temuan utama menunjukkan bahwa penggunaan BI&A memiliki hubungan positif dengan kemampuan mengimbangi aktivitas inovasi kompetitif, didukung oleh orientasi kewirausahaan, yang pada gilirannya meningkatkan kinerja startup. Studi ini mengintegrasikan wawasan yang diperoleh dari penerapan perspektif penciptaan nilai TI dan kapabilitas dinamis untuk menjelaskan bagaimana penggunaan BI&A dikaitkan dengan innovation ambidexterity dan kinerja bisnis dan melalui orientasi kewirausahaan. 

scholarly journals Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance

2018 ◽  
Vol 9 (4) ◽  
Author(s):  
Kayhan Tajeddini ◽  
Stephen Mueller
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Empirical Studies ◽  
Dynamic Environment ◽  
Moderating Effect ◽  
And Performance ◽  
Performance Results ◽  
Financial Firm ◽  
The Relationship

Abstract The relationship between entrepreneurial orientation and firm performance has been the focus of numerous empirical studies over the past decade. The conclusions and findings reported are diverse and often conflicting. One possible explanation for mixed findings is that past studies do not take into account the dynamic nature of the industry environment. Using a sample of 192 Swiss firms from several different industries, this study examines the direct effect of entrepreneurial orientation on financial firm performance along with the moderating effect of a dynamic environment on the relationship between entrepreneurial orientation and performance. Results of this study suggest that for firms competing in a highly dynamic environment, the positive effect of an entrepreneurial orientation on financial performance is enhanced.

scholarly journals The Role of Employee Behaviour and Organizational Structure in the Relationship Between Strategic Planning and Competitive Advantage of Large Manufacturing Firms in Kenya

2019 ◽  
Vol 10 (3) ◽  
pp. 1
Author(s):  
Jackson K. Maingi ◽  
Zachary B. Awino ◽  
Peter O. K’Obonyo ◽  
Ganesh P. Pokhariyal
Keyword(s):  
Strategic Planning ◽  
Organizational Structure ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Cross Sectional Survey ◽  
Design Data ◽  
Cross Sectional ◽  
The Relationship

Several studies have been carried out in the past to find out how strategic planning and competitive advantage are connected and the causes of differences in competitive advantage among firms. Scholars have argued that competitive advantage can emanate from either internal or external sources and is usually in several forms which include; valuable resources, the position held within the industry, position within the marketplace, operating at lower costs than rival firms, differentiation, capabilities and dynamic capabilities. This study sought to advance knowledge and was based on the premise that strategic planning influences competitive advantage both directly and also indirectly by way of the mediating influence of employee behaviour and the moderating effect of organizational structure. The study was underpinned by the competitive advantage typology/theory, the resource-based theory, dynamic capabilities theory, goal-setting theory and contingency theory. The study used a positivist research paradigm and a cross-sectional survey design. Data collected from 122 large manufacturing firms was analyzed using both descriptive and inferential statistics. Hypotheses were tested using both simple and multivariate regression analysis as well as hierarchical analysis for mediating and moderating effects. The findings indicate that overall strategic planning has a statistically significant influence on competitive advantage and that employee behaviour completely mediates the relationship between strategic planning and competitive advantage while organizational structure has a partial moderating effect between strategic planning and competitive advantage. In addition, the joint influence of employee behaviour and organizational structure is different from the influence of individual variables on the relationship between strategic planning and competitive advantage. The outcomes from this research lend support to previous enquiries and support all the theories used to underpin the study.

scholarly journals The Effects of External and Internal Factors on Competitive Advantage—Moderation of Market Dynamism and Mediation of Customer Relationship Building

2021 ◽  
Vol 13 (7) ◽  
pp. 4066
Author(s):  
Romina Cheraghalizadeh ◽  
Hossein Olya ◽  
Mustafa Tumer
Keyword(s):  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Capabilities Approach ◽  
Relationship Building ◽  
Customer Relationship ◽  
Mediation Effect ◽  
Organizational Capabilities ◽  
Validity And Reliability ◽  
Internal And External Factors ◽  
The Relationship

Using a resource-based view and dynamic capabilities approach, this study investigates both the internal and external factors influencing competitive advantage in the hotel industry. For this purpose, we examine how organizational capabilities may lead to customer relationship building and in turn to competitive advantage. We further test the moderation role of market dynamism on the relationship between organizational capabilities and customer relationship building, and also investigate the mediation effect of customer relationship building on the association between organizational capabilities and competitive advantage. A questionnaire-based study was conducted among hotel employees in Northern Cyprus to test the conceptual model. A set of approaches was applied to detect common method bias and test the validity and reliability of the questionnaire. Correlation and regression analyses were conducted to evaluate the relationships between the variables, and bootstrapping analysis was applied to assess the mediation and moderation effects. The results revealed that organizational capabilities enhance customer relationship building and competitive advantage. Market dynamism as an external factor moderates the relationship between organizational capabilities and customer relationship building. There is also an indirect association between organizational capabilities and competitive advantage through the mediation of customer relationship building. The theoretical and practical implications of the findings are discussed.

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