scholarly journals Relationships between digital maturity, organizational agility, and firm performance: An empirical investigation on SMEs

2021 ◽  
Vol 9 (2) ◽  
pp. 486-502
Author(s):  
Büşra Alma Çallı ◽  
Levent Çallı

Digitalization has significant power to boost the performance of small and medium-sized enterprises (SMEs). Most scholars approached the phenomenon from different standpoints by examining the effects of information technology skills, digital skills, information systems capabilities, information and communication technologies (ICT) adoption, and digitalization on firm performance. However, although the terms are interrelated, the impact of digital maturity on SMEs' performance has been rarely investigated. Digital maturity examines the extent of digitalization and digital capabilities of organizations, which is essential in evaluating state-of-the-art organizations' digitalization efforts and providing a roadmap for further improvement. Although digitalization offers various benefits to organizations, its direct effect on the performance outcome is still arguable. Prior studies had revealed mixed findings when they assessed the impact of digital maturity on firm performance. Hence, some studies called for research for the examination of possible intervening variables. Consequently, this study examines the effects of digital maturity and organizational agility on firm performance. Furthermore, the moderating role of organizational agility in the digital maturity-firm performance link is also investigated. Data for testing the proposed model was collected from SMEs in the Marmara Region of Turkey using a convenience sampling technique. The structural equation modeling with partial least squares estimation (PLS-SEM) approach was used to analyze 119 responses collected from SMEs via face-to-face and online questionnaires. Eighty-two of the respondents identified themselves as entrepreneurs/partners. 13 respondents are senior executives, 14 are mid-level managers, 8 are white-collar employees, and two stated that they work in different positions than these. The findings show that organizational agility and digital maturity have a positive impact on firm performance. However, when the role of organizational agility is examined as a moderator, it is discovered that the factor reduces the effect of digital maturity on firm performance.

2020 ◽  
Vol 12 (16) ◽  
pp. 6537
Author(s):  
Jian Xue ◽  
Zeeshan Rasool ◽  
Aqsa Gillani ◽  
Ahmad Imran Khan

The current study suggests a different and innovative view by testing a unique combination of variables, which are unproven in a single model for the purpose of increasing the ratio of sustainable projects. The project manager can use the model to look their projects and can compose necessary changes for better outcomes. The study objects to postulate the competence breach of project managers with regard to sustainability, and to deliver direction that how to fulfill the research gap. The given work is centered on the result of project supervisor soft capabilities on project sustainability mediated by innovation. To achieve this aim, deductive approach was adopted. The sample size of the study was 242 respondents, and data were collected from software houses. The collected data were then analyzed by doing the structural equation modeling in PLS-SEM in order to examine the relationships. The outcomes demonstrate positive impact of project manager soft competences on project sustainability and mediating impact of innovation among the relationship of project manager soft competences and project sustainability. Innovation is directly linked to project sustainable development, and was accepted, which aligns with the previous studies. This research reflects the role of project manager soft competences on innovation and project sustainability. The study is unique in its scope and implications as the focus is upon empirical investigation of the project manager soft competences and project sustainability in the context of Pakistan.


2021 ◽  
Vol 9 (4) ◽  
pp. 843-853
Author(s):  
Linh Nguyen ◽  

This study aims to investigate the impact of innovation capability on cross-channel capability and the effect of cross-channel capability on firm performance of an organization. On the base of literature review, this study suggests a research hypothesis model, and uses quantitative research method to examine. Research data is collected from 201 Vietnamese retail enterprises. The Structural Equation Modeling (SEM) by Smart-PLS is used for data analysis. The research result indicates that there is a significant and positive impact of innovation capability on cross-channel capability. Besides that, the finding shows that cross-channel capability plays an important role in improving firm performance. Based on the findings, some recommendations are suggested to enhance firm performance by generating cross-channel capability and innovation capability of Vietnamese retailers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.


2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.


2021 ◽  
Vol 7 (13) ◽  
pp. 313-353
Author(s):  
Emine SEVER ◽  
Mahmut PAKSOY

The aim of this study is to determine the mediating effect of organizational agility on the impact of organizational culture on firm performance. Within the scope of the study, firstly, a conceptual framework about organizational culture, organizational agility and firm performance was created, and then the findings and results obtained from the survey application conducted within the scope of the research were included. The research sample consists of 140 company employees belonging to the Manufacturing, Service, IT, Retail and Agriculture sectors in the provinces of Istanbul, Ankara, Izmir, Tekirdağ, Kocaeli and Zonguldak. The survey data were collected by the online survey method using the non-coincidental convenience sampling method. Quantitative data analysis was applied in the research. The questionnaire form using a 5-point Likert scale consists of demographic questions and organizational culture, organizational agility and firm performance scales. In the study, in which structural equation modeling was preferred as a model, SPSS 25.0 and AMOS 22 package programs were used in the analysis of the data. Confirmatory factor analysis was checked for validity test and Cronbach's alpha values were checked for reliability. According to the findings of the study, organizational agility has a mediating effect on the effect of clan, adhocracy and hierarchy cultures on firm performance. However, the mediating effect of market culture could not be determined. In terms of demographic characteristics, significant differences were determined between perceptions of organizational culture, organizational agility and firm performance. Keywords: Organizational Culture, Organizational Agility, Firm Performance


2021 ◽  
pp. 227853372110019
Author(s):  
Md. Rahat Khan ◽  
Sudhir Rana ◽  
Md. Imran Hosen

The objective of this study is to find out the impact of trustworthiness on the usage of mobile banking (M-banking) apps in the capital city of Bangladesh. A structured questionnaire was distributed using the snowball sampling technique. Confirmatory factor analyses and structural equation modeling (using SPSS Statistics 20.0 and AMOS 26.0) were used on 362 responses found suitable for the study. The analytical results reveal that all three components of trustworthiness (ability, benevolence, and integrity) have a positive impact on M-banking app usage. Although banks have realized the importance of consumer convenience, they struggle to create trustworthiness. Thus, this study showcases that this positive trustworthiness amongst M-banking app users would be helpful in enhancing the usage of apps.


2021 ◽  
Vol 10 (1) ◽  
pp. 46
Author(s):  
Dewi Lestari ◽  
Perengki Susanto

The purpose of this study is to examine the impact of entrepreneurial orientation and marketing capabilities on the performance of small and medium-sized enterprises (SMEs), as well as how dynamic environmental factors moderate these relationships. The population was all managers or owners of SMES in Padang City. The sampling technique used a non-probability approach, namely the purposive sampling. In the data analysis, 190 samples (response rate 84,44%) were used as a sample size. The Smart-PLS software is used in this study to perform variance-based structural equation modeling (VB-SEM). The findings show that (i) entrepreneurial orientation has a positive and significant effect on SME performance, (ii) marketing capabilities have a positive and significant effect on SME performance, and (iii) In these relationships, the role of dynamic environmental factors as a moderator is not supported. The managerial implications will be discussed laterKeywords: Entrepreneurial orientation; marketing capabilities; dynamic environmental factors; performance; SMEs. 


2021 ◽  
Vol 15 (2) ◽  
pp. 176-190
Author(s):  
Ramesh Kumar ◽  
Waqar Akbar ◽  
Naveed R. Khan

This study aims to examine the impact of hierarchical plateau on turnover intention with moderating role of person job-fit facet. Hierarchical plateau is a point of an individual's career life where the probability of being promoted further is low. The theory of work adjustment (TWA) is applied in this research study which measures that satisfaction level of an employee and leaving a company when needs and desired system of the person and the organization system mismatched at the workplace. Overall 260 employees participated by filling the self-administrated questionnaires from three different industrial sectors of Karachi, Pakistan including banking sector, pharmaceutical and insurance employees but result of completely and accurately filled questionnaires of 223 employees were tested. The results are generated through using Structural Equation Modeling (PLS-SEM) technique. The results show that hierarchical plateau has positive impact on turnover intention. However, moderating role of person job fit facet (neither demand abilities nor need supplies) moderates' relationship between independent and dependent variable. This study provides a model to management leaders and practitioners who can extremely look into this growing issue not only in Pakistan but worldwide. Certain actions need to be implemented by management to foster a positive attitude towards turnover intention through proper recruitments, development strategies and career training programs over the span of time. Furthermore, the study also provides the guidelines to HR departments to design the policies to resolve hierarchical plateau issues in their organization.


Author(s):  
Alvina Gillani ◽  
Smirti Kutaula ◽  
Leonidas C. Leonidou ◽  
Paul Christodoulides

Abstract The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shadi Ahmadi ◽  
Mohammad Javad Ershadi

PurposeThe current extensive business ecosystem, characterized by technological advances and development, impressive customers, and increasing social concerns, has exerted great pressure on business organizations. Among different business values for affording this pressure, organizational agility is a critical factor that should be carefully incorporated in business processes. The main purpose of the present study is to investigate the role of social networking technology, as a crucial collaborative tool, on organizational agility.Design/methodology/approachA model based on structural equations was designed in this regard. The constructs of this model are quality of service, varieties of services, costs and speed of service as independent variables and also agility management as a dependent variable. Based on the conceptual model, a questionnaire was prepared and distributed among the experts of social networking technology and agility management. Based on Cochran's formula the sample size was 384. The response rate was 100%. The main statistical measures such as Chi-square ratio to the degree of freedom, Non-soft Fitness Index (RMSEA), Goodness of Fit Index (GFI) and Modified fitness index (AGFI) were employed for analyzing the model.FindingsResults of obtained data indicated that a variety of services as the main factor of social networking technology has the most impact on the agility of a company. Then, the speed of service, service quality and costs were ranked respectively in second to fourth. Providing information technology (IT) service perceptions, promoting the service climate and thorough identification of IT requirements are the main critical success factors for maintaining a robust impact of social networking technology on organizational agility. Moreover, a well-designed enterprise structure alongside employing newly developed IT infrastructures such as cloud computing certainly improves the capabilities of organizations to improve their agility.Originality/valueAlthough the literature suggests a positive impact among IT or social networks on organizational agility, it is deficient in relation to considering the impact of social networking. Furthermore, a structural equation model (SEM) is used for assessing unobservable latent constructs and their related interrelationship.


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