scholarly journals The Role of Capability in Mediating Influences Business Orientation, Competence And Marketing Knowledge of Performance Small and Medium Business (UMKM)

Author(s):  
Ni Komang Widyari ◽  
Dan I Gede Sanica

This research was conducted based on differences in the focus of discussion about entrepreneurial orientation, competence, marketing knowledge. UMKM capability and performance. In addition, there are also research problems (research problems) about the decline in the development of the cake trade industry in Gianyar Regency in 2018. This research was conducted on MSME entrepreneurs in the cake trade industry in Gianyar Regency with a population and a sample of 55 MSMEs. All data obtained from the questionnaire distribution is feasible to use, then analyzed using PLS 3.0. The results of the study provide that entrepreneurial orientation has a positive and significant effect on capability, competence has a positive and significant effect on capability, marketing knowledge has a positive and significant effect on capability, entrepreneurial orientation has a positive and significant effect on MSME performance, competence has a positive and significant effect on MSME performance, marketing knowledge has a positive and significant effect on MSME performance, capability has a positive and significant effect on MSME performance, entrepreneurial orientation has a positive and significant effect on MSME performance with capabilities as a mediating variable, competence has a positive and significant effect on MSME performance with capabilities as a mediating variable, marketing knowledge a positive and significant effect on the performance of MSMEs with capabilities as a mediating variable. The implication of this research is that capability is able to mediate the variables of entrepreneurial orientation, competence, marketing knowledge on MSME performance.

2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.


2019 ◽  
Vol 13 (2) ◽  
pp. 247-262 ◽  
Author(s):  
Thomas Bilaliib Udimal ◽  
Zhuang Jincai ◽  
Isaac Akolgo Gumah

Purpose Social network and being a part of an established business network helps in the acquisition of resources. The purpose of this study specifically looked at the mechanisms through which network reliance (NR) influences the entrepreneurial performance (PERF) among rural farmer entrepreneurs in China. Design/methodology/approach The paper looks at the economic sociology perspective of social networks. A total of 450 rural farmer entrepreneurs were interviewed for the study. The study introduces emotional intelligence (EI) and entrepreneurial orientation (EO) into the relationship between NR, knowledge acquisition (KA) and entrepreneurial PERF. Findings The result shows that KA partially and positively mediates the relationship between NR and entrepreneurial PERF. EO is shown to moderate the relationship between KA and entrepreneurial PERF apart from its direct effect on entrepreneurial PERF. The EI of rural farmer entrepreneurs has a direct and significant effect on KA but does not moderate the relationship between NR and KA. Originality/value This study provides a new direction for extension education to rural farmer entrepreneurs. Knowledge building capacity programmes for rural farmer entrepreneurs should be an area of priority for extension education. Building the social capital and entrepreneurial capacities of rural farmer should be a new area of focus for policymakers. These measures will go a long to improving the capabilities of rural farmer entrepreneurs, which will, in turn, impact positively on their PERF.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.


2014 ◽  
Vol 12 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Lucía Garcés-Galdeano ◽  
Martín Larraza-Kintana ◽  
Carmen García-Olaverri ◽  
Marianna Makri

2014 ◽  
Vol 21 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Michael Abebe

Purpose – This study aims to contribute to the literature by addressing two research questions: is there a relationship between e-commerce adoption and performance of SMEs? And, more importantly, does the degree of entrepreneurial orientation moderate the relationship between e-commerce adoption and SME performance? Design/methodology/approach – Data were collected from a sample of 55 manufacturing and service SMEs located in the state of Texas, USA, between 2008 and 2009 using a structured questionnaire. Customized questionnaires were mailed out to the owner-managers of 55 SMEs. A moderated regression analysis was conducted to test the two hypotheses. Findings – The results suggest that e-commerce adoption has a significant, positive influence on SMEs' average sales growth rate and that adopters of e-commerce technology have significantly higher average sales growth rate than non-adopters. The results also indicate that e-commerce adoption positively affects SMEs' annual sales growth rate even more when the sample firms have higher level of entrepreneurial orientation. Overall, the results of this analysis indicate the importance of e-commerce adoption as well as SMEs' entrepreneurial orientation on the performance of SMEs. Research limitations/implications – The findings of this study can be useful for SMEs in general as a means of understanding how e-commerce adoption positively affects the firm's performance. Such a relationship suggests that e-commerce adoption is an important factor that can enhance firm's internal processes and ultimately performance. Therefore, e-commerce adopters should continue to utilize this technology while non-adopters should consider harnessing the potential of this technology to further streamline their operations and effectiveness. Originality/value – This study contributes to the literature by providing empirical evidence on the role of e-commerce adoption and entrepreneurial orientation in small firm performance.


2017 ◽  
Vol 27 (1) ◽  
pp. 231-249 ◽  
Author(s):  
Phyra Sok ◽  
Lan Snell ◽  
Wai Jin (Thomas) Lee ◽  
Keo Mony Sok

Purpose The literature establishes complex relationships between entrepreneurial orientation (EO) and performance, with mixed findings suggesting the variability of the magnitude of the relationship between the two. Some studies report a positive relationship, some negative, while some report an insignificant relationship between EO and performance. These conflicting findings suggest that the EO-performance relationship is more complex than a simple main-effects-only relationship. The literature offers two distinct approaches – integrating moderating or mediation variables in advancing the EO-performance relationship. The purpose of this paper is to extend current knowledge by examining underlying processes through which EO contributes to performance and the specific conditions under which this process is facilitated. Design/methodology/approach To test the hypotheses the authors chose small service firms in Australia. Industry representation included: accommodation and food services; health care services; rental, hiring and real estate services; transport, postal and warehousing; arts and recreation services; retail trade; construction and training services; and professional, scientific and technical services. The services sector offers a unique opportunity to analyze variances in entrepreneurial engagement and organizational outcomes given the competitive intensity within the service sector which requires firms to engage in venturing, renewal and innovation. The proposed hypotheses were tested through a hierarchical regression analysis. Findings This study finds the support for the mediation effect of marketing capability on the EO-performance relationship. Critically, this study also finds that marketing resources moderates on the indirect effect of EO on performance via marketing capability. The findings supporting both the mediation and moderation effects of marketing capability and marketing resources on the EO-performance relationship (moderated mediation model) suggests that greater insight into how EO influences small service firm performance can be achieved through considering in combination with other firm-level constructs (marketing capability and marketing resources in this study). Originality/value It addresses the call by prior studies to link the EO construct to theory by embedding marketing resources and marketing capabilities in the EO-performance relationship. Importantly, by accounting for both mediation and moderation effects the authors provide a more complete picture of the EO-performance relationship that highlights the mediating role of marketing capability and the moderating role of marketing resources. This approach helps to reconcile the critical but separate directions proposed by prior studies in advancing the EO-performance relationship.


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