scholarly journals The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities

2019 ◽  
Vol 11 (11) ◽  
pp. 3006 ◽  
Author(s):  
Jaffar Abbas ◽  
Saqlain Raza ◽  
Mohammad Nurunnabi ◽  
Mohd Sobri Minai ◽  
Shaher Bano
Keyword(s):  
Small Firms ◽  
Dynamic Capabilities ◽  
Surgical Instruments ◽  
Entrepreneurial Firms ◽  
Business Networks ◽  
Business Relationships ◽  
Business Network ◽  
Sustainable Performance ◽  
The Impact ◽  
The Relationship

This precise study is the first to perform a focalized investigation on the relationship between entrepreneurial business networks and sustainable performance of small firms. The entrepreneurial business network is a multifaceted business network of business firms, working together to achieve business objectives. Business relationships and firm aggregations are the main categories of entrepreneurial business networks, which help small and medium-sized enterprises to become more dynamic, innovative and competitive. The entrepreneurial business network is a networking, which provides a platform to build business relationships, identify, develop or act upon economic opportunities, share information and seek potential business partners for ventures. However, few studies have sought to understand the association of entrepreneurial business network (EBN) and firms’ sustainable performance in the context of Pakistan. This investigation aims to examine the relationship between EBN and small firms’ sustainable performance by applying the Smart PLS-SEM software V-3.2.8. This study explores how dynamic capabilities mediate the relationship between entrepreneurial business network and sustainable performance of small firms. The data received reports on small firms, manufacturing surgical instruments. The findings indicated that the entrepreneurial business network had a significant positive relationship with dynamic capabilities, which in turn presented a positive relation to a sustainable performance of small firms. By developing sustainable EBN, small firms can achieve sustainable performance by implementing dynamic capabilities in a competitive environment. The results affirmed that highly entrepreneurial firms showed a tendency to create a business network for achieving sustainable performance. The results also revealed that firms using business networks and dynamic capabilities efficiently; achieved their sustainable performance. The findings indicated that the study proposed a holistic and systematic model to achieve sustainable performance through firms’ dynamic capabilities. The generalizability of these findings provides useful insight and direction for future studies in Pakistan.

The impact of horizontal and vertical connections on relationships' commitment and trust

2005 ◽  
Vol 20 (3) ◽  
pp. 136-147 ◽  
Author(s):  
Amjad Hadjikhani ◽  
Peter Thilenius
Keyword(s):  
Design Methodology ◽  
Dyadic Interaction ◽  
Business Networks ◽  
Business Network ◽  
Content Type ◽  
Horizontal Connections ◽  
The Impact ◽  
The Relationship ◽  
Lisrel Model

PurposeWhile an ever‐increasing body of research on business networks has commented on vertically connected relationships, this study embeds the horizontally connected relationships. Constructed on business network theories the paper aims to add more knowledge on business networks by developing a connection model including both vertical and horizontal connections. The model aims to explore the impact of connections on focal business relationships. It differentiates connected relationships on the basis of their vertical and horizontal natures. The purpose is to grasp the impact of these different connected relationships on the focal business relationship. The focal relationship elements are defined by commitment and trust, which capture their properties from the dyadic interaction and the two types of connected relationships.Design/methodology/approachThe paper tests the theoretical construction empirically. The empirical study is based on the IMP2 survey, utilizing information from extensive interviews with 138 firms regarding their relationships with important foreign customers.FindingsThe statistical findings in the form of a LISREL‐model clearly expose the impact of the horizontal connections and verify the validity of the theoretical model. It depicts that trust increase by vertical connections leading to increased commitment, thus strengthening the relationship while horizontal connection, on the contrary, weakens it. The facts also demonstrate how the horizontal connections impose effects on technological long‐term investments.Originality/valueMarketing researchers advocating certain theoretical views are thereby required to observe respect for the market realities with which managers are confronted.

scholarly journals The impact of effectuation on small firm buying decisions

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 444-459 ◽  
Author(s):  
Phillip McGowan
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Personal Selling ◽  
Business Networks ◽  
Content Type ◽  
Research Findings ◽  
Entrepreneurial Decision ◽  
Interaction Approach ◽  
The Impact ◽  
Relationship Decisions

Purpose The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers. Design/methodology/approach Literature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised. Findings This paper presents a conceptual model based on propositions relating to how effectuation logic may explain the predilection of small firm owner-managers to select trusted suppliers from within personal and business networks, and to engage on flexible terms. It suggests that supplier relationship decisions made using effectuation logic may enable wider choice of suppliers than the formal processes of large firms. Research limitations/implications The findings were developed from a narrative review of literature and are yet to be empirically tested. Originality/value By synthesising research findings on small firm buyer behaviour, the IMP interaction approach and effectuation, it has been possible to develop a predictive model representing buyer–seller relationships in the context of small firms which suggests that owner-managers select suppliers in line with the principles of effectuation means and effectuation affordable loss.

scholarly journals Perspectives of Entrepreneurial Orientation with the Quality of Life

2011 ◽  
Vol 3 (6) ◽  
pp. 388-394
Author(s):  
Salima Hafeez ◽  
Rashid Mehmood Chaudhry . ◽  
Muhammad Aslam Khan . ◽  
H.Mushtaq Ahmad . ◽  
Kashif Ur Rehman .
Keyword(s):  
Quality Of Life ◽  
Entrepreneurial Orientation ◽  
Third World ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Well Being ◽  
Entrepreneurial Firms ◽  
The Third World ◽  
The Impact

The characteristics of entrepreneurial orientation is played important role in business. How do an entrepreneurial firms and individuals have taken the advantage in industry? This study explores the dynamic capabilities of the organization according to international performance. Our findings indicates the positive impact on dynamic capabilities of the business with perfectly use of this research framework. The main aspect of this paper is to analyse the impact of entrepreneurial orientation with the quality of life. Distinctive features of entrepreneurs and their contribution to the economy can make it possible for third world countries to grow their economies faster and provide financial means to enhance social, health, and environmental well-being (basic dimensions of quality of life), along with products and services that the poor need in these countries. Entrepreneurial orientation combined with organization learning and Quality of life (QOL) are enhanced the dynamic capability of the organization. Present conceptual research will provide the source of competitive advantage and mainstream line for further development of the business .We suggest that existing literature reconfiguring the different approaches for the entrepreneurial to capture the opportunities in world business. First, quality of life cannot possibly improve in inactive or weakening economic conditions; second, economic development in the third world countries cannot advance in a balanced and desirable manner without a major domestic entrepreneurship movement (Samli 2004, 2008a).

Aspiration, foreignness liability and market potential

2018 ◽  
Vol 35 (6) ◽  
pp. 1009-1032
Author(s):  
Lee Li ◽  
Gongming Qian ◽  
Zhengming Qian ◽  
Irene R.R. Lu
Keyword(s):  
Performance Feedback ◽  
Small Firms ◽  
Theory Of The Firm ◽  
Market Potential ◽  
Content Type ◽  
Country Market ◽  
International Behavior ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

PurposeUsing behavioral theory of the firm, the purpose of this paper is to examine how a small firm’s performance relative to historical and social aspirations is related to its international entrepreneurial orientation (IEO). This study also explores two environmental factors, liability of foreignness (LoF) and host-country market potential (HMP), as the moderators for the relationship of performance and IEO.Design/methodology/approachThis study uses survey for data collection from Canadian small firms and employs regression models for data analysis.FindingsThe results show that small firms demonstrate stronger IEO when their performance is below aspirations, but their IEO diminishes when their performance exceeds aspirations. The authors also found that a small firm’s LoF does not moderate the impact of its performance feedback on IEO. However, the authors found HMP plays a moderating role when a small firm’s performance is below aspirations.Originality/valueThis study investigates the relationship of IEO to aspiration and found that this relationship is moderated by HMP. The study advances our knowledge on small firms’ international behavior.

The Impact Of Power And Relationship Quality On Value Creation and Appropriation in Buyer–Supplier Relationships

2019 ◽  
Vol 17 (1) ◽  
pp. 47-80 ◽  
Author(s):  
Saâd Mdarhri Alaoui ◽  
Amine Noureddine
Keyword(s):  
Relationship Quality ◽  
Social Exchange ◽  
Value Creation ◽  
Business Relationships ◽  
Empirical Reality ◽  
Supplier Relationships ◽  
Main Driver ◽  
Partner Satisfaction ◽  
The Impact ◽  
The Relationship

Abstract Business relationships provide the means to create and appropriate superior value in business markets. However, despite the proliferation of research on the phenomenon, many questions remain unaddressed. Previous work focused almost exclusively on value after its creation and its sharing between the two exchange partners. Consequently, the appropriation of value as well as its interaction with value creation remains relatively unknown. Similarly, a few studies have examined the role of relational variables and power asymmetry in customer–supplier exchange relationships. To fill this gap, this study aims to examine the influence of relationship quality and power on value creation and appropriation and ultimately, on satisfaction and relationship continuity. Based on the theory of social exchange, this study proposes a conceptual model, which positions value creation and appropriation as central variables in the nomological network of business relationships. A quantitative study of 174 suppliers was carried out in order to compare the theoretical model with the empirical reality. The results obtained show that the relationship quality promotes greater value creation and appropriation in ongoing business relationships. As for power, its influence differs depending on how it is exercised within the relationship. Moreover, the appropriation of value remains the main driver of partner satisfaction, a sine qua non condition for the continuity of the relationship. This present research contributes to a better understanding of value creation-appropriation in ongoing business relationships. By strategically managing their customer–supplier relationships, managers can create and capture greater value and gain a competitive advantage.

Conflict handling in small firms’ foreign business relationships

2019 ◽  
Vol 34 (1) ◽  
pp. 240-252 ◽  
Author(s):  
Milena Ratajczak-Mrozek ◽  
Krzysztof Fonfara ◽  
Aleksandra Hauke-Lopes
Keyword(s):  
Small Firms ◽  
Point Of View ◽  
Business Relationships ◽  
Optimal Method ◽  
Content Type ◽  
Conflict Situations ◽  
Conflict Handling ◽  
Financial Consequences ◽  
The Impact ◽  
Depth Interviews

Purpose The purpose of this paper is to indicate how conflicts in foreign business relationships are handled by small firms from a relational point of view and how these conflicts can be used by small firms in a positive way. Design/methodology/approach The paper uses qualitative study and presents the results of in-depth interviews conducted with six small, Poland-based firms. Findings The paper indicates the nature of conflicts in foreign business relationships from the perspective of small firms, including the sources of conflict and its outcomes. The main sources of conflict indicated include service or product quality, financial aspects of cooperation and cultural differences. The study exposes the existence of both negative (e.g. financial consequences) and positive (e.g. gaining new experience) outcomes of conflicts. It shows that positive conflict handling often constitutes a significant challenge for small firms and that the authors cannot really speak of one optimal method of conflict handling. Regardless of the method adopted, the costs involved should be taken into detailed consideration. Practical implications The paper points to actions that could be taken by small firms to handle conflicts in a way that will produce positive outcomes. Originality/value Managing international relationships is a more challenging task compared with domestic ones, especially for smaller firms. The paper exposes the impact of two categories of conflict (called day-to-day problems and severe conflicts) in a foreign relationship on small firms and considers different methods of handling the conflict situations.

Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–1946: An Assessment

1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Industrial Research ◽  
Large Firms ◽  
Research Activity ◽  
Growth And Survival ◽  
Survival And Growth ◽  
The Impact ◽  
The Relationship

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.

scholarly journals Role of Servitization, Digitalization, and Innovation Performance in Manufacturing Enterprises

2021 ◽  
Vol 13 (17) ◽  
pp. 9878
Author(s):  
Lei Shen ◽  
Cong Sun ◽  
Muhammad Ali
Keyword(s):  
Manufacturing Industry ◽  
Dynamic Capabilities ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Business Innovation ◽  
Manufacturing Enterprises ◽  
Enterprise Innovation ◽  
The Impact ◽  
The Relationship

The structure of the manufacturing industry has forced manufacturing companies to understand the importance of digitalization and servitization transformation, in terms of production and R&D. In this study, we examine the relationship between servitization, digitization, and enterprise innovation performance through the lens of dynamic capabilities within enterprises. We also discuss the impact of the transformation servitization strategy on business innovation, and the mechanisms by which it impacts business innovation performance. The study’s findings indicate that servitization significantly contributes to innovation performance, and digitalization acts as a mediating mechanism between the proposed relationships. Thus, this article argues for the integration and growth of servitization and digitization.

scholarly journals Dynamic capability of the firm: analysis of the impact of internationalisation on SME performance in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahfuzur Rahman ◽  
Dieu Hack-Polay ◽  
Sujana Shafique ◽  
Paul Agu Igwe
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Emerging Economy ◽  
Two Dimensions ◽  
Dynamic Capability ◽  
Content Type ◽  
Market Expansion ◽  
The Impact ◽  
The Relationship

PurposeInternationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). The purpose of this paper is to examine the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies and to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs.Design/methodology/approachUsing primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis enabled the measurement of the casual relationship on the impacts of internationalisation.FindingsThe results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy- Bangladesh. The paper found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators – higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge.Originality/valueDespite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research, the authors use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy.

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