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.

Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vural Çağlıyan ◽  
Melis Attar ◽  
Aleem Abdul-Kareem
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Customer Value ◽  
Business Performance ◽  
Mediating Effect ◽  
Survey Method ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Theoretical Contribution ◽  
The Relationship

Purpose This study aims to assess the mediating effect of sustainable competitive advantage (SCA) on the relationship between organisational innovativeness (OI) and performance of small- and medium-sized enterprises (SMEs) operating in Konya, Turkey. Design/methodology/approach A survey method is used to collect the necessary data for this research. A total of 264 respondents from 83 SMEs partook in the study. In choosing the sample size, both purposive sampling and simple random techniques are used. The data gathered are analysed using SPSS program and Hayes PROCESS macro v.3.4.1. Findings The results of the analyses reveal that OI has a statistically significant positive effect on SCA and firm performance (FP). Moreover, SCA is found to have a mediating effect on the relationship between OI and FP. Practical implications Policymakers and management of SMEs need to show great commitment to innovativeness and relate it to SCA to create superior customer value, thereby leading to a holistic and long-term FP. Originality/value This study brings to the fore empirical evidence on how SCA serves as a mediator between OI and FP. It also contributes to the literature by focusing on three distinct but related variables. The study makes theoretical contribution by highlighting the role of the resource-based theory in enhancing business performance and SCA through strategic internal resources and innovative activities.

scholarly journals Entrepreneurial Orientation: A Case Of Gauteng Province, South Africa

2015 ◽  
Vol 7 (1) ◽  
pp. 169-184
Author(s):  
Simon Radipere
Keyword(s):  
South Africa ◽  
Regression Model ◽  
Business Model ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Economic Environment ◽  
Gauteng Province ◽  
Important Thing ◽  
Level Of Significance ◽  
The Relationship

Abstract The relationship between entrepreneurial orientation and business performance using 500 small- and medium-sized enterprises (SMEs) in Gauteng province, South Africa was tested. Questionnaire was used to collect data from 500 SME owners. The findings from the survey among 500 SME owners were modelled through a categorical regression model with business performance as dependent variable. The level of significance of the 8 variables out of 12 variables suggests that entrepreneurial orientation be classified as the strongest predictor of business performance. The ability to adjust one’s business model to adapt to changed economic circumstances is an important thing as it dictates performance in increasingly competitive economic environment.

scholarly journals Orientasi Wirausaha dan Kinerja UMKM: Efek Mediasi dari Akses Keuangan dan Keunggulan Kompetitif

2021 ◽  
Vol 3 (2) ◽  
pp. 128-140
Author(s):  
Agus Wicaksono ◽  
Suci Stiningsih
Keyword(s):  
Data Analysis ◽  
Competitive Advantage ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Mediating Effect ◽  
Access To Finance ◽  
Financial Access ◽  
Analysis Technique ◽  
The Relationship ◽  
Positive Effect

This study aims to analyze the effect of Entrepreneurial Orientation (Innovation, Risk Taking, Proactive) on MSME Performance; The mediating effect of Financial Access and Competitive advantage is based on the direct and indirect subsections of Entrepreneurial Orientation. The object of this research is Culinary SMEs in Grobogan. Data were obtained from 84 samples of Culinary SMEs in Grobogan which were taken by accidental sampling. The data analysis technique used in this research is SEM-PLS. The results of this study indicate that Risk Taking and Proactive have a positive effect on MSME Performance. While innovation does not affect the performance of SMEs. Innovation and Proactive have a positive effect on Financial Access, while Risk-taking has no effect on Financial Access. Access to Finance has a positive effect on Competitive Advantage, and Competitive Advantage has a positive effect on MSME Performance). Financial Access and Competitive Advantage are able to mediate the relationship between proactiveness and MSME performance but are unable to mediate the relationship between innovation and risk-taking with the performance of culinary MSMEs in Grobogan

scholarly journals The importance of personal values and hospitableness in small foodservice businesses’ social responsibility

2019 ◽  
Vol 9 (3) ◽  
pp. 307-329
Author(s):  
Barbara Tomasella ◽  
Alisha Ali
Keyword(s):  
United Kingdom ◽  
Small Business ◽  
Social Responsibility ◽  
Competitive Advantage ◽  
Small Businesses ◽  
Personal Values ◽  
Family Businesses ◽  
Structured Interviews ◽  
The Relationship

This article investigates the relationship between personal values, hospitableness and social responsibility in small, independent foodservice businesses. Semi-structured interviews were conducted with 24 owner-managers of these businesses located in Sheffield, United Kingdom. The results established that hospitableness is expressed through the way in which these small businesses engage in social responsibility. In lifestyle and family businesses, personal values, such as altruism, friendliness and a passion for food, influence the hospitableness and social responsibility of the small foodservice business. In the long term, social responsibility actions expressing hospitableness add value to the business itself. This research contributes to the hospitality literature by empirically demonstrating how hospitableness can be expressed through small business social responsibility, which can provide, in the long term, a competitive advantage for small, independent foodservice businesses.

scholarly journals KARAKTERISTIK KEWIRAUSAHAAN DAN PERUSAHAAN SERTA KOMPETENSI KEWIRAUSAHAAN SEBAGAI PENENTU KINERJA USAHA KECIL MENENGAH (UKM)

2015 ◽  
Vol 5 (2) ◽  
pp. 117
Author(s):  
Ernani Hadiyati
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Performance ◽  
Firm Characteristics ◽  
Entrepreneurial Characteristics ◽  
Entrepreneurial Competencies ◽  
Small Business Performance ◽  
The Relationship

This project was intended to identify and analyze the simultaneous and partial influence of three observed variables, namely entrepreneurial characteristics, company characteristics, and entrepreneurial competencies, toward business performance. Further, this article explored the aspects contained in entrepreneurial characteristics, company characteristics, and competencies of entrepreneurs and small business performance which eventually resulted in the presentation of data regarding the relationship between the variables studied. The investigation demonstrated two important findings: first, entrepreneurial characteristics, firm characteristics, and entrepreneurial competencies had significant effect on the performance of small businesses simultaneously and partially; second, entrepreneurial competence was recognized as the most influential variables on the small businesses performance.

scholarly journals Sustainability, growth and entrepreneurial orientation of small innovative enterprises

2021 ◽  
Vol 1 (2) ◽  
pp. 34-47
Author(s):  
Lyubov Lipych ◽  
◽  
Oksana Khilukha ◽  
Myroslava Kushnir ◽  
Iryna Volynets ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Small Business ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Enterprise Growth ◽  
Small Business Growth ◽  
The Government ◽  
The Individual ◽  
Almost All ◽  
The Relationship

Almost all over the world, small business is a source of prosperity and sustainability for societies and nations. Therefore, research on small businesses in measuring sustainability is essential for achieving several sustainable development goals. In this article, we propose to reflect on the relationship between entrepreneurial orientation, growth and sustainability of a small business. This study consists of three main parts. Firstly, we revealed the role of small businesses in Ukraine's sustainable development and explored the European experience. Secondly, we explored the main components of business orientation and enterprise growth of Ukrainian small innovative enterprises. Thirdly, we established the relationship between the individual components of enterprise growth and its entrepreneurial orientation. We also discussed the informatization issues in connection with expanding the entrepreneurial orientation of small enterprises to strengthen their role in sustainable development processes, especially in the context of the COVID-19 pandemia. This research can be helpful both to SMEs and the government as the basis for developing and changing policies on small business growth and innovations

scholarly journals Mediating effect of competitive advantage on the relationship between corporate strategy and business performance

2018 ◽  
Vol 7 (2.10) ◽  
pp. 58
Author(s):  
Sarminah Samad
Keyword(s):  
Competitive Advantage ◽  
Least Squares ◽  
Partial Least Squares ◽  
Reference Values ◽  
Business Performance ◽  
Corporate Strategy ◽  
Mediating Effect ◽  
Pls Analysis ◽  
Hotel Managers ◽  
The Relationship

This study examined the effect of competitive advantage on the relationship between corporate strategy and business performance. It also examined the effect of corporate strategy and competitive advantage on business performance. A total of 222 hotel managers participated in this study based on self-administered questionnaires. Smart Partial Least Squares (PLS) analysis was employed to analyze the obtained data. The study revealed that corporate strategy has a positive and significant effect on business performance and competitive advantage.  Competitive advantage was also found to have a positive and significant effect on business performance. The study revealed that competitive advantage has significantly mediated the relationship between corporate strategy and business performance. The study provides support for both practical and theoretical reference values. 

Collective Entrepreneurship, Environmental Uncertainty and Small Business Performance: A Contingent Examination

2017 ◽  
Vol 26 (1) ◽  
pp. 1-26 ◽  
Author(s):  
Jun Yan ◽  
Li Yan
Keyword(s):  
Small Business ◽  
Interaction Effect ◽  
Small Businesses ◽  
Business Performance ◽  
Environmental Heterogeneity ◽  
Positive Interaction ◽  
Collective Entrepreneurship ◽  
Small Business Performance ◽  
The Relationship ◽  
Environmental Hostility

This study empirically investigates the relationship between collective entrepreneurial capability and small business performance in different environmental conditions. A hierarchical multiple regression analysis of data from more than 100 small businesses shows that the collective entrepreneurial capability of a small business is positively associated with its competitive performance. Among the three investigated environmental dimensions, environmental dynamism is found to have a positive interaction effect with collective entrepreneurial capability on small business performance. Environmental hostility is found to have a negative interaction effect with collective entrepreneurial capability on small business performance. No interaction effect is found between environmental heterogeneity and collective entrepreneurial capability. Implications of this study are discussed.

scholarly journals The entrepreneurial orientation - Performance relationship: A South African small business perspective

2015 ◽  
Vol 7 (1) ◽  
pp. 36 ◽  
Author(s):  
Tony Matchaba-Hove ◽  
Shelley Farrington ◽  
Gary Sharp
Keyword(s):  
Small Business ◽  
South African ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Eastern Cape ◽  
Five Dimensions ◽  
Competitive Aggressiveness

<p>The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between entrepreneurially orientated strategies implemented by small businesses in the Eastern Cape and the influence of these strategies on business performance. Entrepreneurial orientated strategies were assessed in terms of the five dimensions of entrepreneurial orientation, namely innovativeness, proactiveness, competitive aggressiveness, risk-taking and autonomy. Business performance was assessed in terms of profitability and growth. A measuring instrument was developed based on valid and reliable items. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and structural equation modelling, were performed on data gathered from 317 small business enterprises. The results of this study showed that the more small businesses implement the strategies of proactive innovativeness, competitive aggressiveness, and autonomy, and the less risk-taking their strategies are, the more likely their businesses are to be successful.</p><p><strong>Key words:</strong> Small business, Entrepreneurship, Entrepreneurial orientation</p>

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.

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