scholarly journals Effect of Organisational Culture on Sustainable Growth of SMEs: Mediating Role of Innovation Competitive Advantage

2021 ◽  
pp. 1-19
Author(s):  
Danjuma Tali Nimfa
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Organisational Culture ◽  
Sustainable Growth ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The purpose of this study is to investigates the effect of organisational culture on the sustainable growth of SMEs; mediating role of innovation competitive advantage. The electrical products small and medium enterprises was the realm of this study. The partial least squares structural equation modelling (PLS-SEM) via SmartPLS was employed to test the hypotheses. Finding of this study revealed that organisational culture has a direct positive significant effect on sustainable growth of SMEs and innovation competitive advantage. Moreover, the study confirmed that innovation competitive advantage has a direct positive significant relationship with sustainable growth of SMEs. Furthermore, the findings established that innovation competitive advantage has fully mediates the relationship between organisational culture and sustainable growth of electrical manufacturing SMEs in Nigeria. This study sets out purposeful measures to encourage owner-mangers of the electrical manufacturing SMEs to maintain as well as installing innovative organisational culture that enhance efficient sustainable growth of SMEs and embedding innovation competitive advantage as a viable strategic mechanism in the enterprise. This study is distinctive because it tries to fill the small and medium enterprises gaps through encouraging managers of the electrical manufacturing SMEs to always strategize for better sustainable growth in the rapidly changing business environment. Keywords: Organisational culture, Sustainable growth of SMEs, Innovation competitive advantage, PLS-SEM (SmartPLS).

scholarly journals How Different Ownership Structures Perform in Industry 4.0: A Case of Malaysian Manufacturing SMEs

2018 ◽  
Vol 56 ◽  
pp. 04003
Author(s):  
Aamir Iqbal Umrani ◽  
Satirenjit Kaur Johl
Keyword(s):  
Failure Rate ◽  
Industry 4.0 ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Ownership Structures ◽  
Mediating Role ◽  
Medium Enterprises ◽  
Relationship Of ◽  
The Relationship

Small and medium enterprises are vital components for economic growth globally. Similarly, the Malaysian manufacturing SMEs has contributed greatly in developing Malaysia’s economy. However, higher failure rate of the Malaysian SMEs is a great concern among researchers and government bodies. Currently, the industry 4.0 has changed the business environment globally. Therefore, this study attempts to investigate the relationship of ownership structures on firm performance with a mediating role of innovation. Baron and Kenny approach of mediation analysis was used on the sample of the Malaysian manufacturing SMEs. The results revealed that, majority SMEs prefer traditional business methods, which causes the higher failure rate in the industry.

Mediating Role of Utilization of Financial Products and Services on the Relationship between Financial Access and MSMEs Growth in India

2020 ◽  
Vol 47 (3) ◽  
pp. 261-278
Author(s):  
Harleen Kaur ◽  
Palvi Bansal
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Financial Access ◽  
Goods And Services ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The study’s main aim is to figure out what function financial goods and services play in mediating the link between financial access and micro, small and medium enterprises (MSMEs)’ growth in developing markets. Consequently, this article aims to see whether the usage of monetary goods and services in a developing nation like India mediates the connection between financial access and MSMEs’ growth. The data were collected from 392 MSMEs in the Jammu region using a cross-sectional research method. The partial least squares structural equation modelling (PLS-SEM) technique was used to see whether the use of financial goods and services in developing nations had a mediating consequence on the link between financial access and MSMEs’ growth. The study exclusively collected data from MSMEs in India’s Jammu region. There is still the possibility of confirming this result in other emerging economies. MSMEs may participate in financial access initiatives provided by organisations to use financial services better.

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

scholarly journals Innovative CRM and Performance of SMEs: The Moderating Role of Relational Capital

2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Customer Relationship ◽  
Relational Capital ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship ◽  
Key Customer

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.

Intrapreneurship to engage employees: role of psychological capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jatin Pandey ◽  
Manish Gupta ◽  
Yusuf Hassan
Keyword(s):  
Work Engagement ◽  
Structural Equation ◽  
Online Survey ◽  
Psychological Capital ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
Survey Responses ◽  
The Relationship

PurposeIntrapreneurship is gaining traction in organizations to buckle up for the dynamic business environment. Scholars have argued that intrapreneurship increases positivity at work and helps employees attach themselves better with their job. However, empirical evidence suggests that these relationships do not exist. The objective of this paper is to examine the mediating role of psychological capital (PsyCap) in the relationship between intrapreneurship and work engagement.Design/methodology/approachData were collected through an online survey. Responses from 309 employees working in different industries in India were analysed. Structural equation modelling (SEM) was used to analyse the hypothesized relationships.FindingsThe results show that there exist positive relationships among intrapreneurship, psychological capital (PsyCap) and work engagement. Further, it was observed that the PsyCap partially mediates the relationship between intrapreneurship and work engagement.Practical implicationsManagers may not only encourage intrapreneurial behaviour in their organizations but also ensure that the employees are psychologically capable (high on PsyCap). It would enable the employees to engage themselves wholeheartedly into their work.Originality/valueTo the best of the authors' knowledge, this study is one of its kinds to relate intrapreneurship with PsyCap and work engagement.

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

scholarly journals Change Management, Digital Maturity, and Green Development: Are Successful Firms Leveraging on Sustainability?

2020 ◽  
Vol 12 (10) ◽  
pp. 4019
Author(s):  
Anna Irimiás ◽  
Ariel Mitev
Keyword(s):  
Change Management ◽  
Structural Equation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Survey Study ◽  
Strategic Action ◽  
Green Development ◽  
Medium Enterprises ◽  
The Relationship

The purpose of this paper is to capture firms’ perceptions on the relationship between change management, digitalization, business performance, and green development. The adaptation of digital technologies has challenged the business environment, leading to a major incorporation of the role of entrepreneurs in the process of fostering green development. Building on data from a survey study with 270 Small and Medium Enterprises (SMEs) and large companies located in a relatively developed Hungarian region and adopting the Strategic Action Field (SAF) theory, firms’ perceptions on change management, digital maturity, and green development were explored. The data was analyzed using partial least squares structural equation modelling (PLS-SEM). Results revealed that change management has a direct positive effect on digital maturity and on business performance and has a small effect on companies’ commitment towards green development. This paper contributes to the debate on the relationship between digitalization and green development within entrepreneurial organizations.

scholarly journals Internal Control and SMEs’ Sustainable Growth: The Moderating Role of Multiple Large Shareholders

2019 ◽  
Vol 12 (4) ◽  
pp. 182 ◽  
Author(s):  
Liangcheng Wang ◽  
Yining Dai ◽  
Yuye Ding
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Sensitivity Tests ◽  
Large Shareholders ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Small and medium enterprises (SMEs) face more risks for sustainable growth due to a lack of resources than large firms in emerging economies. Hence, it is more likely for SMEs to look to risk management for survival in turbulent markets. As a tool of risk management, whether internal control indeed has contributions to the sustainable growth of SMEs, particularly conditional on multiple large shareholders, is empirically unexplored. Using a sample of SMEs listed in China, this study examines the relationship between internal control and sustainable growth, and assesses a moderating role of multiple large shareholders. The results show that effective internal control significantly promotes SMEs to achieve sustainable growth, and the effect is moderated by multiple large shareholders, suggesting that the role of internal control is more prominent in SMEs with multiple large shareholders. These results are robust to a battery of sensitivity tests. This study extends the literature by providing empirical evidence on the role of internal control in SMEs’ sustainable growth.

The mediating role of decentralization between strategy and performance

2019 ◽  
Vol 32 (4) ◽  
pp. 409-425 ◽  
Author(s):  
Qinglan Chen ◽  
Tor Eriksson
Keyword(s):  
Empirical Analysis ◽  
Structural Equation ◽  
Online Survey ◽  
Corporate Strategy ◽  
Group Analysis ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an advanced economy where the chief corporate strategy is differentiation. Design/methodology/approach The study uses data collected by an online survey targeting a stratified sample of 1,238 private firms operating in Denmark. The empirical analysis was carried out by estimating a structural equation model. Findings The key finding was that a decentralized organization (DO) can act as a mediator between a firm’s differentiation strategy and its performance. A multi-group analysis revealed that the mediating impact of decentralizing was affected by contingency factors such as firm size, strategic clarity, degrees of business environment risk and industry competition. Thus, a DO can be said to play a more important role in larger firms, in firms with less strategic clarity, and in companies with multiple plants. Research limitations/implications Although the study offers empirical evidence from a relatively large and representative sample of firms, the specificity of the context should be noted. In particular, firms in Denmark, while facing strong competition, do not compete with low costs. Clearly, studies of the mediating role of decentralization in low-cost strategy environments would be an important next step. Practical implications Several implications of the findings for organizational design and creation of beneficial conditions for strategy implementations are discussed. Originality/value The novel contribution of the study lies in the focus on decentralization as a mediator in the strategy–performance relationship. While previous research has shown that strategy is related to decentralization, and that decentralization is associated with higher performance, an empirical analysis of the relationship between the factors in the strategy-decentralization-performance path had not previously been undertaken.

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