scholarly journals Influential Indicators and Measurements of Mediating and Moderating Roles on SME Performance

2022 ◽  
Vol 18 (1) ◽  
pp. 1-18
Author(s):  
Seok-Soo Kim

Overcoming the failure of SMEs has been an important research topic. The critical research finding is that it has verified the essential elements of performance improvement. We presented a solution to the research question, "Is there a causal relationship between the effect on SMEs' success on capacity and business performance?". We analyzed whether the competence of SMEs had a mediating effect between success variables and performance. Secondary effects were empirically studied by converting independent variables to Higher-Order Component (HOC). The second-order variable of management influenced financial, non-financial, and technical performance, and the second-order variable of technology affected technical performance. As a result of introducing demographic variables as a controlling variable for performance, gender, and year of establishment showed a moderating effect on technical and non-financial performance. We expect to contribute to practical application to SME CEOs and government policymakers, support organizations, academia, and industry.

2015 ◽  
Vol 14 (4) ◽  
pp. 329-344 ◽  
Author(s):  
Petr Suchánek ◽  
Jiří Richter ◽  
Maria Králová

Abstract This paper presents an analysis of quality, customer satisfaction and business performance in food industry. The main objective of the research is to determine the influence of quality on customer satisfaction and on business performance and competitiveness. In particular, this paper answers the following research question: Does the quality of a product result in a satisfied customer and thereby in a well-performing business? Customer satisfaction is defined as the satisfaction of the customer with a product and the business performance as a capability to generate profit. Therefore, satisfaction was examined by the means of a survey using questionnaires, and the performance was measured by financial data. We managed to find a correlation between the main factors, although partial results were due more factors mostly statistically insignificant.


2021 ◽  
Vol 33 (6) ◽  
pp. 0-0

At the end of 2019, the sudden attack of the COVID-19 brought huge challenges to the management, operation and development of listed companies. In view of the suddenness of the epidemic, the internal governance of listed companies is even more important! The index system, governance structure and performance, structure and behavior, structure and performance of the proposed hypotheses affected by the behavior of the index system, the 2019-2020 China GEM listed companies as a sample of equity concentration, and the human capital board of directors as the sample explanatory variable , Business performance, innovation performance are dependent variables, supervision and behavior, as an intermediary to encourage behavior, related test hypotheses, verify the path that Chinese companies listed in the GEM governance structure affect governance performance through behavior.


Author(s):  
Aleksandra Stoiljković ◽  
Slobodan Marić

Financing represents a general problem for small enterprises with numerous constraints. Defining the problem of research will eliminate the answer to the following research question: Does the financing of small enterprises, based on the volume and structure, determine business performance, i.e., success? As well as the overall problem orientation of this research, motivation is related to the analysis of business performance, i.e., success of small enterprises in relation to the nature of financing small businesses. It has to be defined 'The idea is to identify and define the role of financing as a factor of competitiveness and performance in small business operations, as the general objective of the paper. Lack of financial resources is one of the most common causes of failure of small enterprises. The main hypothesis is: There is a significant correlation between the volume and structure of sources of financing and the performance of small enterprises. Data: Secondary data from the reference databases (Serbian Business Registers Agency) for 2018, which include 150 cases, serve as the relevant basis for the realization of the research within the adequately set area of the research. Tools will be used to study the relationship, i.e., connectivity of selected research variables based on regression analysis in the frame of parametric quantitative procedures. Business performance variables, measured by indicators of profit and revenue growth, with variables of volume and structure of financing as is equity and % of equity as a structure; measures like time in business, total revenue, total number of employees, represent the size and age of business. Findings point to the conclusion that the volume of financing as well as the participation of own capital contribute to the business performance of small enterprises, which is measured by the most relevant variables in terms of profit and total revenue. Contribution: Based on the facts presented, we can say that all research assumptions have been confirmed, and the presented research results are significant and representative for future managerial practice of small businesses. The key contribution of this research is identification of an optimal financing structure for business performance of small enterprises.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fares Medjani ◽  
Stuart Barnes

PurposeSocial CRM (SCRM) technologies, as distinct from CRM technologies per se, provide an important new resource for companies to develop their relationships with customers and drive business performance. This research develops and tests an original model exploring the impact of SCRM on firm performance and the relationships between SCRM use, engagement, CRM capabilities and performance.Design/methodology/approachThe authors collect a sample from 227 companies using a survey and test the model using structural equation modelling.FindingsThe findings reveal that all the hypotheses in our research model are supported: the use of SCRM technologies lead to developing capabilities and engagement. These capabilities and engagement are then transformed into business performance through a mediation process. Overall, these findings are consistent with resource-based view and dynamic capability theories; these new technological and relational resources allow the creation organizational capabilities, which are essential to enable firms to improve their performance.Practical implicationsSCRM does not directly lead to performance but facilitates CRM capabilities and engagement that allow businesses to enhance performance.Originality/valueFirst, the authors conceptualize and operationalize SCRM as a unique concept, distinct in the literature. Second, the authors provide an original conceptualization of SCRM as a combination of CRM capabilities and engagement. Third, the authors study the mediating effect of CRM capabilities and engagement in the relationship between social CRM use and performance. Finally, this research is conducted in three North African countries where there is currently a dearth of understanding of the impact of modern information systems on organizational performance.


Author(s):  
Seok-Soo KIM

This study's objectives are as follows: First, the causal relationship between SMEs' success variables on competence and performance. Second, the effect of success variables on performance through the mediating effect of competency of SMEs. Third, the effect of SMEs' competency on performance. Fourth, the effect on six industries' performance, including electrics/electronics, machinery/parts, IT/SW, chemicals/textiles/materials, life/food, crafts/others. The reason for selecting six industrial classifications is that, since 2001, the Korea Startup Promotion Agency has been operating a business support policy by designating six industrial classifications of small and medium-sized startups. The survey covered 330 CEOs of SMEs in six industries. The basic statistics were analyzed with SPSS 22; the measurement and structural models were evaluated using Smart Partial Least Square (PLS)3.2.9. Increasing the performance of SMEs worldwide is an important issue. With the development, popularization, and crowdfunding of ICT, the barrier to entry has been lowered, making it the foundation for SMEs worldwide. This study's differences are summarized as follows: 1) The independent variable was selected as four sub-factors. Management performance, a dependent variable, was selected as three sub-factors: technical performance, financial performance, and non-financial performance. 2) A sub-factor of competency was studied by selecting technology innovation competency and technology marketing competency. 3) The causal relations impact on performance according to the industry was compared and verified. Keywords: SME, competency, performance, sustainability, technology innovation.


2019 ◽  
Vol 10 (4) ◽  
pp. 335-342
Author(s):  
Ruben Joaquim Pinto Loureiro ◽  
◽  
Jorge Manuel Marques Simões ◽  
Sílvio Manuel Valente da Silva ◽  
António Gabriel Simão de Castro ◽  
...  

Innovation can be the key element of a company, yet it is dependent on business resources. The relationship between innovation and performance is addressed by several authors who advocate this theme as a driver to solve problems at the business level and subsequently improve performance. Innovation is essentially under great uncertainty, but little information exists about innovation in developing countries. The present research aims to add knowledge about innovation in developing countries, analyzing whether innovation improves business performance (influenced by technology). Thus, the research question is: What is the relationship between innovation and performance in companies? These hypotheses are related to a specific objective: to identify the factors that improve the company’s performance. Using secondary data obtained by the World Bank, and seeking to make known developments in innovation and the relationship with technology and performance in developing countries, the correlation of several variables was worked out in a first approach to the theme through an analysis factorial. It is concluded that there is no positive relationship between performance and innovation in developing countries.


2020 ◽  
Vol 14 (3) ◽  
pp. 361-377
Author(s):  
Gholamhossein Mehralian ◽  
Mohammad Peikanpour ◽  
Maryam Rangchian ◽  
Hamed Aghakhani

Purpose The purpose of this paper is to develop a conceptual model to determine whether organizational climate (OC) mediates the effect of managerial skills (MSs) on business performance in small businesses, such as pharmacies. Design/methodology/approach The model proposed in this research was tested using separate questionnaires specifically designed for managers, employees and clients. The data set consists of responses from 301 managers, 470 clients and 328 employees from community pharmacies in Tehran, capital of Iran, which were analyzed using structural equation modeling. Findings Although the results indicated no significant direct relationship between MSs and pharmacy performance (PP), they also confirmed that having a context-appropriate set of MSs can positively affect PP via the mediating effect of OC. Originality/value This is the first study investigating how MSs improve performance in retail pharmacies. Although this research focuses specifically on small businesses in the pharmaceutical industry, it nevertheless contributes to the literature by showing the importance of OC.


Author(s):  
Seemant Kumar Yadav ◽  
Vikas Tripathi ◽  
Geetika Goel

Purpose The purpose of this study is to examine the effect of market orientation on performance and to figure out the mediator effect of incremental innovation on this relationship with an implementation on Indian small and medium enterprises (SMEs). Design/methodology/approach Following a survey among 333 owners/managers of SMEs in Indian, six research propositions were framed. Confirmatory factor analysis (CFA) and regression analysis was used for the purpose of data analysis. Findings The outcome of the study demonstrates a significant effect of market orientation on SMEs performance. In addition, the mediating effect of innovation between market orientation and business performance was not supported in the context. Research limitations/implications This study uses cross-sectional research, which limits the ability to test the causality; hence, such studies should be replicated in other settings also to get more evidences about the relationship. Practical implications The research will help managers especially in manufacturing SMEs of developing countries to understand benefits of being market-oriented to improve performance. Originality/value The study attempts to enrich the market orientation literature especially in developing economies. It identifies the significant effect of interfunctional coordination on performance of small and medium enterprises working in more volatile environment. Further, the study also examines mediating role of innovation between market orientation and performance linkage.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anwar Alsheyadi

PurposeThe purpose of this study is to examine how e-business (EB) practices and performance are directly and indirectly related, and to examine the complementary effects of adopting various types of EB practices on both business and operational performance, where the latter is conceptualized as a mediator between EB practices and business performance.Design/methodology/approachThe structural equation modelling was used to examine the conceptual model using data collected through a survey of 108 Omani manufacturing firms. EB was conceptualized as a second-order factor resulted from a production of a simultaneous adoption of three distinct groups of EB practices to examine the complementarity effect of EB practices on performance.FindingsControlling for the variations of firm size and age effects, the empirical analysis of this study found support for the superior effects of the complementarities amongst various EB practices on business performance, but this effect will be indirect through the operational performance.Research limitations/implicationsThe research findings may lack generalisability due to the possible effects of other contextual factors which should be considered by future research studies.Practical implicationsSeveral implications are highlighted for the effective deployment of collective EB competencies, and for the role of operational performance on achieving higher business benefits.Originality/valueThis paper satisfies the need to validate the complementarity effects model in different contexts such as EB, and the need to investigate the mediating effect of other factors on EB practices and business performance.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco José López-Arceiz ◽  
Cristina del Río ◽  
Ana Bellostas

Purpose This study aims to analyse the role of persistence in the assessments carried out by sustainability agencies in the interaction between sustainability committee characteristics, sustainability strategies and performance. Design/methodology/approach The authors accessed a sample of European sustainable multinational and transnational companies (EMNs) for the period 2008–2017 from RobecoSAM universe. Using a set of simultaneous equation models, the authors test the effect of the sustainability committee on sustainability performance considering the sustainability strategy as a mediating element. Moreover, the authors analysed if the persistent assessment of sustainability agencies conditions the previous interaction. Findings Persistence of the sustainability assessment performed by an external agency is necessary to support the sustainability strategy and the sustainability committee, legitimating an organization in its institutional context. Practical implications This study provides practitioners with relevant insights into the identification of the sustainability strategy followed by an EMN and the effects associated with it can be useful for social and economic agents in decision-making processes. Social implications A persistent assessment could be a signal over time of the evolution of organizations, reinforcing the monitoring mechanisms. It is a stimulus to EMNs as they obtain both an indicator of their levels of performance and public recognition. Originality/value The lack of similarity in the levels of sustainable performance observed among companies can be explained by the persistence, which is an omitted variable in previous studies.


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