IMPACT OF DYNAMIC CAPABILITIES ON SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN A VOLATILE ENVIRONMENT AS MODERATED BY ORGANIZATIONAL INERTIA

In Sri Lanka especially in Batticaloa, the studies related to dynamic capabilities, organizational inertia and organizational performance are rare and there is need to fill this empirical gap by investigating the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment. Therefore, this study has been undertaken to examine the relationship among these three variables and to assess the moderating role of organizational inertia in relationship between dynamic capabilities and organizational performance. The findings indicated that the variables have significant relationships among them and further findings of this study revealed that organizational inertia negatively moderates the relationship between dynamic capabilities and organizational performance of SMEs in Manmunai North Divisional Secretariat in Batticaloa District. By addressing the findings of this study SME owners could try to reduce the inertia in their business by which the relationship between dynamic capabilities and performance can be induced and this lead the businesses in achieving competitive advantages.

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Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

JEMA Jurnal Ilmiah Bidang Akuntansi dan Manajemen ◽

10.31106/jema.v18i2.11318 ◽

2021 ◽

Vol 18 (2) ◽

pp. 210

Author(s):

I Wayan Widnyana ◽

I Made Dauh Wijana ◽

Almuntasir Almuntasir

Keyword(s):

Financial Performance ◽

Financial Constraints ◽

Small And Medium Enterprises ◽

Value Added ◽

Financial Capital ◽

Moderation Effect ◽

And Performance ◽

Medium Enterprises ◽

The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

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

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc6040155 ◽

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.

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Entrepreneurial Orientation, Technology Orientation and Small and Medium Enterprises Performance in Nigeria: Role of Government Support Policies

Journal of Business and Social Review in Emerging Economies ◽

10.26710/jbsee.v3i1.44 ◽

2017 ◽

Vol 3 (1) ◽

pp. 75-84 ◽

Cited By ~ 2

Author(s):

Maryam Imam Ibrahim ◽

Ooi Yeng Keat ◽

Shamsul Huda Binti Abd Rani

Keyword(s):

Entrepreneurial Orientation ◽

Small And Medium Enterprises ◽

Government Support ◽

Role Of Government ◽

Support Policy ◽

And Performance ◽

Medium Enterprises ◽

Technology Orientation ◽

The Relationship

Purpose: The study empirically analyzes the moderating role of government support policy on the relationship between entrepreneurial orientation, technology orientation, and performance of small and medium enterprises (SMEs) in northeast Nigeria. Design/Methodology/Approach: The paper adopts quantitative survey method using structured questionnaires, data were collected from 240 SME owner-managers in northeast Nigeria. The data collected was analyzed using Partial Least Squares PLS-SEM. Findings: The findings of the study indicate a significant positive relationship between EO, TO and Performance of SMEs. Additionally, the outcomes of the study authenticate that government support policy moderates the relationship between EO, TO and performance of SMEs in Nigeria. Implications/Originality/Value: The study has practical implication for the government, policy makers, regulators, SMEs owner-managers and other stakeholders to recognize government support as it affects SMEs performance. The study further adds to the frontier of knowledge on the importance of GSPs in strengthening the relationship between the variables and SMEs performance. This is the first study that focuses on testing the moderating role of government support policy on the relationship between entrepreneurial orientation, technology orientation and SMEs performance in Nigeria,

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Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?

Journal of Innovation and Entrepreneurship ◽

10.1186/s13731-021-00170-8 ◽

2021 ◽

Vol 10 (1) ◽

Author(s):

Ayman Abu-Rumman ◽

Ata Al Shraah ◽

Faisal Al-Madi ◽

Tasneem Alfalah

Keyword(s):

Strategic Alliances ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Positive Impact ◽

Small And Medium Enterprises ◽

Entrepreneurial Networks ◽

Mediating Role ◽

And Performance ◽

Medium Enterprises

AbstractPerformance of small and medium enterprises (SMEs) has been addressed widely in the literature. Both developed and developing countries are highly concerned about the growth and performance of SMEs. The literature exploring performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study was conducted with the aim being to identify the mediating role of dynamic capabilities which are developed by entrepreneurial networks and entrepreneurial orientation. The study collected the data from a sample of SMEs based in Jordan which were connected through a closed network and were the part of groups. The data was collected via an electronic questionnaire, and100 SMEs were contacted and invited to participate in the survey on a purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that amongst the chosen firms, entrepreneurial networking has an insignificant impact; however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

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Entrepreneurial Networks, Entrepreneurial Orientation, and Performance of Small and Medium Enterprises: Are Dynamic Capabilities the Missing Link?

10.21203/rs.3.rs-129772/v1 ◽

2020 ◽

Author(s):

Ayman Abu-Rumman ◽

Ata E. M. Al-Shra'ah ◽

Faisal Al-Madi ◽

Tasneem Alfalah

Keyword(s):

Strategic Alliances ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Positive Impact ◽

Small And Medium Enterprises ◽

Entrepreneurial Networks ◽

Mediating Role ◽

And Performance ◽

Medium Enterprises

Abstract Performance of small and medium enterprises (SMEs) has been addressed widely in the literature. Developed and developing both the countries are highly concerned about the growth and performance of small and medium enterprises. The literature over the performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study has been conducted. the aim of the study was to identify the mediating role of dynamic capabilities which are developed by the entrepreneurial networks and entrepreneurial orientation. The study collected the data from those small and medium enterprises which were connected through a closed network and were the part of groups. The data was collected with the help of adopted questionnaire. 100 small and medium enterprises were contacted for the collection of data. The sample firms were chosen on purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that among the chosen firms, entrepreneurial networking has an insignificant impact, however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

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Effects of cloud computing assimilation on supply chain financing risks of SMEs

Journal of Enterprise Information Management ◽

10.1108/jeim-11-2020-0461 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Qiang Lu ◽

Jinliang Chen ◽

Hua Song ◽

Xiangyu Zhou

Keyword(s):

Cloud Computing ◽

Supply Chain ◽

Small And Medium Enterprises ◽

Supply Chain Integration ◽

Content Type ◽

Supply Chain Financing ◽

Medium Enterprises ◽

The Relationship ◽

Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

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The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia

International Journal of Law and Management ◽

10.1108/ijlma-01-2017-0005 ◽

2018 ◽

Vol 60 (2) ◽

pp. 530-542

Author(s):

Samsir Samsir

Keyword(s):

Competitive Advantage ◽

Design Methodology ◽

Quantitative Methods ◽

Small And Medium Enterprises ◽

Competitive Advantages ◽

Leadership Orientation ◽

Content Type ◽

Typical Food ◽

Medium Enterprises ◽

The Relationship

Purpose The purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable. Design/methodology/approach Quantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents. Findings There is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher. Originality/value The originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.

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Dynamic capabilities: antecedents and implications for firms' performance

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-12-2019-0587 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ricardo Jorge Correia ◽

Mário Sérgio Teixeira ◽

José G. Dias

Keyword(s):

Structural Equation ◽

Dynamic Capabilities ◽

Structural Equation Models ◽

Causal Link ◽

Competitive Advantages ◽

Content Type ◽

Mediating Role ◽

Strategic Orientations ◽

The Relationship

PurposeThis paper aims to explore a new causal link between learning, market and entrepreneurial orientations and firms' performance by introducing dynamic capabilities and competitive advantages as mediator variables.Design/methodology/approachThe mediating role of dynamic capabilities and competitive advantages is tested using a sample of 1,190 Portuguese firms, and structural equation models.FindingsIt is shown that dynamic capabilities mediate the relationship between the three orientations–learning, market and entrepreneurial–and competitive advantages of differentiation and cost leadership, and both competitive advantages lead to firm's performance. It is also shown that learning orientation is an antecedent of market orientation and entrepreneurial orientation.Practical implicationsThis research shows that firm's performance depends on the capacity of firms to learn, innovate, be proactive, take risks and collect the best market data. Indeed, by optimizing the internal management and knowledge dissemination, firms will develop a set of capabilities and competitive advantages that lead to an appropriate response to market challenges.Originality/valueThis study tests the relationship between strategic orientations and firm's performance by taking the mediating effects of dynamic capabilities and competitive advantages into account. This research was conducted in Portugal.

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Green Manufacturing Practices and Performance among SMEs

Green Technologies and Business Practices ◽

10.4018/978-1-4666-1972-2.ch013 ◽

2013 ◽

pp. 208-225 ◽

Cited By ~ 3

Author(s):

T. Ramayah ◽

Osman Mohamad ◽

Azizah Omar ◽

Malliga Marimuthu ◽

Jasmine Yeap Ai Leen

Keyword(s):

Small And Medium Enterprises ◽

Green Manufacturing ◽

Performance Data ◽

Green Technologies ◽

Environmental Initiatives ◽

Manufacturing Performance ◽

Green Practices ◽

And Performance ◽

Medium Enterprises ◽

The Relationship

Due to the rise in environmental awareness, green technologies and practices have become the conscientious imperative expected from all manufacturing industries. Consequently, environmental initiatives are becoming an essential part of the strategic planning in organizations, including the small and medium enterprises (SMEs). Thus, the objectives of this study were to determine the extent of implementation in green manufacturing practices among the SMEs as well as to examine the relationship between those practices and manufacturing performance. Data was collected via a survey from 544 SMEs across all types of industries located throughout Malaysia. Results of the analysis showed that there is an encouraging level of implementation in green practices among the SMEs, with the optimization of processes to reduce solid waste being the top practice. The results also revealed that green practices within the inbound and production phase of the manufacturing lifecycle significantly affected manufacturing performance but not practices within the outbound phase.

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