Strategic capabilities and firm performance in Omani manufacturing and service SMEs

Purpose This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of environmental uncertainty and their organizational capabilities. Additionally, to what extent the effect differs across two sectors (manufacturing and service). Design/methodology/approach Partial least squares structural equation modeling was used to conduct multigroup analysis for the two sectors. Data was collected from a sample of 315 Omani SMEs, 166 from manufacturing and 149 from services. Findings The results show that strategic capabilities have a significant positive effect on customer satisfaction. However, the effect differs between manufacturing and service SMEs; the effect is greater in service than in manufacturing SMEs. Furthermore, the effect of organizational capabilities on customer satisfaction was found to be positive. However, the effect is higher in manufacturing as the difference is statistically significant. Originality/value Due to the growing importance of the service and manufacturing SMEs in developing countries and their considerable involvement in economic development, it is important to understand the characteristics of the strategic capabilities in both sectors. Thus, according to the authors’ knowledge, this paper is one of the first to propose a comprehensive framework that measures collectively the direct impact of strategic capabilities, organizational capabilities and environmental uncertainties on SMEs customer satisfaction and effectiveness.

Does Start-Up Founding Strategy Increase or Decrease the Effects of Strategic Capabilities on New Venture Performance?

Many studies have provided evidence of a positive relationship between strategic capabilities and new venture performance. This study applies the resource-based view and strategic fit theory to develop a model that investigates how startup founding strategy affects the strength of the strategic capabilities–performance relationship in new ventures. We conduct an empirical study of 146 U.S. new ventures and 425 Chinese new ventures to test the proposed model. The results show that, for U.S. ventures, technology-driven strategy increases the effect of technology capabilities on new venture performance but decreases the effects of marketing and market-linking capabilities on new venture performance. By contrast, Chinese ventures' technology-driven strategy has a significantly negative moderating effect on the relationship between market-linking capabilities and performance. We discuss the implications of the empirical findings for ventures pursuing technology-driven and market-driven strategies.

Digital transformation by enabling strategic capabilities in the context of “BRICS”

PurposeThis study characterizes the scenario of emerging countries (ECs) – “Brazil, Russia, India, China and South Africa (BRICS)” concerning digital transformation and its association with the Industry 4.0 (I4.0) value creation system. For such, the authors developed a discussion paper based on content analysis of 857 journals in business administration, describing in a proposed framework the institutionalization “BRICS” policies that nurture global competitiveness among ECs and development needs to catching up.Design/methodology/approachData from 16 official documents of government, ministries and economic studies were analyzed by applying Atlas TI contrasting theory of 875 papers to develop and discuss the framework. Content analysis showed research gaps, technological needs and governance to enable firms to sustain competitive advantages applying I4.0 value creation system. Results converged into a microfoundation of the agile journey of a digital transformation to global organizations in between BRICS.FindingsThis paper's central question is to understand: How can organizations achieve a sustainable I4.0 value creation system adopting digital transformation in “BRICS”? The reduced transaction costs driven by platforms and ecosystems orchestration and the related or integrated multiple level sources of knowledge could speed benefits of domestic firms and subsidiaries of global organizations. Research gaps could be understood by a new combination of resources and knowledge, exploiting technologies and, also, the discussion of social economic relevance of I4.0.Research limitations/implicationsBecause of the complexity and the novelty of the framework, further studies could be discussed by its elements. New structures and paths for alternative strategic factors may be proposed in the future with the inclusion of new relationships in the adoption of platform business models and ecosystems. Future studies should consider digital knowledge-based assets attained to economic activities across national boundaries; data analytics or data-driven technology adoption and their effects on global attractiveness.Practical implicationsThe paper implicates in evaluating whether dynamic capabilities subsidize performance propitiating the catching up with a focus on the I4.0 system and digital transformation management journey. The proposed framework demonstrates the benefits of digital transformation by enabling strategic capabilities, making efforts to reduce a lack of research paths concerning the policy attributes that define the platform use strategy from an architectural standpoint and its benefits.Social implicationsThe particularities of turning either an I4.0 global organization or a digital organization operate in various environments, allowing access to the activities' digital context. Social implications concerning digital resources as strategic accelerators are determined by the BRICS peculiarities, such as social behavior, consumerism or communication pattern, leadership and workforce skills. Finally, political aspects and interference in the economy are deployed in society what must be considered.Originality/valueThis paper proposes a conceptual framework to better understand whether the heterogeneity of resources could explain I4.0 and digital configurations, while new platforms have driven features in global industrial environments and ecosystems. The seizing opportunities in these countries and sense-making use of platforms and orchestration of ecosystems are found as the critical topics being the main value of this important discussion.

Pure Versus Hybrid Competitive Strategy: Evidence from Tunisian Manufacturing Industries

This article proposes to decide on the impact of external and internal factors (competitive forces and strategic capabilities) on strategic competitive choices (pure or hybrid). Using a sample of Tunisian companies operating in the manufacturing industry, the results show that face to the competition’ intensity, companies opt for competitive hybrid strategies at the expense of pure ones only when they have strong combined strategic capabilities. However, when they have a stock of capabilities less rich and less diversified, they have interest to pursue a pure competitive strategy. Moreover, the study shows that the pure competitive strategy differs according to the nature of the strategic capabilities held.

Managing Eco-Friendly Strategy Implementation and Its Impacts on Business Performance: The Role of Organizational Strategic Capabilities

The increasing movements on the implementation of environmental sustainability and its impact on business performance become one of the important discussions on the strategic management field. Organizations are forced to major environmental initiatives to answer the green business inquiries. Constructed from the organizational capabilities literature of strategic management, this study explains how organizations strengthen their performances toward the implementation of environmentaly friendly or also called as ecofriendly business strategy and proposes hypotheses to answer the questions on how the organizational capabilities that represents internal organizational factors affect business performance through the mediating effect of eco-friendly strategy implementation Using a model integrating resource-based theory, institutional theory, and strategic business unit perspectives, this study tests the causalities upon the hotel industry in Indonesia which currently facing the force to adopt environmental friendly business practices due to the expansive development within the industry. This study used SPSS software followed by mediation test to analyze the mediating effect of eco-friendly strategy implementation on the relationship between organizational strategic capabilities and business performance. Research data were collected through the questionnaires, resulting 109 data from two-starred and above hotels across major cities in Indonesia. The findings of this study indicate that organizational strategic capabilities have a positive and significant effect on eco-friendly strategy implementation and business performances respectively while the mediating effect of Eco-friendly strategy implementation were partially found.Drawing from these results, the implications of the findings upon industrial, policies, and further research avenues are discussed.

Respon Awal Petani, Nelayan, dan Usaha Mikro, Terhadap Bantuan COVID-19

In general, research proposes to assess the Covid-19 Response Program's implementation based on the receiver community's perceptions. A qualitative approach is used to study and interpret the meaning of an individual or group of people. Respondents were selected purposively in three districts in East Java, namely Lamongan, Bangkalan, and Gresik. The following is a brief conclusion that: (1) initial information is clear enough; thus, the process of obtaining assistance is simple, and the requirements that must be met are also pleased, (2) implementation of pandemic response assistance has been running, and social service has been running before, and (3) impact of the pandemic community income depends on the type of business, its scale, and its strategic capabilities. Initial indications that the micro-business sector is more vulnerable to the impact of the pandemic

Impact of Situational Leadership on Strategic Capabilities in Kuwait National Petroleum Company (KNPC)

This study aimed to identify the impact of situational leadership on the strategic capabilities of the Kuwait National Petroleum Company, and the case study approach was followed to achieve the objectives of the study. The study population consists of employees in the Kuwait National Petroleum Company, and a convenience sample of 100 employees has been drawn to distribute the study questionnaire to them. It was found that there is an impact of situational leadership in its dimensions (leadership skills, leadership styles, participation in decision-making, and situational planning) on the strategic capabilities of the Kuwait National Petroleum Company. The study recommends the need to work on establishing an organizational environment that stimulates and supports the strategic capabilities of the company, by paying attention to the factors of situational leadership within the company, and educating the company’s employees about the goals and importance of situational leadership and the consequences thereof through training courses and holding conferences and workshops in order to enhance strategic capabilities.

Entrepreneurial Orientation, MSME Growth and the Mediating Role of Firm Strategic Capabilities in the Manufacturing Sector in Nairobi County, Kenya

Growth among Micro, Small and Medium-sized Enterprises (MSME) is of eminence to economic progression in both developed and developing economies, credited for employment creation, driving innovation and contribution to Gross Domestic Product (GDP) in both contexts. Whereas entrepreneurial orientation has been identified to underpin MSME growth, several studies on entrepreneurial orientation -growth nexus have provided mixed results based on the aggregated one-dimensional measure of entrepreneurial orientation. While some report a significant association, some report no significance. The mixed findings imply that the relationship between entrepreneurial orientation and growth is not linear, pointing to other causal factors either internal or external to the enterprise. against this backdrop, this study set out to assess the mediating effect of firm strategic capabilities on the relationship between entrepreneurial orientation and growth of manufacturing sector MSMEs in Kenya. Anchored on the contingency fit view, the resource-based view and the life-cycle theory, the study adopted a positivist approach, employing the explanatory research design of a cross sectional nature. With a target population of 98,607, a stratified sample of 384 MSMEs from the manufacturing sector in Nairobi County was drawn. Data was collected by use of structured questionnaires and analyzed by both descriptive and inferential statistics including Pearson correlation and regression analyses. The study controlled for both age and sub-sector, as they have been previously found to affect firm growth. Results indicate that entrepreneurial orientation has a significant effect on firm strategic capabilities (β = .276, p = .000<.05). The study also found that firm strategic capabilities have a significant effect on MSME growth at 95% confidence level (β = .124, p = .026<.05). Firm strategic capabilities did not however have a significant mediating effect on the relationship between entrepreneurial orientation and MSME Growth (β = .0617, p = 111>.05; LLCI=-.0020; ULCI=.0273). The study concludes that among MSMEs in the manufacturing sector in Kenya, innovative, risk tolerant and proactive owners/managers are likely to achieve growth, regardless of their strategic capabilities. It is recommended that MSME owners/managers innovate, take risks and stay proactive in their businesses in order to grow. It is also recommended that strategic policy decisions of MSMEs should focus on enhancing their positions in respect of innovativeness, proactiveness and risk propensity.

Strategic Capabilities for the Sustainability of Small, Medium, and Micro Enterprises

Sustainability of small, medium, and micro enterprises has been an issue due to the lack of strategic capability of many entrepreneurs. This chapter examines the strategic capabilities that are necessary for the sustainability of small, medium, and micro-enterprises. A literature review approach was adopted by the authors to examine the relationship between the measures of strategic capability of small, medium, and micro-enterprises, and the sustainability measures of the small, medium, and micro-enterprises. The result shows that there is a positive relationship between strategic capability and sustainability of small, medium, and micro-enterprises. The measures of strategic capability include sensing, seizing, transforming, and innovative capabilities. The sustainability measures of the small, medium and micro enterprises are strategic objectives, customer satisfaction, and retention, organisational value, networking, availability of resources, innovation capability, profitability, and organisational competitiveness.