Survival strategies of SMEs amidst the COVID-19 pandemic: application of SEM and fsQCA

Purpose As a global pandemic, the COVID-19 crisis has profoundly affected the development of local firms, threatening the survival of small and medium enterprises (SMEs). This study aims to present an integrated framework by investigating the impact of strategic tools (i.e. firms’ capability of business agility, marketing operational efficiency, optimisation of innovation capability [OIC], managing employees’ satisfaction and rethinking customers’ experience) on the survival strategies of SMEs amidst the COVID-19 pandemic. Design/methodology/approach The current study used data from managers of SMEs and conducted an asymmetrical analysis (i.e. structural equation modelling [SEM]) to investigate the factors influencing the survival strategies of SMEs amidst the COVID-19 pandemic. This study also applied an asymmetrical approach (i.e. fuzzy sets qualitative comparative analysis-fsQCA) to explore the causal recipes and analysis of the necessary conditions to identify the factors required to achieve the expected outcome. Findings Results from SEM support all hypotheses. Results from fsQCA with the same data set show that firms’ business agility and OIC are necessary conditions for SMEs’ survival strategies. The result from fsQCA also reveals multiple sufficient conditions to succeed SMEs’ survival strategies amidst the COVID-19 pandemic. Practical implications Findings prescribe how SMEs adapt to this vulnerable business condition by applying the strategic tools and recipes suggested for survival. Originality/value This research applied an innovative analysis to reveal necessary and sufficient conditions that conventional methods such as SEM have limited power. This pioneering research in the context of the COVID-19 pandemic is considered novel in terms of the prescriptive strategic recipes offered to SMEs to adapt to and survive in the crisis caused by COVID-19.

The reshoring decision under uncertainty in the post-COVID-19 era

Purpose Using insights from the supply chain resilience perspective and the international business literature, this study aims to investigate the determinants of firms’ decisions to reshore manufacturing under the high levels of uncertainty brought about by the ongoing US–China trade war and COVID-19 pandemic. Design/methodology/approach The proposed conceptual framework is tested using survey data collected from 702 Taiwanese firms with manufacturing in China. The firms were drawn from a database compiled by Taiwan’s Ministry of Economic Affairs. Findings The results show that two supply chain factors (tariffs and supply chain completeness) and two non-location-bound factors (labor cost and material cost) are critical determinants of the decision to reshore under uncertainty. Originality/value This research elucidates and empirically validates several factors that influence the reshoring decision in uncertain environments. The findings provide valuable theoretical, practical and strategic insights into how firms should manage their value chains in the post-COVID-19 era.

Modelling factors of social media usage by B2B salespersons: an emerging market study

Purpose The purpose of this study is to extend and contribute to the evolving phenomenon of social media usage by business-to-business (B2B) salespersons. It draws on the interactional psychology model and extended technology acceptance model to explore the said phenomenon. Design/methodology/approach A survey-based quantitative study was carried out. Responses were gathered through a self-administered and structured questionnaire, from 218 B2B salespersons who were pooled in using purposive and snowball sampling. The final data set was subjected to partial least squares-based structural equation modelling using WarpPLS 7.0. Findings This study found that individual factors, namely, salesperson’s social media competence and sales capabilities; organizational factors, namely, organizational commitment and organizational competence; and social factors, namely, image, result demonstrability and subjective norms, contribute positively and significantly towards social media usage by B2B salespeople. The study also found that the impact of individual factors on intention to use social media was partially mediated by its perceived usefulness, while in the case of organizational and social factors, the impact was fully mediated by its perceived ease of use. Research limitations/implications This study provides a valuable addition to the existing literature on sales and social media; however, the contextualization cannot be ignored. Practical implications This study enables firms to understand various factors affecting salespeople’ perception of social media and to make them appreciate its usage in improving sales performance and customer satisfaction. Originality/value It is the first study that models the factors of salespeople’s usage of social media in their job at three levels, namely, individual, organizational and social, and establishes the link between B2B salespersons’ perceived usefulness of social media, sales capabilities, social media competence and intention to use social media.

A new fuzzy multi-criteria decision-making approach for risk assessment of competitors’ cooperation in new product development projects

Purpose This study aims to identify and accurately assess the risk factors of competitors’ cooperation in the NPD project. Design/methodology/approach New product development (NPD) is essential to the survival of companies and surpassing other competitors. A key prerequisite for the success of an NPD project is the timing of new product delivery to the market. The main challenge faced by many project managers is the delay in execution and completion phases due to the complex nature and uncertainty of these projects. Rival companies' cooperation reduces the time spent on an NPD project which is an excellent way to reduce the risk of losing the market, but it increases other risk factors. Findings Based on the results, the security and confidentiality of innovation, the competitors attracting human resources and the company’s brand credibility factors were ranked higher than other factors and should be predicted and managed before cooperating with competitors. Originality/value This paper proposed a new model to assess risk factors in cooperation with rival companies in NPD projects. This model takes into account new parameters, for example, negative and positive risks, negative and positive passable risks and risk-based multi-objective optimization by ratio analysis plus full multiplicative form methodology for the rival companies cooperation in NPD projects. To evaluate the efficiency of the proposed model, a real case of the R&D unit of Iran Khodro Company was studied.

CRM system implementation and firm performance: the role of consultant facilitation and user involvement

Purpose The current research aims to answer the following question: To what extent and under what conditions does hiring consultants to implement a customer relationship management (CRM) system produce performance gains for companies? To answer this question, this research delves into the critical interdependent roles of CRM consultant resources (CR) and user involvement (UI) in overcoming CRM’s technological and organizational implementation challenges. Design/methodology/approach A quantitative field study methodology was used to empirically test the research hypotheses. Cross-sectional data (N = 126) were collected from large client companies using CRM technology. Partial least squares-structural equation modeling was used to estimate the significance levels of the structural model. Findings The findings indicate that the extent to which CRM consultants improve CRM system quality (SQ) and, ultimately, firm performance, largely depends on UI, which acts as the key facilitating mechanism to cope with application complexity (APP) and requirements uncertainty (REQ). Originality/value This research probes into the largely unexplored interactions between CRM CR, UI, APP and REQ. Using these parameters, this model successfully predicts CRM SQ and firm performance.

Effects of country of origin and importers’ innovativeness in new product trials

Purpose The purpose of this study is to seek to investigate whether and how country of origin (COO) cues – category-country image (CCI) and typicality – and importers’ domain-specific innovativeness (DSI) influence importers’ propensity to the trial new value and premium products. Moreover, it aims to understand whether and how the relationship between the COO effect and industrial purchase intentions is moderated by importers’ propensity to innovate (DSI). Design/methodology/approach International importers completed a quantitative online survey. Factor analysis was used to summarize the latent constructs into orthogonal scores. General linear modeling was applied to the scores to test the hypotheses. Findings The results indicate that importers’ propensity to trial value products is directly influenced by CCI and importers’ DSI. For premium products, typicality has a positive effect on their propensity to trial. Also, CCI and DSI have positive effects on the trial of value products, and the effect is more pronounced than for premium products. Importers’ DSI positively moderates CCI in premium product trials, while it negatively moderates typicality in value products. Practical implications This research provides important managerial implications for practitioners seeking to increase foreign sales, strengthening importers’ product perceived value through COO cues. Exporters should distinguish between value and premium products and, in the selection of international channel partners, they must be attentive to importers’ personal characteristics, such as their propensity to innovate. Exporters selling value products should communicate CCI more clearly and, when targeting innovative importers, opt for atypical products instead of traditional ones. For premium products, which require more complex decisions, exporters should especially underscore product typicality and, with innovative importers, emphasize positive CCI. Originality/value By focusing on the two critical issues of product selection and price levels, this study’s original contribution is to emphasize that, for the same product category, in industrial purchasing decisions of value versus premium products, the COO effect can be different. It also highlights the importance of investigating the COO effect by concentrating on industrial buyers’ personal characteristics, here the DSI of importers, as moderating variables.

Changes in knowledge coupling and innovation performance: the moderation effect of network cohesion

Purpose Collaborative research and development have remained a pertinent mechanism for conducting technological innovations. With the lens of knowledge-based view (KBV), this study aims to examine the role of changes in knowledge couplings and network cohesion to elevate innovation performance. Design/methodology/approach Data analysis has been performed on 53,459 patents through regression analysis with random effects. These independent and joint patents are extracted from Derwent Innovation Database. Findings Findings explicate that change in external existing or existing and new knowledge couplings have inverted U-shaped effects on a firm’s innovation performance. Changes in internal existing or existing and new knowledge couplings have direct positive effects on firm’s innovation performance. The moderation effect of network cohesion flattens the inverted U-shaped effect of external new and existing knowledge coupling, whereas it has no significant effect on external existing knowledge coupling. Network cohesion further elevates the effects of internal knowledge couplings – existing or existing and new. Research limitations/implications This study theoretically contributes to KBV and innovation management literature by highlighting the scope of changes in internal and external knowledge couplings and subsequent output. Network cohesion flattens the curviness of changes in external new and existing knowledge couplings, which is a contribution to strategic management literature. Practical implications Organizations need to carefully manage changes in knowledge couplings and ensure their benefits (obtain new knowledge domain or new combination) outweigh liabilities (damages to organizational routines or increase in collaboration costs). Managers must consider four kinds of knowledge coupling changes along with developing network cohesion as an R&D strategy. Originality/value This study is one of its types to flatten the curve through network cohesion. This study divided the changes in knowledge coupling into four types and two dimensions; external existing and new and existing knowledge couplings and internal existing and new and existing knowledge couplings.

Left to their own devices? Antecedents and contingent effects of workplace anxiety in the WFH selling environment

Purpose The main purpose of this research is to understand how the sudden shift to work from home (WFH) after the onset of the COVID-19 pandemic has caught several sales organizations underprepared and ill-equipped to combat emergent challenges. In this research, the authors provide initial evidence into how the WFH arrangement impacts salespeople and sales organizations. Specifically, this research is guided by two objectives: to understand how the shift to WFH environment is affecting salespeople, and to explore how organizations can mitigate dysfunctional effects of the shift to WFH practices and enhance salespeople’s commitment toward this new reality. Design/methodology/approach The authors did preliminary in-depth interviews with 13 executives operating in the business-to-business (B2B) space to identify themes that reflected the reality faced by B2B sales organizations when transitioning to WFH. The authors then conducted a quantitative study involving a survey with 130 B2B salespeople. Findings The findings from the qualitative research suggested that the WFH situation is quite different from the more traditional remote selling situations that B2B salespeople are used to. More specifically, salespeople experienced more anxiety because of the WFH situations. This finding was supported in the empirical study done by the authors where stress associated with WFH and job insecurity had a significant impact on salesperson anxiety. Research limitations/implications The study primarily used subjective responses of salespeople with no objective measures. Furthermore, this study is cross-sectional in nature. Future research should build on the present work to understand the long-term consequences of WFH and factor in customer responses to the same. The impact of increased use of technology in the sales process will need further attention, including the sales management implication for the same. Originality/value Given the unforeseen nature of the COVID pandemic and how unprepared salespeople and sales organizations were to deal with it, this study is one of the first studies that documents the impact of WFH situations on salespeople.

Strategic crisis response: managerial implications and direction for recovery and survival

Purpose The purpose of this paper is to provide managers with insights to help survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. Given the environment at the time of this paper, this paper focuses on widespread crises, such as a public health crisis like COVID-19. Design/methodology/approach The authors offer a conceptual framework, grounded in the attribution theory and situation crisis communication theory (SCCT), for managers to use when determining which crisis response strategy is most appropriate to use during a crisis. Propositions based on this framework are provided. This paper focuses on widespread crises, such as a public health crisis, particularly on the COVID-19 pandemic. Based on the framework proposed for organizational crisis response strategy and recovery, several insights for managers across a variety of industries emerge. Consideration of the best strategic approach to a crisis is essential, and time is critical. This framework provides a starting point for creating a proper response strategy when a crisis arises that is not within the organization’s crisis management planning. Managerial implications for several industries, such as restaurant, hotel, airline, education, retail, medical and other professional services, and theoretical implications to further the advancement of understanding are provided. Findings The findings of this paper demonstrate that organizations that apply an accommodative strategy during unintentional crises will survive, while during intentional crises, they will thrive in the marketplace. Similarly, organizations that apply an offensive strategy during unintentional crises will thrive, while during intentional crises, they will survive in the marketplace. Practical implications This paper provides a framework highlighting strategies that best protect an organization during both internally and externally caused crises. The response strategy and crisis framework are based on the attribution theory and SCCT. Building on this framework, six propositions are postulated. In keeping with this strategy and crisis framework, this study provides several crisis response insights for managers across a variety of industries. These suggestions act as a guide for managers when assessing how to respond in the early days of a crisis and what to do to recover from it. Originality/value This paper provides a crisis-strategy matrix, grounded in the attribution theory and SCCT, to provide decision-making guidance to help managers survive a crisis, create advantage during slow-growth recoveries and thrive when the crisis is over. The authors provide multiple industry insights related to the “how to” and the “what to” in the recovery from and survival through internally and externally caused crises.

Criteria for selecting actors for the value co-creation in startups

Purpose The purpose of this paper is to identify the main criteria for selecting actors to compose these business platforms and addressing the co-creation of value and improve the performance of startups. Design/methodology/approach The methodology is based on the search for key factors for the selection of actors and the understanding of co-creation of value and the concept of startups. The content of this paper is substantiated on an extensive review of the literature related to the subjects’ value-cocreation and new startups, and the review is based on the articles found in the databases of Ebsco, Emerald, Science Direct, Scopus, Village and Web of Science. Findings This paper identifies the main key-factors found in the literature for selecting actors to co-create value in startups and organizes the findings in five categories: value creation, interaction, actor behavior, client and partnership. It also presents the possibility of future research that will be able to put the study in practice. Research limitations/implications The results of this research have not been tested empirically, which opens the door for future studies that can prove the effectiveness of the findings. It is also important to mention that there are few articles in the literature that directly address this topic, and some definitions of actor/co-creation of value/business model may also change. Practical implications The selection criteria of the actors listed are useful for service entrepreneurs and managers to assist in decision-making at the stage of choosing their partners for value co-creation in startups. Furthermore, it involves mitigating waste in startups and maximizing the economic gains of partners through value co-creation in startups. Originality/value This study is one of the first attempts to recognize the key factors for selecting actors to co-create value in startups, aiming at their success in the market.