Linking extra-industry network and organization–stakeholder relationships to SMEs performance through absorptive capacity: interaction effect of outsourcing big data analytics

Abstract

Purpose

The purpose of this study is to empirically examine the direct effect of extra-industry network (EIN) and organization–stakeholder relationships (OSR) on absorptive capacity (ACAP). In addition, this study explored indirect effects of EIN and OSR on performance through ACAP among small- and medium-sized enterprises (SMEs) in Oman by considering the moderating role of big data analytics (BDA) outsourcing.

Design/methodology/approach

This study utilized quantitative method through survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares-structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.

Findings

The analysis revealed that EIN and OSR had an indirect effect on performance through ACAP, while propensity to outsource BDA was found to have a positive moderating role between EIN and performance. Interestingly, propensity to outsource BDA was found to have a negative moderating influence on the relationship between ACAP and performance.

Practical implications

This research is beneficial for entrepreneurs who wish to learn about the specific intangible resources significant for venture growth, to devise effective strategies to expand their EIN and OSR and to consider the significance of the correlations established in this study through ACAP. The result also assists managers in a way that the propensity to outsource BDA strengthens the positive effect of EIN on performance and weakens the positive effect of ACAP on performance.

Originality/value

This research appears to be among the first empirical studies that attempt to provide insights into the importance of ACAP as the key mechanisms to transform the advantages of EIN and OSR to enhance performance by considering the moderating role of propensity to outsource BDA.

Citation

Jalali, A., Al Riyami, S.M., Razzak, M.R. and Suleiman Alqam, H. (2024), "Linking extra-industry network and organization–stakeholder relationships to SMEs performance through absorptive capacity: interaction effect of outsourcing big data analytics", Business Process Management Journal, Vol. 30 No. 2, pp. 411-434. https://doi.org/10.1108/BPMJ-05-2023-0347