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Open Access
Article
Publication date: 6 April 2023

Kwabena Abrokwah-Larbi

The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).

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Abstract

Purpose

The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).

Design/methodology/approach

This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.

Findings

The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.

Research limitations/implications

Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.

Practical implications

The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.

Social implications

This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.

Originality/value

Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.

Details

African Journal of Economic and Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 18 April 2024

Iryna Alves, Bruno Gregório and Sofia M. Lourenço

This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by…

Abstract

Purpose

This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by management-related higher education students. Specifically, the authors consider motivation, locus of control (internal and external) and self-efficacy (SE) as personality characteristics and financial, extrinsic, support and intrinsic as types of rewards.

Design/methodology/approach

Data were collected through a questionnaire targeted at management-related higher education students in Portugal. Partial least squares structural equation modelling was used to analyse the data.

Findings

The full sample results show that different types of motivation, locus of control and SE are related to different reward preferences. The authors also find a positive association between a preference for extrinsic rewards and the propensity to choose a job in auditing. Moreover, when the authors consider the role of working experience in the model, the authors find that the reward preferences that drive the choice of an auditing job differ according to that experience.

Originality/value

This study enriches the literature by assessing preferences for different types of rewards, considering multiple personality characteristics and a comprehensive set of rewards. Furthermore, the authors identify the reward preferences that drive the choice of an auditing career. This knowledge empowers auditing firms to devise recruitment strategies that resonate with candidates’ preferences, which boosts the capacity of these companies to attract new auditors.

Details

Journal of Accounting & Organizational Change, vol. 20 no. 6
Type: Research Article
ISSN: 1832-5912

Keywords

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