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Article
Publication date: 24 June 2022

Ibraheem Saleh Mokbel Al Koliby, Haim Hilman Abdullah and Norazah Mohd Suki

The purpose of this study is twofold: to examine the impact of entrepreneurial competencies and innovation on manufacturing small and medium-sized enterprises' (SMEs

Abstract

Purpose

The purpose of this study is twofold: to examine the impact of entrepreneurial competencies and innovation on manufacturing small and medium-sized enterprises' (SMEs) sustainable performance and to explore the role of innovation as a mediator on the relationship between entrepreneurial competencies and manufacturing SMEs' sustainable performance.

Design/methodology/approach

Data collected from manufacturing SMEs in Malaysia were analysed via the partial least squares-structural equation modelling (PLS-SEM) approach.

Findings

The results reveal that entrepreneurial competencies play a robust and noteworthy role in promoting innovation and the sustainable performance of manufacturing SMEs, respectively. Further, innovation has a partially mediated effect on the link between entrepreneurial competencies and manufacturing SMEs' sustainable performance. Manufacturing SMEs' aspirations to be the first to market with new products are reflected in these SMEs' implementation of positive entrepreneurial competencies or capabilities which enable them to scan the environment to identify high-quality business opportunities and respond through these SMEs' Research and Development (R&D) activities to create products that provide real benefit to customers' needs. Hence, these SME's seize the market opportunities.

Practical implications

Manufacturing SMEs' sustainable performance should be strengthened by linking entrepreneurial competencies with innovation to nurture greater agility to respond quickly to change and market demands. These SMEs should conduct tactical meetings on a regular basis to discuss current projects and assess critical indicators, as well as to identify and test fresh ideas for innovation and new business ventures in order to achieve sustainable performance in challenging business environments.

Originality/value

By applying the resource-based view (RBV) theory and the triple bottom line (TBL) framework into a single framework, this study highlights the role of innovation as a meaningful mediator between entrepreneurial competencies and manufacturing SMEs' sustainable performance. As exploration of this relationship has been very limited, the study makes a novel contribution to the extant literature.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEsperformance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEsperformance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Book part
Publication date: 19 March 2018

Fadi Hassan Shihadeh, Azzam (M. T.) Hannon, Jian Guan, Ihtisham ul Haq and Xiuhua Wang

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from…

Abstract

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from 2009 to 2014. Performance is measured by gross income and return on assets (ROA) of these banks. To ensure the robustness of our results, we used six different measures of FI. These include credits for small and medium enterprises (SMEs), deposits for SMEs, number of ATMs, number of ATM services, number of credit cards, and new services. We found a significant impact of FI on ‘ performance when measured by gross income, and ROA, although our study displays different results when considering the effect of FI variables separately. Thus, FI contributes to enhance the banks’ performance. Therefore, the banks should devote more resources to increase FI as it benefits their profitability.

Details

Global Tensions in Financial Markets
Type: Book
ISBN: 978-1-78714-839-0

Keywords

Article
Publication date: 22 March 2022

Krishnendu Saha, Chrisovaladis Malesios, Soumyadeb Chowdhury and Prasanta Kumar Dey

There is a critical gap in assessing how institutional voids affect SMEs' growth, investment commitment and reputation. The purpose of this paper is to explain how…

Abstract

Purpose

There is a critical gap in assessing how institutional voids affect SMEs' growth, investment commitment and reputation. The purpose of this paper is to explain how institutional void affects these three dimensions of SME performance; and to develop an institutional void-SME performance framework that can be applied for strategising, resourcing and competency acquisition for better performance.

Design/methodology/approach

The study used the Enterprise Survey Data of the World Bank, consisting of 118,763 firms from 140 countries. The structural equation modelling (SEM) is used to analyse the data, validate our analytical model and investigate the imposed theoretical claims of causality as indicated by specific research questions through correlation/covariation between the constructs of institutional void and SME performance.

Findings

Evidence suggests that there is a strong positive correlation between formal institutional infrastructure (independent variable) and SMEs' reputation (dependent variable). Among the institutional sub-constructs, tax administration, business licensing and permits, access to a bigger market and skilled labour and informal competition are significant for the SME performance constructs. We find similar results while comparing SMEs with large businesses.

Practical implications

The institutional void-SME performance framework developed from our findings will allow SMEs to manage institutional voids affecting their performance. The analytical framework can also be the foundation for future empirical research.

Originality/value

The originality of the study is embedded in its investigation of SMEs' investment commitment and reputation in relation to institutional voids. The latent relationship between the sub-constructs of institutional voids and SME performance adds new knowledge to the dynamic relationship between institutions and firm performance.

Details

Journal of Strategy and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 13 January 2022

So Won Jeong and Jae-Eun Chung

Building on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation…

Abstract

Purpose

Building on the resource-based view (RBV), this study examines the differential roles of internal and external social capital (SC) in enhancing the marketing innovation (MI), competitive advantage and financial performance of Korean small and medium-sized enterprises (SME) in export markets.

Design/methodology/approach

In total, 197 valid cases were obtained from Korean manufacturing SMEs in the consumer goods sector. Then, a path analysis was employed to test the proposed hypotheses.

Findings

First, SME internal SC positively influenced MI, whereas external SC positively influenced foreign distributor's MI (or foreign distributor MI). Second, SME MI was positively associated with foreign distributor MI. Third, no statistical differences were found in the strength of the paths from foreign distributor and SME MI to competitive advantage. Meanwhile, foreign distributor MI positively affected financial performance more than SME MI. Fourth, SME competitive advantage predicted a positive financial performance. Finally, the effect of SME MI on financial performance had an inverted “U” shape.

Originality/value

This study fills a research gap in the MI literature by identifying MI in terms of its actors (SMEs and their foreign distributors) and examining the differential roles of internal and external SC in MI.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 19 November 2021

Mahmoud Ahmad Mahmoud, Ahmed Mahmoud, Shamsu Lawan Abubakar, Abubakar Salisu Garba and Bashir Ahmad Daneji

Despite the growing unforeseen and catastrophic events that disrupt business operations, empirical studies on the impact of operational disruption (OD) on small and medium…

Abstract

Purpose

Despite the growing unforeseen and catastrophic events that disrupt business operations, empirical studies on the impact of operational disruption (OD) on small and medium enterprises' (SMEs) performance dimensions are limited. The study aims to investigate the moderating effect of disruption orientation (DO) and government support (GS) on the relationship between coronavirus disease (COVID-19) OD and SMEs' performance.

Design/methodology/approach

Quantitative survey method was used to collect data from 170 SMEs in Nigeria, through hand-delivery questionnaires. Partial least square (PLS) structural equation modeling (SEM) was employed to analyze the data.

Findings

The result shows no significant relationship between COVID-19 OD, DO and GS with SMEs' financial performance (FP). However, the relationship between COVID-19 OD and non-financial performance (NFP) is negatively significant. The relationship between DO and NFP is positively significant. DO and GS have insignificant relationship with FP. Finally, DO and GS does not moderate any of the relationships between COVID-19 OD and the dimensions of SMEs' performance.

Practical implications

The result implies that health-related disruptions such as COVID-19 affect only the NFP of SMEs. However, supply chain managers and SMEs are encouraged to adopt DO to enhance NFP of firms.

Originality/value

The current study is the first to evaluate the impact of health-related disruptions on the two major dimensions of SMEs' performance (FP and NFP) by incorporating the moderating role of internal (DO) and external (GS) factors in to a single framework. However, the paper revealed new theoretical and practical knowledge by illuminating the absence of significant relationship between COVID-19 OD and SMEs' FP, implying that COVID-19 disruption does not significantly affect SMEs' FP.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 15 August 2008

David A.S. Chew, Shigang Yan and Charles Y.J. Cheah

The purpose of this paper is to examine the relationship between a number of variables pertaining to core capability, competitive strategy and performance of construction…

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Abstract

Purpose

The purpose of this paper is to examine the relationship between a number of variables pertaining to core capability, competitive strategy and performance of construction small to medium size enterprises (SMEs) in China.

Design/methodology/approach

The paper consists of a quantitative survey. It involves mainly the development of instrument and testing of the hypotheses.

Findings

Core capability and competitive strategy are found to influence construction SMEs' performance. Moreover, there are positive relationships between core capability and competitive strategy. This suggests a need to align core capability and competitive strategy as a precondition for superior performance.

Research limitations/implications

The paper has limitations as a result of data collection. A somewhat larger sample would obviously permit firmer conclusions to be drawn from the results of the statistical analysis.

Originality/value

This paper will contribute to the literature on SMEs, strategic management and resource‐based theory. This integration of scope is particularly new to the context of the Chinese construction industry. Similarly, this research will have implications for practice. The research findings help SMEs' managers to understand the impact of the unique resources of their enterprises and competitive strategy.

Details

Chinese Management Studies, vol. 2 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 16 November 2020

Nagwan Abdulwahab AlQershi, Sany Sanuri Mohd Mokhtar and Zakaria Bin Abas

This paper examines the interaction of human capital and CRM on the performance of SMEs in Yemen.

Abstract

Purpose

This paper examines the interaction of human capital and CRM on the performance of SMEs in Yemen.

Design/methodology/approach

The study used a quantitative approach in investigating the interacting effect of human capital on the relationship between CRM and SMEs' performance in Yemen. The PLS-SEM analysis was performed to test the hypotheses.

Findings

It was observed that key customer focus, technology-based CRM and CRM knowledge management were effective drivers of SME performance, but not CRM organization tools. It was also ascertained that human capital has no moderating effect on the key customer focus and knowledge management relationships with performance, although it does moderate the relationships between performance and CRM organization and technology-based CRM respectively.

Research limitations/implications

Because this study is limited to manufacturing SMEs in Yemen, the results cannot be generalized to other types of industry such as services, whose structure and vision differ from those of manufacturing SMEs. While the current results may be appropriate for SMEs in other developing countries, the researcher believes they are unsuitable for SMEs in advanced economies with different financial structures and employee and management cultures.

Practical implications

The empirical insights of this study are valuable for the owners, managers and professionals in the SMEs manufacturing sector in developing countries, to enrich their organizational performance through CRM adoption, while considering the moderating effect of human capital.

Originality/value

This is the first empirical work to confirm way the main drivers of human capital, including in the analysis the impact of CRM dimensions and SME performance, in the context of the manufacturing sector. In support of an original conceptual model, the insights contribute to the literature on CRM, SMEs in the manufacturing sector, human capital and emerging economies.

Details

Journal of Intellectual Capital, vol. 23 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 26 November 2020

Dimitrios Kafetzopoulos

The purpose of this study is to gain insight into existing empirical studies on performance management of small and medium-sized enterprises (SMEs). It categorizes the…

Abstract

Purpose

The purpose of this study is to gain insight into existing empirical studies on performance management of small and medium-sized enterprises (SMEs). It categorizes the main antecedents for SMEsperformance, the dimensions of SMEsperformance and all variables used as moderators in the conceptual relationships.

Design/methodology/approach

This study undertakes a systematic literature review of 58 articles published in 33 peer-reviewed academic journals from 2000 to 2020 followed by a synthesis of individual studies to analyze the trends and background of research into SMEs.

Findings

A new academic conceptual model was developed grounded in selected theoretical lenses to advance our understanding of the different categories of antecedents, moderators and SMEsperformance dimensions.

Research limitations/implications

The author has provided a future research agenda in the context of SMEs. Future studies may investigate the role of different categories of determinants, the influence of key cultural values, the digital capability in SMEs and the Internet in the internationalization of SMEs.

Practical implications

This paper offers a framework for both practitioners and scholars in thinking about those factors that may be critical for success in SMEs.

Originality/value

This is a systematic review that suggests a new conceptual model of what existing empirical studies have found on SMEs. It can be used to influence thinking and research design in the area of SMEsperformance and success.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 19 November 2020

Seyedeh Khadijeh Taghizadeh, Davoud Nikbin, Mirza Mohammad Didarul Alam, Syed Abidur Rahman and Gunalan Nadarajah

In the current dynamic environment, technological capabilities and open innovation play vital roles in operational performance of small and medium enterprises (SMEs)…

Abstract

Purpose

In the current dynamic environment, technological capabilities and open innovation play vital roles in operational performance of small and medium enterprises (SMEs). Thus, the purpose of this paper is to explore the influence of technological capabilities on open innovation and consequent impact on perceived operational performance of the SMEs in Malaysia by considering the moderating effect of environmental dynamism.

Design/methodology/approach

This study is quantitative in nature and used a survey questionnaire to gather responses from 202 SME owners in Malaysia. The data were analyzed with SmartPLS software, as it used structural equation modeling.

Findings

The results show that technological capabilities significantly influence open innovation whereas open innovation plays an instrumental role to achieve operational performance of the SMEs. Interestingly, environmental dynamism was found to have a negative moderating role in the relationship between open innovation and perceived operational performance.

Practical implications

This paper will assist SME managers in making effective decisions while using technological capabilities and open innovation practices. Managers need to be aware of the vital role of technological capabilities to build external and internal collaboration and incorporate their knowledge that is necessary for open innovation practices. The results also assist managers in a way that in the dynamic and competitive environment SMEs should take further proactive actions to compete in the market to survive.

Originality/value

This study provides new insights by dismantling technological capabilities and open innovation to understand further the effects of technological capabilities on open innovation and its consequence on a firm’s operational performance.

Details

Journal of Knowledge Management, vol. 25 no. 6
Type: Research Article
ISSN: 1367-3270

Keywords

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