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Article
Publication date: 19 April 2024

Adeel Tariq, Muhammad Saleem Ullah Khan Sumbal, Marina Dabic, Muhammad Mustafa Raziq and Marko Torkkeli

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking…

Abstract

Purpose

As sustainable performance has a central role in the small and medium enterprises (SMEs) performance literature, this study aims to examine the influence of networking capabilities in enhancing sustainable performance through knowledge workers’ productivity and digital innovation. It also examines the sequential mediating role of knowledge workers’ productivity and digital innovation on networking capabilities and SMEs’ sustainable performance relationship.

Design/methodology/approach

Data were collected from 308 knowledge workers in the information technology sector and analyzed using the Hayes Process Macro bootstrapping method to test the proposed hypotheses.

Findings

Results indicate that knowledge workers’ productivity and digital innovation individually and sequentially mediate the relationship between networking capabilities and SME’s sustainable (economic and environmental) performance, surprisingly, they do not act as a mediator between networking capability and SME’s social performance. SMEs should prioritize investments in the professional development of their knowledge workers through training and skill enhancement programs. This investment equips knowledge workers with the tools to effectively use the knowledge and resources acquired through networking. Thus, knowledge workers may improve performance by using these resources to tackle challenges.

Research limitations/implications

Although this research focused on this specific context, it is prudent to acknowledge that additional factors may also exert influence on sustainable performance within SMEs, factors that managers may consider when making decisions. Methodologically, the cross-sectional design of this research poses a potential limitation, as it does not allow for the complete elimination of endogeneity concerns. However, it is worth noting that scholars have endorsed the use of cross-sectional data in cases where management researchers aim to expand beyond well-documented and longitudinal data sets.

Practical implications

This research offers practical recommendations for SMEs to improve their sustainable performance through networking. SMEs should seek partnerships with complementary knowledge to improve operations and for other performance-oriented benefits.

Originality/value

This study adds significantly to the literature on sustainable SME performance by studying the interdependent effects of networking capabilities. It also represents the individual and sequential mediation mechanism that links networking capabilities to SME success through knowledge worker productivity and digital innovation.

Details

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

Keywords

Article
Publication date: 29 March 2024

Rashmi Ranjan Panigrahi, Avinash K. Shrivastava and Sai Sudhakar Nudurupati

Effective inventory management is crucial for SMEs due to limited resources and higher risks like cash flow, storage space, and stockouts. Hence, the aim is to explore how…

Abstract

Purpose

Effective inventory management is crucial for SMEs due to limited resources and higher risks like cash flow, storage space, and stockouts. Hence, the aim is to explore how technology and know-how can be integrated with inventory practices and impact operational performance.

Design/methodology/approach

The basis of the analysis was collecting papers from a wide range of databases, which included Scopus, Web of Science, and Google Scholar. In the first phase of the process, a search string with as many as nine related keywords was used to obtain 175 papers. It further filtered them based on their titles and abstracts to retain 95 papers that were included for thorough analysis.

Findings

The study introduced innovative methods of measuring inventory practices by exploring the impact of know-how. It is the first of its kind to identify and demonstrate how technical, technological, and behavioral know-how can influence inventory management practices and ultimately impact the performance of emerging SMEs. This study stands out for its comprehensive approach, which covers traditional and modern inventory management technologies in a single study.

Research limitations/implications

The study provides valuable insights into the interplay between technical, technological, and behavioral know-how in inventory management practices and their effects on the performance of emerging SMEs in Industry 5.0 in the light of RBV theory.

Originality/value

The RBV theory and the Industry 5.0 paradigm are used in this study to explore how developing SMEs' inventory management practices influence their performance. This study investigates the effects of traditional and modern inventory management systems on business performance. Incorporating RBV theory with the Industry 5.0 framework investigates firm-specific resources and technological advances in the current industrial revolution. This unique technique advances the literature on inventory management and has industry implications.

Details

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

Keywords

Article
Publication date: 18 March 2024

Muhammad Hamid Shahbaz, Sajjad Ahmad and Shahab Alam Malik

This study aims to explore green practices within small and medium-sized enterprises (SMEs) and their implications for determining environmental performance. Targeting SMEs in…

Abstract

Purpose

This study aims to explore green practices within small and medium-sized enterprises (SMEs) and their implications for determining environmental performance. Targeting SMEs in Pakistan, the study examines the influence of green intellectual capital (GIC), innovation and creativity on environmental performance.

Design/methodology/approach

A comprehensive survey addressed top, middle, and lower-level managerial perspectives. A sample of 243 respondents was statistically selected, and the survey questionnaire was used to measure the key constructs of the study. Using a 5-point Likert scale, the study captured the respondents' insights regarding green practices. Data analysis was executed using SPSS for descriptive tests and Smart-PLS 4 for advanced structural equation modeling (SEM).

Findings

GIC significantly enhances green innovation within SMEs, leading to improved environmental performance. Green creativity is a crucial moderator, indicating that SMEs have higher creative approaches to counter environmental challenges. These findings accentuate the importance of fostering an environment that stimulates green creativity to uplift GIC in achieving environmental performance.

Originality/value

The study offers a profound understanding of how SMEs in Pakistan leverage GIC to elevate their environmental performance, thereby providing strategic insights for businesses aiming for sustainable growth.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 12 January 2024

Khushbakht Hina, Muhammad Khalique, Jamal Abdul Nassir Shaari, Shazali Abu Mansor, Sundas Kashmeeri and Mohd Rafi bin Yaacob

This research attempts to assess the role of green intellectual capital components with respect to the sustainability business performance of manufacturing SMEs in Malaysia.

Abstract

Purpose

This research attempts to assess the role of green intellectual capital components with respect to the sustainability business performance of manufacturing SMEs in Malaysia.

Design/methodology/approach

Empirical data for this study were gathered through structured questionnaire forms, from entrepreneurs, managers, and decision-makers of manufacturing, small and medium enterprises. A sample of 500 individuals from 170 manufacturing SMEs from Malaysia was participated. Partial Least Squares (PLS) Structural Equation Modelling technique was used to examine the impact of green intellectual capital on the sustainability business performance of SMEs.

Findings

Results expressed that green intellectual capital has a positive significant impact on the sustainability business performance of manufacturing SMEs in Malaysia. Results also posited that the three components such as green customer capital, green technological capital, and green spiritual capital were supported while green human capital, green structural capital, and green social capital were not supported.

Practical implications

The present study inspects how entrepreneurs, managers, and policymakers should practice the concept of green and sustainability to attain maximum benefits from green intellectual capital to increase the sustainability business performance of their organizations.

Originality/value

This pioneering research produces a comprehensive theoretical model of green intellectual capital, supporting the current literature where similar works have been yet. This theoretical model will guide entrepreneurs and managers of SMEs to measure green intellectual capital in SMEs. Despite the significant contribution, this study offers insights to researchers, academicians and practitioners to mitigate environmental destruction and to achieve the sustainable business performance of SMEs in Malaysia and developing countries.

Details

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

Keywords

Article
Publication date: 23 June 2023

Grisna Anggadwita, Nurul Indarti, Paresha Sinha and Hardo Firmana Given Grace Manik

Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid…

Abstract

Purpose

Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.

Design/methodology/approach

This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.

Findings

This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.

Originality/value

This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.

Details

Review of International Business and Strategy, vol. 33 no. 5
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 14 July 2023

Khanh D.P. Tran, Thuy Vo T.N. and Tram Thai N.B.

The purpose of this paper is to find out how absorptive capacity (AC), leadership capacity (LC) and government support (GS) affect small and medium enterprises (SMEs) innovation…

Abstract

Purpose

The purpose of this paper is to find out how absorptive capacity (AC), leadership capacity (LC) and government support (GS) affect small and medium enterprises (SMEs) innovation (product innovation [PDI], process innovation [PCI] and distribution channel innovation [DCI]), taking into consideration the role of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating role of customer orientation (CO).

Design/methodology/approach

This study gives a theoretical model tested using structural equation modeling. The information used to test the hypotheses came from interviews with the top managers of Vietnam’s SMEs. The 633 survey respondents from the southern part of Vietnam were chosen for the study. The goal of the 47-item questionnaire is to look at how all variables relate to each other.

Findings

The results show that a firm’s LC has the most significant impact on innovation, followed by its AC and GS. According to the study, DCI does not lead to competitive advantage but improves SMEs’ performance. In addition, the study’s findings indicate that CO moderates the relationship between PDI – SMEs performance and DCI – SMEs performance.

Research limitations/implications

The classification of only three types of innovation (PDI, PCI and DCI) restricted the applicability of the research to other kinds of innovation in SMEs. Second, only AC, LC and GS are identified in this study as external factors that influence business innovation. In this study, the authors have not studied different business industries; the authors recommend that the research in the back on SMEs should investigate their classification into distinct industry groups, including agricultural, forestry and marine products; industry and construction; and commerce and services.

Practical implications

This study shows the importance of innovation senior management for innovation in SMEs. This study found that innovation, especially continuous innovation, increased competitive advantage and SMEs performance. Companies that wish to innovate must have access to external resources and support. Moreover, enterprises must comprehend their consumers’ wants to achieve innovation and better SMEs’ performance.

Social implications

This research significantly contributes to enterprise innovation and operational efficiency for the sustainable development of SMEs in Vietnam. It is expected to enhance employment opportunities, maintain social stability and expand Vietnam’s gross domestic product.

Originality/value

This study contributes to the growing knowledge of the indirect and direct effects, the mediating function of innovation (PDI, PCI and DCI) on competitive advantage and SMEs performance and the moderating effect of CO.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

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

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) sustainable…

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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. 16 no. 1
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 25 April 2024

Kwabena Abrokwah-Larbi

The aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory.

Abstract

Purpose

The aim of this study is to empirically investigate the impact of marketing analytics capability on business performance from the perspective of RBV theory.

Design/methodology/approach

This study used a survey method to gather information from 225 food processing SMEs registered with the Ghana Enterprise Agency (GEA) in Ghana’s eastern region. A structural equation modeling (SEM) path analysis was used to assess the impact of marketing analytics capability (MAC) on the performance of SMEs.

Findings

The results of the study show that MAC significantly and positively affect the financial performance (FP), customer performance (CF), internal business process performance (IBPP) and learning and growth performance (LGP) of Ghanaian SMEs. The findings of this study also illustrated the significance of MAC determinants, including marketing analytics skills (MAS), data resource management (DRM) and data processing capabilities (DPC), in achieving SME success in Ghana.

Originality/value

The research’s conclusions give RBV theory strong credence. The results of this study also provide credence to previous research finding that SMEs should view MAC and its determinants (i.e. DRM, DPC, MAS) as a crucial strategic capability to improve their performance (i.e. FP, CF, IBPP, LGP). With regard to its contribution, this study broadens the body of knowledge on MAC and SME performance, particularly in the context of an emerging economy.

Details

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

Keywords

Article
Publication date: 24 April 2024

Nadia Yusuf, Inass Salamah Ali and Tariq Zubair

This study investigates the impact of US dollar volatility and oil rents on the performance of small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC…

Abstract

Purpose

This study investigates the impact of US dollar volatility and oil rents on the performance of small and medium-sized enterprises (SMEs) in the Gulf Cooperation Council (GCC) region, with an emphasis on understanding how these factors influence SME financing constraints in economies with fixed currency regimes.

Design/methodology/approach

Employing a random effects panel regression analysis, this research considers US dollar volatility and oil rents as independent variables, with SME performance, measured through the financing gap, as the dependent variable. Controls such as trade balance, inflation deltas and gross domestic product (GDP) growth are included to isolate their effects on SME financing constraints.

Findings

The study reveals a significant positive relationship between dollar volatility and the financing gap, suggesting that increased volatility can exacerbate SME financing constraints. Conversely, oil rents did not show a significant direct influence on SME performance. The trade balance and inflation deltas were found to have significant effects, highlighting the multifaceted nature of economic variables affecting SMEs.

Research limitations/implications

The study acknowledges potential biases due to omitted variables and the limitations inherent in the use of secondary data.

Practical implications

Findings offer pertinent guidance for SMEs and policymakers in the GCC region seeking to develop strategies that mitigate the impact of currency volatility and support SME financing.

Originality/value

The research provides new insights into the dynamics of SME performance within fixed currency regimes, which significantly contributes to the limited literature in this area. The paper further underscores the complex connections between global economic factors and SME financial health.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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