Entrepreneurial orientation and performance: the interaction effect of customer capital

Indirect effect of extra-industry network and innovativeness on performance through proactiveness

Purpose

The current study aims to advance the research on the extra-industry network, innovativeness and performance of small and medium enterprises (SMEs) by examining the mediation role of proactiveness. The study also aims to examine the mediating role innovativeness between extra-industry network and performance.

Design/methodology/approach

This study used the proportionate stratified random sampling method to select the study sample and the questionnaire survey approach to 580 SMEs. A total of 150 completed questionnaires were returned. Partial least squares structural equation modeling was administered to analyze data via Smart PLS 3.0 software.

Findings

The results reflect that proactiveness is mediated by the relationship between the extra-industry network and the performance of Iranian SMEs. In addition, the results illustrated that proactiveness is mediated by the relationship between innovativeness and the performance. The findings also address the limitation of previous studies on Iranian SMEs through the independent examination of the mediating role of innovativeness between firm extra-industry network and performance.

Originality/value

This article is one of few attempts that have addressed the significance of proactiveness as the key mechanism to transform the advantages of extra-industry network and innovativeness relationships to enhance performance.

Analysis of Maximization Strategy Intangible Assets through the Speed of Innovation on Knowledge-Driven Business Performance Improvement

This study aims to determine the effect of human capital, structural capital, and consumer capital on financial performance and moderate the speed of innovation. The type of research used in the study is quantitative—data collection techniques in distributing questionnaires measured using a Likert scale. The sampling technique used was random sampling and was determined by the slovin formula. The population in this study was MSMEs in Buleleng Regency, and the samples used in this study amounted to 392 MSMEs. Data or statistical analysis techniques in the study were considered using the Structural Equation Model with WarpPLS 5.0 software modelling. The results show that the technology and commitment variables have no significant effect on the development of religious ecotourism villages. In contrast, cultural changes significantly impact the development of religious ecotourism villages. This study uses the speed of innovation as a moderating variable, the speed of innovation is one of the essential things for MSMEs to improve financial performance. The speed of innovation supports intellectual capital, which is currently focused on knowledge-driven business to create a competitive advantage.

EFFECT OF FAMILY-FRIENDLY PRACTICES ON EMPLOYEES’ INTENTION TO QUIT: THE MEDIATING ROLE OF ORGANIZATIONAL CITIZENSHIP BEHAVIOR

Turnover intention has become one of the most serious issues in organizations around the world. Hence, most organizations encourage family-friendly practices (FFPs) to retain employees and to reduce high turnover risk. A plethora of research has confirmed FFPs as a fruitful predictor of turnover intention. However, what is not yet known is whether FFPs directly influence turnover intention or indirectly through organizational citizenship behavior (OCB). To fill the gap, the present study examined the effect of FFPs on employees’ intention to quit. On top of that, the mediating role of OCB in the purported link was also examined. Data were collected from 338 health sector employees using a structured questionnaire. The results of the structural equation modeling using AMOS indicated a significant negative relationship between FFPs and employees’ intention to quit. Moreover, OCB negatively influences employees’ intention to quit and partially mediates the path between family-friendly practices and intention to quit. Based on theoretical and empirical evidence, this study advances existing knowledge and further understanding of organizational work practices. This study recommends that organizations should encourage FFPs to mitigate turnover rate among employees.

Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia

Purpose

The purpose of this study is to examine the dimensions of organizational learning (OL), entrepreneurial orientation (EO), personal value toward the firm performance of small and medium enterprises (SMEs) in North Sumatera, Indonesia.

Design/methodology/approach

This study used a quantitative methodology using Smart partial least squares of the structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 128 respondents are selected. Using a cross-sectional survey design, 11 hypotheses are tested.

Findings

It is found that the innovativeness of EO and personal value both have a significant relationship with firm growth. While OL is significantly related to the innovativeness of EO, risk-taking of EO and proactiveness of EO. Then, both innovativeness of EO and proactiveness of EO significantly mediate the relationship of OL and firm growth. However, OL, proactiveness of EO and risk-taking of EO are insignificantly related to firm growth, while risk-taking of EO also insignificantly mediates the relationship of OL and firm growth.

Originality/value

EO (innovativeness, risk-taking and proactiveness) is deemed a crucial factor in running businesses by SMEs, while OL and personal value play a significant role in creating a competitive advantage that is needed for growth.

Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia

Purpose

The purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera.

Design/methodology/approach

This study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested.

Findings

It is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA.

Originality/value

By using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.

The Mediating Role of Entrepreneurship Behavior in the Relationship Between Social Capital and Job Performance: A study Among Faculty Members of a Medical University

Background: Job performance is an important organizational factor that plays a significant role in the success of organizations. Objectives: This study aimed to investigate the moderating role of entrepreneurial behavior in the association between social capital and job performance among faculty members of the Qazvin University of Medical Sciences. Methods: This is a cross-sectional, analytical study that is conducted using a structural equation modeling on 260 university faculty members in different schools of Qazvin University of Medical Sciences in 2017. To evaluate the causal relationships between study variables, structural equation modeling (SEM) on AMOS software, with a significant level of 0.05, was used. Results: The findings indicated that entrepreneurial behaviors and social capital are good predictors for job performance. The direct effect of social capital on job performance (path coefficient: 0.17) and its indirect effect with the moderating role of entrepreneurial behavior (path coefficient: 0.39) were confirmed (P < 0.05). Furthermore, the Sobel test affirmed the indirect associations between variables (P < 0.05). Conclusions: Strengthening social capital and promoting entrepreneurial behavior improve overall performance. Trust-building among staff and designing new motivation methods, which use entrepreneurial indicators for performance evaluation, can improve social capital. Therefore, managers can contribute to the improvement of job performance through developing entrepreneurial behavior among their employees.

Effect of entrepreneurial orientation, market orientation and total quality management on performance

Purpose

This study aims to examine the joint effect of entrepreneurial orientation (EO), market orientation (MO), total quality management (TQM) and organisational performance in the Kingdom of Saudi Arabia’s (KSA's) small and medium enterprise (SME) sector.

Design/methodology/approach

This paper used a quantitative research design. A total of 393 questionnaires were distributed to and collected from owners/managers of SMEs in KSA to acquire requisite data for examining the hypothesised model of the study. Partial least squares structural equation modelling was used to analyse the research data.

Findings

The results indicate that EO, MO and TQM are positively and significantly related to the organisational performance of SMEs. In addition, the findings reveal that TQM has contributed the most to the enhancement of organisational development, which is followed by EO and finally, MO.

Practical implications

Developing economies consider SMEs as an approach to generate new jobs and enhance economic growth. The results provide owners/managers, practitioners and academicians with an enhanced understanding of the relationship and effects of EO, MO and TQM on organisational performance, particularly in the SME sector. Thus, owners/managers are guided to develop improved and further effective decisions for the implementation of TQM practices with strong EO and MO. Consequently, firms realise superior performance and continuously compete within their market.

Originality/value

From the perspective of developing countries, this study contributes to the existing literature by providing empirical evidence regarding the effects of EO, MO, TQM and SMEs' performance. This study is the first to empirically examine the SME sector within the KSA's economy regarding the new orientation among decision makers in terms of increasing the significance of non-oil activities. This study also confirms the usability of resource-based view theory and strategic orientations variables in the KSA SMEs.

Assessing the Investors' Acceptance of Electronic Stock Trading in a Developing Country

This study explores the factors that reduce the impact of negative factors on investors' Behavioral Intentions (BIs) to use Electronic Stock Trading (EST) in Pakistan. It investigates the impact of awareness-knowledge and perceived trust on EST adoption. Using a questionnaire-based survey, data were collected from 347 experienced investors, and were analyzed through structural equation modeling. The results indicate that awareness-knowledge, perceived trust, and risk dimensions (including time, financial, performance, social, privacy, and opportunity cost risks) have a significant impact on BI. Moreover, all the risk dimensions partially mediate the relationship between awareness-knowledge and BI, as well as between perceived trust and BI. The study enriches theory and practice by providing implications for promoting EST in developing countries, especially in Pakistan.

The EFFECTS OF CUSTOMER CAPITAL ON CUSTOMER RESPONSE SPEED AND INNOVATIVENESS: THE MEDIATING ROLE OF MARKETING CAPABILITY

Customer capital has attracted a great deal of attention among marketing scholars in recent years. This study explores at first the links between customer capital with firm innovativeness (i.e., the ability to generate new ideas and actions within firms) and customer response speed (i.e., the ability to respond to the customers’ needs immediately). Furthermore, it is analysed how firms’ marketing capability mediates these relationships. For this, a unique environment in post-sanctions Iran is chosen. By using the original survey data from 107 small and medium-sized enterprises (SMEs), our results confirm that durable relationships that a company builds with its customers over the time enhance the market information within firms. This, in turn, enables firms to respond faster to market changes with innovative products and services. Furthermore, the lifetime relationship with the customers enhances the awareness of firms about customers’ needs and demands in a timely manner. Accordingly, it accelerates the process of responding the customers’ requirements before competitors can catch up.

BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?

In the era of globalisation and dynamic market, firms look for competitive advantage and survival using different sources and resources. Prior studies have indicated that Business Model Innovation (BMI) is a core driver for firm’s survival and superior performance especially in growing industries. However, the role of BMI has been discussed theoretically and exploratory while empirical studies are still lacking. Hence, this study examines the importance of BMI in SME performance and the mediating role of competitive advantage. Data were collected through structured questionnaires using a sample size of 303 manufacturing SMEs operating in the emerging market of Pakistan. Hypotheses were tested through Structural Equation Modelling (SEM) using AMOS.21. The results indicate that BMI has a significant positive impact on competitive advantage and SME performance. Competitive advantage partially mediates the relationship between BMI and SME performance. Firms are required to create an effective business model to acquire competitive advantage and superior financial performance. Implications for practice have been discussed.

Internationalisation of SMEs: does entrepreneurial orientation matter?

Purpose

The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research question is “to what extent do the dimensions of EO (innovativeness, proactiveness and risk taking) predict internationalisation of SMEs?”

Design/methodology/approach

The study adopts a cross-sectional survey to collect data from 282 SMEs, with the use of a multi-dimensional self-administered questionnaire. All the measures in this study were adopted from existing instruments from previous studies and all showed a CVI above 0.8. Data were analysed quantitatively using descriptive statistics, correlations and hierarchical regression. The nature and strength of the relationships between the variables was tested using the zero-order bivariate correlation analysis.

Findings

The study establishes a significant relationship between the dimensions of EO and internationalisation of SMEs.

Research limitations/implications

This paper contributes to the corpus of literature on internationalisation of SMEs. Future research should consider the major constructs from a longitudinal point of view given that cross-sectional studies sometimes fail to examine the interaction effect of the variables.

Practical implications

The paper illustrates how EO dimensions can influence an entrepreneur’s decision to go international especially handling the process of internationalisation and its dynamics.

Originality/value

The paper provides contextual evidence from a developing country to the effect that as local investors get more inclined to EO, they in the process ease their way to joining the international business arena.

The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance

Purpose

– This study aims to examine the effect of market orientation (MO) as a mediating variable in the relationship between entrepreneurial orientation (EO) and small and medium enterprises (SMEs)’ performance.

Design/methodology/approach

– A total of 500 SMEs in the manufacturing industry of food and beverages were involved in this study with a response rate of 117. Data collection was conducted in all states of Peninsular Malaysia including the northern, central, southern and eastern regions.

Findings

– The findings show that EO has a significant relationship with MO, and MO has a significant relationship with SME performance. MO will mediate the relationship between EO and SMEs’ performance.

Practical implications

– The higher the EO implemented in a business, the more willing a company will be to implement MO. This analysis shows that highly entrepreneurial firms tend to be highly market orientated and this affects SMEs’ performance.

Originality/value

– The results of this study show that the characteristic of entrepreneurial and MO practiced by SMEs in Malaysia has been significantly affected the SMEs’ performance. It indicates that EO offers a holistic and systematic model for supporting SMEs to build a well-maintained environment of MO and SMEs’ performance.

The mediating role of total quality management between the entrepreneurial orientation and the organizational performance

Purpose

– The purpose of this paper is to examine the joint effect of entrepreneurial orientation (EO) and total quality management (TQM) on the organizational performance. In addition, this study aimed to examine the ability of TQM to transmit the effect of EO on the organizational performance.

Design/methodology/approach

– To examine the hypothesized model of the study, the survey questionnaire research design was employed. The data were collected from Dubai police department. The total number of questionnaires distributed was 320 out of which only 111 usable questionnaires were returned. The structural equation modeling partial least squares approach was used.

Findings

– The statistical results confirmed the effect of EO and TQM on the organizational performance. In addition, TQM was found to partially mediate the effect of EO on organizational performance.

Practical implications

– Further details and valuable implications of this study were discussed throughout the study. The results of this study have many practical implications. The results will help managers to make the proper decisions when deciding to implement TQM in their organizations. TQM can help managers with strong EO to achieve maximum performance in organizations and to remain competitive in the market.

Originality/value

– This study is a rare and unique empirical study that examines the effect of EO on TQM and the mediating effect of TQM on the EO-performance relationship.