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Article
Publication date: 3 June 2021

Eugenie Byukusenge, John C. Munene and Laura A. Orobia

The purpose of this study is to examine the mediating effect of innovation on the relationship between managerial competencies and business performance of small and medium…

844

Abstract

Purpose

The purpose of this study is to examine the mediating effect of innovation on the relationship between managerial competencies and business performance of small and medium enterprises (SMEs) in Rwanda.

Design/methodology/approach

A cross-sectional survey and quantitative methodological approach were used to collect the data. The bootstrap method was used to test mediation effects.

Findings

The findings revealed that innovation is a significant mediator in the association between managerial competencies and business performance. This study, therefore, adds new knowledge by stating that innovation toward business performance is a partial mediator in the relationship between managerial competencies and business performance of SMEs in Rwanda.

Research limitations/implications

Only a single research methodological approach was used. Qualitative studies through interviews could be undertaken to triangulate. Furthermore, the findings from the present study are cross-sectional. Longitudinal studies ought to be undertaken to examine the mediation effects studied to investigate any possibility of variations in the results.

Practical implications

The results may help owners-managers of SMEs to develop policies and strategies that could enable them to take advantage of new opportunities in relation to updated technology and cope with changes that may take place in the business environment to boost their business performance level.

Originality/value

To the authors’ knowledge, no research has ever been carried out on the mediating role of innovation in the relationship between managerial competencies and business performance of SMEs in Rwanda.

Details

International Journal of Law and Management, vol. 63 no. 5
Type: Research Article
ISSN: 1754-243X

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Article
Publication date: 23 September 2022

Pattanapong Tiwasing, Yoo Ri Kim and Sukanlaya Sawang

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs

731

Abstract

Purpose

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs that are members and non-members of social media business networks.

Design/methodology/approach

The analysis empirically draws on cross-sectional data of 9,292 English and Welsh family-owned SMEs from the UK's Government Small Business Survey 2015. Propensity Score Matching (PSM) is applied to control for selection bias and differences in firm characteristics before comparing business performance, measured in terms of annual turnover, sales-growth intention and innovation between family-owned SMEs that are members and non-members of social media business networks.

Findings

The findings show that family-owned SMEs that are members of social media business networks are more likely to have higher prior turnover and to grow their sales than non-members. Also, they are more likely to report being innovative in products and processes than non-members. The empirical results acknowledge the importance of online business networks and digital social capital on enhanced family-owned business performance.

Originality/value

This paper is the first to explore the comparative analysis of business performance between family-owned SMEs that are members and non-members of social media business networks. This paper is important for the development of family business research by providing a comprehensive evidence-based analysis regarding the importance of online business networks to improve family-owned business performance, given the significant contribution of digital business activities to the UK economy.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

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Article
Publication date: 7 December 2021

Pattanapong Tiwasing and Sukanlaya Sawang

Local Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses

624

Abstract

Purpose

Local Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses, resulting in improved business performance. However, rural SMEs are less likely to participate in these networks and often possess lower performance. This paper aims to examine the relationship between being members of local Chambers of Commerce networks and rural SMEsperformance by comparing business performance between rural SMEs who are members and non-members of local Chambers of Commerce networks. This paper also further explores difference in business growth plans between rural SMEs members and non-members.

Design/methodology/approach

The empirical analysis draws on cross-sectional data of 3,769 rural SMEs in England and Wales from the UK's Government Longitudinal Small Business Survey 2015. Propensity score matching (PSM) is applied to control for selection bias and variations in business characteristics before comparing business performance, measured in terms of annual turnover, sale growth and profitability, between rural SMEs that are members and non-members of local Chambers of Commerce networks.

Findings

Our results show that rural SME members of local Chambers of Commerce networks are more likely to grow their sales than non-members. However, they perform as good as non-members in terms of turnover and profitability. The results also emphasise that local Chambers of Commerce networks are crucial for rural SMEs to develop the skills of the workforce and leadership capability of managers, new product/service development and new working practices. Therefore, to enhance rural SMEs' performance, tailoring the services of local Chambers of Commerce to support rural businesses' needs and encouraging rural SMEs to make use of business networks are recommended.

Practical implications

The paper unpacks the relationships between being local Chamber of Commerce membership and business performance, offering lessons for rural SMEs to boost their business performance and growth through participating in local business association networks.

Originality/value

This paper is the first study that explores the comparative analysis of business performance and growth plans between rural SMEs that are members and non-members of the local Chamber of Commerce networks. We provide an empirical evidence-based analysis to existing literature regarding the advantages of being local Chamber of Commerce memberships to enhance business performance in rural areas.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 2
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 19 August 2020

Yousaf Ali, Ahsan Younus, Amin Ullah Khan and Hamza Pervez

This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm…

4013

Abstract

Purpose

This paper aims to explore the impact of lean, Six Sigma and environmental sustainability on the performance of small and medium enterprises (SMEs) in Pakistan. The firm performance has been measured in terms of operational, business and environmental performance.

Design/methodology/approach

A survey-based methodology is adopted for collecting data from the main cities of Punjab, Pakistan. SMEs related to different industries such as service, manufacturing, automotive and retail were targeted. The data gathered were ordinal, and Spearman's correlation test was used as the data analysis technique.

Findings

The findings indicated that the three management styles positively impacted the environmental performance of SMEs. Moreover, no significant relationship was found between the three management styles and the SMEs' business and operational performance.

Research limitations/implications

To counter the inefficient and wasteful practices of SMEs and their detrimental impact on overall firm performance, SMEs have to refocus and reconfigure their management strategies. It is implied to use lean, Six Sigma and environmental sustainability practices to achieve this goal.

Originality/value

The study empirically investigates the impact of lean, Six Sigma and environmental sustainability on the performance of SMEs in Pakistan, which is the first study to be conducted in the Pakistani context.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 8
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 21 May 2024

Thanh Tiep Le, Thoi Le Quan Chau, Quynh Phan Vo Nhu and João J.M. Ferreira

This research aims to shed light on the linkage between digital platforms and small and medium-sized enterprises (SMEs) performance and consider the moderating effect of…

423

Abstract

Purpose

This research aims to shed light on the linkage between digital platforms and small and medium-sized enterprises (SMEs) performance and consider the moderating effect of intellectual capital and environmental dynamism.

Design/methodology/approach

This study applies a quantitative approach using a sample of primary data from 508 managers and directors of Vietnamese SMEs, using structural equation modeling (SEM).

Findings

The utilization of digital platforms by managers and directors has a positive impact on enhancing intellectual capital. However, under the influence of external environment changes, this trend may shift towards a negative direction. The ability to utilize digital platforms, whether directly or through information communication, positively affects the performance of businesses. Research has shown that the positive promotion of digital platform capability for intellectual capital factors such as human capital, organizational capital, and relational capital decreases when the external environment changes in the context of uncertain globalization.

Originality/value

This research focuses on SMEs operating in the technology and e-commerce sectors and it evidences that digital platforms are an effective baseline driver for promoting high-performing SMEs. By examining the connection between digital platform’s capability and IC and the significance of intellectual capital for SMEsperformance, this study adds to the body of literature already available on the destructive regulatory potential of environmental dynamism. This study broadens the dynamic capabilities theory’s outcome audience and adds a new dimension to the impact of the digital platform’s capability (resource utilization) on the performance of SMEs.

Details

Management Decision, vol. 62 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 22 December 2023

Chang Lu, Yong Qi, Shibo Hao and Bo Yu

This study aims to explore the effect of collaboration networks (domestic and international collaboration networks) on the innovation performance of small and medium-sized…

564

Abstract

Purpose

This study aims to explore the effect of collaboration networks (domestic and international collaboration networks) on the innovation performance of small and medium-sized enterprises (SMEs). It also investigates the mediating role of business model innovation, the moderating role of entrepreneurial orientation and government institutional support between them.

Design/methodology/approach

Hierarchical regression analysis is adopted to test the hypotheses based on survey data provided by 223 manufacturing SMEs in China.

Findings

The results reveal that domestic and international collaboration networks positively affect SMEs' innovation performance. Business model innovation mediates domestic and international collaboration networks-SMEs’ innovation performance relationships. Entrepreneurial orientation positively moderates international collaboration networks–SMEs’ innovation performance relationship, and government institutional support positively moderates domestic and international collaboration networks–SMEs’ innovation performance relationships.

Practical implications

The findings indicate that managers of SMEs should invest in domestic and international collaboration networks and business model innovation to enhance SMEs' innovation performance. Moreover, entrepreneurial orientation and government institutional support should be valued when SMEs try to enhance their innovation performance by embedding in domestic and international collaboration networks.

Originality/value

This study broadens the authors' understanding of the relationship between collaboration networks and firms' innovation performance by classifying collaboration networks into domestic and international dimensions and investigating their direct impacts on SMEs' innovation performance. Besides, this study reveals how and when domestic and international collaboration networks influence the innovation performance of SMEs.

Details

Business Process Management Journal, vol. 30 no. 2
Type: Research Article
ISSN: 1463-7154

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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.

1178

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. 25 no. 2/3
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 25 March 2020

Maitreyee Das and Krishnamachari Rangarajan

The influence of sustainability practices, especially those related to the environment and society in driving business growth is evident from the annual sustainability reports of…

1733

Abstract

Purpose

The influence of sustainability practices, especially those related to the environment and society in driving business growth is evident from the annual sustainability reports of big corporations. Also, there has been a plethora of research relating sustainability performance to the financial performance of these companies. However, in the case of small and medium-sized enterprises, a very limited research study has been done so far considering the societal and environmental aspects of their business operations. Small and medium enterprises (SMEs), especially those in the emerging economy have grossly neglected their responsibilities and obligations towards the environment and society. SMEs are considered as growth engines for any nation. However, literature has shown that a large percentage of SMEs across the world fail within a few years of their incorporation. This paper aims to verify the relationship between sustainability performance and business growth for SMEs in the developing economy.

Design/methodology/approach

In the paper, the authors have tried to develop a model taking a sample of 200 SMEs from Indian leather and chemical sectors and find out how the factors like collaborative synergy and government policy initiatives impact the sustainability performance of small and medium firms and how in turn, their improved sustainability performance helps them to drive sustainable business growth. Data were mainly collected through primary survey and also from the company websites.

Findings

Empirical results of the study reveal that both policy initiatives and collaborative synergy positively influence the firm’s sustainability performance and, in turn, the company’s business growth is positively impacted by their enhanced sustainability performance. Company size was found to have a moderating effect on this relationship.

Originality/value

There are theoretical and conceptual papers elaborating on the importance of adoption of sustainability practices in SME business operations but no empirical study has been conducted to mathematically relate the factors of sustainability and business growth. The authors have tried to build a model relating the factors of sustainability improvement with those of the business growth of the firm and also verified the influence of control variables like company size on the proposed relationship.

Details

Indian Growth and Development Review, vol. 13 no. 3
Type: Research Article
ISSN: 1753-8254

Keywords

Available. Open Access. Open Access
Article
Publication date: 31 August 2022

Diego Campagnolo, Catherine Laffineur, Simona Leonelli, Aloña Martiarena, Matthias A. Tietz and Maria Wishart

Against the theoretical backdrop of the embeddedness and the resilience literatures, this paper investigates if and how SMEs' planning for adversity affects firms' performance.

1623

Abstract

Purpose

Against the theoretical backdrop of the embeddedness and the resilience literatures, this paper investigates if and how SMEs' planning for adversity affects firms' performance.

Design/methodology/approach

The paper develops hypotheses that investigate the link between the risk management of immigrant-led and native-led SMEs and their performance and draw on novel data from a survey on 900 immigrant- and 2,416 native-led SMEs in 5 European cities to test them.

Findings

Immigrant-led SMEs are less likely to implement an adversity plan, especially when they are in an enclave sector. However, adversity planning is important to enhance the growth of immigrant-led businesses, even outside a crisis period, and it reduces the performance gap vis-à-vis native-led businesses. Inversely, the positive association between adversity planning and growth in the sample of native entrepreneurs is mainly driven by entrepreneurs who have experienced a severe crisis in the past.

Originality/value

This paper empirically uses planning for adversity as an anticipation stage of organizational resilience and tests it in the context of immigrant and native-led SMEs. Results support the theoretical reasoning that regularly scanning for threats and seeking information beyond the local community equips immigrant-led SMEs with a broader structural network which translates into new organizational capabilities. Furthermore, results contribute to the process-based view of resilience demonstrating that regularly planning for adversity builds a firm's resilience potential, though the effect is contingent on the nationality of the leaders.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 7
Type: Research Article
ISSN: 1355-2554

Keywords

Available. Open Access. Open Access
Article
Publication date: 30 August 2024

Wisdom Apedo Deku, Jiuhe Wang and Alexander Kofi Preko

This study aims to investigate the comprehensive conceptualization how digital marketing and its adoption increase the productivity of small and medium-sized enterprises (SMEs)…

6246

Abstract

Purpose

This study aims to investigate the comprehensive conceptualization how digital marketing and its adoption increase the productivity of small and medium-sized enterprises (SMEs), as well as the impact of technological orientation, customer relationship management and digital marketing on SMEsbusiness performance in emerging markets (EMs).

Design/methodology/approach

Anchored by social network theory, 178 SMEs were conveniently drawn from the National Board for Small Scale Industries now Ghana enterprise agencies in Ghana. The hypotheses were analysed using the SPSS package tool, and structural equation modelling was used, as well.

Findings

This study reveals that the conceptualization and adoption of digital marketing positively affect the performance of SMEsbusiness management in EMs. In addition, a positive moderating effect of dynamism is observed in the relationship between digital marketing and SMEsbusiness performance.

Research limitations/implications

This study focuses only on SMEs from the Greater Accra and Ashanti regions of Ghana as an EM, and it proposes priorities for future research streams in both developed and emerging countries.

Practical implications

The findings encourage SMEs to develop quality digital marketing technologies, good customer relationships and technological orientation and customer relationship management competencies in EMs to maximise profit.

Originality/value

This paper fills considerable knowledge, evidence and contextual gaps in the literature on SMEs, entrepreneurship and marketing in EMs by presenting a comprehensive overview of how SMEs can use digital marketing in an EM context to achieve the following: customer acquisitions, satisfaction and retention; increased profitability; quality service delivery; value creation; and cost reductions.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 18 no. 3
Type: Research Article
ISSN: 2071-1395

Keywords

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