Journal ArticleDOI
Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance
TLDR
In this article, a sample consisting of 1,668 small-to-medium sized enterprises (SMEs) in nine countries across 13 different industries was used to provide a finer-grained analysis of the EO-performance relationship.Abstract:
Previous studies have generally established a positive relationship between aggregated measures of entrepreneurial orientation (EO) and firm performance. However, there are theoretical reasons suggesting that three dimensions of EO (innovativeness, proactiveness, and risk-taking) may possess differential relationships with performance in smaller firms. This study utilizes a sample consisting of 1,668 small-to-medium sized enterprises (SMEs) in nine countries across 13 different industries to provide a finer-grained analysis of the EO-performance relationship. Specifically, we theorize and test a non-monotonic influence of innovativeness, proactiveness, and risk-taking on SME performance. Innovativeness and proactiveness displayed predominantly positive U-shaped relationships with SME performance. Risk-taking, however, displayed a predominantly negative U-shaped relationship with SME performance. Further, individualism was found to positively moderate the relationships between innovativeness-performance and proactiveness-performance. Taken together, these results suggest that differential relationships exist between three dimensions of EO and SME performance, with important theoretical implications for future EO research.read more
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Journal ArticleDOI
Evaluation of Small and Medium Sized Enterprise Innovation Performance Growth in Malaysia
TL;DR: In this paper, the authors investigated the innovation practices among the SMEs, in order to enhance their business growth performance in the Malaysian market Data from a sample of 413 respondents from SMEs in the construction, service and manufacturing sectors was collected by means of a structured questionnaire The sampling technique/procedure used was the stratified random sampling in other to analyze the hypothesis model.
DissertationDOI
SME performance: the role of networking, innovation breadth, and business model design
Abstract: Because small and medium-sized enterprises (SMEs) are pivotal to the health and vibrancy of economies, it is crucial for researchers to understand the factors that significantly underlie SME performance. Two of the most widely identified antecedents to SME performance are innovation and networking. However, despite widespread attention, the theoretical and empirical status of the relationships between innovation, networks and SME performance remain uncertain. Some researchers note that claims regarding a direct positive relationship between innovation and networks with performance fail to adequately account for the variables that mediate this relationship. In contrast, while much research has been undertaken into the performance benefits of innovation and networks, the exponential increase in the number of publications heralding the performance benefits of business model design and business model innovation received very scant empirical support, almost non-existent for SMEs. Business model design is seen as a powerful mechanism for unlocking and enhancing the value of business processes, including innovation. Empirical evidence presented in this thesis tangibly supports this assertion and thus creates a more solid foundation for future development of the business model view of the firm. The purpose of this thesis, comprising four studies, is to theorise and research the nature of the relationship between innovation breadth, networks and business model design with SME performance. The central research question of this thesis asks: How do innovation breadth, networks and business model design relate to SME performance? Study One systematically reviews a large sample of SME growth and performance literature to identify and interpret emergent concepts, themes, trends and gaps. Study One backgrounds the three empirical studies that that follow to argue, using Resource-Based Theory, that the resources required for developing competitive advantage are both physical and intangible; of the two, intangible resources have the greatest strategic potential. In other words, the thesis finds that SMEs lacking physical resources could develop more sustainable competitive advantage by relying more heavily on leveraging path dependent, socially complex, and causally ambiguous intangible resources. Social capital and technological competence, associated with networks and innovation, represent highly desired intangible resources. Business model design organises these resources to create value for the customer. Therefore, innovation across the elements of the business model when designing or reconfiguring the SME’s business model acts as dynamic capabilities that enhance SME performance. The systematic literature review is followed by three empirical studies that use longitudinal and cross-sectional datasets of Australian SMEs. Study Two introduces the concept of innovation breadth, as the number of distinct types of innovation that firms use, or their innovation diversity, and examines the linearity and temporality of its relationship with SME performance. This examination both confirms it to be positive and provides evidence of the diminishing and negative returns of innovation breadth. Such diminishing and negative returns are directly related to increased innovation breadth and the time lag between innovation implementation and performance measurement. Studies Three and Four examine the mediation effect of innovation breadth on the relationship between networks and SME performance (Study Three) as well as the mediation effect of business model design themes on the relationship between innovation breadth and SME performance (Study Four). The combined findings from the last three studies provide sound support that maintaining strong heterogeneous network ties will improve SME performance, but only when the social capital embedded in such network relationships supports innovation breadth. In addition, persistent implementation of moderate levels of innovation breadth would optimise SME performance, but the performance benefits of such innovations would only be unlocked if it is implemented within a coherent business model, designed around the novelty or transaction efficiency themes as primary value drivers. Collectively, the four empirical studies contribute to the SME innovation field by more precisely explaining the relationships between innovation breadth, networks, business model design and SME performance. This thesis therefore highlights and confirms the importance of intangible assets for SME performance and also accounts for the intermediate processes that translate these resources into SME performance by showing that innovation breadth and business model design act as dynamic capabilities. SMEs are advised to focus on building network relations that foster innovation breadth, to focus their innovation activities during any given year by limiting innovation diversity and to focus the design of their business models around either the novelty or efficiency value themes. Such knowledge offers guidance for SME managers who believe that all networking and innovation investments will improve their SME performance. Given the potential costs and risks of networking, innovation and business model design activities to SMEs, practitioners and policymakers are informed about the potential dangers of overextending limited resources and capabilities. A better understanding of how wide SMEs should cast their innovation net, how to construct optimal network structures, and how to design business models along dominant value themes may therefore greatly benefit theory, policy and practice.
Dissertation
A Framework for service solution provision in professional service firms : transforming brand oriented people and knowledge oriented processes into superior service solution and brand equity
TL;DR: In this article, De Luca et al. developed a theoretical framework underpinned by the solution with a specific focus on customer cooperation in service provision process (CCSP) to develop its theory in the context of professional service firms.
Journal ArticleDOI
Challenges in Financing Small and Medium Enterprises in Palestine
Mohammed Bayyoud,Nermeen Sayyad +1 more
TL;DR: In this article, a qualitative closed-ended survey was carried out for collecting data from managers and owners of 35 businesses in Palestine, and the results showed that the Obstacles facing the growth of small enterprises in Palestine by respondents were weakness of representative organizations that defend the interests of small businesses, as well as Lack of legal frameworks and incentives for small businesses.
Journal ArticleDOI
International growth of SMEs: exploring the effects of adaptive selling, institutional knowledge, innovativeness and opportunity recognition
Hashem Aghazadeh,Farzad Zandi +1 more
TL;DR: In this article, the authors investigate the effects of adaptive selling, as a high-level individual-level marketing capability, institutional knowledge, international opportunity recognition and general innovation-orientation of managers on the international growth of Iranian small and medium-sized enterprises.
References
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Book
Multiple Regression: Testing and Interpreting Interactions
Leona S. Aiken,Stephen G. West +1 more
TL;DR: In this article, the effects of predictor scaling on the coefficients of regression equations are investigated. But, they focus mainly on the effect of predictors scaling on coefficients of regressions.
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Culture′s Consequences: International Differences in Work-Related Values
TL;DR: In his book Culture's Consequences, Geert Hofstede proposed four dimensions on which the differences among national cultures can be understood: Individualism, Power Distance, Uncertainty Avoidance and Masculinity as mentioned in this paper.
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TL;DR: Applied Linear Statistical Models 5e as discussed by the authors is the leading authoritative text and reference on statistical modeling, which includes brief introductory and review material, and then proceeds through regression and modeling for the first half, and through ANOVA and Experimental Design in the second half.
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Risk, Uncertainty and Profit
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
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G. T. Lumpkin,Gregory G. Dess +1 more