A Study on the Sustainable Growth of SMEs: The Mediating Role of Organizational Metacognition

Yoo, WangJin; Lee, Sang Jin

doi:10.3390/su10082829

Cited by 24 publications

(26 citation statements)

References 36 publications

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“…Sustainable growth literally refers to sustained success, which is the capacity of the business to accomplish its growth objective [60] within a specific period and given a particular context. Economists suggest that a company is considered capable of sustained growth if it grows at the average growth rate of the country's economy [61].…”

Section: Sme Sustainable Growth and Its Measurementsmentioning

confidence: 99%

Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire

et al. 2019

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In most countries, small and medium-sized enterprises (SMEs) play a key role in driving sustainable economic growth and job creation; hence, the need to investigate factors (e.g., entrepreneurial factors) that influence SMEs' sustainable growth (SMESG). This study provides an insight into entrepreneurs' abilities (EAs) that affect SMESG in Côte d'Ivoire (a middle-income economy located in the West African region) and an assessment of the extent to which entrepreneurial orientation (EO) influences the EA-SMESG relationship. By using data from 320 Ivorian SMEs, the results of hypothesis testing confirm an association between SMESG and each EA dimension (creativity, risk control, relationship, and opportunity detection ability), learning ability excepted. As for the moderating effect of EO, the innovativeness in entrepreneurship positively and significantly regulates the EA-SMESG relationship; proactiveness positively regulates the relationship between almost all EA dimensions and SMESG; and risk tendency regulates the relationship EA-SMESG for creativity and risk-control ability. Based on major findings, management implications are formulated in relation to promoting SMEs' sustainable growth. For example, in light of the impact of EA on SMESG, development actors can increase the efficiency of Ivorian SMEs through actions aiming at strengthening the abilities of entrepreneurs and managers.Sustainability 2019, 11, 7149 2 of 26 investigated external environment factors affecting the performance of SMEs in Côte d'Ivoire. They found that several external factors ranging from political to economic, technological, socioeconomic and government policies affect the performance of SMEs to a large extent. Later, Diabate et al. [6], through statistical tests, found an association between most firm and entrepreneur characteristics and growth among Ivorian SMEs.The concept of business growth is most often conjointly discussed with another key concept: Entrepreneurship. Entrepreneurship is a set of factors and actions that bring about development [8], which means positive growth, performance or stability. As an essential concept related to entrepreneurship, the term "entrepreneur" refers to the enterprise's owner [9], whose abilities-such as creativity, risk control, learning, building relationships and detecting opportunity-can influence the growth of his/her business [10][11][12][13]. According to Lumpkin and Dess [14], the entrepreneur's ability (EA) is most often captured and influenced by the entrepreneurial orientation (EO) that is the company's posture on entrepreneurship. Studies in both developed and less developed countries concluded that EO generally has a positive effect on the growth of enterprises. Hence, one of the solutions to the problems of SMEs is the adoption of EO.Since the recognition of entrepreneurial factors as growth determinants, practical studies on their impact on business growth have been welcomed everywhere; hence, several studies have been conducted about EA and SMEs' sustainable growth (SMESG). The...

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Section: Sme Sustainable Growth and Its Measurementsmentioning

confidence: 99%

Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire

et al. 2019

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“…Moreover, following previous studies, the exploration and exploitation are basically connected with the process of innovation and slack resources [23][24][25]55,56]. Since exploration and exploitation can be defined as opportunity-seeking and advantage-seeking, respectively [42,[57][58][59], those are affiliated with the firms' innovation system and affect their business performance [23][24][25]56,60,61]. Yet, each exploration and exploitation seems to have different impacts on contribution to business performance.…”

Section: Innovation Activities and Business Performancementioning

confidence: 92%

Strategies for Sustainable Business Development: Utilizing Consulting and Innovation Activities

Lee

Seo

2018

Sustainability

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This study explores strategies for sustainable business development via the process and performance of business consulting by using 200 samples of different industry sectors in South Korea. The main purposes of this paper are to build the consulting model framework and to analyze the relationships between consulting factors and consulting performance for establishing strategies for sustainable business development. First, the findings show that the support of CEOs for consulting projects and the innovation activities via exploration and exploitation (and ambidexterity) have higher impacts on the contribution to business performance than other consulting factors. Similarly, according to the results of IPMA, these variables are placed in a group of high importance and performance, so the findings indicate that the support of CEO and innovation activities play a central role in the consulting model. Second, the competency of CEOs for recognizing the awareness of newly changing market conditions and the importance of utilizing business consulting can serve as an engine to reach their sustainable business development. Moreover, the firms’ innovation activities via business consulting can increase their ability to utilize and absorb the external resources and knowledge for establishing strategies for sustainable business development. These abilities are used not only to induce their business innovation internally but also to pioneer new market opportunities amid a rapidly changing market environment.

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“…Some scholars [19,20] have measured the concept of business performance in terms of short-term profitability or long-term growth, where growth measures include items such as sales, sales growth, total assets growth, stock turnover, market share, revenue growth, and profit. Other scholars [21][22][23] insist that business performance measurement should include both financial (e.g., gross and net profit growth) and non-financial (e.g., growth in number of employees) indicators. Factors affecting the performance of the business, such as characteristics of the entrepreneur, characteristics of the firm, management strategies, and the influence of the external environment, constitute elements of a successful or non-successful business [24].…”

Section: Business Performance and Its Dimensionsmentioning

confidence: 99%

“…'Sustained' is defined by Cambridge Dictionary [32] as 'continuing for a long time'. Based on this definition and with regard to the objectives, this study simply defines the concept of 'sustainable growth' as the 'sustained success' resulting from the capacity of the business to accomplish and keep its objective of long-term growth [21,23,33]. In short, this study conceptualizes sustainable growth as a long-term perspective of growth [34].…”

Section: Sustainable Growth and Its Measurementmentioning

confidence: 99%

“…The three performance measurements, namely 'avoiding having to report a loss' (financial achievements), 'ability to repay creditors' (capacity of the business to meet its commitments) and 'avoiding having to close up over six months during the last four years of operation'(stability in doing business), describe circumstances specific to the SME's evolution. These conditions will inevitably result in the SME's sustainable growth, because a firm's survival stage is a deciding factor for sustainable growth [23,67].…”

Section: Framework For the Researchmentioning

confidence: 99%

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Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

et al. 2019

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Globally, small- and medium-sized enterprises (SMEs) play a key role in driving sustainable economic growth in both developed and developing countries. The main objective of this study was to investigate the firm and entrepreneur characteristics influencing the growth of SMEs in Côte d’Ivoire, with special insight into why this country has been a middle-income economy for decades despite its numerous economicpotentialities. Through IBM SPSS version 22.0, 19 hypotheses were tested using data from 160 SMEs operating in Côte d’Ivoire. The results from chi-square tests revealed an association between each of the ‘firm and entrepreneur characteristics’ and at least one of the three growth measurements. However, it was found thatkey factors such as ‘entrepreneur’s ‘age’, ‘work experience’ and ‘level of education’ do not play a role in SMEs’ sustainable growth in Côte d’Ivoire. Results from the binomial logistic regression confirmed that ‘ability to avoid reporting loss’ can be predicted based on ‘entrepreneur’s work experience’, ‘business sector’ and ‘source of funding’. Although this study has practical significance in the business sphere, its results may be of particular help to governments and policymakers in middle-income economies like Côte d’Ivoire for policy formulation and development of frameworks to enhance SMEs’ sustainable growth.

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A Study on the Sustainable Growth of SMEs: The Mediating Role of Organizational Metacognition

Cited by 24 publications

References 36 publications

Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire

Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire

Strategies for Sustainable Business Development: Utilizing Consulting and Innovation Activities

Do Firm and Entrepreneur Characteristics Play a Role in SMEs’ Sustainable Growth in a Middle-Income Economy like Côte d’Ivoire?

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