How international SME's vicarious learning may improve their performance? The role of absorptive capacity, strength of ties with local SMEs, and their prior success experiences

Ali, Imran; Ali, Murad; Salam, Mohammad Asif; Bhatti, Zeeshan Ahmed; Arain, Ghulam Ali; Burhan, Muhammad

doi:10.1016/j.indmarman.2020.04.013

Cited by 38 publications

(35 citation statements)

References 141 publications

(189 reference statements)

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“…Organizations require dynamic capabilities, such as absorptive capacity, to keep up with the rapidly changing environment ( Cohen and Levinthal, 1990 ; Martinez-Sanchez and Lahoz-Leo, 2018 ). The literature on innovation identifies a firm’s absorptive capacity as the main factor driving innovation ( Ali and Park, 2016 ; Ali et al, 2020 ). Earlier research has established that adopting innovative practices in manufacturing or service contexts requires a firm’s capacity to acquire, transmit, and apply internal and external knowledge ( Tseng and Hung, 2011 ).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“… Ali et al (2016) discover a favorable relationship between a firm’s innovativeness and overall sustainable performance. Further, Rajapathirana and Yui (2018) found a positive correlation between the innovativeness of SMEs and their overall performance ( Ali et al, 2020 ). However, scholars argue that organizations are more focused on the economic element than social and environmental ( Asadi et al, 2020 ).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“…This study establishes that GAC has a significant impact on GRIN and the SBP, both directly and indirectly. Since Cohen and Levinthal (1990) introduced the concept of absorptive capacity, many studies on absorptive capacity have developed within the topic of innovation theory ( Ali and Park, 2016 ; Ali et al, 2020 ). Although previous research has established the positive effects of absorptive capacity on innovation performance, the role of GAC on GRIN needs more investigation ( Chen et al, 2014 ; Qu et al, 2021 ).…”

Section: Theoretical Implicationsmentioning

confidence: 99%

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Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence From SMEs

2021

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Environmental degradation and global warming are major challenges to humankind in the twenty-first century. Thus, businesses are now adopting and incorporating more sustainable manufacturing methods to produce environmental products and services. It is inevitable for organizations to adopt green practices and achieve sustainable performance. This extant research addresses how to obtain sustainable development (SD) through green innovation (GRIN). The main purpose of this study is to develop a comprehensive model by integrating natural resource-based view (NRBV) and triple bottom line (TBL) framework. Three antecedents namely green absorptive capacity (GAC), sustainable human capital (SHC), and organization support (OS) were selected, and their influence was checked on GRIN of the SMEs from manufacturing sector. This study included all three factors of TBL: environmental, economic, and social sustainability in terms of GRINs possible consequences. Data were randomly collected from 304 firms in the kingdom of Saudi Arabia through questionnaire. Convergent and discriminant validity analyses were conducted to assure validity and reliability, and structural equation modeling (SEM) was utilized to assess the relationships between variables using smartPLS 3.0 software. Further, firms were categorized into two groups based on company size—small and medium—to explore group differences. Hence, firm size was included as a moderator in the proposed model and multi-group analysis (MGA) was performed. The results indicate that GAC, SHC, and OS have positive influence on GRIN within SMEs. Further, results reveal GRIN had strong significant impact on all three variables of sustainable performance. The study concludes with MGA results that provided evidence of significant group differences, with a stronger relationship between GAC and GRIN in medium-sized firms compared to small-sized firms. Similarly, the relationship between GRIN and environmental performance was stronger in medium-sized firms than small-sized firms. This study is unique and provides practical and theoretical implications. This paper offers an integrative model for sustainability which may be of interest to scholars, marketers, and policymakers.

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Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Section: Theoretical Implicationsmentioning

confidence: 99%

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Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence From SMEs

2021

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“…In the first stage, items were used to generate the latent variables of cognitive, normative, and regulatory institutions. In the second stage, the latent variables of the three first‐order constructs served as manifest variables for the institutional entrepreneurial environment in a separate second‐stage analysis (Ali et al, 2019; Ali, Ali, Grigore, et al, 2020; Ali, Ali, Salam, et al, 2020; Khan et al, 2018; Razzaq et al, 2019). The assessment of the institutional entrepreneurial environment as a second‐order construct was also confirmed, as it had a positive correlational weight (0.86 cognitive institutions, 0.78 normative institutions, and 0.84 regulatory institutions) and was significant at the 0.001 level (Khan et al, 2018; Razzaq et al, 2019; Sarstedt et al, 2019).…”

Section: Resultsmentioning

confidence: 99%

“…PLS‐SEM is an appropriate analytical procedure for using composite indicators. It involves testing the complex behavior among the constructs and thus can be used for prediction‐oriented research as well as focusing on the exploratory nature of the research objectives and theory development (Ali, 2021; Ali, Ali, Salam, et al, 2020; Latan, 2018; Shujahat et al, 2020). PLS‐SEM is also a suitable procedure for testing mediation, moderation, moderated mediation, and mediated moderation.…”

Section: Methodsmentioning

confidence: 99%

Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?

et al. 2021

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Although entrepreneurial orientation (EO) at the firm-level is often conceptualized as a direct antecedent of performance, the findings of previous studies lending support to this association are inconsistent. Consequently, drawing on the attraction/ selection/attrition and institutional theories and employing the moderated mediation analysis approach, this study conceptualizes the individual perception of a firm's EO or individual entrepreneurial orientation (IEO). It examines the direct and indirect effects of IEO on individual outcomes measured in terms of performance expectation, job involvement, and organizational commitment. More specifically, it examines whether these effects are mediated by value congruence and moderated by the institutional entrepreneurial environment to understand these inconsistent findings better. Using a sample of 398 environmentally concerned small and medium-sized enterprises (SMEs) in South Korea, partial least squares structural equation modeling (PLS-SEM), and the PROCESS macro were employed to analyzed the research model. This study finds that value congruence mediates the association between IEO and performance expectation, job involvement, and organizational commitment. The moderated mediation model analysis also suggests that the mediating role of value congruence increases as the level of the institutional entrepreneurial environment increases. These findings offer useful theoretical and managerial implications of the IEO on individual outcomes.

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Relational capital, environmental knowledge integration, and environmental performance of small and medium enterprises in emerging markets

Zahoor

Gerged

2021

Bus Strat Env

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Although several prior studies have examined associations between firm social capital and environmental sustainability, the links between relational resources (i.e., relational capital and ties strength), environmental knowledge integration, and environmental performance have yet to be well established at the micro‐level. This study, therefore, aims to determine (1) how environmental knowledge integration serves as a mediating mechanism for the relationship between relational capital and environmental performance and (2) how this impact differs at different levels of ties strength. A quantitative approach has been adopted to examine the main hypotheses using a structural equation model (SEM) technique. Two groups of actors were surveyed, including chief executive officers (CEOs) and financial officers of small and medium‐sized enterprises (SMEs) operating in Dubai, United Arab Emirates. In total, 216 survey responses were gathered, suggesting a response rate of 73.22%. Our findings suggest that environmental knowledge integration is a vital mediating mechanism for the relationship between relational capital and SMEs' environmental performance. Also, we find that ties strength moderates the indirect effect of relational capital on SMEs' environmental performance via environmental knowledge integration. Our empirical evidence provides recommendations for SMEs' managers and policymakers to promote environmental sustainability in the emerging market context.

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How international SME's vicarious learning may improve their performance? The role of absorptive capacity, strength of ties with local SMEs, and their prior success experiences

Cited by 38 publications

References 141 publications

Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence From SMEs

Determinants of Green Innovation to Achieve Sustainable Business Performance: Evidence From SMEs

Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?

Relational capital, environmental knowledge integration, and environmental performance of small and medium enterprises in emerging markets

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