Strategic orientations and capabilities' effect on SMEs' performance

The role that the resources and capabilities of agricultural entrepreneurs play on both environmental performance (EP) and financial performance (FP) is still unclear. This study analyzes how small farms enhance EP and FP in an inland Portuguese region through the relationship between dynamic capabilities (DCs), entrepreneurial orientation (EO), and environmental sustainability commitment (ESC). Based on a sample of 160 fresh fruit farms and applying a partial least squares structural equation modeling (PLS-SEM), our study concludes that EO and ESC influence EP and FP positively.Hence, farms can achieve competitive advantage through mitigating their profound impacts on the environment as proposed by the natural resource-based view (NRBV).Farms are also improving DCs, but farmers respond to the higher environmental requirements of agricultural markets primarily through research and development (R&D) capabilities and not through marketing capabilities. Having as theoretical supports the NRBV and the DCs, our study contributes to a better understanding of the mechanisms through which entrepreneurs enhance EP and FP in sectors with high environmental impacts such as agriculture. The findings suggest that entrepreneurship training projects may enable farmers to approach food security as a market opportunity and not only as rules they must follow.

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“…Several works come out in support of the positive impact of MCs (Alnawas & Farha, 2019;Hao & Song, 2016) (Gellynck et al, 2015).…”

Section: Discussionmentioning

confidence: 98%

Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?

2021

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“…This study also shows that entrepreneurial orientation and marketing capability positively affect brand orientation; they can also affect the company's performance, both directly and indirectly. Similarly, brand orientation affects the MSEs' performance, both directly and indirectly, by producing a destructive effect instead of a synergistic effect on the marketing capability and MSEs' performance (Alnawas & Abu Farha, 2020). This finding suggests the significance of marketing capability and MSEs' performance increase (Alnawas & Abu Farha, 2020).…”

Section: Brand Orientationmentioning

confidence: 89%

“…Similarly, brand orientation affects the MSEs' performance, both directly and indirectly, by producing a destructive effect instead of a synergistic effect on the marketing capability and MSEs' performance (Alnawas & Abu Farha, 2020). This finding suggests the significance of marketing capability and MSEs' performance increase (Alnawas & Abu Farha, 2020). Therefore, it is hypothesized that: H4: Brand orientation has a positive effect on GoFood MSEs partners.…”

Section: Brand Orientationmentioning

confidence: 97%

Performance of GoFood MSEs Partnership: An Integration of Entrepreneurial Orientation, Marketing Capabilities, and Brand Orientation

Prastiwi¹,

Rohimat²

2020

Shirkah

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The current application of Gojek with its GoFood feature can serve the function as promotion media to consumers at the maximum extent for the Micro and Small Enterprises (MSEs) in the culinary business. Nevertheless, not all have been able to experience the improvement of this business performance in terms of the new application feature. Therefore, this study aims at investigating and analyzing the role of entrepreneurial orientation, marketing capability, and brand orientation to improve the performance of GoFood partnering SMEs. There were 112 samples of business partners in Surakarta participated in this study. The data analysis technique was by SEM using the application of AMOS 2.4. The research findings provide a conclusion that there is a significant effect of entrepreneurial orientation on marketing capabilities, brand orientation, and business performance. However, marketing capability and brand orientation were not proven to improve business performance; similarly, the mediation of entrepreneurial orientation through marketing capability and brand orientation was not supportive of business performance development. This study provides an actual contribution to the performance improvement of MSEs entrepreneurs through the digital application as an innovation and creativity of business players.

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“…The important role of SMEs is confirmed by many authors (Ključnikov et al, 2017;Pisar & Bilkova, 2019;Alnawas & Farha, 2020;Lewandowska & Stopa, 2018, 2019Kraus et al, 2020;Lima et al, 2020). Due to their irreplaceable role, it is necessary to create favorable conditions for their business.…”

Section: Literature Reviewmentioning

confidence: 96%

The Perception of Business Risks by SMEs in the Czech Republic

Dvorský¹,

Kozubíková²,

Bacová³

2020

CEBR

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This article aims to find out which business risks determine the perception of the business environment of small and medium-sized enterprises (SME) in the future. 454 SMEs from the Czech Republic participated in the case study by filling in an online questionnaire. Linear regression models were used to verify statistically significant causal relationships between selected indicators of business risks and respondents' perception of the future of business. The results show that selected indicators of the market, financial, personnel, legal and operational risk determine the perceived future of business. Strategic risk indicators do not significantly affect the perceived future of business. The most important indicators: market riskadequacy of sales of products and services; financial riskan indicator of the company's financial performance; personnel riskan indicator of employees' initiative to increase performance; legal riskan indicator of respondents' ability to understand the basic legal aspects and operational riskan indicator of the use of company capacities. All the indicators from above have a positive effect on the future perception of the company. Implications for Central European audience: The attitudes of small and medium-sized enterprises represent a certain degree of subjectivity (human factor), which does not always reflect the real position of the enterprise. However, it is the main representatives of SMEs (owners and top managers) who try to manage business risks to have a more positive perception of their future in the business environment in the Czech Republic. The results based on the business environment of the Czech Republic are important not only for the owners of SMEs, but also for state and non-profit institutions dealing with various forms of SME support.

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Strategic orientations and capabilities' effect on SMEs' performance

Cited by 24 publications

References 48 publications

Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?

Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?

Performance of GoFood MSEs Partnership: An Integration of Entrepreneurial Orientation, Marketing Capabilities, and Brand Orientation

The Perception of Business Risks by SMEs in the Czech Republic

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