Strategic Orientations and SME Performance: Moderating Effect of Absorptive Capacity of the Firm

H.M.A, Herath; Mahmood, Rosli

doi:10.5539/ass.v10n13p95

Cited by 14 publications

(12 citation statements)

References 78 publications

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“…Market risk can be defined as the strategic risk of SMEs which consists in the long-term retention of the existing customers and in the acquisition and retention of new customers and in the production of new products or delivery of new services (Rowland et al, 2019). Nothing but a sufficient number of customers allows SMEs to implement a reasonable sales volume which allows them to maintain their market position (Herath & Mahmood, 2014). The level of a company's competitiveness is largely based on two main factors of the competitive environment: customers and competitors (De Clercq et al, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Business risk management in the context of small and medium-sized enterprises

Dvorský

Belás

Gavurová

et al. 2020

Economic Research-Ekonomska Istraživanja

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The aim of this paper is to review the impact of entrepreneurs' attitudes toward the defined business risks on the perception of the future of small and medium-sized enterprises (SMEs). 454 SMEs from the Czech Republic (CR) participated in the research and completed an online questionnaire. Structural equation modelling and factor analysis were used to identify the causal relationships between the examined variables. Entrepreneurs' attitudes toward business failure also have a positive effect on the future of the SME. The perception of financial risk in positive indicators of financial performance and the perception of financial risk as part of the company's everyday life have the most significant impact on future business. Operational risk is reflected in the utilisation of corporate resources, reducing customer complaints about the quality of the company's products and the company's independence of a limited number of suppliers. The company's sales volume adequacy provides a source of market risk. It has the third strongest positive impact on the future business in the SME segment. The research results provide a valuable platform for the authors of national and regional development strategic plans looking for SME support and development as well as the authors of the relevant policies.

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Section: Literature Reviewmentioning

confidence: 99%

Business risk management in the context of small and medium-sized enterprises

Dvorský

Belás

Gavurová

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…Significant studies link either directly or through a moderator role the capacity of absorption with financial and/or economic outcome within organizations [55][56][57]. Nevertheless, some of those studies establish different effects on the results depending on the phase or dimension of the absorption capacity.…”

Section: Hypothesismentioning

confidence: 99%

“…Consequently, along with the study of the influence of the capacity of absorption on the prospective new innovation, we will also include the impact of efforts performed on the routines that form it and on the operating earnings, as it is a field that requires new research [57] due to the existence of contradictory results [55].…”

Section: Impact Of Innovation On Company's Turnovermentioning

confidence: 99%

Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations

2020

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In the context of potential absorptive capacity, the present work analyzes sources of knowledge through the adjustment between the typology of sources and innovative results. Different external sources can condition the later phases of knowledge absorption. In relation to external sources of knowledge, we enrich their treatment by considering other companies in the same group as deeper relationships. In addition, we analyzed the results regarding the generation of radical innovations with impact on income. The results show that company groups can reduce costs in the exchange of technological knowledge, not only to develop radical innovations but also to improve their economic performance. Furthermore, membership in a group allows a company to obtain a greater economic return when combined with assimilation resources.

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“…To evaluate the relations in the theoretical model, the instrument selected to measure ACAP was the one developed by Flatten, Engelen, Zahra, and Brettel (2011) used by relevant studies in various contexts (Adams, Flatten, Brinkmann, & Brettel, 2016;Herath & Mahmood, 2014). This instrument consists of 16 variables measured on a seven-point Likert scale.…”

Section: Figure 1 Conceptual Framework Of Acap and Organizational Pementioning

confidence: 99%

Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

2019

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Continuous innovation is considered a major challenge for companies. By deepening this issue, this article highlights the absorptive capacity, which is the ability to explore external knowledge. This study analyzes the extent to which absorptive capacity affects the organizational performance of Brazilian IT companies. A theoretical model containing three hypotheses related to potential absorptive capacity, realized absorptive capacity, and organizational performance is analyzed by using factor analysis and structural equation modeling using an instrument applied to 130 companies between the months of July and August of 2017. The results show significant relations between the dimensions of absorptive capacity and organizational performance, indicating that a characteristic of the technological market is translated by adaptation ability, which demonstrates the influence of potential and realized absorptive capacity in performance as explained by the firm’s dynamic capabilities. JEL Code: N76, O32, L25.

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Strategic Orientations and SME Performance: Moderating Effect of Absorptive Capacity of the Firm

Cited by 14 publications

References 78 publications

Business risk management in the context of small and medium-sized enterprises

Business risk management in the context of small and medium-sized enterprises

Participation in Group Companies as a Source of External Knowledge in Obtaining and Making Profitable Radical Innovations

Keep Innovating: Absorptive Capacity and the Performance of Brazilian Information Technology Companies

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