The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective

Nakku, Victoria Brenda; Agbola, Frank W.; Miles, Morgan P.; Mahmood, Amir

doi:10.1080/00472778.2019.1659671

Cited by 96 publications

(99 citation statements)

References 82 publications

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“…Third, there is evidence for a positive correlation between subjective performance assessments and other objective measures that use accounting or financial data (Geringer and Hebert, 1991;Christoffersen et al, 2014). Lastly, our use of subjective measures is also in line with several recent studies on interfirm collaboration, government support and SME performance (e.g., Ibrahim and Mustapha, 2019;Danso et al, 2016;Neneh, 2018;Thongsri and Chang, 2019;Nakku, et al, 2020). Therefore, taking into account the setting for the study, the SME context and in following past research, this study finds it reasonable to use a subjective measure to capture SME performance.…”

Section: Methodssupporting

confidence: 85%

The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy

Zulu-Chisanga

Chabala

Mandawa-Bray

2020

JEEE

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Purpose Notwithstanding that there has been increasing attention on factors that enhance SME performance in developing economies, there is a dearth of studies explicitly investigating the roles of government support systems and inter-firm collaboration. Drawing on the resource-based view (RBV) of the firm and institutional theories, this study aims to model and examine how government support, inter-firm collaboration and managerial ties affect SME performance and further explores how firm specific resources mediate the relationships. Design/methodology/approach A quantitative research design was used. Data were collected using a structured questionnaire from 438 SMEs operating in Zambia, a developing Sub-Saharan African country. Hierarchical linear regression and SPSS PROCESS macro were used to test the hypotheses. Findings Findings indicate that managerial ties have both a direct and indirect effect, through firm resources, on financial performance. Also, the relationship between inter-firm collaboration and financial performance is fully mediated by firm resources. Surprisingly, results reveal that government support does not have a significant effect on SME financial performance. Practical implications The study has important implications for SME managers and policy makers. It demonstrates that inter-firm collaborations and managerial ties enhance a firm’s financial performance. It also highlights the view that SMEs need to have firm specific resources to transform external resources, accessed from inter-firm relationships, into superior performance. SME policy makers are advised to focus more on policies and support mechanisms that promote inter-firm relationships at firm and managerial levels. Originality/value This study is one of the few studies to empirically show that the differential effects of inter-firm collaboration and managerial ties on SME performance are channeled through firm resources, in an under-researched developing Sub-Saharan African economy context. The study is also one of the few studies to reveal that government support is not significantly related to SME performance. Therefore, it provides valuable insights which could be applied to other developing countries with characteristics similar to Zambia.

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Section: Methodssupporting

confidence: 85%

The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy

Zulu-Chisanga

Chabala

Mandawa-Bray

2020

JEEE

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“…Sriviboon [21] suggested that technology adoption and innovation performance are critical for organizations' success, which can be significantly predicted through entrepreneurial orientation [22,23]. According to Wu and Gong [24], innovation performance consists of the firm's indulgence in technology, development of economic and innovation goals and attaining them through technology evolution, proficient business policies and advanced research and development capabilities.…”

Section: Introductionmentioning

confidence: 99%

Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM

et al. 2021

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Entrepreneurial orientation has become an enormously significant construct in the innovation studies literature. Predominantly for SMEs, its role has been widely recognized in almost all regional contexts across the globe. The present study is aimed at investigating the effects of entrepreneurial orientation, transformational leadership and organizational commitment on innovation performance. The data for the present study were collected from 1095 employees working at various levels in SMEs. The present study used partial least square structural equation modeling to examine the constructed hypotheses. The findings suggested the significantly positive direct relationships among entrepreneurial orientations, organizational commitment and innovation performance. Besides, organizational commitment positively mediated the relationships between entrepreneurial orientation and innovation performance. Additionally, this study also found the significant moderation of transformational leadership among entrepreneurship orientation and organizational commitment. Leaders of small and medium-sized enterprises should practice entrepreneurial orientation (innovativeness, proactiveness, and risk-taking) and transformation leadership (articulating a compelling vision, focus on goal achievement, and creative problem solving) to enhance the innovation performance of their firms. Moreover, this study provides a robust mechanism for leaders at SMEs to develop strategies for enhancing the willingness of the firms to bring innovation and offer new products and services. The policymakers should enhance the emotional attachment of employees with their firms, sense of moral obligation to remain with the firm which will, in turn, increase the organizational commitment of employees for innovation performance. The study provides empirical evidence to the resource-based view in the context of SMEs. The study delivers solid theoretical and practical implications to experts, leaders and policymakers.

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“…Государственное регулирование развития аграрного малого и среднего бизнеса в Липецкой области имеет сходство с политикой стран Западной Европы и Азии [11,16], реализуемой в этом направлении. Оно базируется на системе нормативно-правового регулирования, мероприятиях государственной имущественной и финансовой поддержки, предоставляемой 1.…”

Section: материалы и методыunclassified

Strategic parameters for the development of small and medium-sized businesses in the agricultural sector

Мандрова¹,

Shirobokov

Zakshevskaia

2021

Vestn. Voronež. gos. univ. inž. tehnol.

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The article contains proposals for the development of state regulation of the functioning of small and medium-sized businesses in the most problematic and risky sector of the economy – the agricultural one. The necessity of developing a system of concession agreements with the aim of leveling the specific problems of small and medium-sized agricultural businesses has been substantiated. The directions of public-private partnership (logistics centers for storage and processing of agricultural products, etc.) are proposed. The authors present a methodology for calculating the cost of a tax patent for the potential basic yield of 1 hectare of agricultural land used by households in order to generate regular income, contributing to the transformation of such households into the category of small businesses. Three strategic scenarios for the development of small and medium-sized businesses in the Lipetsk region have been developed: baseline – maintaining the existing measures of state regulation and the amount of financial support provided for by the Strategy for the Development of the Region until 2024; optimistic, providing for the development of small and medium-sized agricultural businesses with the activation of public-private partnership in the form of concession agreements; target, based on the parameters of an optimistic scenario with the introduction of a tax patenting system on the territory of the region of the potential basic profitability of 1 hectare of land. When determining the strategic parameters for the development of small and medium-sized businesses in the agricultural sector in the Lipetsk region until 2024, the negative trends in the country's economy due to the coronavirus pandemic were taken into account. We have proved that the implementation of the proposed measures to improve the system of state regulation of the functioning of small and medium-sized businesses in the agricultural sector will have a positive effect on the dynamics of the development of this sector of the economy in the region.

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The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective

Cited by 96 publications

References 82 publications

The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy

The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy

Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM

Strategic parameters for the development of small and medium-sized businesses in the agricultural sector

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