Factors influence performance of B2B SMEs of emerging economies: view of owner-manager

Abstract

Purpose Small and medium enterprises (SMEs) of emerging economies play a key role in driving a country’s economic development. Business-to-business (B2B) SMEs of emerging economies play a key role in driving a country’s economic development. Past researchers have recognized that such impacts are simply magnified by B2B entrepreneurs. However, the performance of B2B SMEs and the contributory factors behind such performance has got limited attention. This study aims to explore factors impacting the performance of B2B SMEs of emerging economies as viewed by SME owner-manager. Design/methodology/approach In this study, we have taken Indian B2B SMEs as our focal point of study. Primary data has been collected from the owner-manager of auto component SMEs of India. This study has examined direct and indirect (mediating) effects of predictors on outcome variables. In this study, structural equation modelling was used through AMOS 22 and the default method-maximum likelihood for estimating the model. Findings The result shows that entrepreneurial orientation (EO), growth orientation (GO) and market orientation (MO) directly impact the performance of B2B SMEs. It also reveals that brand orientation (BO) mediates the relationship between EO, GO and MO and performance for B2B SMEs. The result advocates that for B2B SMEs operating in emerging economies, being brand-oriented is a prominent strategic move for sustainable performance. Originality/value The current empirical research to bridge the research gap in the context of B2B SMEs from emerging economies by exploring important factors, propose their impact on the performance of B2B SMEs and empirically test those hypothesized relationships. This study deciphers that being brand-oriented impacts the entrepreneurial spirit, growth objectives and market readiness of the B2B SMEs and, in turn, influences the performance of B2B SMEs. The study advocates that B2B SMEs from emerging economies should adopt a BO approach and they should invest in the brand-building process.