The current paper investigates the role of political connections in firm performance under various conditions of market competition and institutions in Vietnam. By employing a three-year panel-data survey from 500 small and medium-sized enterprises and a fixed-effects model controlled for unobserved invariants, estimation results show that political connections with servants positively affect the performance of their firms when firm and industry effects and endogeneity of political connections are controlled. We also find that the positive impacts of political connections on firm performance vary with market competition, as in the case of Vietnam. We further find that political connections are significantly negative to firm performance in the conditions of weak market institutions in the case of Vietnam (the first stage of the institutional political connection hypothesis). In addition, there are no different institutional effects on firm performance between stages of the institution. Policies related to institutional development and corporate governance are recommended to foster firm performance and positive side-effects of political connections.
{"title":"POLITICAL CONNECTIONS and FIRM PERFORMANCE: EVIDENCE FROM VIETNAMESE SMES","authors":"T. Q. Ngo, Thuy Thi Viet Ha","doi":"10.53703/001c.94173","DOIUrl":"https://doi.org/10.53703/001c.94173","url":null,"abstract":"The current paper investigates the role of political connections in firm performance under various conditions of market competition and institutions in Vietnam. By employing a three-year panel-data survey from 500 small and medium-sized enterprises and a fixed-effects model controlled for unobserved invariants, estimation results show that political connections with servants positively affect the performance of their firms when firm and industry effects and endogeneity of political connections are controlled. We also find that the positive impacts of political connections on firm performance vary with market competition, as in the case of Vietnam. We further find that political connections are significantly negative to firm performance in the conditions of weak market institutions in the case of Vietnam (the first stage of the institutional political connection hypothesis). In addition, there are no different institutional effects on firm performance between stages of the institution. Policies related to institutional development and corporate governance are recommended to foster firm performance and positive side-effects of political connections.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140980912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Strategic management theory predicts that managers systematically scan their firms’ internal and external environments to identify possible factors that might impinge on their strategic plans and performance. Like many organizations, art galleries have been challenged over the past two decades by digital pressures such as social media and ecommerce. Lately, outfalls from the COVID-19 pandemic have added further to the woes of art galleries. This study examines how art galleries, as small businesses, respond to these significant contextual shifts. It is predicted that art galleries will implement innovative competitive strategies as a means to address the pandemic, ecommerce and digital market pressures. Ingenuity is a companion component of strategy and reflects the extent of creativity associated with innovation. These relationships were analyzed in a sample of art galleries located in resort destinations of the Rocky Mountains including Aspen, Bozeman, Jackson Hole, Park City and Sun Valley. Results from this study underscore the value for gallery owners and managers in instituting innovation as well as the value of ingenuity in creating distinctive competitive strategy. Different resort communities surfaced as leaders in cultivating innovation and ingenuity. Implications for practice and future research are considered.
{"title":"Competitive Responses by Art Galleries at Rocky Mountain Resort Destinations: Sufficient to Maintain Sustainability?","authors":"Howard Smith, Michael Turek, Gary Viers","doi":"10.53703/001c.89342","DOIUrl":"https://doi.org/10.53703/001c.89342","url":null,"abstract":"Strategic management theory predicts that managers systematically scan their firms’ internal and external environments to identify possible factors that might impinge on their strategic plans and performance. Like many organizations, art galleries have been challenged over the past two decades by digital pressures such as social media and ecommerce. Lately, outfalls from the COVID-19 pandemic have added further to the woes of art galleries. This study examines how art galleries, as small businesses, respond to these significant contextual shifts. It is predicted that art galleries will implement innovative competitive strategies as a means to address the pandemic, ecommerce and digital market pressures. Ingenuity is a companion component of strategy and reflects the extent of creativity associated with innovation. These relationships were analyzed in a sample of art galleries located in resort destinations of the Rocky Mountains including Aspen, Bozeman, Jackson Hole, Park City and Sun Valley. Results from this study underscore the value for gallery owners and managers in instituting innovation as well as the value of ingenuity in creating distinctive competitive strategy. Different resort communities surfaced as leaders in cultivating innovation and ingenuity. Implications for practice and future research are considered.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140981091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dina Dellyana, T. R. Fauzan, Anindia Pratiwi Putri
Measuring a company’s performance can help improve the positive aspects of its operations in addressing shortcomings. Innovative and change-oriented employees help the company’s performance improvement, increasing entrepreneurship awareness. Therefore, this study aims to determine how entrepreneurial awareness may be created by innovation and a proactive personality to enhance business performance. Players in Indonesia’s creative industries were given questionnaires, and SEM-PLS was used to process the data. The findings of this study demonstrate that entrepreneurial acuity, proactivity, and innovation significantly impact business performance. Entrepreneurial vigilance was also discovered to function as a mediator. The findings of this study have significant practical ramifications because, in addition to filling a research gap, they demonstrate that creative industry players must be more flexible and inventive to foster a creative work environment for their employees.
{"title":"Creativity and Proactive Personality as Triggers for Entrepreneurial Alertness in Improving the Business Performance of the Creative Industry in Indonesia","authors":"Dina Dellyana, T. R. Fauzan, Anindia Pratiwi Putri","doi":"10.53703/001c.94170","DOIUrl":"https://doi.org/10.53703/001c.94170","url":null,"abstract":"Measuring a company’s performance can help improve the positive aspects of its operations in addressing shortcomings. Innovative and change-oriented employees help the company’s performance improvement, increasing entrepreneurship awareness. Therefore, this study aims to determine how entrepreneurial awareness may be created by innovation and a proactive personality to enhance business performance. Players in Indonesia’s creative industries were given questionnaires, and SEM-PLS was used to process the data. The findings of this study demonstrate that entrepreneurial acuity, proactivity, and innovation significantly impact business performance. Entrepreneurial vigilance was also discovered to function as a mediator. The findings of this study have significant practical ramifications because, in addition to filling a research gap, they demonstrate that creative industry players must be more flexible and inventive to foster a creative work environment for their employees.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140978822","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper focuses on how the individual and community perceptions of workers in relation to their workspace, their community, and their work environment are related to their decision to stay in a job or start their own business in the context of Highly Specialized Communities (HSCs) in the garment industry in Mexico. We draw upon Mitchell et al. (2001) theoretical framework, which suggests that there are numerous threads that connect a company to its employees and their family in a social, physical, and financial network that includes friends, community, and environment where they live. Further, an extension to Mitchell and colleagues’ construct was designed in order to characterize those workers who develop entrepreneurial capabilities in this particular social context and are more likely to set up their own businesses. The analysis was carried out through an empirical study of a sample of 400 workers in micro and small enterprises (MSEs) in the garment industry. The results show that the relationship with the employer and the sacrifice perceived by the subjects for losing their job are variables that significantly intervene in the decision to remain in their job. At the same time, ties with the community positively and significantly increase the probability of entrepreneurship.
{"title":"Should I Stay or Should I Go? Job Embeddedness and Entrepreneurship in Highly Specialized Communities in Central Mexico","authors":"Dolly Ortiz, Osiel González Dávila","doi":"10.53703/001c.94171","DOIUrl":"https://doi.org/10.53703/001c.94171","url":null,"abstract":"This paper focuses on how the individual and community perceptions of workers in relation to their workspace, their community, and their work environment are related to their decision to stay in a job or start their own business in the context of Highly Specialized Communities (HSCs) in the garment industry in Mexico. We draw upon Mitchell et al. (2001) theoretical framework, which suggests that there are numerous threads that connect a company to its employees and their family in a social, physical, and financial network that includes friends, community, and environment where they live. Further, an extension to Mitchell and colleagues’ construct was designed in order to characterize those workers who develop entrepreneurial capabilities in this particular social context and are more likely to set up their own businesses. The analysis was carried out through an empirical study of a sample of 400 workers in micro and small enterprises (MSEs) in the garment industry. The results show that the relationship with the employer and the sacrifice perceived by the subjects for losing their job are variables that significantly intervene in the decision to remain in their job. At the same time, ties with the community positively and significantly increase the probability of entrepreneurship.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140978420","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Louis Marino, Patrick M. Kreiser, Younggeun Lee, Jacob Holwerda, Donald Kuratko
We investigate how entrepreneurial orientation (EO) and national culture influence the formation of a diversified strategic alliance portfolio, encompassing various cooperative agreements based on governance mechanisms and partner diversity. A diverse strategic alliance portfolio structured in this manner may be used by smaller firms to derive benefits from social capital and absorb environmental complexities, increasing firms’ ability to survive environmental dynamism. Empirical models are estimated using data from 529 small- and medium-sized enterprises (SMEs) located in five countries – Indonesia, Finland, Mexico, the Netherlands, and Sweden. Our findings indicate that SMEs with stronger EO are more likely to establish diversified strategic alliance portfolios. However, this effect is moderated by various national cultural factors (i.e., uncertainty avoidance, individualism, and masculinity).
{"title":"Getting by With a Little Help From Our Friends: Cultural Influences on Entrepreneurial Orientation and Strategic Alliance Portfolio Diversity in SMEs","authors":"Louis Marino, Patrick M. Kreiser, Younggeun Lee, Jacob Holwerda, Donald Kuratko","doi":"10.53703/001c.117032","DOIUrl":"https://doi.org/10.53703/001c.117032","url":null,"abstract":"We investigate how entrepreneurial orientation (EO) and national culture influence the formation of a diversified strategic alliance portfolio, encompassing various cooperative agreements based on governance mechanisms and partner diversity. A diverse strategic alliance portfolio structured in this manner may be used by smaller firms to derive benefits from social capital and absorb environmental complexities, increasing firms’ ability to survive environmental dynamism. Empirical models are estimated using data from 529 small- and medium-sized enterprises (SMEs) located in five countries – Indonesia, Finland, Mexico, the Netherlands, and Sweden. Our findings indicate that SMEs with stronger EO are more likely to establish diversified strategic alliance portfolios. However, this effect is moderated by various national cultural factors (i.e., uncertainty avoidance, individualism, and masculinity).","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140980187","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examined the use of social media platforms in business continuity by small and medium enterprises SMEs in Jordan during the COVID-19 pandemic. It also investigated the impact of social media quality on their use in the business continuity of SMEs. Quality variables examined for social media platforms included usefulness, ease of use, facilitation and low cost. These variables were measured by a questionnaire developed based on the questionnaires of previous studies. The results of the study revealed a statistically significant use of social media platforms in business continuity by small and medium enterprises during the Covid-19 pandemic. The results also indicated that there is a statistically significant effect of the variables of social media quality (usefulness, ease of use, facilitation and low cost) on their use in business continuity. This study concluded that social media has been extremely beneficial to the business continuity of SMEs during the pandemic period.
{"title":"The Impact of Social Media Quality on Their Use in Business Continuity of Jordanian Small and Medium Enterprises During the COVID-19 Pandemic","authors":"K. Alkhawaldeh, Wafa Alkayid","doi":"10.53703/001c.94168","DOIUrl":"https://doi.org/10.53703/001c.94168","url":null,"abstract":"This study examined the use of social media platforms in business continuity by small and medium enterprises SMEs in Jordan during the COVID-19 pandemic. It also investigated the impact of social media quality on their use in the business continuity of SMEs. Quality variables examined for social media platforms included usefulness, ease of use, facilitation and low cost. These variables were measured by a questionnaire developed based on the questionnaires of previous studies. The results of the study revealed a statistically significant use of social media platforms in business continuity by small and medium enterprises during the Covid-19 pandemic. The results also indicated that there is a statistically significant effect of the variables of social media quality (usefulness, ease of use, facilitation and low cost) on their use in business continuity. This study concluded that social media has been extremely beneficial to the business continuity of SMEs during the pandemic period.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140980663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study used empirical data to explore the impact of job design and employee involvement on Small and Medium-Sized Enterprises (SMEs’) performance. Data was collected from 367 employees of Ghanaian SMEs using random sampling. IBM SPSS 24 and AMOS-SEM were used for confirmatory factor analysis and to analyse the latent variables. The measurement model was tested on the entire dataset using exploratory factor analysis. The investigation demonstrated a strong fit for a four-factor hypothesis model. The study revealed a statistically significant beneficial relationship between job design and employee involvement in organisational performance. It also found a favourable correlation between job design, employee involvement and motivation. However, there was a negative correlation between employee motivation and organisational performance. The study uniquely focused on SMEs in an emerging economy like Ghana using financial sector tiers two and three. The implication is that job design and employee involvement improve SMEs’ performance and give them a competitive advantage. The study underlines the significance of job design and employee involvement in Ghanaian SMEs, mainly in the Greater Accra Region. This study is of great value as it informs policymakers and actors of small and medium enterprises of the need to appropriately design jobs that interest and elicit employee involvement and performance.
本研究利用实证数据探讨了工作设计和员工参与对中小型企业（SMEs）绩效的影响。研究采用随机抽样的方法，从加纳中小企业的 367 名员工中收集了数据。使用 IBM SPSS 24 和 AMOS-SEM 进行了确认性因素分析，并对潜在变量进行了分析。使用探索性因子分析对整个数据集的测量模型进行了测试。调查表明，四因素假设模型的拟合度很高。研究显示，在统计意义上，工作设计与员工参与组织绩效之间存在显著的有利关系。研究还发现，工作设计、员工参与和激励之间存在有利的相关性。然而，员工积极性与组织绩效之间存在负相关。这项研究以加纳这样一个新兴经济体中的中小企业为研究对象，采用了金融部门的第二和第三层结构。这意味着，工作设计和员工参与可以提高中小企业的绩效，并为其带来竞争优势。本研究强调了工作设计和员工参与对加纳中小企业（主要是大阿克拉地区的中小企业）的重要意义。这项研究具有重要价值，因为它让中小企业的决策者和参与者认识到，需要适当设计工作岗位，以激发员工的兴趣和参与，提高员工的绩效。
{"title":"Job Design and Employee Involvement on SMEs Performance: The Moderating Role of Employee Motivation","authors":"Emelia Ohene Afriyie, Eugene Owusu-Acheampong, Lawrencia Irene Opare Darko, Cynthia Oduro-Nyarko","doi":"10.53703/001c.94165","DOIUrl":"https://doi.org/10.53703/001c.94165","url":null,"abstract":"The study used empirical data to explore the impact of job design and employee involvement on Small and Medium-Sized Enterprises (SMEs’) performance. Data was collected from 367 employees of Ghanaian SMEs using random sampling. IBM SPSS 24 and AMOS-SEM were used for confirmatory factor analysis and to analyse the latent variables. The measurement model was tested on the entire dataset using exploratory factor analysis. The investigation demonstrated a strong fit for a four-factor hypothesis model. The study revealed a statistically significant beneficial relationship between job design and employee involvement in organisational performance. It also found a favourable correlation between job design, employee involvement and motivation. However, there was a negative correlation between employee motivation and organisational performance. The study uniquely focused on SMEs in an emerging economy like Ghana using financial sector tiers two and three. The implication is that job design and employee involvement improve SMEs’ performance and give them a competitive advantage. The study underlines the significance of job design and employee involvement in Ghanaian SMEs, mainly in the Greater Accra Region. This study is of great value as it informs policymakers and actors of small and medium enterprises of the need to appropriately design jobs that interest and elicit employee involvement and performance.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140981307","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The COVID-19 pandemic disrupted economies and societies around the world and forced many industries to rethink their operations. While the ambiguity in global economies and adapted modes of operation have considerably affected small businesses in the fitness industry, few insights have been provided into the adjustments that enabled these businesses to remain operational. This study hence adopts a qualitative approach to explore the adjustments made by small fitness businesses based on transitional business models during the COVID-19 pandemic. We conducted semi-structured interviews with key informants from small fitness businesses that had encountered restrictions and limitations due to the pandemic. The findings indicate that small fitness businesses chose a trial-and-error approach while developing their business model that allowed transitional adjustments in their value propositions as they developed resilience during the disruptions. Nevertheless, existing customers’ perceptions of service quality and loyalty served as an important buffer for ensuring customer retention.
{"title":"Adopting Transitional Business Models in Small Fitness Businesses in Response to Business Disruptions","authors":"Marko Budler, Katerina Božič","doi":"10.53703/001c.92989","DOIUrl":"https://doi.org/10.53703/001c.92989","url":null,"abstract":"The COVID-19 pandemic disrupted economies and societies around the world and forced many industries to rethink their operations. While the ambiguity in global economies and adapted modes of operation have considerably affected small businesses in the fitness industry, few insights have been provided into the adjustments that enabled these businesses to remain operational. This study hence adopts a qualitative approach to explore the adjustments made by small fitness businesses based on transitional business models during the COVID-19 pandemic. We conducted semi-structured interviews with key informants from small fitness businesses that had encountered restrictions and limitations due to the pandemic. The findings indicate that small fitness businesses chose a trial-and-error approach while developing their business model that allowed transitional adjustments in their value propositions as they developed resilience during the disruptions. Nevertheless, existing customers’ perceptions of service quality and loyalty served as an important buffer for ensuring customer retention.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140981997","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Thomas G. Pittz, Terry Adler, Kostas Alexiou, Mark P. Sharfman
The purpose of this research is to examine the effect of diversification on interfirm relationships. Given how extensively firms develop key relationships with customers, suppliers, and other stakeholders, understanding the role that interfirm (relational) strategies are affected by diversification likely will be quite informative. This is particularly true of small businesses, which are not as frequently studied by strategy scholars. A relational perspective suggests that investments in relationship-specific assets, substantial knowledge exchange, combinations of complementary resources and capabilities, and effective governance structures between supply/buyer firms in a partnership dyad can generate relational rents. A foundational predication within our research is that firm diversification will lead to more advantageous relationships with business partners, a hypothesis that we test through contract performance. In our study, we review 240 Research & Development and New Product Development contracts with supplier firms and the US Department of Defense that incorporated some form of risk-sharing between the buyer and supplier. We find that diversified firms engage in contracting with suppliers in a way that provides an advantage over their single-segment competitors in terms of total contract cost, the number of change proposals by engineers in contract work, and longer durations of government contracts. We also find that diversified small firms receive more of a benefit than their larger counterparts in terms of contracting advantage. Based on our findings, it is evident that managers of diversified firms provide advantage to their firms by being more accustomed to complex contractual arrangements than their single-segment firm counterparts. Our findings also suggest that enhanced opportunities for organizational learning are available to diversified firms who engage in contractual relationships. Relational contracts that feature risk-sharing between buyers and suppliers provide space for joint-learning, and it is likely that managers of diversified firms have more experience navigating these risk-sharing relationships. This is particularly influential in a dynamic marketplace as firms prioritize innovation and adaptability in order to thrive.
{"title":"Contractual Diversification Advantage: A Relational View of the Link Between Supplier Diversification and Performance","authors":"Thomas G. Pittz, Terry Adler, Kostas Alexiou, Mark P. Sharfman","doi":"10.53703/001c.92986","DOIUrl":"https://doi.org/10.53703/001c.92986","url":null,"abstract":"The purpose of this research is to examine the effect of diversification on interfirm relationships. Given how extensively firms develop key relationships with customers, suppliers, and other stakeholders, understanding the role that interfirm (relational) strategies are affected by diversification likely will be quite informative. This is particularly true of small businesses, which are not as frequently studied by strategy scholars. A relational perspective suggests that investments in relationship-specific assets, substantial knowledge exchange, combinations of complementary resources and capabilities, and effective governance structures between supply/buyer firms in a partnership dyad can generate relational rents. A foundational predication within our research is that firm diversification will lead to more advantageous relationships with business partners, a hypothesis that we test through contract performance. In our study, we review 240 Research & Development and New Product Development contracts with supplier firms and the US Department of Defense that incorporated some form of risk-sharing between the buyer and supplier. We find that diversified firms engage in contracting with suppliers in a way that provides an advantage over their single-segment competitors in terms of total contract cost, the number of change proposals by engineers in contract work, and longer durations of government contracts. We also find that diversified small firms receive more of a benefit than their larger counterparts in terms of contracting advantage. Based on our findings, it is evident that managers of diversified firms provide advantage to their firms by being more accustomed to complex contractual arrangements than their single-segment firm counterparts. Our findings also suggest that enhanced opportunities for organizational learning are available to diversified firms who engage in contractual relationships. Relational contracts that feature risk-sharing between buyers and suppliers provide space for joint-learning, and it is likely that managers of diversified firms have more experience navigating these risk-sharing relationships. This is particularly influential in a dynamic marketplace as firms prioritize innovation and adaptability in order to thrive.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140980738","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Some small and medium-sized enterprises (SMEs) in Sri Lanka have expanded and succeeded, while others have declined or remained stagnant. What variables impact the failure of entrepreneurs in small and medium-sized businesses? The objective of this study is to identify the characteristics of enterprises that have an impact on the success of SMEs in Sri Lanka. An exploratory case study was conducted to investigate the factors that impact business success. Qualitative comparative analysis with within-case and cross-case analysis was used to analyze the data. Results revealed a positive impact of personal values and attitudes, knowledge management and experience, skilled labor availability, local infrastructure availability, and access to finance on the SME’s success. Government policies and support do not play a significant role in the success of the SME.
{"title":"An Exploratory Case Study of the Factors Hindering the Success of Small and Medium Enterprises","authors":"Kahadawa Appuhamilage Sucharitha Navarathne","doi":"10.53703/001c.77456","DOIUrl":"https://doi.org/10.53703/001c.77456","url":null,"abstract":"Some small and medium-sized enterprises (SMEs) in Sri Lanka have expanded and succeeded, while others have declined or remained stagnant. What variables impact the failure of entrepreneurs in small and medium-sized businesses? The objective of this study is to identify the characteristics of enterprises that have an impact on the success of SMEs in Sri Lanka. An exploratory case study was conducted to investigate the factors that impact business success. Qualitative comparative analysis with within-case and cross-case analysis was used to analyze the data. Results revealed a positive impact of personal values and attitudes, knowledge management and experience, skilled labor availability, local infrastructure availability, and access to finance on the SME’s success. Government policies and support do not play a significant role in the success of the SME.","PeriodicalId":52115,"journal":{"name":"Journal of Small Business Strategy","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136033544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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