Business Performance of Leather MSMEs: The Role of Intellectual Capital, Innovation Capability, and Entrepreneurial Orientation

This study investigates the mediating effect of access to finance in the relationship between entrepreneurial orientation and MSME performance of women businesses in Kaduna State, Nigeria. To achieve this purpose, a sample size of 356 owners and/or managers who operate businesses in the Kaduna State and are registered in the Government Enterprise and Empowerment Program (GEEP) 2.0 were selected. The study employs a multi-stage sampling technique, incorporating Likert scale-based questions for data collection. Data analysis involves Partial Least Squares Structural Equation Modelling (PLSEM) using Smart PLS 4 and the results indicate a positive significant effect of entrepreneurial orientation on MSME performance of women businesses, suggesting that higher levels of entrepreneurial orientation are linked with enhanced performance. The Mediation analysis reveals that access to finance mediates the effect between entrepreneurial orientation and MSME performance of women businesses. The study recommends targeted financial support programs and enhanced financial inclusion to improve access to finance for women entrepreneurs. While acknowledging limitations, the research underscores the importance of entrepreneurial orientation and financial access in fostering the MSME performance of women businesses, providing valuable insights for policymakers, practitioners, and academics.

Objective - This study aims to examine the role of Market Learning Orientation (MLO) and Entrepreneurial Orientation (EO) in enhancing Innovation Capability (IC) to sustain the performance of Micro, Small, and Medium Enterprises (MSMEs) in Malaysia, specifically in the Fruits and Vegetables (FFV) contract farming sector. Methodology/Technique - Using a quantitative approach, primary data were collected from 228 FFV MSMEs through structured questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationships between MLO, EO, IC, and firm performance. Findings and Novelty – The results reveal that both MLO (β = 0.156, p < 0.05) and EO (β = 0.565, p < 0.01) significantly enhance IC, which, in turn, positively influences firm performance (β = 0.265, p < 0.05). While MLO and EO do not directly impact performance, their mediated effects through IC are significant. This study contributes to the literature by emphasizing the pivotal role of IC as a mediator in translating strategic orientations into measurable business outcomes. It offers practical insights for MSMEs to prioritize innovation and for policymakers to design programs fostering strategic and innovative practices. Type of Paper: Empirical Paper JEL Classification: G21, L26, O16. Keywords: Market Learning Orientation, Entrepreneurial Orientation, Innovation Capability, MSME Performance, Fruits and Vegetables Contract Farming, Malaysia, Business Sustainability. Reference to this paper should be made as follows: Fahim, N.A; Indiran, L. (2024). Strategic Orientations and Innovation Capability for Sustaining MSME Performance: Insights from the Agricultural Sector, J. Mgt. Mkt. Review, 9(4), 183 – 189. https://doi.org/10.35609/jmmr.2024.9.4(4)

The purpose of this study is to explain how innovation capability influences business performance by mediating the effect of Covid-19 risk perception and entrepreneurial orientation. This study's population consists of MSMEs in Bali's tourism and creative industries. Purposive sampling was utilized to choose 90 managers of MSMEs in the tourist and creative economy sectors. Path Analysis with SEM-PLS was employed as the analytical approach. The findings revealed that the COVID-19 Risk Perception had a negative and significant impact on business performance, but the Entrepreneurship Orientation had a positive and significant impact. Furthermore, COVID-19 Risk Perception had a negative and significant impact on Innovation Capability; while the Entrepreneurship Orientation had a positive and significant effect on Innovation Capability; and Innovation Capability had a positive and significant impact on business performance. In addition, Innovation Capability was able to mediate the influence of COVID-19 Risk Perception and Entrepreneurship Orientation on business performance. Therefore, it is important for MSMEs in the tourism and creative economy sectors in Bali to improve their Entrepreneurship Orientation so that they are able to build higher innovation capabilities in order to improve business performance in facing the risks of the COVID-19 pandemic.

The increasing growth of the coffee shop business with a fast and attractive expansion as a food & beverage industry in urban areas of Indonesia, especially Special Region of Yogyakarta has led to business competition between micro, small, and medium enterprises (MSMEs) which are required to use their ability to adapt, be competitive and improve business performance. The entrepreneurial orientation is claimed to important contributions to business success. This study aims to analyze the effect of entrepreneurial orientation on business performance. Partial Least Square-Structural Equation Modeling (PLS-SEM) analysis method is used to examine the effect of five dimensions of entrepreneurial orientation (innovative, proactive, risk-taking, autonomy, and competitive aggressiveness) on business performance. This research was conducted at 80 coffee shop MSMEs with the sampling technique using convenience sampling. The results showed that the dimensions of proactive, autonomy, and competitive aggressiveness were found to have a positive and significant effect on business performance, while the innovative and risk-taking dimensions did not affect significantly on business performance.

This study examines the direct influence of innovation capability, entrepreneurial orientation, and competitive advantage on the performance of small and medium sized enterprises (SMEs) in the traditional handicraft industry of Lombok, Indonesia. Employing the Resource Based View (RBV) and entrepreneurship theory, the research investigates how firm-level capabilities and strategic orientations contribute to organizational performance. Data were obtained from 96 SMEs through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that innovation capability and entrepreneurial orientation do not have a significant direct effect on SME performance, whereas competitive advantage has a strong positive effect. These results suggest that although innovation and entrepreneurial spirit are essential for long-term sustainability, their benefits materialize primarily through the creation of competitive advantage. This paper contributes to SME literature by confirming the pivotal role of competitive advantage in achieving superior performance in resource constrained contexts.

This study examines the impact of Intellectual Capital (IC), Relational Capital (RC), and Innovation Capability (INC) on the performance of Micro, Small, and Medium Enterprises (MSMEs), while also testing the moderating role of Innovation Capability. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that both IC and RC positively and significantly influence MSME performance. Intellectual Capital is identified as the most dominant factor, demonstrating that knowledge, skills, and organizational systems play a critical role in enhancing business efficiency and productivity. Relational Capital also contributes to performance by leveraging networks with customers, partners, and institutions as strategic resources. Furthermore, Innovation Capability emerges as a direct predictor of performance, underscoring its importance in building adaptability and competitiveness. However, its moderating effect on the relationship between IC, RC, and performance is not significant. These results provide strong empirical evidence for MSMEs to prioritize the management of intellectual and relational capital while strengthening innovation capability to achieve sustainable growth.

The main objective of this study is to examine the effect of entrepreneurial orientation on business performance of women own enterprises in North-West region of Nigeria. Data were collected from the women own enterprises operating in North-West region of Nigeria using a cross-sectional study design. The study adopted convenient and simple random sampling techniques to select the sample by using Krejcie and Morgan formula to selected 234 respondents. Questionnaires were distributed and collected through the personally-administered method. In analyzing the relationship among the study variables, Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the study hypotheses. This study finds that risk taking, competitive aggressiveness, and autonomy are important strategic orientations for the performance of women own enterprises in North-West region of Nigeria. Therefore, drawing upon liberal feminist theory, this study examined the roles of entrepreneurial orientation is buffering the influence entrepreneurial orientation on survival of women own enterprises. The also revealed that innovativeness does not support this expectation as innovativeness has a significant negative influences on business performance. Interestingly, entrepreneurial orientation has a significant positive relationship with business performance. Finally, this study has succeeded in validating the aforementioned conceptualization as well as advancing significant theoretical and practical contributions to both researchers and business owners/managers for further understanding on the influence of entrepreneurial orientation on the business performance. This study propose that this kind of study could be extended to microfinance bank services on business survival of women own enterprises.

Although there are several studies analysing how innovation capabilities influence export performance, this study aims to present the impact of a set of internal innovation capabilities on export performance of small and medium-sized firms (smes), with the mediating role of entrepreneurial orientation contingent upon the proactive or reactive behaviour of the firms to external stimuli. The study involves the analysis of 147 questionnaire‐based survey of managers from plastic manufacturing smes operating in Portugal that were subjected to a Partial Least Squares-Structural Equation Modelling (PLS-SEM) technique. The results show that proactive firms to external stimuli are not only better at innovating but also their entrepreneurial orientation capabilities underpin a better performance in international markets when compared with firms that react to external stimuli. This study has implications for smes aiming at increasing their export performance and innovativeness. For practitioners the findings of this study should enable smes owner/managers to better understand the possible impacts of innovation capabilities and entrepreneurial orientation on export performance, and thus lead to more effective smes management.

The nexus of technology orientation and green innovation performance: The potential mediating role of innovation capability

In the era of digital transformation, small and medium enterprises (SMEs) are required to enhance their innovation capacity and adapt to digital platform capabilities to remain competitive. This study aims to investigate the relationship between entrepreneurial SME performance, innovation capability, network capability, and digital platform capability. Using a quantitative approach, data were collected from 278 SMEs in Indonesia through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings demonstrate that entrepreneurial SME performance positively influences innovation capability and network capability. Furthermore, innovation capability significantly enhances both network capability and digital platform capability. However, digital platform capability is not directly influenced by entrepreneurial performance, indicating the mediating role of innovation. The findings also highlight the interdependence between innovation and network capability in strengthening digital capabilities. This study concludes that innovation plays a key mediating role in linking business performance to digital transformation. Practical implications suggest that SMEs must foster a culture of innovation and invest in digital skills and networking strategies. Theoretically, the study enriches the understanding of dynamic capabilities and digital transformation in the SME context.

This study explores the crucial role of Entrepreneurial Orientation (EO) in influencing the business performance of small and medium-sized enterprises (SMEs) within Malaysia's agricultural sector. Focusing on the EO dimensions of risk-taking, innovativeness, and proactiveness, the research aims to understand how these factors drive business success among agropreneurs. Data were collected through structured surveys administered to agricultural SMEs across diverse regions in Malaysia, and analyzed using SPSS for preliminary statistics and PLS-SEM (Partial Least Squares Structural Equation Modeling) to examine the relationships between EO dimensions and business performance. The findings reveal that risk-taking positively impacts business success, while misaligned innovativeness can have adverse effects. Proactiveness showed no significant impact, suggesting the need for further exploration of other factors contributing to agropreneurial success. This study highlights the importance of fostering a robust EO, emphasizing risk management, and aligning innovation strategies with market needs to enhance the competitiveness and sustainability of SMEs in Malaysia's agricultural sector. Keywords: Agropreneurs, Agricultural, Business Performance, Entrepreneurial Orientation, Malaysia, SMEs.

The aim of this paper is to examine the role of the knowledge management process as a mediating variable in the relationship between entrepreneurial orientation and organizational performance. This study employed a quantitative method and utilised a self-administered questionnaire. A total of 350 data were collected from the owners/founders of online businesses. A Partial Least Squares-Structural Equation Modelling (PLS-SEM) analysis was performed to test the proposed hypotheses of the study. The findings indicated that entrepreneurial orientation positively the knowledge management process, which in turn exerts a positive effect on the organizational performance of a company. Additionally, the indirect effect analysis revealed that the knowledge management process plays a significant role as a mediator between entrepreneurial orientation and organizational performance. The research fills a gap in the literature by considering a mediating variable in enhancing the relationship between entrepreneurial orientation and organizational performance. This research also provides a particular contribution to the literature and some suggestions for future research.

This study investigates the influence of intellectual capital (IC) on the performance of Public Service Agencies (Badan Layanan Umum Daerah - BLUD) in the Special Region of Yogyakarta, with innovation acting as a mediating variable. A quantitative approach was employed, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) on data collected from BLUDs in the specified region. The findings indicate that IC has a positive and significant effect on both BLUD performance and innovation. Furthermore, innovation is confirmed to partially mediate the relationship between IC and performance, with a substantial total effect of IC on performance. These results support the Resource-Based View and Dynamic Capabilities theories, emphasizing the crucial role of intangible resources and innovative capabilities in enhancing public organization performance. Practical implications suggest that BLUDs should prioritize strengthening IC management through human resource development, knowledge systems, and strategic collaborations, while simultaneously fostering a culture of innovation to improve service quality. This research contributes theoretically by confirming the mediation mechanism of innovation in the IC-performance relationship within the public sector context, and offers policy recommendations for optimizing BLUD operations.

<p>The rapid growth of MSMEs, particularly in Indonesia's laundry sector, presents challenges for business owners to improve performance amidst intense competition. This quantitative research involved 83 respondents, consisting of laundry business owners or managers in Jakarta, selected through purposive sampling. Data measurement was conducted using a 5-point Likert scale, and data processing employed the Partial Least Square-Structural Equation Modeling (PLS-SEM) method via SmartPLS version 4.1.0 software. This study aims to analyze the influence of Entrepreneurial Orientation, Growth Orientation, and Market Orientation on Business Performance, with Brand Orientation as a mediating variable. The results indicate that Market Orientation significantly affects Business Performance, while Entrepreneurial Orientation and Growth Orientation do not. Additionally, Brand Orientation does not mediate the relationships between the variables significantly. These findings highlight the critical role of market orientation and operational efficiency in improving MSME performance in the laundry sector. Thus, prioritizing customer needs and market-based strategies becomes essential to maintain competitiveness in the industry.</p>

Drawing on the Resource-Based View and the Dynamic Capabilities Theory, this study aims to investigate the effect of entrepreneurial orientation on small and medium-sized enterprises (SME) performance. Additionally, it examines the mediating role of market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. Finally, the study explores the sequential mediation effect of market orientation and learning orientation between entrepreneurial orientation and SME performance to understand how the joint mobilization of these strategic resources transforms entrepreneurial actions into superior organizational performance. This study adopts a quantitative approach, using convenience-based non-probability sampling to collect data from 113 managers of Moroccan SMEs operating across various sectors. The collected data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The results indicate that entrepreneurial orientation has a positive and significant direct effect on the performance of Moroccan SMEs. Furthermore, market orientation partially mediates the relationship between entrepreneurial orientation and SME performance. However, the mediating effect of learning orientation was found to be non-significant in the link between entrepreneurial orientation and SME performance. Finally, the study found the existence of a sequential mediation effect exerted by market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. This study is the first to explore the sequential mediating role exercised jointly and successively by market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. Notably, the entrepreneurial orientation of SME in Morocco has not been previously studied, offering a valuable contribution to the literature on emerging economies, which remains underexplored in entrepreneurial orientation research. Lastly, a surprising result emerges compared to previous studies: learning orientation does not play a mediating role between entrepreneurial orientation and performance, thus challenging the universality of this mechanism and opening new avenues for research into contextual factors, particularly in SMEs of developing countries.