Abstract
PurposeThe underlining study’s main objective is to examine how networking structure (density and centrality) affects sustainable competitive performance in Pakistan’s SMEs.Design/methodology/approachHence, small enterprises a significant source of economic development, employment, and value creation. Therefore, on the base of previous literature, we developed hypothesis related government financial support and network structure, and data collected through structured questionnaires from top management of SMEs.FindingsThe results indicate that density has a positive and significant effect on sustainable competitive performance, while centrality has an insignificant impact on SCP. Furthermore, government financial support strongly and significantly supports the relation between networking structure and SCP in Pakistan.Practical implicationsThis research has several recommendations for the government to adequately support small enterprises because owners have a networking system at the local and international level but have a lack of environment.Originality/valueGovernment plays a crucial role in small- and medium-sized enterprises boost performance and economic growth because it creates employment opportunities, poverty reduction, and economic development. Nevertheless, from the last decades, due to some organizational policies and environmental flexibility, SMEs face a lot of challenges which became a barrier such as lack of government subsidies, incentives, and taxes in emerging economies. To bridge the above challenges of SMEs, the current study is conducted because before this there was no such literature who underline the current challenges in emerging economies.
Highlights
In the current knowledge-based economy, small enterprises have become one of the most significant drivers of economic development, employment creation, and poverty reduction (Doh & Kim, 2014)
We found that network structure density has a positive and significant relationship with government support (r = 0.25, p < 0.01), while network structure centrality has a positive and significant correlation with government support (r = 0.47, p < 0.01)
The current study examines the influence of networking structure on sustainable competitive performance in the Pakistani context, and government support matters in this relationship
Summary
In the current knowledge-based economy, small enterprises have become one of the most significant drivers of economic development, employment creation, and poverty reduction (Doh & Kim, 2014). Like Bilal, Khan, and Akoorie (2016) suggested that due to lack of resources and dynamic capabilities, an organization cannot gain sustainable competitive performance because resources (internal and external) are core drivers for SMEs survive in the underdeveloped economies (Joo & Suh, 2017). Smalland medium-sized enterprises are desired to connect with financial and non-financial institutions of government bodies to build networking culture with an international organization and find new opportunities in the market (Songling, Ishtiaq, Anwar, & Ahmed, 2018), because lack of external resources of SMEs with external suppliers and customers are significantly affected through the unavailability of support from the government (Bilal et al, 2016; Mbonyane & Ladzani, 2011)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
